A two hour hearing Tuesday by the Council’s License and Public Safety Committees on alleged widespread illegal car seizures by Lincoln Towing was short on substance. There were no official plans introduced to address towing issues, but the meeting was long on grievances as residents testified about their own personal horror stories of dealing with the operator.

At one point, Ald. Ameya Pawar (47), who had called for the hearing following numerous complaints about alleged towing by the company, got into a heated exchange with Lincoln Towing’s attorney, Allen Perl, who accused the aldermen of citing unsubstantiated statistics and dodging his phone calls ahead of yesterday’s meeting.

Present: Chair Ariel Reboyras (30), Gregory Mitchell (7), Ed Burke (14), David Moore (17), Matt O’Shea (19), Willie Cochran (20), Chris Taliaferro (29), Scott Waguespack (32), Deb Mell (33), Anthony Napolitano (41), Michele Smith (43), Tom Tunney (44), John Arena (45), Ameya Pawar (47), Harry Osterman (48).

The company’s infamy in Chicago is so ingrained in popular culture and the city’s history, that Ald. Ed Burke (14), the longest serving alderman on the Council, noted that yesterday’s meeting “seem[ed] like deja vu.”

“You are too young to remember when these were issues here in this building in 1987 and 1988,” Ald. Burke told Ald. Pawar, recalling Mike Royko columns about Lincoln Towing when the company was owned by Ross Cascio. Burke then proceeded to recite the chorus of Steve Goodman’s song, “The Lincoln Park Pirates.”

Perl refused to name the company’s new owner in testimony, but said that he has represented the towing company for the past 20 years. He then claimed that during his tenure as attorney he has never received a phone call complaining about illegal tows. He also took issue with the recitation of Goodman’s song. “When the song was written in the 70’s, [the company’s current owner] was about ten years old. I know that we consistently hear that song about Lincoln Towing, I don’t know what relevance it has today unless you want to indict someone from the 1970s.”

Perl was the last person to testify and spent a significant portion of his time arguing that none of the testimony preceding him was factual. “Everyone in this room so far–and it’s really the vocal minority that’s indicting Lincoln Towing–no one really has the numbers,” Perl argued. He said that there are only about 90 complaints against his client currently pending with the Illinois State Commerce Commission, not the 3,891 cited in previous testimony. Given that Lincoln Towing tows an average of 20,000 cars a year, Perl said, that number works out to be four-tenths of one-percent. “And most complaints have nothing to do with the tow,” he added.

Perl went on to say that he made numerous attempts to speak to Ald. Pawar ahead of yesterday’s hearing, but never got a call back. Lincoln Towing is based in Pawar’s ward. Perl said he later learned from a reporter that Pawar had no plans to call him back.

“Meeting with you prior to this hearing didn’t make sense to me,” Pawar responded, saying that he had no interest in making any “back room deals” because he wanted Perl to show up at the hearing. Pawar said he would only meet with Perl and his client if they agreed to sit down and and provide data and documentation of past tows. “Until that happens, I’m not going to sit in some back room with you prior to a hearing over 40 years of issues.”

The City Council’s Licence and Public Safety Committees scheduled the joint meeting at the request of Public Safety Chairman Ariel Reboyras (30) and Ald. Pawar (47), both of whom filed a resolution calling for a hearing on how the city could enforce or draft new regulations to rein in what they described as “a pattern of illegal towing and abuse of customers by Lincoln Towing.”

“It’s about not just the people who are towed, it’s about the amount of man hours the police department spends on complaints related to towing companies,” said Ald. Pawar, who noted that his local police district spent nearly 600 hours addressing phone calls about people’s cars allegedly getting towed.

There was some talk about potentially drafting up a “bill of rights” to protect vehicle owners, determining ways the city could enforce laws already on the books, and the possibility of improving regulations regarding another headache for car owners: booting. At multiple times during the hearing, Ald. Pawar called on representatives of the city’s Department of Business Affairs and Consumer Protection (BACP) to audit Lincoln Towing and release their findings to aldermen. Due to an ongoing investigation into the company, the Illinois Commerce Commission declined an invitation from Chair Reboyras to testify.  

Ald. Willie Cochran (20) reminded fellow aldermen that last year he moved through Council an ordinance requiring private tow companies to document every car towed by taking pictures of their warning signs posted in parking lots, the car towed, and the address where the car was parked. “I am being told that that isn’t being followed, it is not being conformed to. So every tow that has been towed by these companies are in violation of the law, and so they should be fined for that,” Cochran argued.

Most of yesterday’s meeting was more of an opportunity for residents to air their grievances, and for other tow operators to distance themselves from Lincoln Towing.

William Rankin, a building owner from the city’s North Side who told a story about his neighbors’ cars getting towed in his lot without his consent, turned around to Ald. Burke to say, “And we can pass all the damn ordinances we want, and Lincoln Towing is going to ignore them because that has been their record for how many years Ald. Burke? How many years have they ignored anything that you passed? They don’t give a damn about anything that you passed.”

Ed Forsythe, President of the Professional Towing and Recovering Operators of Illinois, an association that represents the business and legislative interests of several towing operators across the state, agreed. “You can pass any law you want and a bad guy is not going to pay attention. He may get locked up in the end, but he’s not going to pay attention.”

Forsythe said the Illinois Commerce Commission is the only regulatory body with teeth to enforce punishment for allegations of widespread towing. When he was asked by Chairman Reboyras if he thought that Lincoln Towing made the rest of the association look bad, Forsythe said yes.

“Absolutely, but there is nothing we can do until a ruling is given,” Forsythe said, adding that the association is in a “pickle” because they can’t remove Lincoln Towing from their organization without just cause.

Mayor Rahm Emanuel promoted the Chicago Police Department’s Chief of Patrol, Eddie Johnson, to the role of interim Police Superintendent and subsequently asked the Police Board to initiate a new search for the top cop vacancy. Mayor Emanuel’s end-run around the Police Board also raised questions about the Board’s future relevancy, since Mayor Emanuel had directed the Board to conduct a nationwide search, only to choose a Chicago-based candidate who didn’t apply to the position.

Johnson will take over the role that until yesterday was held by Interim Superintendent John Escalante, who will resume his previous role as second in command, the First Deputy Chief of Police.

“I believe [Eddie Johnson] is the right person at the right time to serve as Interim Superintendent. He has the command, the character and the capability to lead the department at this critical juncture,” Mayor Emanuel said of his decision at a late afternoon press conference held at CPD headquarters yesterday.

Attending the press conference in the front row, but not on stage, was a smattering of aldermen, including Rules Committee Chair Michelle Harris (8), Public Safety Chair Ariel Reboyras (30), Zoning Committee Chair Danny Solis (25) and Latino Caucus Chair George Cardenas (12).

Emanuel said that while the Police Board was conducting its national search to fill the vacancy left by the firing of former Police Supt. Garry McCarthy, he met with community leaders, aldermen and police officers across the city to get a feel for who they wanted in the leadership role.

It was during those CAPS meetings, roll calls, and private lunches, the Mayor said, that he “kept hearing” about all the attributes that the next superintendent should have: “a proven crime fighter, someone who knows Chicago, someone who can mentor our officers, and someone with impeccable integrity.”

“Someone who has those attributes is Eddie Johnson,” he said.

But the question still remains as to how Johnson received consideration from the Mayor in the first place. The Police Board is mandated by city law, when a police superintendent vacancy occurs, to “nominate three candidates to fill the position and to submit those nominations to the mayor.” If none of the nominees are accepted by the mayor, the Board must come up with three more. The mayor appoints the Police Board members, who serve for five year terms and can be removed for “just cause”.

Asked by reporters about his process, Mayor Emanuel said that his conversation with Johnson started “a little over a week ago”, around the same time he was talking to those various stakeholders. “This name [Eddie Johnson] came up in different venues and different forms.”

Some sources suggested to Aldertrack yesterday that Fr. Michael Pfleger of St. Sabina Church offered up Johnson’s name, because of their close relationship dating back to when Johnson was commander of the 6th Police District, which includes Fr. Pfleger’s church.

But Fr. Pfleger told Aldertrack that he made no such recommendation, and that it wasn’t until the mayor called him Saturday night, before the news broke, that he first learned Johnson was under consideration.

“The Mayor called to keep me in the loop,” Pfleger told Aldertrack prior to Mayor Emanuel’s press conference, adding that he had no idea why the Mayor had chosen not to proceed with any of the three finalists recommended by the Police Board. “If [Johnson] had applied, he would have been one of the top three.”

Fr. Pfleger had nothing but praise for the 27-year veteran of the police department. “I have great respect for him,” he told Aldertrack, characterizing Johnson as a “quietly strong guy” with “good police sense”, and someone who has been very accessible and a strong track record of listening to the community.

“Do I think Eddie can to it? Yeah. But it will take a lot of cooperation [within the department] to restore trust,” he added.

Police Board Not Notified; Future Role Unclear

As of mid-day yesterday, the Police Board had not received official notification of the Johnson pick from the Mayor, according to Board executive director Max Caproni. Members had not been notified of the Mayor’s decision to restart the search either, according one member, Rev. Michael Eaddy, a senior pastor at the People’s Church of the Harvest Church of God in Christ.

“The Mayor hasn’t provided any written communication to us,” Rev. Eaddy told Aldertrack Monday afternoon, also ahead of the mayor’s announcement, adding that all he knew about the Johnson appointment is what he’d read in the news.

“We picked three ideal candidates,” Rev. Eaddy told Aldertrack, “The only thing I know, those three finalists were interviewed last weekend.”

Within an hour of the Mayor’s formal announcement Monday afternoon, the Police Board issued a statement saying they had received word their finalists were rejected. “We will convene as a Board as soon as we are able and decide appropriate next steps,” the statement read.

While the Police Board has an ex officio role by law, it is unclear what de facto role it now has in choosing the next superintendent, now that the Mayor has announced his ultimate choice.

“I am being consistent with the process, and it also has precedent,” said Mayor Emanuel yesterday. As we reported earlier this month, when the top three finalists were officially announced, Mayor Richard M. Daley, in 2007, rejected Police Board’s first round of nominations to replace Phil Cline. Daley sent them back to the drawing board, and the board submitted three new names. Eight months later, Daley appointed Jody Weis to take over.  

When asked in yesterday’s press conference in separate questions if the Police Board was relevant or an anachronism, because he brushed aside their recommendations and essentially directed them to nominate his choice, Mayor Emanuel refused to directly answer the question. “It’s an outgrowth of another problem the city had before,” he said.

Both Interim Supt. Johnson and Mayor Emanuel said that once that search begins, Johnson will formally apply to become the permanent superintendent. Asked why he didn’t apply during the first round, Johnson responded that interim Police Supt. John Escalante was vying for the position, “So out of support for him, I didn’t apply.”  

Support For A “Chicagoan”

Both also dismissed the characterization of Johnson as an “insider”, arguing his experience is more likely to help not hinder reform the department, especially at a time when morale amongst the rank and file is at an all-time low.  

“I think that because I am an insider, I can fix things from the inside out, as opposed to coming from the outside and having to fix it from the outside in,” Johnson said. “We have the Department of Justice review going on now, and the Mayor’s Task Force, and I welcome those things.”

Lori Lightfoot, the Police Board President, is also a member of the Mayor's Police Accountability Task Force, which is slated to release its findings in mid-April. 

“I would say he is a ‘Chicagoan,’” the Mayor added. “He grew up in the city and the department.”

Ald. Ariel Reboyras (30), Chairman of the City Council Committee on Public Safety told Aldertrack that he no longer plans to conduct a hearing on Thursday to interview the previous submitted superintendent candidates. “We’ll be supporting the Mayor’s choice,” he said.

Council’s Black and Latino Caucuses Plan to Press Agenda Further

Two Council Caucuses lent their full-throated support to the new interim superintendent choice, but also delivered a warning that the new coalition between Black and Latino aldermen wouldn’t dissolve any time soon.

At a joint press conference with Latino Caucus chair Ald. George Cardenas (12), Ald. Roderick Sawyer (6), Chair of the Black Caucus told reporters, “The gist of this is about, the Latino Caucus and the Black Caucus are continuing to work together towards transformative change in the City of Chicago.”

He continued, “Let’s be quite honest here. The city is comprised by a majority of Black and Latino members. We’re the majority. Between the two of us, our two caucuses, we’re the majority on the City Council.” Combined, the caucuses make up 28 members of the 50 member Council. They also take up majorities on two of Council’s most important committees, Finance (19 out of 34 members) and Budget (18 out of 34).

Sawyer went on to say that Chicago government, despite its rubber stamp reputation, was intended to be a strong council, weak mayor system. When asked what was next for the two caucuses to team up on, Sawyer had a short, nonspecific list: appointments, finance issues, and procurement. Cardenas was similarly short during the press conference, briefly mentioning economic and education issues.

Council recently passed higher procurement goals for the city to hire women and minorities for construction contracts, and incentives for contractors to hire apprentices, journey workers, and laborers from low-income, high-poverty and high-unemployment areas.

Both caucuses have shown they can successfully pressure the Mayor into bending on proposals. The Mayor’s office had a first round bout during the protracted showdown over the hike in the smoking age and prices for other tobacco product. The Mayor’s office issued a full court press at the time to appease South and West side Black and Latino aldermen’s concerns about loose cigarette sales and the burden on small retailers and border businesses.

The Latino Caucus is playing a long game, of sorts. At Monday’s press conference, Cardenas said the Latino Caucus is invested in promotions within the Chicago Police Department, so a Latino candidate rises to the top next time there’s an opening. “In order to have more Hispanics on that final count next time, we want to make sure that we address that now and not at that point.” Sources have said (and Caucus members have alluded to) elevating Latinos in leadership positions across the city.

The Chicago Police Department currently has vacancies for Chiefs of Detectives and Support Services. New Interim Superintendent Johnson would be responsible for making those appointments.

The City Council’s Black Caucus said the city’s next police superintendent should be an African American who knows the city and police department “inside and out, top to bottom,” and has the respect of the rank and file.

But the group stopped short of a full-throated endorsement of Eugene Williams, who fits that bill and is on the mayor’s short list to fill the superintendent slot, because they want the City Council, not just the Mayor, to have an opportunity to vet all the finalists. “We want to hear about all candidates right now before the decision is made,” Caucus Chairman Roderick Sawyer (6) said.

“The previous police chief was a total outsider without working knowledge of the people, the policies, and prevailing practices and traditions. His leadership style was not consultive, but unilateral,” Sawyer told reporters at a press conference at City Hall. He said two outsiders who previously ran the department didn't successfully break down “the blue wall”. Many black aldermen called for Supt. Garry McCarthy's ouster during budget hearings and in the wake of the Laquan McDonald video release. 

So, Eugene Williams?

Sawyer said first, the caucus wants a chance to publicly vet Williams and the other two candidates, Cedric Alexander and Anne Kirkpatrick, in a Public Safety committee meeting. Without that hearing, the group said, they may stall. “We may either not vote or we’re going to have an awfully long hearing that particular day.” Though after the press conference, Ald. Carrie Austin (34) said she'd told Mayor Emanuel she preferred Williams. 

“I would not go against it, I think the City Council should be able to vet the candidates before us,” Ald. Ariel Reboyras (30), told Aldertrack. But he also said that any call for a hearing would have to be introduced as a resolution, which could delay the selection of a finalist further.

The Latino Caucus, of which Reboyras is a member, criticized the superintendent picks the Police Board put forward last week, saying current Interim Superintendent John Escalante should be considered. They also said it was “insulting” a Latino candidate didn’t make the short list.

On Wednesday, we incorrectly tweeted that aldermen approved the $29 million dollar sale of City Colleges’ former Malcolm X campus site. But the story behind what actually happened is more interesting.

Aldertrack has learned that the land sale never made it to the floor, because two freshman aldermen–Ald. Raymond Lopez (15) and Ald. Gilbert Villegas (36)–threatened to use parliamentary procedure to block the item from a vote, because they want to hold City Colleges’ feet to the fire over minority hiring.

At Monday’s Housing Committee meeting, the project received unanimous approval by voice vote, and Committee Chairman Joe Moore announced before adjourning that, “All eight of these [agenda] items will be reported out at the City Council meeting on Wednesday."

But it stopped there. “I believe it was some type of issue related to the City Colleges, and I don’t know the full track of it,” Bob Fuller, a legislative aide for the committee told Aldertrack. Rather than have the matter deferred and published, Ald. Moore opted to hold the issue in committee until Ald. Lopez and Villegas received the information they requested, Fuller said.

Ald. Villegas confirmed with Aldertrack that he and Ald. Lopez previously requested data on Latino hiring and contracts at City Colleges’, but haven’t been satisfied with, among other issues, “the lack of a plan for diversity and parity.”

“The only reason why there’s been growth at City Colleges is because of the Latino community. 28% of Malcolm X students are Latino, enough to designate it as a Hispanic institution now,” he said.

Villegas has introduced a resolution Wednesday urging City Colleges to “hire Hispanic professors and staff, reflective of the student population.” City Clerk Susana Mendoza is listed as the sole co-sponsor. He asked the issue be referred to the Committee on Workforce Development and Audit because the Education Committee, which normally hears City Colleges-related issues, is still without a chair. After City Colleges “stalled and delayed” giving statistics to Villegas, the resolution says, “City Colleges produced data that seems suspicious to Alderman Villegas and the Latino Caucus of the Chicago City Council.”

Villegas says citywide, the message he’s receiving is “Latinos need not apply.”

Ald. Walter Burnett (27), whose ward includes the Malcolm X site, told Aldertrack he doesn’t understand why they’re using the land sale as “leverage,” because City Colleges no longer owns the property, the city does, and argued they’re just preventing the city from making money and hurting the Blackhawks and Rush.

The Rush portion of the 11-acre site is slated to sell for $17.5 million, of which $1.8 million will pay for education, scholarships, research, and health and wellness programs for the community. The negotiated sale price for the Blackhawks portion is $11.7 million. $3 million is dedicated to community hockey training programs, fitness and nutritional programs and group events.

A representative for the Blackhawks said, “This is a procedural matter between the city and City Colleges, not the Chicago Blackhawks. We are moving forward with our timeline in accordance with our processes.” The Mayor’s office told Aldertrack they expect the sale to pass City Council next month.

Some time before Wednesday’s monthly City Council meeting, Finance Chairman Ed Burke (14) will hold a private screening for aldermen to show video footage purporting to show Chicago police officers conducting an illegal search and seizure in Morgan Park. The footage, captured from a witness’ cell phone, is part of a settlement case the full City Council is scheduled to vote on this week. The Finance committee considered the settlement on Friday.

The City’s Law Department is asking aldermen to approve a $205,000 settlement from a May 2013 incident involving eight 22nd District Chicago Police officers who allegedly conducted an unlawful strip search of Caprice Halley, Tevin Ford, and Robert Douglas.

According to Jane Notz, First Assistant Corporation Counsel for the city’s Law Department, who testified at Friday’s meeting, eight officers were traveling in a convoy patrolling the Morgan Park area when officers saw what they suspected was the sale of drugs by the driver of a maroon car to a pedestrian. As the officers approached to investigate, the maroon car drove away, she said. The pedestrian told the officers he had just purchased heroin from the car’s driver. The pedestrian was arrested and the officers proceeded to search for the maroon car.  

Notz said two officers located and then stopped the maroon car, both officers state that they saw Douglas, who was the driver, quickly hand something to Halley who was in the front passenger seat, but, according to Notz, the plaintiffs deny that occurred.

The third plaintiff in the suit, Ford, was in the back seat. According to Notz, Officers told Ford and Douglas to get out of the car, and told Halley to stay in the car and keep her hands on the dashboard, while the officers radioed for a female officer to pat her down.

“A neighbor captured what happened next on a cell phone video. As shown on the video, while the officers waited for the female officer to arrive, they performed multiple pat downs of Mr. Douglas and Mr. Ford. They also asked Mrs. Halley to exit the vehicle and they put her in handcuffs while they searched it,” Notz explained to aldermen. Three of the officers took Douglas to a gangway and handcuffed one of his wrists above his head to a burglar bar, she added. “As the officers talked to Mr. Douglas, he pulled down his pants and undergarments and bent over. After one of the officers looked at his naked buttocks, Mr. Douglas pulled up his pants and began speaking with the officers.”

“Shortly afterward, the officers noted they were being recorded. Two of the officers then relocated Mr. Douglas and Mr. Ford to an alley nearby. They state that they did this because they were impeding traffic where they were. Other officers waited with Mrs. Halley until the female officer arrived, and then they relocated to the alley as well. None of the events in the alley were captured on video.”

The city wants to settle the case because one of the plaintiffs, Douglas, died in an unrelated incident a month later before he could be deposed for testimony, and because, according to Notz, the plaintiffs will rely on the video to argue that the officers improperly instructed Mr. Douglas to remove his clothing, although officers deny giving this instruction.

Ald. David Moore (17) asked about the officer’s conduct history. Notz said seven of those officers have between one and four complaints each, but “none of those complaints have resulted in a sustained finding.”

“So one of the officers had four complaints,” Ald. Moore followed up.

“One of the officers has four complaints against him, yes,” Notz replied.

When Ald. Moore followed up to ask what those complaints are, Notz referred to Deputy Chief Eddie Welch with the Police Department’s Bureau of Internal Affairs, naming the officer in question on mic. Ald. Tom Tunney (44) quickly interjected that he didn’t think it was “appropriate” for her to name the officer.

Deputy Chief Welch then testified that the officer in question has “one open investigation at this time.” Then he proceeded to say that he had five complaints over the past five years. “I don’t have all the facts,” he said.

“So you don’t have with you any of those four cases?” Moore responded.

“We have two IPRA cases, and one is involving the allegation, or the execution of a search warrant. One is searching a vehicle without justification. Those are IPRA investigations. And there is one is 2013, issuing a false citation, which is also closed an exonerated in 2013.”

None of the officers involved in the suit have been disciplined for the event in question, Welch added, when asked by Ald. Roberto Maldonado (26). Welch said none of the plaintiffs were made available for questioning to pursue an investigation into possible disciplinary action, but, “it is a good likelihood that this case will be reviewed and be continued. Yes, sir.”

Ald. Roderick Sawyer (6) asked for clarity on what the video purports to show. “It was taken from an upstairs apartment in a building across the street,” Notz added.

Ald. Moore (17) then asked if aldermen could watch the footage before approving the settlement Wednesday. Chairman Burke said he would arrange something for this week.

The committee also approved another settlement, a $625,000 payout to Marlon Pendleton, who was wrongfully convicted in 1993 of a sexual assault. He was exonerated and released from prison in the fall of 2006, after DNA testing proved he was innocent.

Homebuyer’s Assistance Program

The Finance Committee approved Mayor Emanuel’s plan to create a program aimed at better connecting new home buyers with financing for a down payment or closing costs associated with buying a new home.

“One of the number one impediments to families purchasing homes is coming up with the down payment… Many of them spend more in rent on a monthly basis than they would on a mortgage on a home because they can’t come up with the upfront payment,” said Carole Brown, the city’s Chief Financial Officer.

The Homebuyer’s Assistance Program will provide a grant of up to 7% of the total loan amount based on an applicant’s income, and all mortgage loans will be a term of 30 years at a fixed interest rate.

According to CFO Brown, the city will put $1 million toward launching the program, with the expectation that it will “become self sustaining over time.”  The Chicago Infrastructure Trust (CIT) will oversee the program, and work with “authorized lending institutions” to shore up capital for applicants.

George K. Baum, which CFO Brown characterized as a “nationally acclaimed company with over 80 years experience in the housing finance community,” will assist in reviewing loan information and reporting monthly to the CIT. The city plans to bring in two other financial firms to “broaden the group of lenders,” Brown noted, including Cabrera Capital. Martin Cabrera, a founder, currently serves as Chairman of the Chicago Plan Commission, which wasn’t mentioned at the meeting. Melvin and Company, an African-American-owned firm, will also serve as a lender, and Amalgamated Bank will serve as an escrow-agent in charge of dispersing the funds.

The details of how the program will be funded and who will be liable for any loan defaults was a main issue of concern for Ald. Tom Tunney (44) and Ald. Roberto Maldonado (26).

After much back and forth, Brown offered up this example to help explain how the program will playout: Say a person wants to buy a $100,000 home and they take out a $90,000 mortgage with a lender. If the homebuyer qualifies for this program, they could get a grant from the CIT for up to $10,000 to help pay off their down payment or closing costs. The lender then has 30 days to give that $10,000 back to the CIT, so it can lend it to another homebuyer, and thus the program, in theory, will become self-sustaining.

“If the homebuyer stays in their home for five years, pays the principal and interest on their loan on time, participated in the training each year, 20% of that loan becomes a grant and they don’t have to pay it back. So at the end of the 5th year, they don’t owe the city or the lender the full amount,” Brown said.

Borrowers will also have to pay an administrative fee of no more than 2.5% of the total loan amount. That fee, which is subject to change based on market conditions, Brown said, will be amortized over the 30 year mortgage, and the proceeds will be split between the servicer, Cabrera, Melvin, and the CIT.

In the example mentioned above, the borrower will end up paying an additional $25,000 in service fees over the life of the loan. Ald. Tunney found this concerning, saying he didn’t want the city to be in the business of making money off of low-income residents. But CFO Brown said that’s not the reason the fee is in place, nor is it the purpose of the program.

In order to qualify for the program, the home buyer must have an annual income between $87,000 and $133,000, which is based on a percentage of area median income for a family of four.

As for potential defaults, the bank that lends the money will put a subordinate lien on the home for the grant amount until it’s forgiven. Neither the CIT nor the city has exposure to the borrower. CFO Brown added that the borrower education programs the homebuyer must attend in order to get the loan will help “mitigate issues of people trying to purchase a home they can’t afford.”

As for why the trust, not the city, is running the program, CFO Brown said the city wants to “leverage their resources” and “further the mission of the trust.”

The ordinance authorizing the new homebuyer program also includes a provision increasing the amount of money of another city-run homebuying assistance program: the Mortgage Credit Certificate program. That program will get an additional $5 million for a total $80 million budget.  

The MCC program, which the Department of Planning and Development oversees, provides certificates that allow a taxpayer to claim a tax credit for a portion of the interest paid on a mortgage.

“The Department of Planning and Development is seeing a potential increase in interest, particularly that may coincide with the homebuyer assistance program in people wanting to obtain mortgage credit certificates,” James McDonald, Deputy Corporation Counsel for the city’s Law Department testified, after Ald. Tunney had noted the change in the substitute ordinance introduced at the meeting, “does more than fix scrivener’s errors, which is what Chairman Burke said when it was adopted.”

Other Highlights:

• Tampon Tax Exemption: The committee approved this ordinance from Chairman Ed Burke (14) and Ald. Leslie Hairston (5) that would exempt feminine hygiene products from the city’s sales tax.
• Smokeless Tobacco Ban: Under the ordinance the committee approved, the use of smokeless tobacco, would be banned at Wrigley Field and U.S. Cellular Field, as well as other sporting venues across the city. Three major U.S. cities–Los Angeles, San Francisco, and Boston–already have rules on the books outlawing chewing tobacco at sports venues. If adopted by the full City Council on Wednesday, the measure would become law 90 days from that vote. Violators of the new rules would face fines up to $250 for the first offense, $500 for the second offense, and up to $2,500 for each additional offense that occurs within one year of the first violation. Chairman Burke directly introduced the ordinance at Friday’s meeting, and had U.S. Sen. Dick Durbin on tap to testify in support. It passed without objection or concern from aldermen, unlike Mayor Emanuel’s tobacco reforms, which have been an uphill battle for the Mayor. The Chicago White Sox issued a letter of support.
• Ald. Jason Ervin (28) held his ordinance in committee that would remove J.P. Morgan Chase from the list of banks the city holds its money. Ald. Ervin introduced the ordinance after the bank said it would be closing down its only branch in Ervin’s ward.
• Garbage Fee Collection Clarification: The committee approved a direct introduction from Budget Director Alex Holt. The item is in reference to the new garbage fee the City Council approved with the 2016 budget. According to Holt, the ordinance made “a technical correction” to “codify billing and collection policies” associated with the new fee since it’s collected on the water bill. Holt said the amendment clarifies the revenue collected from residents will be properly allocated among the water, sewer and garbage fee funds.

Chicago taxi drivers warn aldermen that their industry is on the verge of collapse with the proliferation of ride-hailing drivers flooding city streets. A plan to put the City Council in charge of approving new runways at O'Hare Airport fails in committee over the objections of North Side residents exasperated by the constant stream of planes over their homes. And U.S. Sen. Dick Durbin visits City Hall to lobby for a ban on chewing tobacco at Chicago ball parks.

Following inaction in Springfield on Mayor Rahm Emanuel’s property tax relief plan and a looming April 30th deadline to consider a city-run program, Ald. Proco Joe Moreno (1) and co-sponsors will hold a press conference at 10:00 a.m. today to call on the Finance Committee to hold a hearing on a Property Tax Relief Program he introduced in September. The Finance Committee meets this Friday at 10:00 a.m.

“We can not wait for Springfield to act on this important issue–our city must take action now and pass this important rebate program!” Moreno wrote in a recent Facebook post. Ald. Pat Dowell (3), Ald. Roderick Sawyer (6), Ald. Michael Scott Jr. (24), Ald. Danny Solis (25), Ald. Milly Santiago (31), Ald. James Cappleman (46), Ald. Ameya Pawar(47), and Ald. Joe Moore (49) are co-sponsors and have been invited to attend the press conference. “Families impacted by the property tax increase” will also be in attendance, according to a Moreno staffer.

Since Mayor Emanuel announced a historic property tax hike last fall to shore up funds for the city’s Police and Fire pensions, aldermen have proposed three different relief plans to mitigate the stress on homeowners.

Expressing worry that Springfield wouldn’t get their act together in time to approve Mayor Emanuel’s plan to double the Homestead exemption from $7,000 to $14,000 by this spring, the City Council adopted a resolution that set an April 30th deadline for the City to adopt a property tax relief plan of its own.

Officials with the City’s Budget Office, who spoke on background, told Aldertrack they’re looking at the various proposals and will meet with aldermen over the next few weeks to come up with an official city-run plan. It’s likely that plan won’t base rebates on home value, which they called “regressive.” The city is more interested in a “progressive” and simple plan focused on low income residents, they told Aldertrack.

The various plans on the table:

• Homestead exemption from Mayor Emanuel: A doubling of the homestead exemption from $7,000 to $14,000 in Springfield was painted as a home run by the Emanuel administration, since it didn’t cost the state anything and would give homeowners across the board some property tax relief. In a statement in October, the Mayor’s office said “any resident whose home is valued at $250,000 or less will be held nearly harmless over the four year phase in of the property tax increase, with many seeing a decrease in their bill.” But like most things in Springfield lately, the amendment hasn’t moved in months.

• Ald. Moreno’s Plan: Moreno’s ordinance is intended for homeowners with income under $100,000, with a higher rebate rate for those earning less. The rebate rate is multiplied by the difference in the City’s real estate tax assessment rate from last year to this year, then multiplied by the assessed value of the house. Moreno’s office said 57% of the occupied household population in Chicago would potentially be eligible to apply for relief under his ordinance.

• Ald. Smith’s Plan: It was included in the same resolution that set the April 30th deadline, which passed as part of the consent calendar on the day of the budget vote. Ald. Michele Smith (43) and Ald. John Arena’s (45) resolution urges Springfield to pass the Mayor’s Homestead Exemption in Springfield, but if the exemption isn’t passed into law by April 30, 2016, the City Council would “consider an ordinance creating a City-administered Property Tax Rebate Program…” by June 1 “taking into account the numbers of years that such homeowners have resided in their homes, their age, their income, and the disproportionate impact upon them of the increased property tax levies and the 2016 reassessment of property values in Cook County.”
  
  The text of the resolution draws from Ald. Smith’s ordinance. Ald. Arena told Aldertrack at the time the rebate deal is why none of the Progressive Caucus’ revenue amendments introduced the week before the budget succeeded. 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 said.

• Ald. Rosa’s Plan: Ald. Carlos Ramirez-Rosa (35), partnering with other Progressive Caucus members, introduced an ordinance that “makes use of fund set aside from the City's underutilized 2010 Property Tax Rebate program. In 2010 the City allocated $35,000,000 for a rebate, of which only $2.1 million was distributed,” according to a release from Rosa’s office. Rather than calculate a rebate based on the value of a home, the rebate would target income within 400% of the federal poverty level. “This would include single homeowners earning $47,080 (roughly the median income of the City of Chicago), and couples earning a combined income of $63,720,” the release says.  

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