The size of city's budget hole is unprecedented this year, at least roughly $425 million, possibly approaching a billion, depending on whether or not pension reform is passed and how much of the city's pension liabilities and debt the city decides to pay back each year.

Aldermen and interested observers have suggested dozens of new revenue solutions, but as of yet the mayor's team has been tight lipped which ones he is likely to adopt. With the Mayor's budget proposal scheduled for introduction next Tuesday, Aldertrack has assembled a “cheat sheet” of the various taxes, fees, and efficiencies under discussion.

In addition to combing through all the media coverage, we reached out to aldermen and their staff, state legislators, City officials, and lobbyists to assemble the list. Excluding the property tax and other big ticket items like TIF reform, or some sort of city income tax, the ideas listed here total more than $2 billion.

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  Property Tax: $450-$550M – As detailed in Thursday’s newsletter, this number might be misleading. It could be much bigger, or followed by a similar-sized hike next year. Leading aldermen and the mayor have said they plan to make a property tax increase “fair and progressive.”

  
  


• Property Tax Exemptions – Almost everyone we've spoken to agrees that an increased exemption is a politically necessary accompaniment to a property tax increase of any size. Earlier this week Emanuel floated a plan to exempt those that own homes worth less than $250,000, but it requires approval from Springfield, and Gov. Bruce Rauner made it clear he won't sign any tax changes without linking it to elimination of government employee collective bargaining.Aldermen and city budget officials are now examining ways a tax rebate, which could be managed entirely by city and Cook County government, could be passed through a city ordinance. Such a plan would require creating a new bureaucratic structure to manage it, however. Ald. Joe Moreno (1) has proposed a rebate plan that would rebate those with household incomes below $100,000. Ald. Carlos Rosa-Ramirez (35) is also working on a plan of his own, due to be released on Monday.


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  Efficiencies From the Mayor’s Office: $170M – The Mayor has said multiple times he and Budget Director Alex Holt are trying their best to find efficiencies in City government before asking taxpayers to cough up more money. Carole Brown, the City’s Chief Financial Officer, said at a City Club event the mayor’s budget will include $170 million in budget cuts, reforms and efficiencies. But a full list detailing those cuts hasn’t been released. What the Mayor’s press office has released is piecemeal, things like auctioning off City surplus goods ($2M), changes to grid garbage collection ($7M), and healthcare savings from a deal with the Labor Management Cooperation Committee ($20M).

  
  


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  E-cigarette And Smokeless Tobacco Fees: $31M – Ald. Joe Moreno’s (1) pitch to tax e-cigarette cartridges and containers would net the city approximately $1M in revenue. The bigger ticket item is a 20 to 30% tax on smokeless tobacco like chew or snuff. Moreno said he’d be willing to go as high as 70%. Mayor Emanuel, in one of few comments on aldermanic suggestions, told WLS-AM Radio there was a “building consensus” around a tax like this.

  
  


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  Cloud Tax: $12M – The City’s Finance Department doesn’t consider this a new tax, but an enforcement of two existing taxes already in the books. Most analysts agree the real revenue number is much higher, probably closer to $70M once a full assessment is completed. It has proven controversial among not only users of streaming services like Netflix, Hulu, and Spotify, but also the local tech community and businesses who rely on cloud data. Enforcement of the tax has been delayed until January. There’s a court challenge to the ruling already in Cook County chancery court from the the nonprofit Liberty Justice Center, an arm of the Illinois Policy Institute.

  
  


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  Garbage Pickup Fee: $70M – Days before the budget release, Ald. Joe Moore (49) said Mayor Emanuel floated the idea to slap a $9.50 fee on garbage pickup, and may be tucked into the budget. If all eligible homeowners paid the fee, it could generate $70M. Earlier this summer, Ald. Roderick Sawyer (6) suggested a nominal fee on garbage collection is “worth looking at,” but got pushback from some aldermen on the south and west sides. Four years ago, Inspector General Joe Ferguson estimated a collection fee like this could bring in $125M, with an additional $18M if blue cart recycling fees were included. This fee could be folded into a property tax hike, so it can be deducted from federal income taxes.

  
  


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  Sugar-Sweetened Beverage Tax: $134M – Ald. George Cardenas (12), chairman of the Committee on Health and Environmental protection, held a hearing on a proposed penny per ounce tax on sugar sweetened drinks, including soda, some juices, Kool-Aid, and Gatorade. The tax received pushback from the Illinois Restaurant Association and the Chicago Coalition Against Beverage Taxes but support from health officials. When asked about the ordinance, Mayor Emanuel said “there are a lot of savings as it relates to our budget in healthcare…changing people’s behavior can be a big savings financially, as well as improve healthcare outcomes.” Cardenas is waiting for clarification from the Law Department before he calls it for a vote in committee,as there are two existing taxes on soda in the City. It’s unlikely the committee will meet before full Council September 24.

  
  


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  Rideshare Fees and Licensing: $77M – Finance Chairman Ed Burke (14) has championed a $1 fee on Uber or Lyft rides, and Ald. Anthony Beale (9) supports an additional fee during surge pricing, which is when rates for rideshares jump (double fee for 2x surcharge, triple for 3x, and so on), but Beale didn’t provide an estimate on how much revenue the surge pricing fee could generate the city. The Progressive Caucus has suggested Uber and Lyft drivers should be required to have the same licensing as cab drivers and chauffeurs. Assuming there are 5,000 rideshare drivers in Chicago, the Caucus says licensing could generate more than $7M.

  
  


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  Zero Waste Program: $29M – The Progressive Caucus wants to require buildings to break down recyclable materials by category so they can be reprocessed and sold to recycling companies at profit. The Caucus estimates it could raise $299 million over 10 years.

  
  


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  Stormwater Stress Tax: >$10M estimate – A tax on big box stores and other buildings whose large parking lots put an additional stress on city drainage systems is another Progressive Caucus plan. This tax could hit hospitals, schools, and nonprofits, too, but aldermen didn’t put a price tag on this suggestion or talk about possible exemptions.

  
  


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  Conservation Pricing for Bulk Utility Users: >$10M estimate – Another Progressive Caucus pitch would be for the City to charge bulk users of water, electricity, garbage collection, and stormwater drainage at higher rate. “Large entities like big box retailers, industry, and even universities and hospitals could potentially even subsidize lower rates for lower income Chicagoans,” the Caucus press materials say, but again, the proposal doesn’t include a price tag.

  
  


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  Fold Chicago Board of Elections Into Cook County Clerk: $13M – Civic Fed has backed this idea, and the Progressive Caucus revived it in their recent budget suggestions. In a 2011 brief, Civic Fed said combining the two agencies would be more user-friendly, reduce voter confusion about where to stand and which machines to use on Election Day, reduce duplication, make it easier to find election results, and save money.

  
  


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  PILOT Program: no estimate – A PILOT (Payment In Lieu of Taxes) Program in Chicago, modeled after a similar one in Boston, would compel nonprofits exempt from property taxes to pay a voluntary fee to the City, and is supported by the Progressive Caucus. Some of that money would come from universities, and possibly from hospitals and churches. Since it’s a voluntary program and payments are generally negotiated between municipalities and nonprofits, it’s hard to predict how much money this could raise, or how long it could take to implement. Boston’s PILOT program brought in roughly $28M in FY 2015.

  
  


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  Investor Landlord Refuse Fee: no estimate – Another Progressive Caucus idea targets investor landlords, who rent out extra properties. Landlords renting out non-owner occupied single family homes and small apartment buildings would pay the cost of garbage collection. No estimates on revenue were provided.

  
  


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  Luxury Tax: no estimate – A tax non-essential, high-value purchases like fur coats, high-end jewelry and boats above a certain price point, plus services like pet grooming, travel services, plastic surgery, investment counseling and architects was also pitched by the Progressive Caucus. Ald. David Moore (17) has also suggested a tax on luxury real estate transactions, but neither the Caucus nor Moore suggested how much money the City could make from such taxes.

  
  


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  Increased fee on O’Hare, Midway, Navy Pier Concessions: no estimate – Ald. David Moore (17), an accountant, proposed an increase on the percentage fee of gross sales from concessions at O’Hare International Airport, Midway Airport, and Navy Pier. Moore’s press spokesperson didn’t return requests for comment on how much they expect the fee to generate.

  
  


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  $2.50 Hotel Surcharge: no estimate – Given a record-setting 50 million visitors to Chicago in 2014, Ald. David Moore (17) pitched a $2.50 surcharge per stay, not per night, on the city’s hotels. Moore’s press spokesperson didn’t return requests for comment on how much this would generate, only saying in a press release it would “generate millions.”

  
  


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  Congestion Fee: $210M – A tax aimed at reducing traffic and pollution would take some infrastructure changes, but could take a big chunk out of the budget gap. Inspector General Joe Ferguson estimated in 2011 that a $5 toll on cars entering the Central Business District during morning and evening rush periods could raise $210 million, even after a 20% dip in traffic and a $300 million capital outlay for checkpoints equipped with cameras and electronic transmitters (similar to EZPasses that can be used on the Indiana Toll Road and the Chicago Skyway). Some money would also go to CDOT. Finance Chairman Ed Burke (14) first brought the idea up in 2007, but was shot down by Mayor Richard M. Daley.

  
  


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  $25 Bike License: no estimate – Ald. Pat Dowell (3) first floated this idea in 2013 as an offset to a cable TV tax increase. Licensing would also require a 1 hour safety training course. A 2012 census suggested more than 19,000 people commute on bikes to work in the city, and that number has almost certainly gone up with the introduction and expansion of Divvy. But even if that census number doubled, licensing fees would generate less than $1M. At the time, Ron Burke, executive director of the Action Transportation Alliance, said bike licensing would be prohibitively complicated and costly to administer.

  
  


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  Vehicle Fuel Tax: no estimate – Chicago already has a $0.05 per gallon gasoline tax, which the Mayor says will generate less money every year because of increased fuel efficiency standards. A potential hike is also being floated at the state level to help pay for infrastructure projects. Chicagoans already pay the nation's highest collection of federal, state, and county fees and taxes at the pump, and might not take another one on top of Cook County’s recently increased sales tax.

  
  


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  City Income Tax: no estimate – Ald. Joe Moore (49) has proposed a graduated city income tax that applies to all wages earned in Chicago, including suburbanites who commute to work in the City. This would require authorization from Springfield, and could potentially tax the rich at a higher rate, but Moore did not give specifics on rates or income brackets.

  
  


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  Moving Truck Permit: no estimate – A permit to prevent booting and ticketing for moving and delivery trucks in the central business district and throughout the city was pitched this week by Ald. Brian Hopkins (2). Daily permits would range from $4- $20 daily, $20-$100 monthly and $200-$1000 annually depending on whether the truck operates in the Central Business District or outside of it. Hopkins didn’t release an estimate of how much permitting would generate versus revenue from tickets and booting fees.

  
  


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  City Switch to Fiber Optic Network: no estimate – Ald. Hopkins also proposed the city build on existing emergency communication infrastructure and switch from private internet services to a faster, more reliable fiber optic network. He said the money saved could be reinvested toward expansion of the municipal network to reach communities that need fast, affordable access. He said similar switches in Santa Monica, Chattanooga, and Aurora spurred economic growth. He estimates the city could “easily” save $100M in the first two or three years after making the switch.

  
  


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  Ward-Controlled Video Gaming/Gambling: $20M – Gamblers heading to play video poker outside city limits might not have to travel so far, if a proposal from Ald. Raymond Lopez (15) gains some traction. He says similar to liquor licenses, aldermen can dole out licenses to bar/restaurants who want to install video gaming machines. He estimates if everyone eligible opted in and were approved by their alderman, it would generate $16M a year, plus $4M in licensing fees. Sources say he’s been trying to build support among other aldermen who with wards on the city’s limits. Lopez has already faced pushback from mayoral allies Ald. Ameya Pawar (47) and unofficial floor leader Ald. Pat O’Connor (40). O’Connor said video gaming might take away the draw of a land-based casino downtown.

  
  


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  Land-Based Casino: $450M – Mayor Emanuel has told aldermen in recent budget meetings that he plans to expend his political capital in Springfield on finally bringing a land-based casino to the City. Revenues would go toward funding police and fire pensions. Downtown business leaders have been for the casino, which they say would lead to more hotel stays, shopping and restaurant visitors. But it’s been a slog–Gov. Pat Quinn vetoed the mayor’s first try in 2012, saying he worried about city ownership and gambling industry influence on politicians. The Mayor might also get pushback from Chicago-area casinos who don’t want any more competition. Gov. Rauner has declared himself more open-minded than Gov. Quinn. Estimates about how much a Chicago casino would make vary based on different proposals floated in Springfield in May and June. According to state projections, a  city-owned casino could generate at least $457 million a year, with more than $200 million of that to be paid to the state in taxes.

  
  


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  Food Cart Licensing: $2M – An ordinance to license and regulate mobile food carts has passed in the License Committee without vocal objection. Approved vendors who pass Health Department inspection will have to pay a $350 license fee. A representative from the Illinois Policy Institute suggested revenue from licensing for all existing vendors, who currently operate illegally, could generate $2M, and grow to $8M, depending on penetration. It’s up for a vote in the Sep 24th council meeting, and has vocal support from License Chair Emma Mitts.

  
  


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  Financial Transactions/Lasalle Street Tax: no estimate – A small tax on financial transactions like the selling and buying of stocks, bonds, and options has been floated by several aldermen, but would require Springfield approval. Chicago State Rep. Mary Flowers brought up a .01% tax in the General Assembly in 2013. Her bill would have imposed a levy on any commodities and stocks transactions made on the Chicago Stock Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade and the Chicago Board Options Exchange. In 2011, Inspector General Joe Ferguson said a penny-per-transaction tax could generate $38M for Chicago. William Barclay, an economist advising the CTU, said a $1-to-$2 tax could raise up to $12 billion a year for Illinois. The Sun-Times Editorial Board called that $12 billion figure a fairy tale, and said the mayor was opposed.

  
  


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  Corporate Income Tax: no estimate – Ald. Ameya Pawar (47), one of the driving forces behind the establishment of an independent financial office for City Council, has suggested easing the hit of a property tax increase by creating a corporate income tax for large businesses. He sees it as an alternative to a financial transactions tax, which he says would negatively affect pensions. The change would require Springfield approval. He says New York City has successfully implemented the tax without scaring big business away, but hasn’t suggested a rate or estimated revenue.

  
  


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  Temporary Amnesty for Outstanding Debt to City: $1M-$7M – Under an amnesty program proposed by Mayor Emanuel, any individual or business that owes the City money for parking tickets and other violations and taxes from before 2012 will be granted amnesty for the penalties and interest previous tickets or violations have accrued. Individuals will still pay the ticket or fine value, but will receive amnesty from the penalties and interests associated with failure to pay. Previous programs in 2002 and 2009 collected between $7 and $8 million, but the Office of Budget and Management put out a conservative $1M revenue estimate.

  
  


• Restaurant Tax Increase: $25M – A possibility discussed by some lobbyists and aldermen, the city already has a quarter percent restaurant tax which brings in around $25M, the city could double it and call it a "progressive" tax, since most restaurant-goers have more discretionary income.

As aldermen gear up for Mayor Emanuel’s budget release and a long fall of meetings, freshman Ald. Brian Hopkins (2) released two proposals–one suggesting the City switch telecom services from private to existing fiber optic network, and another for a new service permit for all moving and delivery vehicles.

“This is the time to be creative,” Hopkins said in one of his releases. “We can’t be one dimensional when trying to solve Chicago’s fiscal woes.”

The permit ordinance would apply to moving or delivery trucks carrying household or commercial furniture or packages, according to the press release. One permit would apply for parking anywhere in the city, and would cost $20/day, $100/month, or $1000/year. Permits limited to parking outside the central business district (bordered by Halsted on the west and extending all the way to the lake, up north to Chicago until it hits LaSalle, then all the way to Division on the north, and Roosevelt on the South) would be $4/day, $20/month, and $200/year.

Fines for parking a commercial truck in a non-permitted area could mean a $60 boot fee, and a $125 parking violation. For trucks over 4,500 lbs., the boot fee jumps to $400, plus a $125 parking ticket, plus fees if the car is towed.

Hopkins says this benefits both sides: the City gets some money, and drivers don’t have to constantly worry about booting and parking tickets.

He paints the fiber network pitch with the same brush. “We should follow other cities by switching all municipal government broadband access from private incumbent providers to a taxpayer-owned fiber network. The money saved can be reinvested into the expansion of the municipal network to finally reach those communities that need fast affordable access. Why would we not do this?”

Building on the existing fiber optic network controlled and managed by OMEC for traffic, first responder, and emergency services could save the City tens of millions, Hopkins noted in his press release. He says faster broadband speeds will lead to more efficient city services, too.

The Sun-Times notes that telecom revenue in the city has dipped precipitously since consumers started ditching cell phones for landlines, from $147.7M in 2005 to to $104.9 million projected by the end of this year.

The Committees on Pedestrian & Traffic Safety and Transportation and Public Way are scheduled to meet this morning to discuss mostly routine parking and traffic matters. The only non traffic matter the Transportation & Public Way Committee will take up is the mayoral reappointment of Terrance P. Fitzmaurice, the business manager of the Painters’ District Council #14, to the Illinois International Port District Board. The nine member board is the governing, administrative, and policy making body for the port district. Board members issue construction permits, regulate waterways, and designate and oversee foreign trade zones. Fitzmaurice was first appointed to the board by Mayor Richard M. Daley in 2007.

Several proposed mixed-used residential, commercial and office buildings are listed on the Plan Commission agenda for today, including a 6-story commercial and residential apartment building that will have direct views of the new elevated Bloomingdale trail and a draft plan to turn a century-old brick building in Ravenswood into a loft office space and residential housing complex. We go through the individual large-scale applications below. The Commission is also scheduled to review and approve the $1 sale of 100 city-owned vacant lots in the Austin Community Area as part of the City’s Large Lots program.

Proposed Apartment-Office Space Complex in Ravenswood - 47th Ward
4801 N. Ravenswood Ave. | O2015-5333 | Introduced: 7/29/2015

Hayes Properties has a plan to transform a nearly one hundred year-old, four-story brick building in the Ravenswood Industrial Corridor into a mixed-use apartment and office building. The subject site is on the Northeast corner of Lawrence & Ravenswood Ave., adjacent to the METRA Union Pacific Railroad tracks. Plans include 36 residential units, a little over 90,000 sq. ft. of office space, and enough parking for 69 cars. Hayes acquired the building in 2014 after the property’s former tenants, Newark Corporation, an electronic company, relocated to the West Loop. The $6 million rehab is expected to create 20 construction and 260 permanent jobs. But in order to break ground on the site, Hayes needs Plan Commission approval to downzone the lot from a Manufacturing District (M1-2) to a Business and Commercial District (B2-2), since housing isn’t permitted in manufacturing zoned streets.

Bucktown’s WhirlyBall Seeks Rooftop Patio - 32nd Ward
1823 W. Webster Ave. | O2015-4633 | Introduced: 6/17/2015

Samuel Elias, the owner of three WhirlyBall amusement centers, applied for a downzone to permit a second story outdoor patio at the chain’s new 50,000 sq. ft. headquarters, located directly off the Kennedy Expressway in Bucktown. WhirlyBall is a sport that combines lacrosse, basketball and bumper cars. The indoor recreational facilities are popular for group events (alcohol is served on site). According to the application Elias filed under the name Jarla, LLC, they plan to serve alcohol on the patio and will apply for a special use permit once the downzone is approved. Plans also include the construction of an off-site parking lot for 120 cars.


Proposed 6-story Mixed-Use Building Next to New 606 Trail - 32nd Ward
1749 N. Milwaukee Ave. | O2015-5371 | Introduced: 7/29/2015

Centrum Partners is proposing to build a six-story, residential and commercial building that will overlook the new elevated Bloomingdale Trail. The joint venture between Centrum Partners and McLinden Holdings, LLC includes commercial retail and a refurbished Aldi’s Supermarket at the base, and 95 residential units split among the top four floors. The approximately 59,000 sq ft site will include a 60 car surface parking lot for shoppers and a 62 car basement garage for residents. The site is located between the Damen and Western CTA Blue Line stops, but the applicant, NRG Milwaukee, LLC, didn’t file the application as a Transit Oriented Development.


Structured Development Wants to Add more Retail near the Clybourn Corridor - 27th Ward
1450 N. Dayton St. | O2015-1357 | Introduced: 3/18/2015

Structured Development, the real estate firm behind the massive New City retail development project in the Clybourn Corridor, is part of a joint effort to build a four-story commercial retail and office building with an adjacent, multi-level parking structure for 550 cars near Goose Island. Structured and Big Deahl Productions Inc. filed a joint application under the name Big Deahl, LLC to establish a business planned development for the triangle shaped lot on 1450 N. Dayton Street. The area is currently zoned as a Commercial district (C3-5), so the proposed construction of 110,000 sq ft of office space is allowed, but the retail component, approximately 103,000 sq ft, is not, which is why the application needs approval from the Plan Commission.


Proposed Fulton Market Office Tower - 27th Ward
213-223 N. Peoria St. | O2014-8814 | Introduced: 11/5/2014
This is the oldest item on today’s agenda. New York-based Shorenstein Properties’filed a joint application with 219 Partners, LLC, a private partnership between Shapack Investments and M Squared Property, to rezone three neighboring properties in Fulton Market. The Business Planned Development would include the construction of a 10-story commercial office building, a new one-story retail building, and the rehab of an old meatpacking facility built in 1893. Shapack Partners acquired the 13,000 sq ft parking lot on 213-223 N. Peoria St. in 2013, and the vacant double wide parking lot on 217-219 N. Green Street in 2014. The Peoria Street lot will house the 10-story office building. Plans call for ground floor retail, parking for 59 cars on the 2-5 floors, and loft-style offices on the remaining top floors. As for the old six-story Amity Packing Co. building, developers plan keep the brick facade and add new windows and metal cladding. That building will be a mix of office and retail.

An already hectic day on City Hall’s 2nd floor in the days leading up to the release of the mayor’s budget made for a buzzing License Committee meeting Tuesday. Most of the people in the gallery were there to rally in support of Ald. Roberto Maldonado’s (26) ordinance to bring mobile food vendors “out of the shadows” by establishing a $350 license to sell prepared food like tamales, elotes, and hot dogs on City streets.

License Committee Chairman Emma Mitts praised the vote as historic, and vendors in the gallery applauded as she called the meeting to a close.

Members Present: Chairman Emma Mitts (37), Vice-Chair Debra Silverstein (50), Roderick Sawyer (6), Gregory Mitchell (7), Marty Quinn (13), David Moore (17), Willie Cochran (20), Roberto Maldonado (26), Chris Taliaferro (29), Ariel Reboyras (30), Scott Waguespack (32), Michele Smith (43), Tom Tunney (44), James Cappleman (46)
Non-members present: Joe Moreno (1), Walter Burnett Jr (27), Milly Santiago (31), Deb Mell (33), Gilbert Villegas (36), Brendan Reilly (42), Joe Moore (49)
Start Time: 11:04

Just before the meeting, those vendors and other advocates from the Asociación de Vendedores Ambulantes, the Illinois Policy Institute, and the Street Vendors Justice Coalition held signs that read “Free the Tamale” and “Chicago is Hungry for Food Carts.” They told reporters vendors are a rare group actually asking to be taxed and regulated, and free from harassment from police.

Ted Dabrowski of the Illinois Policy Institute estimates there are already 1,500 food carts operating in the city selling 50,000 meals a year, despite the threat of being slapped with a $50 or $1,000 fine or arrest for operating without a license. Between revenue from the $350 license fee vendors would pay, sales and income tax, and the penetration of food carts within the city going forward, Dabrowski says this change “could generate $2 to $8 million for the city.”

Maldonado first introduced this proposal in 2014, but he says interest waned at the time as aldermen geared up for re-election. It had to be introduced again into the new session.

Under the ordinance, vendors would have to prepare food off-site–that includes chopping up toppings or husking corn, and there are regulations for heating, cooling, cleaning, and how long a cart can stick around in one place. The ordinance doesn’t have an impact on food carts already operating legally in Chicago parks.

Although no aldermen expressed disagreement about the overall aim of the ordinance, and passed it without dissent, they spent most of the meeting peppering Redeatu Kassa from the City’s Law Department and Gerrin Cheek-Butler from the City’s Health Department with questions about the nitty gritty of enforcement and requirements.

“What is the enforcement mechanism here?” Ald. David Moore (17) asked. He says some people have been selling drugs out of food carts in his ward. Rebuking one vendor who testified she was harassed by cops for not having a license, Moore said cops were simply doing their job and enforcing existing code. Kassa said cops would be responsible for checking carts for licenses, and violators would face fines between $200 and $1000.

Carts and kitchens where food is prepared would have to be inspected by the Health Department, as do the so-called “commissary” where the food will have to be stored. Ald. Willie Cochran (20), a co-sponsor, said he was concerned about vendors who store their food carts in their home garages, and if the new regulations could “[make] this a little unwieldy.” Ald. Maldonado said as long as it’s clean enough to meet Health Department standards, there should be no problem storing carts in residential garages.  

“Aldermen can make some areas off limits for [food cart] operation for as long as they have rational basis to do that... for preserving public health or avoiding traffic congestion,” Kassa told Ald. Tom Tunney (44), who said the 6 to 8 foot sidewalks in Lakeview and Wrigleyville are already packed with pedestrians. Kassa says aldermen have to have a reasonable justification for limiting where carts can go.

Beth Kregor, Director of the Institute for Justice Clinic on Entrepreneurship, praised the effort and thanked the Health Department for their cooperation. She said the fight for broader allowances would continue. “Some dream of preparing good fresh food for customers on their carts, just like summer festival vendors that the Park District allows. Vendors make no little plans.”

After some playful testimony from council fixture George Blakemore, who called 42nd ward Loop Ald. Brendan Reilly “a golden apple,” the committee approved Reilly’s ordinance allowing vendors to sell wine in corked, unbroken and sealed 750mL bottles. Blakemore testified he worried buyers would drink the wine and leave bottles along the Riverwalk. Reilly said vendors can’t provide corkscrews, and have to remind customers it’s illegal to have an open container.

A coalition of community organizations and aldermen held a press conference at City Hall demanding a vote on an ordinance requiring more transparency and accountability from banks that hold the city’s money.

The Municipal Depository Ordinance Mayor Rahm Emanuel, Ald. Tom Tunney (44) and Ald. Roderick Sawyer (6) introduced in June forces banks that hold the city’s money to provide regular reports on minority and Chicago-area employment numbers and local lending practices.

Aldermen accused banks of pressuring to stall the ordinance in committee, and demanded that Finance Chairman Ed Burke (14) add it to Monday’s Finance agenda so it can advance to the full City Council next Thursday.

“We are here in solidarity to call for a hearing and vote,” Ald. Pat Dowell (3) said. “This ordinance, which is a product of struggle to overcome decades of redlining of many of Chicago’s communities, would shine a much-needed light on the institutions that hold the city’s money.”

The ordinance’s sponsors have since amended the text, adding additional transparency requirements. This substitute ordinance will be introduced as a replacement when the original ordinance is called in committee. The regular reports from the City’s banks would have to detail if the financial institutions are investing in local small businesses, providing loans for affordable housing, or promoting youth and entrepreneurial development, according to Ald. Dowell.

“At any given moment, Chicago’s Municipal Depositories hold $500 million to $1 billion for the City of Chicago. But investment by those banks continues to lag in underserved communities,” Ald. Carlos Ramirez-Rosa (35) said. “Banks doing business with the City must also invest in our neighborhoods.”

A few hours after the presser, City Treasurer Kurt Summers released a statement praising the aldermen for pushing a vote on the ordinance he helped draft. Getting the city’s municipal depositories to invest in the city is part of the 90-day-plan “Invest in Our Chicago” Summers unveiled when he first took office in 2014.

“Access to capital was the number one challenge I heard while visiting each of Chicago's 77 neighborhoods,” Summers was quoted saying in the release. “I am taking the concerns of the groups represented today very seriously and will continue to work closely with residents, the Mayor's office and members of City Council to come to a swift resolution in order to provide the transparency and investment our neighborhoods deserve."

Treasurer Summers wants to use the local lending information to create a so-called “Banking Scorecard” that would be available to the public, so they can see how frequently their local bank is investing back in their communities.

There is a growing consensus among aldermen that Mayor Rahm Emanuel will propose a property tax increase next Tuesday. But despite previous press reports, it is unclear how big of an increase and whether or not this will be the only tax increase–another tax hike might be necessary next year, too. Conversations with aldermen, state legislators, staff and leading City Hall lobbyists conducted by Aldertrack in recent days have revealed the following:

• The much discussed $500 million property tax hike, on top of other potential fees and new revenue sources, would likely only get the city to a “minimum credit card payment” to cover FY2016 needs, and not nearly enough to begin paying down the city’s $42.9 billion of debt and pension obligations in a significant way.

• Privately, the Mayor’s team has disavowed the $500 million number leaked to the press the Wednesday before Labor Day, sowing confusion among aldermen regarding the Mayor’s plans. Almost no budget details have been shared with aldermen so far, although the mayor has solicited everyone for their best ideas.

• Many aldermen believe they can politically weather voting for one property tax increase, but two property tax increases would be political suicide. As a result, many on the City Council would prefer to see a monster increase this year, giving them three years to make up with voters before the 2019 elections.

• Gov. Bruce Rauner made it clear earlier this week he will not approve any tax increase without changes to collective bargaining rules for government unions, so the city will need to find tax increases and revenue sources that do not require state approval, like a property tax increase.

• Even without Rauner’s opposition, there is little appetite to do anything to help Mayor Emanuel’s political prospects among Springfield Democrats. The fact that many of the pro-Rauner Illinois GO political action committee’s donors are the same leading donors to Emanuel has not been lost on legislators, leading many to believe that Emanuel is complicit with Illinois GO, or at least not making an effort to put a brick on the organization

• The thirteen freshmen aldermen are very politically exposed, regardless of whatever property tax plan is brought forward. They are the ones that have the most to lose by voting for property tax increase.

• Municipal employee unions are generally in favor of the property tax increase, giving aldermen some political cover.

• The almost total failure of Emanuel’s Chicago Forward PAC to affect the last election cycle has proven to many aldermen that there’s little he can do to help them at the ballot box.

• The mayor only needs 25 votes (he is the tie-breaker) to pass a budget. Because so many aldermen could be politically exposed, we may see a scenario where a large number vote “no” on a property tax increase and it squeaks through.

• Aldermen must be in office for 28 months before a mayoral appointment can be made for a replacement instead of a special election. Already a number of aldermen are rumored to be making plans for finding work after September 7, 2017, the 28-month mark.

The Committee on Housing and Real Estate will take up a slew of mayoral appointments to City boards that oversee low-income and affordable housing, including the appointment of John T. Hooker as the new head of the Chicago Housing Authority Board.

Hooker worked at ComEd for 44 years, finishing his career as executive vice president of legislative and external affairs. He faces a big challenge at CHA as advocates have called on the agency to spend some of its $350 million surplus on housing initiatives. A CHA reform ordinance championed by Ald. Joe Moreno (1) is currently sitting in committee. CHA is the landlord for most of the city’s public housing stock and manager of some Section 8 programs.

Earlier this summer, Mayor Rahm Emanuel announced he was appointing Eugene “Gene” Jones as the acting CEO of the city’s housing authority, after Michael Merchant stepped down from the position. Jones will be the Authority’s 8th CEO since the public housing agency started its billion dollar Plan For Transformation, which then Mayor Richard M. Daley touted as the largest, most ambitious public housing redevelopment plan in the country. The plan is behind schedule, and CHA has been accused of sitting on undeveloped land and not spending the money allocated for the plan.

Tribune: Emanuel pick for CHA board leader benefited from scholarship program
Sun-Times: Emanuel appoints ex-ComEd VP John T. Hooker as CHA chairman
Crain’s: Emanuel names ComEd veteran to lead CHA board

The Chicago Low-lncome Housing Trust Fund (new appointments)

• La Toya M. Dixon - an attorney advisor for the Social Security Administration who has managed labor relations for Cook County and Sinai Health Systems.

• Elise Doody Jones - a community organizer, volunteer manager and small business owner. She is the former treasurer of First Ward First, the independent Democratic political organization Ald. Joe Moreno (1) founded in 2011. She also made an attempt to unseat Ald. Scott Waguespack (32) in the most recent municipal election.

• Bishop Horace Smith, M.D. - a pastor at the Apostolic Faith Church on Chicago’s South Side, which serves 4,000 parishioners. He is also a physician at the Ann & Robert H. Lurie Children’s Hospital. He spent much of his medical career researching sickle cell anemia and as a hematologist and oncologist.

• Jennifer Welch – the first deputy commissioner for the Department of Family and Support Services and a former Policy Director in the Illinois Attorney General's Office. Much of her career has focused on addressing issues of domestic violence.

Chicago Low-lncome Housing Trust Fund (reappointments)

• Sol A. Flores - Executive Director of La Casa Norte, a nonprofit in Humboldt Park that serves homeless youth and families. Flores also serves on the Zoning Board of Appeals.

• Levoi K. Brown - Managing Director at BMO Harris Bank who specializes in underwriting and analytics on affordable housing transactions. Levoi graduated with a masters from the Booth School of Business, worked at GE, then for five years the community development Urban Partnership Bank.

• Malcolm Bush - Affiliated Scholar at Chapin Hall at the University of Chicago, whose research focuses on community reinvestment and economic development. He is also senior advisor to the International Center for Research and Policy on Childhood at the Pontifical Catholic University of Rio de Janeiro, was President of the Woodstock Institute, and served as senior vice president of Voices for Illinois Children.

• Wayne L. Gordon - founding Pastor of Lawndale Community Church and founding President of the Lawndale Christian Development Corporation, which facilitates economic development, education and housing. He is one of the founders of the Lawndale Christian Health Center, a healthcare ministry that sees over 150,000 patients per year.

• Thomas J. McNulty - President and partner at Neal, Gerber & Eisenberg LLP. He has served as president of the Chicago Low-Income Housing Trust Fund since its inception in 1989. He teaches and writes about real estate taxes. Before joining the firm, he served as supervisor of the Tax Unit in the Cook County State’s Attorney’s Office.

• Kristin K. Nance - Director of the Lewis University Stahl Center for Entrepreneurship who also worked at Roosevelt University in the College of Business. Nance has held City positions before in the South Loop & Near South Community Area and as Director of Economic Development with the Southeast Chicago Development Commission.

Chicago Community Land Trust Board (new appointments)

• Eva M. Brown - Vice President of Government and Community Relations at U.S. Bank, where she worked with community groups, non-profits, elected officials and government agencies to focus on lending, giving, investments and volunteer efforts. Brown was previously the director of the Access to Capital Program at the Women's Business Development Center (WBDC). She also worked in small business lending at Fifth Third and BMO Harris.

• Michelle Morales - associate director for the Alternative Schools Network (ASN), a nonprofit that oversees a network of community schools for high school dropouts.

Chicago Community Land Trust Board (reappointments):

• Patricia Abrams - Executive Director of The Renaissance Collaborative, Inc., which offers housing, supportive services and workforce development to over 300 low income children, youth, adults and seniors in Bronzeville. Abrams is also on the board of the Chicago Rehab Network, a network of nonprofit affordable housing developers.  

• Joel Bookman -  President of Bookman Associates Inc., a consulting firm that caters to public, private, and nonprofit organizations and businesses in community and economic development, management, planning, and real estate development.

• Timothy Hughes - Real Estate and Facilities Director for ComEd who oversaw the installation of the communication link between ComEd's critical substations and the City of Chicago's Office of Emergency Management Center.

• Edward H. Jacob - former Executive Director of Neighborhood Housing Services of Chicago, a nonprofit neighborhood revitalization organization. Jacob’s career has focused on neighborhood lending and community development.

• Guacolda E. Reyes - Vice President, The Resurrection Project, a 25 year old project founded by churches and concerned neighbors in Pilsen to address blight and crime.

• William W. Towns - Assistant Vice President of Neighborhood Initiatives at the University of Chicago, charged with leveraging U of C resources to help revitalize nearby communities. He was previously Regional Vice President of Mercy Portfolio Services, under the Mercy Housing Inc. umbrella.

• Marva E. Williams - Economic Development Director at the Federal Reserve Bank of Chicago and Senior Program Officer at Local Initiatives Support Corporation (LISC) of Chicago. She was also Senior VP at the Woodstock Institute from 1996-2007.

• Jeffrey Wright - Business Banker at the Urban Partnership Bank, whose mission is to create jobs, opportunities and leaders in the black community.

In addition to the Mayoral appointments, the committee is scheduled to approve numerous applications for the sale of city owned land and an intergovernmental agreement with the Chicago Park District regarding the Hadiya Pendleton Park expansion plan.

Hadiya Pendleton Park Expansion Plan - 3rd Ward
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The former South Side quarter acre Buckthorn Park playlot was recently renamed after Pendleton, a King College Prep High School student who was fatally shot by local gang members in 2013. Pendleton performed as a drum majorette in President Barack Obama’s second inauguration and Michelle Obama spoke at the high school’s commencement last May.  

The ordinance before the Housing Committee today transfers the adjacent City-owned vacant land at 4323-4329 S. Calumet Ave to the Park District, so they can turn the playlot to a two acre park. Ald. Pat Dowell says Pendleton Park will be outfitted with a new playground, walking path and fitness stations. The Park District is in the process of applying to close a portion of South Calumet Avenue between 43rd and 44th Street to connect parts of the park on the east and west sides of the street. 47th/King Drive Redevelopment Area TIF money is going toward the project.

Read Dunning Park Expansion Plan - 38th Ward
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Another park expansion plan on the agenda is related to the Read Dunning Park, located in the similarly-named TIF district. The ordinance before the Housing Committee transfers 7.5 acres of adjacent city owned land to the Park District to help with the $3 million expansion funded by the Illinois Department of Commerce and Economic Opportunity. The Park will have a turf field for sports, 93 parking spots and a walking path that encircles the park. Construction is scheduled to be completed by next summer.

Lease Agreement for J. Michael Fitzgerald Apartments -  39th Ward
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The Committee will take up an ordinance authorizing a 75 year ground lease agreement between the City and Fort Lauderdale-based Elderly Housing Development & Operations Corporation (EHDOC) to help with the development of the J. Michael Fitzgerald Apartments, an affordable housing development for seniors located within the North Park Village Nature Center.  EHDOC broke ground on the project in August 2012, but due to a lack of federal funds, construction has stalled. It’s the last apartment building to go up in the Planned Development, which includes 527 residential units spread across 3 other four-story buildings.

When completed, the $17.7 million Fitzgerald apartments will include one-bedroom apartments for elderly residents earning up to 60% of the area median income. It’s financed through $10.6 million in federal funding from the U.S. Department of Housing & Urban Development’s Section 202 Supportive Housing Development program and $5.3 million in Low Income Housing Tax Credits from the Illinois Housing Development Authority.

Sale of Closed CPS Marconi Elementary School - 28th Ward
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United for Better Living Inc. is interested in buying the site of now-closed 6,200 square foot, 55 year-old Marconi Elementary School in West Garfield Park. United for Better Living is affiliated with Allison United Foundation for Better Living, a non-profit founded by the late Corinthians Temple Church of God in Christ (COGIC) Bishop Bennie Allison. Rev. David Whittley, Allison’s grandson, is listed as the contact on United for Better Living's bid. The school is valued at approximately $500,000-$620,000, but United for Better Living submitted the highest bid:  $100,000. The buyer can’t used the property for anything other than an alternative or options school for grades K-12 without first receiving approval from the Board of Education.

Expansion of the Pilsen Industrial Corridor TIF - 11th & 25th Ward
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The Department of Planning and Development needs approval from the Committee to acquire eight vacant pieces of land and one privately owned industrial site along South Sangamon Street from the Burlington Northern Santa Fe Railroad. This 61,000-square-foot acquisition will help with the development of the Sangamon Paseo walking trail, a north-south pedestrian link similar to the recently opened 606 trail. Once the City Council approves the acquisition, the parcels will be appraised, purchased and converted into public open space.

ANLAP Bids

One buyer who stands out among the several ANLAP bids before the Committee is John J. Pikarski, the so-called “dean of zoning lawyers” in Chicago. He also spent some time serving on the Chicago Plan Commission. Pikarski wants to buy a city-owned vacant parcel in Bridgeport at 2918 S. Archer Ave., parallel to the Stevenson Expressway. Real estate development company Bertco is also interested in a vacant lot valued at $112,000 in the 11th ward.

Proposals to allow wine sales along the Chicago Riverwalk and a new license for mobile food vendors are on today’s agenda.

Ald. Brendan Reilly (42) wants to make it legal for vendors to sell sealed, 750mL bottles of wine along the downtown Riverwalk, a pedestrian-centric walkway that runs along the banks of the Chicago River from Lake Shore Drive to Franklin Street. Reilly’s ordinance would let vendors sell bottles of wine during normal business hours (11am to 9pm), but since it is still illegal to consume alcohol along the Riverwalk, retailers can’t provide a corkscrew or drinking container with the purchase of alcohol. Retailers would have to train staff and post signs that say “All retail wine purchases are for off-site consumption only–No open containers beyond this point.”

Ald. Roberto Maldonado (26) is resurrecting his plan to establish a license for pushcart vendors that sell prepared food on City streets. Street vendors would have to pay $350 for the license. Maldonado first introduced his proposal to create a license for these so-called “Mobile prepared food vendors” in 2014. The ordinance failed.

The Council Committee on Human Relations will discuss a resolution calling on the City’s Municipal Employees’ Annuity and Benefit Fund to divest in companies engaged in the economic boycott of Israel. More than half of the City Council is listed as a co-sponsor to the resolution Ald. Michele Smith (43) and Ald. Debra Silverstein (50) introduced at the last City Council meeting. This will be the committee’s first meeting since Ald. Joe Moreno (1) was appointed as the new chair. Ald. Moreno’s legislative aid, Evelyn Rodriguez, said Ald. Smith is the only speaker lined up for tomorrow’s meeting.