Progressive Caucus aldermen and child care workers held a last-minute press conference at City Hall yesterday calling on the General Assembly to pass a bill that would restore cuts Governor Rauner made to a state-run child care program.

Two ordinances that would designate attacks on military personnel as hate crimes will be taken up during a joint meeting held by the City Council’s Finance and Public Safety Committees at 10:00 a.m. this morning.

The Committee on Housing & Real Estate is expected to advance Mayor Emanuel’s plan to sell off four city-owned parking lots in River North for $12.4 million dollars.

City Treasurer Kurt Summers projects his office will generate an additional $38 million in new revenue next year by investing more of the City’s cash on hand. Summers provided more details how he plans to do that, as well as giving a general update on the city’s investment portfolio during a public conference call yesterday afternoon.

October was a slow fundraising month for the City Council, while fundraising heavyweights Zoning Chairman Danny Solis (25), Finance Chairman Ed Burke(14), and downtown alderman and Vice Mayor Brendan Reilly (42) eased up during last month’s budget talks.

Backroom negotiations, last minute concessions, and waves of phone calls to Aldermen from the Mayor’s office, coupled with a fear that there were no alternatives, ultimately helped pass Mayor Rahm Emanuel’s nearly $8 billion budget, historic property tax hike, and a new monthly garbage fee Wednesday.

According to our conversations with aldermen, the first important move was to take something office the table. In the week leading up to the budget vote, mayoral staffers assured aldermen 311 privatization wouldn’t happen. Then, Mayor Emanuel agreed to cap the $9.50-a-month garbage fee through the next election, and put the new revenue in an enterprise fund solely dedicated to trash collection. He agreed to working on implementing a rebate program to help mitigate the impact of his property tax increase should Springfield fail to pass the homeowners exemption in time.

Those and other privately-made concessions were just enough for some aldermen to flip their vote. Of the ten aldermen who opposed the Mayor’s revenue plan when it was voted on in Finance Committee October 19th, four switched their vote.

The most notable switch was Ald. John Arena (45), a member of the Council’s Progressive Caucus, a “no” to last year’s budget, and one of the Mayor’s biggest targets in this year’s election. When Aldertrack spoke to Arena yesterday to ask if he made a separate deal with the Mayor to help sway his decision, he replied, “No, I don’t really deal that way.”

Arena said he voted in favor of the budget because it finally addressed fundamental issues he had with budgets from prior years: too much dependence on borrowing to pay for basic city services, lower than required pension payments, and no new sources of revenue.

But minor concessions were made. Arena was able to get a rideshare ordinance he co-sponsored with Ald. Anthony Beale (9) through the City Council. And even though their original proposal, a requirement for Uber drivers get a public chauffeurs license, was cut out of the final version, Beale and Arena were able to increase the surcharge on all rides hailed through a ride-sharing app, start a rebate program to mitigate the fees taxi drivers have to pay on fingerprinting and background checks, and a request that the Commissioner of Aviation conduct a traffic study to determine the impact of opening the airports to ride-share drivers. Arena said the last item keeps the door open for potential changes down the road.

Arena and Ald. Michele Smith (43) were also successful in getting the Mayor to bend on the rebate issue. Smith’s vote was also in play since she represents Lincoln Park, one of the areas expected to be hardest hit by the increased property tax. Smith was one of several aldermen who called for a city-wide property tax rebate.  

Two weeks ago, in the midst of budget hearings, the Mayor poured cold water on the rebate idea, saying he preferred exemptions over rebates, because they don’t require a stable revenue stream and can be easily applied. But this past week, according to multiple aldermen Aldertrack spoke to, the Mayor’s office began promoting Arena and Smith’s rebate resolution, even pushing Council members to co-sponsor it the night before the budget vote.

With the Mayor’s support, Arena and Smith secured their plan by attaching their resolution to the agreed calendar vote at Wednesday’s City Council meeting. They called for creation of a city-administered property tax rebate program by June 1, 2016 if the Illinois General Assembly fails to enact the Mayor’s homestead exemption into law by April 30, 2016.

Joanna Klonsky, a representative for the Caucus, says she believes the whole caucus supports the ordinance. The rebate deal is why none of five Progressive Caucus revenue amendments introduced last week made it into this year’s budget, according to Arena. Since a rebate plan is estimated to cost between $20 and $40 million dollars, depending on how many people apply, and since the city doesn’t currently have a dedicated revenue source to pay for it, some of the Progressive Caucus ordinances, like closing amusement tax loopholes, are being held back as potential ways to pay for the rebate, Arena says.

One aldermanic staffer, who asked not to be named for this story, claimed Arena excluded the rest of the Caucus when he made that deal.

Arena wasn’t the only Progressive Caucus alderman to support the Mayor’s plan. He was joined by Ald. Nick Sposato (38) and Ald. Leslie Hairston (5), who had originally voted against it in committee but changed their minds when it went to the full Council; Ald. Roderick Sawyer (6), Ald. Rick Munoz (22), and Ald. Toni Foulkes (16) also voted “yes”. Ald. David Moore (17), split his vote, approving the Mayor’s spending plan, but rejecting the revenue ordinances, because he refused to support the monthly garbage fee.

Ald. Foulkes said the mayor’s decision to not pursue 311 privatization and the cap on the garbage fee secured her vote, in addition to the unprecedented open line of communication between her, the Mayor and his staff.

“I stopped counting after nine meetings [with Mayoral staff],” Foulkes told Aldertrack yesterday. She says she never experienced a budget cycle that involved as many meetings and follow-up calls as this one. On one occasion, one of her constituents asked her to clarify language on new snow shoveling regulations. Soon after Foulkes called mayoral staff for an answer, she got a quick response from the Mayor’s office to explain the changes.  

Ald. Tom Tunney (44), who voted against the revenue plan in committee after lamenting how high commercial property taxes in his Lakeview ward has already contributed to vacant storefronts, ultimately voted in favor of the budget. In an email sent to constituents after the vote, Tunney explained that his decision was based on the assurance he’d get an additional 35 police officers assigned to the 19th Police District and a new multi-million dollar capital investment in Lake View High School.

Ald. James Cappleman (46), whose ward is also within the 19th district, cited increased police presence as part of how he got to yes. So did Ald. Pat Dowell (3), a critic of many of the Mayor’s revenue proposals, but who voted yes, because of extra police and “the opportunity to address overcrowding issues affecting some my neighborhood schools and allows other schools in my ward to get the deferred maintenance and upgrades - like air conditioning - they desperately need.”

But not everyone on the Council felt the mayor had done enough to mitigate their concerns, or felt the backlash from constituents would have been too much to stomach.

Ald. Deb Silverstein (50), who voted against the budget in committee and at the full City Council meeting, told Aldertrack there weren’t any offers on the table to change her mind and that her decision was based on negative feedback on the budget from constituents. The chiefs of staff for Ald. Deb Mell (33) and Ald. Harry Osterman(48) also cited constituent outrage as the reasons for their no votes.

Ald. Brian Hopkins (2), a new alderman who voted “no,” wrote on his Facebook page that while the Mayor made compelling arguments, he stuck to his campaign pledge to vote against a property tax hike. 

Ald. Jason Ervin (28), Vice Chair of the Budget Committee, says he wasn’t offered a deal, despite his plan to vote no. “I laid out my position [with the Mayor’s staff] and that was about it,” Ervin said. The driving factor for him: The iniquity of how the new garbage fee will impact Chicago’s poorer communities.

Ald. Milly Santiago’s (31) Chief of Staff, Kevin Lamm, said the alderman met with the Mayor and his staff and was even offered to have the schools in her ward wired up with new fiber optic technology. But she rejected that offer, according to Lamm, and ultimately decided to go against the Mayor’s spending plan, because she felt uncomfortable with how much it relied on help from Springfield.

Santiago also had one of the closest races this past election, narrowly beating long-time incumbent Ald. Ray Suarez, by highlighting his close relationship with the Mayor and portraying him as someone who was out of touch with the needs of the ward’s residents.

The City Council approved Mayor Rahm Emanuel’s 2016 budget plan that calls for nearly $8 billion dollars in city spending, a $544 billion dollar property tax increase to be phased in over four years, a $9.50 per month garbage collection fee, a new cloud tax and various increases in existing fines and fees. As expected, Finance Chair Ed Burke (14) lumped the 2016 Revenue Ordinance and all four years of the property tax increase into one motion, forcing opponents of any item into one opposing or supporting vote.

The day came down to a series of key, divided roll call votes with some surprising last minute changes.  One of the day’s biggest surprises: Ald. John Arena (45), one of the Progressive Caucus’ most outspoken critics of the Mayor, voted in support of Emanuel’s budget plan.

[Official Clerk's Office Vote Tally]

Along with another earlier property tax opponent, Ald. Michele Smith (43), Arena introduced a resolution, later passed unanimously as part of the consent calendar, saying if Springfield did not enact double the existing homeowner’s exemption by April 30, City Council would consider a city-managed rebate program by June 1. In off the record discussions with Aldertrack earlier this week, a number of aldermen said the resolution would help make a yes vote easier for them.

Reading from a prepared speech, Ald. Arena said that while none of the revenue proposals the Progressive Caucus introduced will be implemented in this year’s budget, he’s still determined to get them in future budgets. The Mayor’s decision to not outsource 311 is the main reason he'd vote in favor, he said.

Another surprising vote came from Ald. Jason Ervin (28), who served as Budget Chairman Carrie Austin’s (34) right hand during the budget hearings as she dealt with health issues. He gave one of the most impassioned speeches of dissent on the floor yesterday.

“We always tell people that we have to do more with less, but the truth is, we do less with less,” he said, adding that it is unacceptable that city’s Police Department has been a hundred million dollars over budget for the past four years, mainly due to overtime costs, but “decent folk can’t sit on their porch or walk to the corner for fear of being the next [shooting] victim.”

Raising his voice as he pressed on, Ervin was furious that nearly $600 million dollars in new revenue–the money from the property tax increase–was going to one item, “while the rest of our services and our police department doesn’t have what it needs.” He continued to rail against the garbage fee, warning the time would soon come when the city would need to raise revenue again, and Springfield will be unlikely to help.

Vote: Management Ordinance and 2016 Appropriations – 36-14
First, there was the 36-14 roll call vote on the actual spending plan, which included the appropriation ordinance, management ordinance and the community block grant. The “no” votes came from aldermen Brian Hopkins (2), Susan Sadlowski-Garza (10), Roberto Maldonado (26), Jason Ervin (28), Chris Taliaferro (29), Milly Santiago (31), Scott Waguespack (32), Deb Mell (33), Carlos Ramirez-Rosa (35), Gilbert Villegas (36), Anthony Napolitano (41), Brendan Reilly (42), Harry Osterman (48), and Deb Silverstein (50).

Vote: Revenue Ordinance and 2015-2018 Property Tax Levies – 35-15
Second, there was the 35-15 roll call vote on the revenue ordinances, which included the phased-in property tax increase, a $45 million property tax levy to help fund capital expenditures at Chicago public schools, a $9.50/month garbage-fee, and various increases to existing fines and fees.

Ald. David Moore (17) joined the group above in voting “no”, after his motion to break up the revenue vote failed. Moore wanted to vote against the garbage fee and support the property tax, but when he called a motion to separate the ordinances, 46 aldermen voted against him.  

Vote: Rideshare Rule Changes – 38-11-1
Finally, there was a roll call vote on the recent amendments made to the rules and regulations governing taxi and ride-share drivers. It gives Uber and other ride-hailing drivers the right to pick up passengers at O’Hare and Midway Airports, McCormick Place, and Navy Pier, in addition to slapping on a $0.52 surcharge on all ride-share rides and a rebate program to minimize the fees associated with background checks and fingerprinting taxi drivers have to pay.

That motion passed in a 38-11-1 roll call vote. Ald. Gilbert Villegas invoked Rule 14, abstaining from the vote, while the following aldermen voted “no”: Leslie Hairston (5), Roderick Sawyer (6), Susan Sadlowski-Garza (10), Raymond Lopez (15), David Moore (17), Ricardo Munoz (22), Scott Waguespack (32), Carlos Ramirez-Rosa (35), Nick Sposato (38), Anthony Napolitano (41), and Deb Silverstein (50).

Prior to the votes, aldermen stood up one by one to explain why they were either voting or rejecting the Mayor’s 2016 plan.

A number of the Mayor’s surrogates, like Ald. George Cardenas (12), Pat O’Connor (40), Ameya Pawar (47), and Joe Moore (49), urged the rest of the body to vote in favor of the budget, saying it would finally put the city on the right course to funding its public pensions and reducing its dependence on borrowing for basic city services.

But not everyone in the chambers was convinced by their pleas and expressed concern the mayor’s budget would cause more harm than good.

“This is incredibly stressful and incredibly crazy,” newly-elected 41st Ward Alderman and former firefighter Anthony Napolitano said, describing the pressure in the leadup to yesterday’s vote as worse than being trapped in a basement during a fire. And even though most of his family and constituents are public pensioners, he voted no, citing the impact the property tax hike would have on his North Side ward.

He was joined by Logan Square Ald. Carlos Ramirez-Rosa (35), who said he was sad his peers would rather vote to increase property taxes than cut city spending and their own six-figure salaries. In the weeks leading up to the budget, Rosa introduced an ordinance calling for a salary reduction for public employees who make more than $100,000, a stormwater stress fee, and a property tax rebate ordinance based on a homeowners’ salary. None of those items made it into the budget.

“I’m sad today because four to six months from now, a tenant will come to my office and tell me, ‘Alderman, I’m being pushed out. The council voted to raise property taxes...and as a result my landlord is raising my rent.’” He then equated the series of fees and tax hikes included in this year’s budget to a playground bully demanding money out of someone’s pocket.

His comments prompted Ald. Danny Solis (25) and Ald. Joe Moreno (1) to go on the offensive.

“This is the job you signed up for,” Solis said, looking back at Rosa. “Your number one job as an alderman is to make sure that your neighborhoods are improving, that the quality of life is good [...] How are you going to do that without money? Without revenue?”

“I cannot stand here to listen to hyperbole and pandering, you know, someone says they are sad in the 35th Ward,” Ald. Moreno said, raising his voice. “You know what I’m sad about? That people aren’t willing to bring their own solutions to the table, but yet vote against the solutions that have been brought about by your administration and many in this room.”

“That kind of hyperbole is why I got into this business, because I was tired of those so-called leftists that I share the floor with,” he added.

Taking another direct shot at Rosa’s emphatic no vote, Ald. Moreno tweeted out a statement almost immediately after council wrapped. “Aldermen cannot lament about this budget and tell their residents they're fighting for them by voting no without presenting viable solutions to address and resolve our budget crisis. Empty rhetoric is not going to dig us out of our budget hole. Pandering about how terrible this budget is and suggesting tax increases for corporations to resolve our city's fiscal problem, and then voting in favor of a major multi-million dollar tax break to a wealthy car dealer in their ward is simply unconscionable.”

Moreno was referring to the recently passed $5.5 million class 7(b) real estate tax break for a new Berman Mid City Nissan dealership in Avondale, in Rosa’s ward. He testified in favor of the tax break to help with a $19 million dollar renovation to turn two old warehouses into a new car dealership.

Other Items Approved

In addition to the budget-related items the City Council approved an ordinance that paves the way for the proposed Lucas Museum, the Mayor’s appointment of David Reifman as the new Commissioner for the Department of Planning and Development, and a new universal parking pass that lets Chicago realtors park their cars along any zoned street in the city during business hours. Nine aldermen asked to be recorded as no votes for the Lucas Museum: Pat Dowell (3), Leslie Hairston (5), Gregory Mitchell (7), Ameya Pawar (47), Scott Waguespack (32), Tom Tunney (44), Harry Osterman (48), John Arena (45), and Brendan Reilly (42). Chairman Burke abstained.

Post-Vote Statements From Aldermen

In an email to his newsletter subscribers, Ald. Tom Tunney (44) called this year’s budget vote the most difficult he’s had to take. Tunney’s “yes” was threefold: he was assured 35 extra officers would be assigned to the 19th police District, be believed police and fire pension obligations had to be met, and the budget included a new addition: a multi-million dollar investment in Lake View High School “to increase the academic rigor of the school, inclusive of an honors program, and stronger connections to area elementary schools. The investments provided in the 2016 budget will make Lake View HS the quality neighborhood option which our residents demand. This will further build on the efforts of the current leadership of Lake View High School.”

Ald. Michele Smith (43), whose ward is likely to be one of the hardest hit by the property tax increase, voted “yes”, after securing Mayor Emanuel’s support of her and Ald. John Arena’s (45) rebate ordinance. Arena also voted in favor of the budget, despite being a staunch Emanuel critic. In a statement emailed shortly after Council wrapped, Smith said, “This is an iron-clad commitment to extend property tax relief to the people that have helped build our community and stabilize our neighborhoods… The plan provides tax savings, whether or not the expanded homeowner’s exemption passes in Springfield.” Smith said the Mayor also gave her a direct commitment to aggressively pursue major spending reforms, and form a task force on absenteeism, a common line of questioning from Smith during the budget process.

Ald. Will Burns (4) also sent an e-blast in the hours after the vote, saying pension obligations were his main driver. He cited the state-mandated requirement for payments, growing liabilities, and an obligation to police and firefighters to pay up. But he also called out no voters: “A vote against this budget is a vote against guaranteeing the future of Chicago. A no vote says that we will not fulfill our contractual obligations, invest in affordable housing, early childhood education, and afterschool programs.”

Ald. Matt O’Shea (19), explained his “yes” vote in his newsletter, saying hundreds of millions of dollars worth of cuts had already been made, and voting “no” would go against the “interests of the nearly 5,000 first responders who reside in Beverly, Morgan Park and Mount Greenwood. Our police officers and firefighters deserve their pension benefits.” O’Shea was one of a few aldermen who successfully pushed the Mayor’s office to cap the proposed garbage fee at $9.50 through 2019 (the next election year), and to dedicate funds from the fee to a sanitation enterprise fund, rather than the corporate fund.

Ald. Deb Mell (33) was generally laudatory of the Mayor and his openness during the budget process in a statement on her Facebook page, but said her “no” came down to the impact the property tax would have on residents in her ward. “I’m concerned about the young family that has purchased their first home, the senior citizen living on a fixed income, the small business owners who are struggling to stay afloat, and the renters who are finding it more difficult to make ends meet in this great city. This property tax increase asks too much of these residents and not enough of those in Chicago who have the means to absorb a larger share of the tax burden.”

Carlos Ramirez-Rosa (35) released a brief statement echoing his floor testimony, and highlighted Rosa’s proposed aldermanic salary reduction ordinance and the revenue ideas the Progressive Caucus pitched this summer. Rosa’s statement reads, "It takes courage to cut your six-figure pay. It takes courage to turn to your big and powerful corporate donors and ask them to pay. It's easy to turn to those with the least power and ask them to empty their pockets; that's what bullies do every day. City Hall should have cut its six-figure salaries and emptied out hundreds of millions in TIF funds before raising property taxes and fees on Chicago's working families."

Ald. Sue Sadlowski-Garza’s (10) statement reads, in part: ““It isn’t fair to stick home owners [sic] with the bill.  From parking meter deals, CPS no-bid contracts, to top heavy city departments – city government sure finds way to waste and mismanagement money, and now home owners [sic] are left to clean up the mess.”

Ald. Gilbert Villegas (36) also tweeted his post-vote statement, saying he didn’t believe his middle-class constituents could afford “another $1,000” in new taxes and fees. He invited residents to a job fair he’s holding in a couple weeks. "A lot of people are going to need better paying jobs and/or second jobs after the way Council voted today. I know we will make it work, but it's unfortunate that it has to get worse before it gets better."

In a short Facebook post, Ald. Anthony Napolitano (41) said pressure from his constituents opposed to the budget pushed him to vote no. A large chunk of his North Side ward current and retired police and firemen. “I believe this budget put too much of the burden on the taxpayers and small businesses. My job is to represent the entire 41st Ward, pension holders and non-pension holders. Over the last few weeks a large number of residents contacted my office to voice their opinion. An overwhelming amount were opposed to this budget.”

Ald. Roberto Maldonado (26) simply wrote it was unfortunate the budget passed, and shared this post from the Hermosa Neighborhood Association, which reads, “The garbage fees ($114-$456) are going to come as an utter shock and burden to many who haven't been able to stay informed about this complicated budget process, and in the second installment of their 2016 property tax bills will come another shock, a $500-$1,000 increase in property taxes. However, HNA is very happy to see that ALL the Aldermen who represent Hermosa voted ‘no’ against the budget.”

Ald. David Moore (17) shared these pictures from his recent budget town hall, and said 98% of those who attended told him to vote no if a garbage fee was included.

Svigos Asset Management, a Buffalo Grove based real estate firm, filed three separate zoning applications that seek to turn shuttered CPS schools into residential buildings. Since closing nearly 50 public schools in 2013 as part of a cost saving measure, the Board of Education has been issuing public bid requests for some of those vacant school buildings.

Since then, Svigos purchased Lyman Trumbull Elementary School in Andersonville for $5.25 million, and two West Town schools, Near North Elementary and Peabody Elementary, for $5.1 million and $3.5 million, respectively. 

Peabody Elementary School was the the first school the Board sold as part of the repurposing process developed by Mayor Emanuel’s Advisory Committee for School Repurposing and Community development. Svigos bought the building for $3.5 million in October 2014. Svigos will renovate the building’s interior to accommodate 23 residential units.

Near North Elementary, a former special education school, was Svigos’ second acquisition. The Board of Education approved the sale of the building on 739 N. Ada St. for $5.1 million at their July 22, 2015 meeting, on the condition that Svigos apply for landmark status of the building and maintain the exterior facade and building structure. According to the application Svigos filed, the school building will be converted into a four-story residential building with 30 units and 16 indoor parking spaces. Plans also include construction of an adjacent four-story residential building.

Svigos also filed an application to convert the former Lyman Trumbull Elementary School in Andersonville into a residential building and community theater for kids. The Board approved the sale at their September 29th meeting. The building was appraised at $4.1- $4.7 million by KMD Valuation Group. Svigos submitted the highest bid, $5.25 million, beating the second highest bidder, the Chicago Waldorf school, by $50,000. Plans call for a complete interior renovation of the existing building, which includes rehabbing the existing theater, located on the ground floor, and adding 49 residential units on the top three floors. Over a hundred parking spaces will be provided on site: 69 spaces for theater goers, and 40 for tenants.

Other Items On the Agenda

• The official appointment of David Reifman as the new Commissioner for the Department of Planning and Development. He has been serving as acting commissioner since August, when Mayor Emanuel announced former Commissioner Andrew Mooney was retiring. Reifman comes from well-known zoning law firm, DLA Piper.
• 2nd Ward (O2015-6415) An application to demolish a hair salon that First Lady Michelle Obama used to frequent when she lived in Chicago. The Van Cleef Hair Studio on 56 W. Huron would be replaced with an 11-story, 11-unit residential building. Property owner Michael Flowers, Obama’s hair stylist, put the building up for sale in 2010, according to Chicago Magazine. Joseph Kiferbaum, with Adama Associates, filed the zoning application so that he could build taller than is currently allowed under the existing designation.
• 45th Ward (O2015-6397) Loukas Development is behind a proposal to build an 8-story mixed-use development near Sheridan Red Line stop. Developers want to demolish the existing 3-story vintage building on the 3900 block of North Sheridan Road and replace it with a 54 dwelling unit residential building that will also include 3,100 square feet of commercial retail space and 27 parking spaces. The original proposal called for 60 units and 24 parking spaces, but, according to DNAinfo, members of East Lakeview Neighborsexpressed density and traffic concerns.  Developers made significant changes to the architectural style of the building. Originally calling for a modern-style structure with floor to ceiling windows and thin, metal paneling–a stark contrast from the existing brick building–the architect significantly changed the building design. Loukas Development is affiliated with George Loukas, owner of the Cubby Bear and Sports Corner bars and rooftop buildings that overlook Wrigley Field.
• 33rd Ward (O2015-6422) Dorel Ardelean wants to build three condominium buildings in Avondale. Intending to build the residential complex in phases, Ardelean filed an application for the first building, which he wants to construct on an irregularly shaped vacant lot on the corner of Belmont and Elston Avenues (2854 W. Belmont Ave). Plans call for a three-story condominium with 9 residential units and basement, and detached garages, at the back of the building, with enough space for 12 cars. According to the application Ardelean filed with Ald. Deb Mell’s office, the full plan calls for two additional three-story, six-unit buildings. According to DNAinfo, residents were disappointed that none of the buildings will contain retail.
• 27th Ward (#02015-6359) Taris Real Estate is behind a plan to build another luxury high rise condominium on the corner of West Washington Boulevard and North Peoria Street in the West Loop (900 W. Washington Blvd.). The application the developer filed with the City asks for a zoning change of the existing property, currently home to a one-story office building. Taris will demolish the existing building and construct a 10 story modern-style residential building with 24-units and two duplex penthouse suites with “expansive skyline views of downtown,” according to the architectural firm, Northworks. The building will have a mix of two- three- and four- room apartments, and garage parking with enough space for 24 cars (more information).

After hours of last-minute, closed door negotiations between the Mayor’s Office and aldermen, the City Council’s Finance committee approved a watered down version of Ald. Anthony Beale (9) and Ald. John Arena’s (45) ordinance amending the rules and regulations governing drivers employed by ride-hailing companies like Uber. Noticeably taken off the table: a requirement that would have forced those drivers to get a public chauffeur's license in order to gain access to the city’s airports, McCormick Place, and Navy Pier.

The final version of the substitute ordinance was approved by voice vote following an hour-plus recess; a lengthy public testimony, which consisted of taxi drivers and their Uber counterparts throwing insults with lots of cheers and heckling from the gallery; and finally, testimony detailing the changes from Ald. Beale, Budget Director Alex Holt and Business and Consumer Protection Commissioner Maria Lapacek.

Attendance (committee members in bold): Chairman Ed Burke (14), Joe Moreno (1), Pat Dowell (3), Will Burns (4), Leslie Hairston (5), Gregory Mitchell (7), Anthony Beale (9), Susan Sadlowski-Garza (10), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Raymond Lopez (15), David Moore (17), Derrick Curtis (18), Matt O’Shea (19), Willie Cochran (20), Howard Brookins, Jr (21), Rick Munoz (22), Michael Scott, Jr (24), Danny Solis (25), Roberto Maldonado (26), Walter Burnett, Jr. (27),  Jason Ervin (28), Ariel Reboyras (30),Milly Santiago (31), Scott Waguespack (32), Carrie Austin (34), Carlos Ramirez Rosa (35), Gilbert Villegas (36), Emma Mitts (37),  Nick Sposato (38), Marge Laurino (39), Pat O’Connor (40), Brendan Reilly (42), Michele Smith (43), Tom Tunney (44), John Arena (45), James Cappleman (46), Harry Osterman (48), Deb Silverstein (50)

The updated version the Committee approved would add an additional $0.02 to the Mayor’s original $0.50 additional surcharge on all rides hailed through an app. The change is expected to bring in “a couple more million” to the city, according to Ald. Beale, who said the changes were, “not a total compromise but a huge, huge step in the right direction to bring parity to these two industries trying to co-exist.”

The additional revenue will offset the fees taxi drivers pay to acquire a chauffeur's license by implementing a so-called “taxi chauffeur rebate program”. Under the program, which would be implemented by the commissioner of the Department of Business Affairs and Consumer Protection (BACP), an eligible taxi driver could get subsidies that would cover up to $50 towards fingerprinting and background check costs, $25 towards biannual drug tests and physical examinations needed to renew the chauffeur's license, and $50 towards chauffeur training courses.

The amendment also reduces the fees cab drivers have to pay to obtain a chauffeur's license  from $15 to $5 for the first license, and from $8 to $5 for the renewal. Ride-share drivers can’t have outstanding debt owed to the City if they want to obtain a Class A license to operate in the city, and they could be required to put additional “distinctive signs or emblems” advertising the company they work for on their car.

The new fees are expected to bring in $60 million dollars in annual revenue to the city, up from the Mayor’s original $48 million projection. Any dollar above that amount would be earmarked for new police hires, which Ald. Beale projects to be about 20-60 new hires on top of the city’s annual recruitment numbers. Directing revenue from ride-share companies for public safety expenses was an idea Ald. Patrick Daley Thompson (11) floated in committee last week.

At the time, Aldermen Beale and Arena had introduced a brief, two-page ordinance requiring Uber drivers get a public chauffeur license if they wanted the ability to pick up passengers at the City’s airports, Navy Pier, and McCormick Place. At the start of yesterday’s meeting, an earlier draft of the substitute ordinance the committee approved was leaked to the press. That version which we have uploaded outlined a fee structure that would have required ride-hailing companies pay an annual licensing fee based on how many divers they employ. Under the city’s existing law, Uber pays a flat, $10,000 annual rate to license all of their drivers.

For example, if a ride-hailing company had less than 2,500 active drivers on Chicago streets, the company would pay the City $40,000 for the Class A Transportation Network Provider licenses (the official name for rideshare companies) required for these drivers. The highest bracket, with 100,000 employed drivers, would have cost $1.25 million. Under that plan, Uber, which has approximately 20,000 active drivers in Chicago, would have had to pay the city $750,000 a year to make sure their drivers are appropriately licenced. The new version the committee passed eliminates the fee structure completely. It was replaced with an additional 2-cent surcharge on all rides within city limits.

When Ald. Roberto Maldonado (26) asked why the public chauffeur requirement was nixed from the deal, BACP Commissioner Maria Lapacek said it was “unnecessary” to require that Uber drivers, a majority of whom work part-time, to apply for a license meant for full-time transportation drivers, like cabbies. Noting that the city already vets rideshare drivers when they apply for a Class A license, compounded by the fact that BACP’s licensing operation is taxed, Commissioner Lapacek said it would have been “too taxing of a process” for drivers of a “transient nature”.

The final vote on the rideshare amendment was taken at the tail end of the meeting, more than 4 hours after the start time.

When Chairman Burke called the meeting to order at 10, he announced he would “temporarily” hold the first two items on the agenda–the ridesharing ordinances–and move on to “items that can be resolved quickly”. He then held three Progressive Caucus-backed items in committee: Ald. Carlos Ramirez-Rosa’s (35) proposed stormwater stress fee that would lower homeowner’s sewer fees by shifting the burden to large commercial properties; and Ald. Arena’s proposals to end the tax exemption on horse-drawn carriage rides and extend that exemption to opera tickets purchased by CPS and the Park District for education programs.

Going in the order of the agenda, he called the five Special Service Area appointments up for a vote. The appointments passed without testimony or discussion. He called a communication from the Law Department detailing all judgements and settlements for August up for a vote. The item passed without testimony or discussion. He called up ordinances to re-establish SSA #44 and property tax levy requests, service provider agreements, and budget proposals for 20 SSAs. Those also passed without testimony or discussion. Burke invoked Rule 14, and abstained from voting from SSA #7 (Kedzie Industrial Park), and SSA #39 (Brighton Park/Archer Heights). Those two applications were filed by Craig Chico, Executive Director for Back of the Yards Neighborhood Council and brother of former mayoral candidate Gery Chico, a close business associate of Burke’s law practice.

The Committee also approved two separate redevelopment loan agreements for Midway Point, LLC and Maple Marketplace, with Chairman Burke abstaining from voting on the latter. It took the Committee less than ten minutes to push through and approve those items, before Burke said, “Ald. O’Connor moves to recess for 10 minutes.”

Over an hour later, the Committee was called back in session. But instead of starting with a summary brief detailing the newly drafted ordinance, Chairman Burke went straight to witness slips calling up over a dozen representatives and drivers from the taxi industry and Uber to testify. The move brought a lot of mudslinging and accusations from both sides.

But the fighting between the two factions started even earlier, with two competing rallies on the second floor of City Hall before yesterday’s hearing. Chanting “airports now”, Uber drivers in teal colored shirts that read “Keep Chicago Uber” spoke out to demand the City lift its current ban on pickups at O’Hare and Midway Airport. They were flanked by the city’s cab drivers, who countered with their own chant, “Same service, same rules.”

After a 20 minute delay due to technical issues, the Committee quickly approved two real estate tax incentives to support the rehabilitation of two dilapidated industrial properties on the city’s Northwest Side.

Members present: Chairman Howard Brookins (21), Derrick Curtis (18), Michael Scott, Jr. (24), Jason Ervin (28), Chris Taliaferro (29), Carlos Ramirez Rosa (35), Marge Laurino (39), Tom Tunney (44)

A class 6(b) property tax incentive to help support the purchase and rehabilitation of a nearly century-old, vacant, 110,000-square-foot industrial warehouse in Austin (5801 W. Dickens Ave.) passed committee Monday. Miller Bay, LLC, the applicant, plans to spend $1.8 million dollars renovating the facility, but they don’t have a tenant lined up yet, according to Essie Banks, who testified on behalf of the Department of Planning and Development.

Calling the site an “eyesore” and threat to public safety, former police officer and 29th Ward Alderman Chris Taliaferro said he was glad to see the property put to good use after it had been vacant for close to four years. “In fact, as a police officer in that area, where I worked the last three years, we had to constantly send patrol over there because of the illegal breaking in and all the other things I won't mention that happened in that area,” he said.

The second application, introduced by Mayor Emanuel, would help Berman Mid City Nissan rehabilitate two vacant, industrial buildings in Avondale into a new car dealership (3444-56 N. Kedzie Ave.). The company is seeking a Class 7(b) tax incentive to help with the $19 million dollar renovation that will turn one site into a showroom and the other site into a vehicle storage and service center. Denise Roman, with the Department of Planning and Development, said the applicant plans to relocate from their Irving Park location once the project is complete. The new dealership is expected to generate $7 million in sales tax revenue, Roman added. The two warehouses are located in Ald. Carlos Ramirez-Rosa’s 35th Ward. He testified in support, calling their existing facility “beautiful”.

NOTE: The Council’s Budget Committee, originally scheduled to meet this afternoon, cancelled their meeting.

Finance Committee to Discuss More Regulations on Ride-Hailing Apps

At 10:00 a.m., the Finance Committee will take another stab at tinkering with the Mayor’s revenue plans for next year.

Since the official revenue ordinance was voted on in committee and deferred and published at last Wednesday’s full City Council Meeting, the five budget-related items listed on the Finance agenda will be taken up individually.

Two of those items further amending the Mayor’s proposed surcharges, fees, and licensing requirements for drivers who use ride-hailing apps like Uber will be introduced, discussed and potentially voted on.

Over the past week, Finance Chairman Ed Burke (14) has expressed interest in adding more licensing requirements for Uber drivers to bring in additional revenue to address the City’s financial woes.  

At last Tuesday’s Finance Committee meeting, Burke said it, “simply doesn’t seem fair,” medallion taxi drivers are required to pay $500 a year for a city-issued public chauffeur's license, while Uber drivers are exempt from the requirement. Instead, drivers employed by ride-hailing apps are required to get a special, so-called transportation network provider, or TNP, licenses.

“It might be interesting to see if those companies can be assessed a $500 per driver fee to make it more evenly spaced with the cab company,” Burke told reporters.

The following day, Ald. John Arena (45) and Ald. Anthony Beale (9) introduced an ordinance requiring a public chauffeur's license for any transportation provider interested in picking up passengers at O’Hare and Midway airports, Navy Pier and McCormick Place.

That ordinance is on today’s Finance Committee agenda, in addition to another rideshare-related ordinance, which will be directly introduced.

The ordinance is in response to Ald. Roberto Maldonado’s (26) concern over the number of rideshare drivers with out-of-state license plates and its impact on passenger safety. Ald. Maldonado suggested his peers look into the legality of requiring Uber drivers to have an Illinois driver's license, license plate, and City-owned sticker. Budget Director Alex Holt and Chairman Burke said they would look into it. When Aldertrack reached out to Ald. Maldonado Friday afternoon, he said Chairman Burke was working with the Law Department to draft the ordinance.  

The Finance Committee will take up three other Progressive Caucus-backed ordinances that would bring in additional revenue to the City.

A proposed stormwater stress fee, introduced by Ald. Carlos Ramirez-Rosa (35), would increase sewer fees for big box retailers and other commercial properties with large concrete parking lots that prevent rainwater from seeping into the ground.

The Progressive Caucus floated the idea of a stormwater stress fee over the summer when they announced a laundry list of cost-saving and revenue enhancing plans they wanted the Mayor include in his 2016 budget proposal. At the time, they said the tax “could ease the burden on working families while asking large corporations and other major entities to pay their fair share.” Since then, Ald. Ramirez-Rosa worked with the Mayor’s legislative aides and the Legislative Reference Bureau to research the feasibility of the fee. Ald. Ramirez-Rosa told Aldertrack that while he hasn’t had an opportunity to talk to Chairman Burke about his proposal, he has received positive feedback from the Metropolitan Planning Council and other policy groups.  

The ordinance would create a two-tier system for sewer fees; one formula for single family homes, the other for all other properties. To determine fees, the Department of Water would first have to find a median residential unit square footage. The city would aggregate the stormwater management cost for all single family homes, and then divide it by the total number of single family homes. Single-family homes would then be assessed by that amount. The same formula would apply for all other properties. Ramirez-Rosa estimates single-family sewer fees would go down as a result, while fees for large parking lot owners surfaces would go up.

Progressive Caucus aldermen are also behind an ordinance that would exemptChicago Symphony Orchestra or Lyric Opera Company tickets purchased by Chicago Public Schools or the Park District from the city’s 9% amusement tax, and another ordinance that would end tax exemption on tickets for horse drawn carriage rides.

Their ordinance to double the minimum fee for sidewalk cafe permits to $1,200 did not make it to today’s Finance agenda.

In addition to those budget related items, the Finance committee will also vote on new appointments to various Special Service Areas (SSAs) across the city, in addition to approving another round of property tax levy requests and service provider agreements for 20 SSAs.

Meanwhile, the Committee on Public Safety will hold a 9:30 a.m. hearing on city-run programs for domestic violence victims. The resolution Ald. Marge Laurino (39) and Ald. Matt O’Shea (19) introduced in June is modeled on a training program in Ohio that teaches salon workers how to identify victims, and aid in reporting abuse to local authorities. The resolution asks Public Safety Chairman Ariel Reboyras (30) to invite advocacy groups, law enforcement experts and trade associations to examine whether Chicago could do something similar. Aldermen on the committee are also set to approve the donation of a city-owned vehicle to Mexico.

The Committee on Economic, Capital and Technology will meet at 11:00 a.m. to consider two real estate tax incentives for companies interested in rehabilitating old industrial buildings. Berman Mid City Nissan applied for a Class 7(b) tax incentive to build a car dealership in two buildings in Avondale (3444-56 N. Kedzie Ave.). The Cook County Class 7(b) tax incentive lowers property taxes on qualified commercial properties for a 12-year period. If approved, Nissan would save an estimated $5.5 million.

Miller Bay, LLC applied for a class 6(b) tax incentive to subsidize the purchase and renovation of a vacant warehouse in Austin (5801 W. Dickens Ave.). The project is expected to cost $1.8 million. The Cook County Class 6(b) tax incentive lowers property taxes on qualified industrial properties for a 12-year period. If approved, the company would save an estimated $148,000.

Finance Committee OK’s Mayor’s Revenue Plan, With One Change
The Finance Committee met before the full City Council meeting yesterday to approve the 2016 Revenue Ordinance Chairman Burke held in committee the day before, citing a need for “further modifications.” Two aldermen, Roberto Maldonado(26) and John Arena (45), asked to be recorded as “no” votes.

Only one change was made to the revenue ordinance since Tuesday’s meeting. Chairman Burke asked the Law Department to draft “clarifying language” adding more Council oversight in how CPS spends a $45 million dollar property tax levy. Mayoral officials have said the capital improvement tax levy would address overcrowding and pay for repairs and upgrades at city schools. Aldermen have called it a blank check.

The new provision would require representatives from the Board of Education to provide regular reports detailing how money will be spent. Aldermen could also file a resolution objecting to any of the planned expenditures. The amendment passed by voice vote.

Ald. Arena also introduced an amendment requiring rideshare companies obtain a city-issued chauffeur's license, (a Class B TNP license) if they want to pick up passengers at O’Hare, Midway, Navy Pier or McCormick Place. The amendment applies to all “transportation network providers”, or TNPs, but since medallion taxi cabs are already required to pay for the license, this amendment is specifically targeted towards Uber, Lyft and other rideshare drivers. To qualify for the license, a driver can’t have any outstanding debt owed to the city, or unpaid child support.

Ald. Maldonado says he sees a lot of Uber cars without Illinois plates, and asked how the Council could address that. “[Those drivers] may not have a driver's license from the state of Illinois. To me, that brings up a very serious safety issue,” he said.

Chairman Burke and Budget Director Alex Holt said they would discuss the issue with the Department of Business Affairs and Consumer Protection. Until then, Ald. Beale’s amendment will be held in Finance Committee. “We still have time, we’ll be meeting again next week. I think Alderman Maldonado has pointed out some issues that seem reasonable to me,” Burke said.

Amendments Introduced In Full Council Meeting
Several amendments to the Mayor’s budget plan were introduced at yesterday’s abbreviated City Council meeting, which functioned as a procedural gathering to defer and publish the Mayor’s budget. Minor changes can be made before the official budget vote next Wednesday, October 28.

Progressive Caucus aldermen are behind most of the amendments introduced to the full Council yesterday. They want to double the minimum fee for sidewalk cafe permits to $1,200 and link the fee determination to current property tax values, end end the exemption of Chicago Symphony Orchestra and Lyric Opera tickets the city’s 9% amusement tax. Another proposal ends the amusement tax exemption for horse drawn carriage rides.

Ald. Carlos Ramirez-Rosa (35) introduced an ordinance with Progressive Caucus co-sponsors imposing a storm water stress fee, an idea floated by the Progressive Caucus weeks before the Mayor’s budget proposal was released. Other cities have imposed the fee to ensure buildings pay more for their large parking lots, which tend to prevent rainwater from seeping into the ground, taxing the city’s sewer system and sometimes leading to flooded basements.

Ramirez-Rosa’s ordinance would create two new payment formulas to be factored into a person’s water bill; one for single-family residential homes, and another for all other properties. To determine fees, the Department of Water would first have to find a median residential unit square footage. The city would aggregate the stormwater management cost for all single family homes, and then divide it by the total number of single family homes. Single-family homes would then be assessed by that amount.

A similar formula would apply for all other properties, but then the amount of impervious surface would be factored in so that non-single-family properties with larger impervious surfaces, such as parking lots or wide roofs, would end up paying more. Ramirez-Rosa estimates single-family sewer fees would go down as a result, while fees for large parking lot owners surfaces would go up.

311 Privatization 
It was been widely reported yesterday Mayor Emanuel is backing down from his proposed privatization of the 311 system after more than half the City Council blasted the plan. But throughout the day the Mayor and his staff made no official statements about a plan that was never officially proposed anywhere other than in a few lines of his September budget speech.

Before yesterday’s full City Council meeting, Ald. Toni Foulkes (16) told reporters the plan was taken “off the table” after they sent a letter to Emanuel from 36 aldermen and AFSCME, the union that represents 311 operators. “We understand the tremendous fiscal challenges the city faces and appreciate your efforts to address those challenges,” the letter says. “But outsourcing 311 risks damaging an effective city service for very little, if any real savings and pressing this proposal now only serves to distract us from the serious budgetary issues facing our city.”

The Mayor floated the idea of privatizing the city’s main call line for addressing non-emergency related services during his budget address. Since then, he has repeatedly said the City can’t afford to pay the $40 million dollars needed to upgrade the aging system, first put in place in 1999. Yet, no proposed ordinance nor his official budget document makes no mention of the privatization plan.

The official city budget includes no changes for all 311 call center positions for the coming fiscal year. When the Mayor was asked about the 311 plan at his post Council press briefing, his answers were vague. Even the Progressive Caucus, of which Ald. Foulkes is a member, stopped short of saying the fight was over in a press release yesterday afternoon, calling it an "apparent decision to table its proposal" from the Mayor's office. 

“Obviously we are in the process where the alderman contribute their ideas and I listen to all ideas, but I believe fundamentally in what I laid out,” he said. “I’m not going to negotiate publicly.”

One aldermanic staffer, who spoke on the condition of anonymity, said the Mayor’s aides had privately assured aldermen the privatization wouldn’t move forward, and aldermen leaked the news to reporters so that the mayor wouldn’t back down.

After three hours of grilling Budget Director Alex Holt on the timeliness and necessity of Mayor Rahm Emanuel’s proposed $544 million property tax increase, the Committee on Finance approved the plan in a divided 17-10 roll call vote.

Citing a need for “further modifications”, Chairman Ed Burke held the 2016 Revenue Ordinance, a laundry lists of new taxes and fees, like the Mayor’s proposed $9.50 a month garbage fee, changes to the cloud tax, building permit fees, and rideshare and taxi fees. Burke scheduled an early morning meeting at 9:15 a.m. today, so the committee can take action on those items in time for the 10am full City Council meeting. [Our review of revenue ordinance here.]

The mayor’s phased-in property tax increase, which the committee approved as a package vote, starts a $318 million supplemental levy increase for 2015, with an additional $109 million in 2016, $53 million in 2017, and $63 million in 2018. The additional revenue will be committed to the city’s police and ire pension payments, with the annual fee structure based on the assumption that Gov. Bruce Rauner will approve SB 777, the Mayor’s legislation to reduce the annual payments by adding another 15 years to the payment schedule.

Yes Votes: Alderman Pat Dowell (3), Gregory Mitchell (7), Michelle Harris (8), Anthony Beale (9), Danny Solis (25), Patrick Daley Thompson (11), George Cardenas (12), Marty Quinn (13), Matt O’Shea (19), Rick Munoz (22), Ariel Reboyras (30), Carrie Austin (34), Marge Laurino (39), Pat O’Connor (40), Joe Moore (49).

[Freshman Ald. Gilbert Villegas (36), David Moore (17), Carlos Ramirez Rosa (35), and Michael Scott, Jr. (24) were present, but since they aren’t members of the committee, they couldn’t vote].

Some of those “nay” votes were foreseeable. Progressive Caucus aldermen, who tend to be openly critical of the mayor, Scott Waguespack (32), Leslie Hairston (5), John Arena (45), and Nick Sposato (38) voted against the property tax increase. They were joined by Brendan Reilly (42), whose downtown ward would bear the brunt of the property tax increase; Tom Tunney (44), who lamented that high property taxes in his lakefront ward are already contributing to vacant storefronts; Jason Ervin (28), who said voting on a property tax hike before Springfield passed an exemption was “akin to jumping in a pool and not knowing if it is a 9 foot pool or 29 foot pool.” Ald. Harry Osterman (48), Ald. Deb Silverstein (50), and Ald. Roberto Maldonado (26), whose wards all contain heavily residential, middle-class families, also voted against the tax hike.

But despite the divided roll call vote on the most controversial piece of the Mayor’s budget plan, Chairman Burke and the Mayor’s unofficial floor leader, Ald. Pat O’Connor (40), said they’re still confident they have the votes to get the property tax hike and the rest of the Mayor’s nearly $8 billion dollar spending plan through the full City Council.

When asked after the meeting if he was surprised by the divided vote, Chairman Burke replied, “No, I think what you’ve seen is an expression of reluctance on the part of the aldermen that represent the Gold Coast, the lakefront areas where this is going to have the biggest impact.”

Ald. O’Connor attributed the number of no votes to the "committee's makeup". “Some people are being responsible in addressing the issues that are out there. And others feel that they want to duck it...These are tough times, and people expect that it’s going to be different than the days when you can pitch shutouts when everything is going swimmingly.”

Dependence On Springfield Action

But over the course of the three hour Finance Committee meeting, it became clear aldermen have little faith in Springfield, and even less faith in how CPS handles its money.

“Springfield hasn’t figured anything out, and so to try and push this [property tax increase], when they can’t even do their jobs, to rely on them, doesn’t make sense,” Ald. Hairston told Holt, after grilling her about the status of the Mayor’s homestead exemption plan.

That property tax relief plan, which passed out of a Illnois House Committee in Springfield around the same time as the Finance Meeting, would double the general homestead property tax exemption, currently $7,000 for Cook County and $6,000 for the downstate counties. If approved, any county would have the option to increase the exemption up to $14,000, the amount Mayor Emanuel needs to fulfill the promise he made during his budget address that homeowners whose' homes are valued at  $250,000 and under won’t see any increases to their property tax bills mailed out in August.

Hairston was especially concerned the Mayor would come back to the Council in a couple years to ask for even more tax increases to fix the city’s budget problems. “There is something else that’s going to come up. That does not help us put trust in our government. If you come to us now, please don’t come again,” Ald. Hairston said, suggesting the Mayor do one lump sum property tax increase the first year and get it over with.

Additional CPS Tax Levy

But the property tax increase wasn’t the only item before the Committee that raised a lot of red flags for aldermen. The second most contentious item was a $45 million dollar property tax levy request from the Chicago Board of Education (page 43 of the revenue ordinance).  

The “capital improvement tax levy” is part of CPS’ overall $2.4 billion dollar property tax levy request for this current school year, and while it has already been approved by the Board of Education, state law requires Council approval within 60 days of notification from the Board. Aldermen called it a blank check.

“We have a big problem with CPS and how they spend their money,” Ald. John Arena (45) said at the meeting. “My concern is that we are authorizing $45 million a year, potentially, going into a black hole.”

“The only thing [CPS has] improved is their offices. I don’t think we should give them a blank check,” Ald. Hairston told reporters after the meeting. “There should be some type of explanation as to how CPS rolls out the capital improvement plans, so that we know what we’re voting on. I would not want to vote on a capital improvement plan that builds charter schools in other neighborhoods.”

“Is there any restrictions on where this money can’t be spent? ” Ald. Tom Tunney(44) asked. Like Ald. Hairston, he voiced concerns about capital project oversight. The 44th is one of the few wards without a TIF fund. And it is common for TIF money to be redirected to local school improvement projects.  

Ald. Reilly and Ald. Gilbert Villegas (36) asked if CPS would use that money to pay down debt or additional bonding for capital projects.

The money from the levy, Holt said, would address overcrowding and capital improvements at public schools across the city. She also said that if the City Council authorizes the levy, it would be an annual “permanent increase.”  But she wasn’t sure if the levy could be rescinded at a later date. As the concerns piled up, Chairman Burke suggested some “language” be added to the ordinance to address concerns from aldermen.

Rideshare Rules

Another contentious item on the agenda had to do with new fees and rules for taxis and rideshare apps.

The city plans to get rid of the medallion transfer tax because it isn’t bringing in the revenue it once was. According to Business Affairs and Consumer Protection Commissioner Maria Lapacek, there are currently 6,900 active medallions in the City. Each medallion owner pays $1,000 for a two-year license, with cabs that aren’t wheelchair accessible paying an additional $100. That is compared to about 27,000 ride share drivers. Most of them, around 20,000, work for Uber. Uber’s holding company pays the city $10,000 to license their entire fleet, as well as a 20-cent per-trip Ground Transportation Tax and 10-cents per trip for the wheelchair accessibility fund.

Chairman Burke, who had inquired about those numbers, said, “At first blush that simply doesn’t seem fair. Why do we not assess a $500 dollar fee for each of those 20,000 units, like we do for the medallions?”

When Lapacek said that there was a difference between medallion cabs and rideshare drivers who use their own personal cars to pick up passengers. Burke clarified that he'd rather have Uber pay the fee, not the drivers.

The Mayor also included a provision that would let taxicabs implement “surge pricing” for rides acquired through digital apps. But several aldermen raised doubts about the real world application of those changes.

Ald. Beale, one of the biggest critics of rideshare companies, said no one in the cab industry is interested in surge pricing because they don’t have the technology to do that. When Holt corrected him to say that they had sought approval from Springfield to do that a few years back, Ald. Beale said that was beside the point.

“I know you guys like to work on hypotheticals, like in Springfield...So, If it’s raining, if it’s snowing, and I have an app, why am I [as a driver] going to pick somebody on the corner, when I can get surge pricing waiting for an app?”

“Well that’s a hypothetical, you don’t know if your app is ever going to…” Lapacek responded, but was cut off by Beale. “Well, you guys are saying hypothetically Springfield is going to pass a reform for us. So is it not okay for me to ask for a hypothetical, and okay for you all to operate on a hypothetical?"

"If I can get three times my salary [with the surge pricing] I’m gonna wait.”

Late last night, a homeowners property tax exemption bill was submitted in Springfield yesterday as an amendment to SB1488, a bill on second reading in the Illinois House. Introduced by House Majority Leader Barbara Flynn Currie, the legislation is reportedly Mayor Rahm Emanuel’s. The legislation calls for a $14,000 property tax exemption in only Chicago, with no mention of Emanuel's previously proposed $250,000 property value limit. The amendment also includes a requirement for companion enacting legislation by Chicago and Cook County governments. The House Revenue & Finance Committee has scheduled a vote on the amendment at 11:00 a.m. today.

Meanwhile back in Chicago, with only a handful of the public witnesses signed up yesterday to testify against Mayor Emanuel’s proposed property tax increase at the morning’s “truth in taxation” public hearing, aldermen spent a majority of the hour and a half long Finance Committee meeting asking the mayor’s budget team what would happen to homeowners’ property tax bills if Springfield fails to pass the Mayor’s plan to double the homeowners’ exemption, and what would happen to the City if the Governor vetoed the Mayor’s pension relief plan.

Aldermen Present: Chairman Ed Burke (14) Pat Dowell (3), Gregory Mitchell (7), Patrick Daley Thompson (11), Matt O’Shea (19), Mike Zalewski (23), Jason Ervin (28), Ariel Reboyras (30), Scott Waguespack (32), Gilbert Villegas (36),  Marge Laurino (39), Anthony Napolitano (41), Michele Smith (43).

“Do we know the status of the mayor’s s- called exemption plan as of this morning?” Ald. Scott Waguespack (32) asked Budget Director Alex Holt, who was joined by the city’s Chief Financial Officer Carole Brown and the city’s attorney Steve Levin.

Holt said aldermen can expect an official bill detailing the homeowners exemption will be introduced in “the next week or so,” but it’s unlikely state lawmakers will take action on it before the City Council has to officially vote on the Mayor’s spending plan Oct. 28.

“People keep hearing about this exemption, but they don’t see any action on it... If you are relying on the aldermen to go out there to say, ‘Hey, Suck it up and take it.’ I think we need to be more forthright and tell them this is what you are going to get stuck with,” Ald. Waguespack followed up.

“The exemption doesn’t need to be in place before the end of the year,” Holt explained. “It does certainly need to be in place before the second installment [property tax] bills go out in July. Certainly for the purposes of the County, it would be preferable, given the work that they need to do, that is happen as soon as possible. But from a residents perspective, they won’t see an increase until the bill that’s due...next year.”

The budget impasse in Springfield coupled with Gov. Bruce Rauner’s pledge to only consider an exemption plan that includes “structural reforms” detailed in his Turnaround Agenda, has left aldermen with the very real possibility of voting on the Mayor’s budget before an exemption is put in place.

“What is this administration prepared to do if we don’t get that exemption?” Ald. Pat Dowell (3) asked.

Holt said historically, property tax exemptions haven’t had a hard time getting passed because they aren’t controversial. She also said the Mayor’s office is also looking into implementing a rebate plan, too. 

“I think that still has to be on the table and part of the discussion,” Holt said, before adding that an exemption is a better way to go because rebates still require payment upfront and the city would need to find another funding source, about $20 to 40 million, to pay out the rebates. There are currently two rebate proposals awaiting Council action, one from Ald. Joe Moreno (1), the other from Ald. Carlos Ramirez-Rosa (35). 

“Internally, we are working through what a rebate would have to look like, but as Alex mentioned earlier, our expectation is that they will be introducing the homeowner exemption bill sometime this week, and we’re hopeful it will pass in Springfield,” CFO Brown chimed in. 

“I am not as hopeful as you are, Mrs. Brown,” Ald. Dowell replied skeptically.

Holt and Brown are equally as “hopeful” the Governor will pass a bill, SB777, extending the city’s annual required pension payments for another 15 years, but aldermen again pressed for worst-case scenarios.

“Am I correct in stating we’re levying consistent with what the proposed, pending law in Springfield is, not the existing law? Would it not be more intelligent to levy at that [required] amount, and then abate when the governor signs it?” Chairman Ed Burke(14) asked.

Holt said the Mayor has considered that option, but ultimately rejected it because current state law, which requires the public pensions be 90% funded by 2040, would force a $700 million dollar increase to the public pensions over a two year period, versus the $438 million currently budgeted.

“We’re confident and hopeful the governor should accept the Senate Bill 777, because it is about local control...he included our proposal in his own pension proposal, and we think that all things considered, since it only impacts the city of chicago and has been consistent with his approach that is shouldn’t cause any issues,” Holt explained, echoing previous statements made by the Mayor.

“Maybe we ought to ask him, are you going to sign this or not,” Chairman Burke joked. 

Brown said if the City Council failed to approve the 2015 property tax levy and Gov. Rauner refused to extend the pension payment timeline for the Police and Fire pensions, state law has a “intercept provision” that lets the pension funds demand payment within 90 days of the bill’s due date. That means the retirement boards for the police and fire pensions may “petition the state to withhold money from us,” Brown says. 

“There is some discussion as to whether that just means grant dollars that we receive from the state, which are largely dedicated to things like road construction, as well as, social services...about $150 million dollars. Or whether that means they can take from any of the funds granted to the city: income tax, sales tax, about a billion dollars. So it would have a significant impact on our operations,” Brown explained.

The Finance Committee will vote on the 2015, 2016, 2017 and 2018 property tax levies at tomorrow’s 10:00 a.m. meeting, in addition to voting on other fines and tax increases detailed in the 2016 revenue ordinance.

[A detailed list of proposed new those fines and fees, including property tax proposals are in our Oct 15 report.]

The Finance Committee is also scheduled to discuss resolutions filed by the retirement boards that oversee four of the City’s public pension funds. Pursuant to state law, the retirement boards are required to send yearly estimates of the City’s portion to the fund. This includes the all annuities, benefits, and administrative expenses for each fund for the year 2016, payment due in 2017. Chairman Burke tabled these resolutions at the last Finance meeting because CFO Brown wasn’t on hand to testify.

With a roughly $8 billion unfunded liability, the Policemen’s Annuity and Benefit Fund is requesting $675.8 million from the 2016 property tax levy. Mayor Emanuel proposed a $464 million payment for 2016. The Firemen's Annuity and Benefit Fund is requesting $284 million, a slight increase from the Mayor’s proposed $208 million payment for 2016.

The Laborers’ and Retirement Retirement Board Employees’ Annuity and Benefit Fund is requesting $28.5 million, while the Municipal Employees’ Annuity and Benefit Fund is requesting $277.7 million. Both of those funds are about the same Mayor budgeted for 2016 due to a new plan for those funds enacted by the state legislature in 2014.

The Committee on Housing and Real Estate will kick off the day with a 9:30 a.m meeting to discuss bridge improvements on South Lake Shore Drive. The only item on the agenda, O2015-7316, is a real estate agreement with the Chicago Parks District to revamp 5 bridges in the 4th Ward. The project includes reconstruction of a bridge for cars at East 31st Street and East Oakwood Blvd., the reconstruction and replacement of pedestrian bridges at East 35th Street and East 43rd Street, owned by the Park District, and construction of a new pedestrian bridge at East 41st Street.

Improvements to the three pedestrian bridges include ramps to accommodate bikes, wheel chairs, and emergency vehicles. The ordinance amends land rights with the Illinois Central Railroad and Metra, which own the railroad tracks the bridges cross over, according to a release from the Mayor’s office. The wheels for this project were set in motion more than 10 years ago, when the Chicago Department of Transportation recommended the City improve pedestrian and car crossing over and under Metra and ICR tracks along Lake Shore Drive. Federal funds will pick up 80% of the $42.5 million tab, with state money funding the rest. More from the Chicago Tribune.

The Committee on Special Events, Cultural Affairs and Recreation meets at noon. The only agenda items for the committee are 8 reappointments and 7 new appointments to the Cultural Affairs and Special Events Advisory Council:

• Jeff Alexander, President/CEO, Chicago Symphony Orchestra, former Vancouver Symphony Society's President/CEO.

• Marshall Brown, Architect and Principal, Marshall Brown Projects, an architecture firm selected for this year’s Biennial. Brown’s name has been floated in Obama Library design talks.

• Graham Elliot, Chef and Owner, Graham Elliot Bistro in the West Loop. Elliot was also a Top Chef contestant and judge on Fox’s MasterChef. Mayor Emanuel designated Sep. 19, 2012 as Graham Elliot Day, when he was admitted to the Chef’s Hall of Fame.

• Carlos Hernandez, Executive Director, Puerto Rican Arts Alliance, formerly a Director of Economic Development for the City of Chicago Treasurer's Office, Director of the National Museum of Mexican Art's $7.3 million expansion, and program intern officer with the McCormick Tribune Foundation.

• Heather Ireland Robinson, Executive Director, Beverly Arts Center. Mayor Emanuel doled out $250,000, part of the surplus from the 2012 NATO Summit, to the arts center in 2013. The center owed Fifth Third Bank $4.7 million at the time, and is still fundraising. Ireland Robinson was formerly E.D. of the South Side Community Art Center in Bronzeville.

• Amanda Williams, Artist, AW | Gallery, another participant in this year’s Architecture Biennial, who painted buildings in West Englewood Ventra blue alongside Mayor Emanuel as part of this year’s One Summer Chicago.

• David Woolwine, Director of Reputation, Community Engagement and Public Affairs at Allstate, who leads the company’s efforts on employee volunteerism and strategic philanthropy. He and Mayor Emanuel both spoke at a Kaiser Permanente/Metro Chamber event about how to make Chicago a “go-to city.”

• Carol L. Adams, Retired CEO, The DuSable Museum (reappointment)

• Antonia J. Contro, Executive Director, Marwen (reappointment)

• Nora Daley (Chair), Executive Advisor, Metropolis Strategies (reappointment)

• Theaster Gates, Jr., Artist and Founder, Rebuild Foundation (reappointment)

• Marjorie S. Halperin, President, Marj Halperin Consulting (reappointment)

• Ra O. Joy, Executive Director, Illinois Arts Alliance (reappointment)

• Michael P. Thornton, Actor, Artistic director and Co-Founder, The Gift Theatre (reappointment)

• Angel M. Ysaguirre, Executive Director, The Illinois Humanities Council (reappointment)

The Committee on Zoning will meet at 1:00 p.m. to vote on the proposed Lucas Museum. It’s the only item on the agenda, as the committee is expecting a significant amount of public comment on the controversial proposal, and they only have one hour to meet before the next committee takes over the chambers. The Plan Commission approved a 99-year lease of lakefront property for the construction of George Lucas’ $400 million dollar futuristic-looking museum at their monthly meeting held last week.

Once Zoning is done, the Committee on Workforce Development and Audit, chaired by Ald. Pat O’Connor (40), will meet at 2pm to consider a resolution amending employee healthcare benefits. The resolution strikes the word “healthcare” from the municipal code replacing it with “health and welfare coverage”, in addition to changing how health care plans are approved. Instead of giving the Mayor’s office the authority to decide health plans, the resolution amends authorization, requiring a majority vote by the City’s budget director, comptroller, benefits manager, commissioner of Human Resources, and Ald. O’Connor’s committee.

The resolution also allows for the creation of a “working group” to meet “from time to time to consider and resolve questions pertaining to workers’ compensation and return of work.” The working group would consist of seven people, including the Mayor, Finance Committee Chairman, two designees selected by the Finance Chairman and three designees selected by the Mayor.

Zoning Chairman Danny Solis (25) and Finance Chairman Ed Burke (14) were two of the biggest fundraisers on the City Council last month, each reporting over a $100,000 to the various campaign funds they oversee. We also noticed an uptick in fundraising in the 43rd Ward soon after Lucy Moog announced her bid for the Ward’s Democratic Committeeman position currently held by Ald. Michele Smith(43). We detail those contributions and more in our September contribution report.

Large Transactions

The $53,900 transfer from the Laborers' Political League Education Fund to House Speaker Mike Madigan’s 13th Ward Democratic Ward Organizationrepresents the largest infusion of cash to any aldermanic, city official, or ward organization for September. The 13th Ward Org also received a $25,000 transfer from UA Political Education Committee, a group representing plumbers and pipefitters.

Coming in close was the $18,210 contribution from the Chicago Teacher’s Union to Ald. Susan Sadlowski Garza’s (9) candidate committee, Friends of Susan Sadlowski Garza, on September 24th. The day after reporting the contribution, Ald. Garza reported returning the funds because the amount exceeded the legal maximum allowed.

The third largest contribution was a transfer of funds between two aldermen. On September 23rd, Ald. Danny Solis (25) loaned $15,000 from his candidate committee to Ald. Joe Moreno (1). Earlier this summer, Ald. Moreno transferred$10,000 from his candidate committee to Solis.

Ald. Roberto Maldonado (26) received $10,000 from contemporary home building firm Dream Develops of Chicago, Inc. on September 17th. The firm doesn’t have any current or future developments in Ald. Maldonado’s ward, which encompases Humbolt Park, but donated to him in January of 2015 and August of 2014.

The Progressive Caucus’ political action committee also raked in big bucks in September, garnering $10,000 from AFSCME and $1,500 from SEIU Illinois a week later. That brings total donations from SEIU to date up to $64,000.  

Biggest Fundraisers

Finance Chairman Ed Burke (14) continues to surpass his peers when it comes to fundraising. He reported $55,500 in donations to his personal campaign committee, Friends of Edward M Burke, $37,530 in contributions to his political action committee, The Burnham Committee, and $19,500 to the his ward organization, 14th Ward Regular Democratic Org. That’s a grand total of $112,530 for September.

Three employees of Unison Consulting, Inc., an aviation consulting firm that provides finance services for the O’Hare Modernization Program, donated to Ald. Burke’s personal campaign fund on September 3rd. Unison Consultants Yovette L. Drake and Gregory V. Chappell each donated $1,500, while Anthony Drake gave $2,000.

Burke, one of the few aldermen who didn’t sign on to a resolution calling for a moratorium on new charter schools, also got a $1,000 donation from INCS Action PAC (The Illinois Network of Charter Schools).

Zoning Chairman Danny Solis (25) reported more than 50 donations totaling $125,700 to the 25th Ward Regular Democratic Organization, which he oversees as ward committeeman. That’s compared to the $16,300 from a handful of donations made to his personal campaign fund, Citizens for Danny Solis.

Three individual contributions to the 25th Ward organization came from employees with Vivify Construction, a property management company based out of Melrose Park, IL. Vivify is an affiliate of Michigan Avenue Real Estate Group, the developer behind the two luxury apartments currently being constructed in the West Loop. The Jackson Throop Place and Madison Throop Place developments are a pair of adjacent loft-style, luxury apartment buildings. Milica Jovanovic, an accountant with Vivify, donated $5,000; Brian Loftin, a builder for Vivify, donated $5,000, and Stephen Muhn, a Project Executive with Vivify, donated $5,000. Another cluster of contributions came from two contractors with Astro Insulation, James Fox ($1,000) and John Stack ($1,000). Bridgeport-based Pacific Mall LLC also made a $5,400 contribution to the 25th Ward Organization.

The 43rd Ward Democratic Ward Organization, operated by 43rd Ward Committeeman and alderman Michele Smith, was a another big fundraiser, reporting $33,688 in contributions. Steve Fifield of Fifield Construction donated $5,000, so did Universal Security Corp, which has handled security at President Obama's campaign headquarters, election night for Rahm Emanuel, the NATO Summit in 2012, and O'Hare. The co-founder of SkinnyPop, Pam Netzky, also chipped in $5,000.

The beefed up fundraising could be a response to Lincoln Park resident and former congressional aide Lucy Moog’s bid to challenge Smith in the upcoming Committeeman race. According to Crain's, Lucy and her husband, Matt Moog, lived in the same, three-story D.C. flat as Mayor Emanuel and his wife.

Lucy Moog kick-started her campaign with $59,100 in reported donations, but a little under half that amount comes from $25,000 loan she made to herself on September 30th. Some of her notable donors include Gary Sumers, who retired as chief operating officer for the New York investment firm, Blackstone Group and his wife,Rachel Diane. As did James Sumers, an executive with United. Each maxed out their contribution at $5,400. Sidney N. Herman, a lawyer with the corporate law firm Bartlit Beck Herman Palenchar & Scott LLP, also donated the maximum.

Other Notable Contributions

• Jay Michael, managing director of Flats Chicago, donated $5,400 to Susana A. Mendoza, he’s known for his sometimes controversial real estate development in Uptown and Edgewater.
• Former 2nd Ward Aldermanic Candidate Alyx Pattison may have lost the runoff to Brian Hopkins, but she is still raising money. According to Pattison’s latest quarterly report, she owes $16,876.60 to political consulting firm, The Strategy Group.  Pattison reported three $5,000 donations in September from Mary Myers, a realtor based in California, and two individuals with Arizona addresses, George Myers and David J. Mowry.
• While Ald. Milly Santiago (31) and 31st Ward Committeeman/Cook County Assessor Joe Berrios reported a significant amount of contributions in August, Santiago’s committee reported just $6,000 for September, and Berrios’ had a $2,000 transfer and a $2,000 donation to the 31st Ward Democratic Organization.
• Chicago’s 27th Ward Republican Committee transferred $4,383 to 43rd Ward Republicans. Chris Cleveland, chair of the Chicago Republican Party, is running for Republican ward committeeman, and collecting petition signatures.

Yesterday the Mayor directly introduced a series of revenue ordinances: a set of new fees such as the garbage fee, new regulations relating to fee and license management, the motor fuels tax levy, and four property tax levies for 2016, 2017, 2018 and a supplemental for 2015. Below is a breakdown of what we found in reviewing those ordinances yesterday.

Property Tax Levies: As previously announced, the Emanuel Administration introduced a supplemental property tax levy increase for 2015 (property levies are collected the year following their announcement) of $326,803,000. For 2016, another property tax levy increase is piled on another $109,519,000. In 2014, the Chicago property tax levy was $859,509,000. That means by 2016, the Chicago property tax levy will be increased by 50.7%.

The administration promise that the property tax increases will be linked to the SB777 required Police & Fire Pension Fund payments is also why the administration introduced property tax levies for 2017 and 2018 of $703,307,000 and $766,737,000 respectively, which the Emanuel Administration previously billed as $52M and $63M increases with each year.

If you’re trying to follow the math, those two levy increases are actually decreases from 2015 and 2016, right? But, the way the Emanuel administration works it out is by assuming the city won’t need additional property taxes for other city operations–that it will tack on about the same $645.5M levy it did in 2016 and 2015.

That means in 2017 and 2018 the city will have to maintain totally level funding, unless other fees are added or service cuts are made to make the grade – and assuming the pension funds won’t require additional levies to ensure actuarially required funding.

Cloud Tax: The so-called “cloud tax,” a clarification of the city’s “Personal Property Lease Transaction Tax” issued earlier this year, has two big changes from previously reports. First, it includes a new, slightly lower tax rate of 5.25% for computing services that, “input, modify, or retrieve data or information that is supplied by the customer” (emphasis ours). Other items will still be taxed at the original 9% proposed amount. Second, the tax is clearly meant to cover everything cloud-related, including consumer products like Microsoft’s Office365, which is explicitly mentioned as an example in a Budget Office briefing sheet.

That 9% "amusement tax" rate also applies to streaming services like Netflix, Hulu, and Spotify.

A Budget office briefing says the city expects, “lease tax revenue expected to exceed $40 million in 2016,” but conversations with trade associations and lobbyists yesterday lead us to believe that estimate to be much too low. For instance, imagine 50,000 Chicagoans subscribe to Apple Music at $14/month. That’s $8.4M a year. At a 9% rate, that comes out to $756,000. Now add in Pandora, Hulu, Office365, XboxLive, Netflix…  on the consumer side alone. For businesses, imagine Lexus, Bloomberg and CoStar Terminals, some running $10,000/mo each. What about medical billing systems?

$40M will likely be low-end estimate, assuming compliance is not a problem. The city is waiving taxes, penalties, and interest owed from this tax before 2015, to assist with that compliance.

For comparison, city budget officials say Austin, Texas charges 6.6% across the board for cloud software, infrastructure, and databases. Seattle charges 9.6% for cloud software and databases.

Startups, or “small new businesses” that use and lease cloud storage and tech won’t be required to collect or pay the tax. To qualify, their gross sales or receipts for the most recent full calendar year prior to the annual tax year must be under $25 million, and the business must be younger than 60 months.

Garbage Fee: The details of the plan are mostly as has been reported here and elsewhere:

1. Fees will be collected as part of the water and sewer bill.

2. Property owners are responsible for payment, not tenants.

3. Fees apply to buildings with four or fewer dwelling units.

4. The fee is $9.50 per month, per unit.

5. Seniors who receive the Senior Citizen Assessment Freeze Homestead Exemption receive a 50% credit on the fee.

6. A late fee of 1.25% per month for fees later than 24 calendar days.

7. Property owners with fees overdue more than 24 calendar days may have their water turned off, but not in the winter.

8. A refuse full payment certificate is required for property transfers. The certificate has a $50 application fee.

Motor Fuel Levy - Cuts To Bridges And Snow Removal: Revenue from this fund is $31M less than last year, resulting in $22M in cuts to city vehicle fleet maintenance, $10M in cuts to bridge and pavement maintenance and a $5M cut to the city’s snow removal budget.

E-cigarettes: As expected, each wholesale liquid nicotine product dealer who sells to a retailers in the City will be required to collect a $1.25 tax for each e-cigarette cartridge and $0.25 for each milliliter of liquid to fill the cartridge. According to testimony during the public hearing portion of yesterday’s Council meeting, $500,000 collected from that tax will go toward capital funding for School Based Health Centers. Those centers are expected to provide care to 3,000 students. All proceeds, interest, and penalties from this tax will be deposited in the City’s corporate fund.

Building Permit Fee Hikes: As also expected, building permit fees are going up, many are doubling. These are the first hikes the city has implemented since 1999, and are expected to raise $13 million next year. Amendments to the building permit rubric show the City is doubling the costs of review per square foot area of work for some new construction, and adding anywhere from a nickel to a quarter to the cost per square foot for alterations, renovations, repairs, and additions. New costs per square foot range from $0.18 to $0.82, depending on the type of building and construction classification.

Flat fees are rising across the board, too. The cost for a permit to install an escalator, for example, is climbing from $200 to $300. The only type of flat fees left untouched are permits for billboards - which range in cost from $50 to $1000.

The Mayor’s office says this is part of a broader effort to update the Department of Buildings. Reforms will reduce the time it takes to issue building permits by an average of one week, a budget briefing document from the Mayor’s office says.

But the hike will also hit big construction projects harder -- those permit fees will increase 60% on average next year. Single family home construction permit fees will go up 12% to 25%, on average.

Fees for the issuance of permits, which defray the cost of reviewing building plans, are changing too. Instead of paying half the permit cost upfront, and the rest when the permit is issued, builders will have to pay a non-refundable $300 fee to the City of Chicago upfront. The rest of the cost will be paid when the permits are issued.

If the total fee to issue the permit is less than $300, the total cost will be due when plans are filed.

The City expects to make more than $44 million on building permits overall in 2016.

Parking Tax, Overweight Truck Permits And Driving Without Liability Insurance: The city’s parking tax code would be amended slightly to specify which small parking garages are exempt from the tax. Garages that house fewer than three cars are exempt, unless the owner operates more than three spaces in the City. The cost of permits for overweight trucks will go up starting June 1, 2016 and every year after by applying the previous year’s fees plus the rate of inflation based on the Consumer Price Index.

The vehicle insurance code has also been tweaked: anyone who doesn’t show proof of liability insurance to a cop when pulled over faces a fine of at least $500 but no more than $1,000 for first and second offenses, and $1,000 every time after. That fine can be reduced to $100 and the offender will be put under disposition of court supervision if they proves they did have insurance in court.

Rideshare And Taxi Rules: A number of new fees and rules would be created. Including:

1. Taxi licensees will pay an additional $20 a month fee, now $98 per month total.

2. Change in taxi fares: $2.75 (down from $3.25) for each new ride, and 25-cents (up from 20-cents) for each 1/9 mile. Plus, 50-cents per ride in fees to the ground transportation tax and wheelchair accessibility fund.

3. Taxicabs are permitted to charge “surge rates” for rides acquired through digital apps.

4. Rideshare services like Uber and Lyft will pay $5.80 for rides starting at O’Hare, Midway, Navy Pier and McCormick Place and 80-cents for every other new ride initiated. Another 20-cents per ride will be charged for the wheelchair accessibility fund.

5. For each ride to or from a designated “underserved area”, 50% of the tax will be credited. Up to 15% of all total rides each month.

6. A number of new taxi license fees and regulations for wheelchair accessibility.

City Management Ordinance: An omnibus ordinance with various changes to city rules and regulations, it includes:

1. City contract applicants will no longer have to disclose unpaid parking tickets

2. Changes to parking ticket adjudication rules

3. The Commissioner of Transportation can now create curb loading zones without Council approval

4. Higher fees for Central Business District driveway permits

5. Booted cars “shall” have all fees paid for, instead of “must”

6. The Traffic Administrator is directed to investigate “self-release” immobilization devices for booting cars

7. New installment payment plans for parking tickets

8. A debt relief program for the following unpaid fees collected before 2012:

   • tax collectors

   • tax assessment

   • property transfer tax

   • administrative hearing violations

   • vehicle violations

9. Increased fines for illegal cigarette sales and tougher rules on violators

10. Easier ways to demonstrate insured status for tattoo parlors, expediters and a host of other city-licensed businesses

11. Changes to law about non-standard sidewalks

12. Changes to snow removal law so businesses have more responsibilities

13. Newsracks can’t be placed within 5 feet of a bicycle rack or share station

14. More flexibility to Comm. of Fleet and Facilities Management to negotiate leases for Riverwalk concessions

15. Removal and addition of various parking meters

16. A management agreement for the new LoopLink bus shelters and outdoor advertiser JCDecaux

17. Total ban on animals for personal slaughter and consumption. No longer just sheep, goats, pigs, cows, poultry, rabbits, dogs and cats. Licensed establishments continue to be exempted, however.

18. Changes to rules for building fire clearance for alcohol distillers

The Finance Committee pushed through a nine page agenda in a little over an hour, with few questions or testimony (save for George Blakemore), approving all of the TIF amendments, Special Service Area (SSA) appointments, and 2016 tax levy and budget requests for all but one of the SSAs listed on the agenda.

Members Present: Chairman Ed Burke (14), Joe Moreno (1), Will Burns (4), Gregory Mitchell (7), Patrick Daley Thompson (11), Toni Foulkes (16), Matt O’Shea (19), Willie Cochran (20), Howard Brookins, Jr. (21), Rick Munoz (22), Roberto Maldonado (26), Walter Burnett, Jr. (27), Jason Ervin (28), Ariel Reboyras (30), Gilbert Villegas (36), Emma Mitts (37), Marge Laurino (38), Tom Tunney (44).
Non-members: Susan Sadlowski Garza (10)

Pension Fund Property Tax Levy Requests

Finance Chairman Ed Burke (14) however held up the 2016 property tax levy requests filed by four of the City’s pension funds, because Chief Financial Officer Carole Brown wasn’t on hand to speak on behalf of the ordinances. His staff assistant told Alderack Burke will directly introduce the property tax levy requests at today’s full City Council meeting.

Every year, as required by state law, the retirement boards for the City’s Police, Fire, Municipal, and Laborers’ pension funds submit a levy request to the City Council estimating the city’s share to the pension funds.

The retirement board for the Policemen's Annuity and Benefit Fund (PABF) is requesting a $675.8 million payment to the fund, approximately $211.8 million more than Mayor Emanuel budgeted for the Police pension fund payment in his 2016 budget proposal.

The retirement board for the Firemen’s Annuity and Pension Fund is requesting a $284 million payment from the city, or $76 million more than the Mayor budgeted for next year.

When Mayor Emanuel unveiled his budget proposal last month, he based the city’s share on an amended funding timeline that has yet to be approved by Springfield, SB777. Under current state law (Public Act 96-1495) the City’s Police and Fire pension plans must achieve a 90% funded ratio by the end of 2040. The Police Fund is only 26% funded with a $11.73 billion unfunded pension liability, and the Firemen’s Fund is only 23% funded with a $4.513 billion unfunded liability.

The Mayor’s proposed legislation in Springfield, SB777, would stretch pension payments through 2020, in addition to pushing the 90% funding requirement to 2055.

The Laborers’ and Municipal Employees’ contribution requests are closer in line with the Mayor’s budget request at $28.5 million and $277 million respectively, according to the Finance Committee agenda. Those levy requests aren’t available online yet, although they were supposed to be directly introduced at yesterday’s committee meeting.

Special Service Area Budgets  

The Committee approved, without discussion or public comment, all but one of the property tax levy and budget proposals for various Special Service Areas (SSAs) across the city. SSAs, also known as Business Improvement Districts, take a portion of the local property tax levy and use the funds to maintain and beautify streets, attract business, and provide security, among other things.

Chairman Burke said he would hold the tax levy and budget plan for Belmont/Central (SSA #2), but would allow discussion on the other SSA plans.

“Now just like the wedding ceremony when the preacher says speak now or forever hold your peace, if any of you have any objections to what’s going on at any of these Special Service Areas, now is your chance to express your opposition,” Burke said before going down the list for all the SSAs, with a total property tax levy request of $8.53 million. The Committee approved plans in the omnibus without any objections.

Invoking Rule 14, Chairman Burke abstained from voting on the budget requests for 63rd St. (SSA #3), Back of the Yards (SSA #10), Stockyards (SSA #13), and 59th Street (SSA#59). The service provider for 63rd St. and 59th Street, the Greater Southwest Development Corporation, is a client of Burke’s law firm, Klafter & Burke. The Back of The Yards Neighborhood Council oversees the other two SSAs, but their connection with Burke is unclear.

Chairman Burke also abstained from voting on a property tax incentive and a loan agreement to help fund an affordable housing project in the Washington Park community.

The property tax break was a Class L real estate tax incentive for Maromon Car Company’s showroom in the landmark Motor Row district. The tax break, which passed in committee by voice vote, would support the renovation of the iconic building on 2230 S. Michigan Ave. by saving the company $4.4 million in taxes over 12 years.

In addition, Chairman Burke abstained from voting on a loan agreement with PNC Bank for the St. Edmund's Meadows affordable housing development project in the Washington Park community (20th Ward).  

TIF Amendments

Department of Planning and Development Commissioners Lawrence Grisham and Mary Bonome took turns testifying on the Tax Increment Financing (TIF) amendments, all of which passed. This includes ordinances providing TIF assistance to pay for capital improvement projects at four Chicago Public Schools, and ordinances the Department of Planning and Development introduced to change the future land use maps for the Woodlawn and Cicero/Archer TIFs, expand the boundaries of the Belmont/Central and 119th/1-57 TIFs, and extend the life of the Sanitary Drainage and Ship Canal TIF. (Details provided in Tuesday’s newsletter).

Neither DPD Commissioner provided testimony on the Woodlawn TIF amendment. Similar to a zoning change amendment, the ordinance the Committee approved would change the land use plan for the TIF district, making it possible for the University of Chicago to build a new campus for their existing Woodlawn Charter School. The proposal consists of a three-story school building serving 6th through 12th graders and adjacent outdoor athletic field.

U of C is in the midst of purchasing 19 parcels of City owned land within the TIF district to build the school. A negotiated sale for that land was taken up later in the afternoon by the Community Development Commission. According to the DPD staff report provided at the CDC meeting, the City plans to sell the land appraised at $755,000 (approximately $4.93 per square foot) to the University for $1. Michelle Nolan, the author of the DPD report, described the sale as a “public-private partnership”.

Finance Committee’s nine page agenda has a significant number of Tax Increment Financing district-related ordinances, various appointments and reappointments to Special Service Areas (SSAs), and tax levy and budget requests for 21 SSAs.

The retirement boards of four of the City’s pension funds filed property tax levy requests for the 2016 levy that are significantly higher than the payment Mayor Emanuel proposed in his 2016 Budget.  

Pursuant to state law, the retirement boards are required to send yearly estimates of the City’s portion to the fund. But unlike the mayor’s proposed pension payment plan outlined in his budget request, which is based on an extended pension payment timeline outlined in Senate Bill 777, the estimates provided by the Police and Fire boards are based on the current funding ratio, which requires these pension funds receive a 90% funding ratio by 2040.

With a roughly $8 billion unfunded liability, the Policemen’s Annuity and Benefit Fund is requesting $675.8 million from the 2016 property tax levy. Mayor Emanuel proposed a $464 million payment for 2016. The Firemen's Annuity and Benefit Fund is requesting $284 million, a slight increase from the Mayor’s proposed $208 million payment for 2016.

The Laborers’ and Retirement Retirement Board Employees’ Annuity and Benefit Fund is requesting $28.5 million, while the Municipal Employees’ Annuity and Benefit Fund is requesting $277.7 million. Both of those funds are about the same Mayor budgeted for 2016 due to a new plan for those funds enacted by the state legislature in 2014. The levy requests for the Police and Fire pension funds are listed on Legistar, while the other two will be directly introduced at today’s meeting.

SSA Related Ordinances

Every year, SSAs must provide the City Council with an outline of proposed expenditures for the next fiscal year, in addition to requesting a percentage of the annual property tax levy to pay for improvements. Three of those SSAs are requesting a levy of over a million dollars.

Stockyards (SSA #13), is proposing a $1.3 million dollar budget, $1.18 million of which will come from local property taxes. Back of the Yards Neighborhood Council Executive Director Craig Chico filed the levy request. Chico is the brother of former mayoral candidate Gery Chico. The SSA’s biggest expenditure for 2016, roughly $500,000, will go towards public safety. Chico lists Securitas Security Services, USA as the independent security contractor.

The second largest SSA budget request, $1.2 million, was filed by Ghian Foreman, Executive Director of the Greater Southwest Development Corporation, for the 63rd Street SSA (#3). Foreman seeks a $1.1 million dollar property tax levy to fund next year’s budget, which allocates a significant amount of the 2016 budget for public safety ($305,900) and attraction ($300,950).

As for the 10 SSA appointments listed on the agenda, five are new appointments. This includes the appointment of Claretian Associates Executive Director Angela C. Hurlock to the Commercial Avenue Commission (SSA #5), Franklin Elementary Fine Arts Center Principal Margie D. Smagacz to the Old Town Commission (SSA #48), and Dever Elementary School Principal Rita O. Ortiz to the 59th Street Commission (SSA #59).
 

Proposed Amendments to 5 TIFs

Mayor Emanuel introduced five ordinances at the September City Council meeting to amend five TIF districts.

Woodlawn TIF - This ordinance amends the land use plan to allow for the planned development of the University of Chicago’s Woodlawn Charter School.

Cicero/Archer TIF - An amendment to reflect new residential and commercial development plans on seven parcels of land in Garfield Park.

The Belmont/Central and 119th/1-57 TIFs would be expanded under two ordinances the Mayor introduced. The former TIF will expand its borders to include an additional 136 acres of commercial properties and parks in the Belmont/Cragin and Portage Park neighborhoods. The latter TIF district will expand to include an additional 888 acres of commercial and residential properties located in the Morgan Park and Pullman Communities.

Sanitary Drainage and Ship Canal TIF - This South Lawndale TIF district will get extended for an additional 12 years under the ordinance introduced by the Mayor. Originally designated as a TIF in 1991 to support the redevelopment of the industrial corridor, it was scheduled to expire this year, but the new expiration date will be December 31, 2027.
 

Ordinances Authorizing TIF Funds for Capital Projects at Four CPS Schools

Approximately $4.4 million dollars from the Ewing Avenue Redevelopment TIF will fund capital improvement projects at Jane Addams Elementary School and Matthew Gallistel Elementary Language Academy.

Jane Addams Elementary, a neighborhood elementary school serving grades K-8, would receive $1.7 million dollars from the TIF to pay for the installation of new energy efficiency windows, masonry and structural upgrades. The school is located at 10810 S. Avenue H in the East Side neighborhood and has an enrollment of 822 students, 97% of which are Hispanic, and 86% of which are low income. While a majority of the funds will come from the Ewing Avenue Redevelopment TIF, the Ordinance also authorized the transfer of $600,000 in TIF funds from the neighboring TIF, the Lake Calumet Avenue Redevelopment Project.

Also located in the East Side neighborhood, Matthew Gallistel Elementary Language Academy, a K-8 school with 1,164 students, would get $2.7 million in TIF money for installation of a new roof, tuck pointing, air conditioning units and various floor, wall, ceiling and door repairs at the 100-year-old school building.  

$500,000 from the Woodlawn TIF will pay for recreational improvements at James Wadsworth Elementary, including new playgrounds, artificial turf, outdoor classrooms, walkways and plants. $27,000 from the 63rd/Ashland TIF will pay for a new playlot at the Charles W. Earle STEM Elementary School.

After meeting for more than two hours, the "District Committee" tasked with appointing a replacement for the late Rep. Esther Golar held no vote and decided to reconvene at a later date. The Committee, chaired by 15th Ward Ald. and Democratic Committeeman Raymond Lopez, will recess to accommodate the vacancy of 16th Ward Committeeman, the late JoAnn Thompson. 

According to Lopez's Facebook page, Genita Robinson, Dedrick Rent, Eric White, Eddie Daniels, Kenyatta "Nicole" Vaughn, Eddie Johnson, Keith Kysel, Sonya Harper, Michael Finney, and Glen Fulton are all candidates for consideration, though Fulton wasn't present last night. Lopez told Aldertrack the group, including Ald. Pat Dowell (3), Ald. Roderick Sawyer (6), and Cook County Comm. John Daley (who is also the 11th Ward Dem. Committeeman), spent the meeting talking to potential appointees. 

"I want to give the Democrats of the 16th Ward the opportunity to choose a committeeman in order to participate," Lopez wrote, "We have until October 21 to name a representative and will move the process accordingly."