After lengthy debate, aldermen sign off on mayor’s plan to spend or reallocate $108.5M in federal relief funds

With a $1.8 billion avalanche of federal aid on the way, Chicago aldermen on Wednesday signed off on Mayor Lori Lightfoot’s plan to spend or reallocate $108.5 million in relief money already delivered to the city.

The nearly two hours of debate preceding the vote by the City Council’s Budget Committee was clearly shaped by the recent rebellion over Lightfoot’s decision to spend $281.5 million of Round One COVID-19 relief on police payroll and benefits.

A parade of aldermen asked tough questions to make certain there are no surprises this time.

Ald. Rossana Rodriguez Sanchez (33rd) sought assurances that none of the $60 million earmarked for “operations, cleaning, sanitization, janitorial services, combating the spread of pathogens and debt service payments” at O’Hare Airport and the $16.5 million for the same at Midway would not be used to pay for police officers assigned to both airports.

“Is there a way that can be guaranteed — that we’re not going to be using this money for safety?” Rodriguez Sanchez said.

Aviation Commissioner Jamie Rhee replied: “Yes. My understanding is that this money is not going towards any personnel costs for the police.”

Black Caucus Chairman Jason Ervin (28th) homed in on $10.8 million earmarked for another round of relief for struggling concessionaires at O’Hare and Midway.

Ervin wanted to be sure most of that goes to minority-owned concessionaires — and is enough to keep them alive until travel bounces back.

He was not appeased when Rhee assured him she plans to return to the City Council soon seeking authorization to waive the minimum annual guarantee included in most city concession deals.

“Quite frankly, if it were me, I might walk away because, if you’re deferring [the minimum annual guarantee] and there’s no opportunity to make up the MAG, at the end of this conversation, I’m gonna be in the hole severely,” Ervin said.

“I’m concerned that these businesses may not be able to come out of this … without some adjustments. I want to make sure, on the front end, that we are looking at that. And without knowing what these formulas look like, you’re asking us to say, ‘Here’s $11 million. Staff, go figure it out.’ I’ve got a challenge with that right now.”

Rhee insisted it wouldn’t be left for “staff to figure out” how to administer this funding. The money would be doled out based on rules and formulas set by the Federal Aviation Administration.

“They have defined what the minority will be. And that’s really what we’re waiting for. Does this include a joint-venture? I don’t know. Is it 100% minority-owned? Those are really the rules we’re waiting for,” she said.

Last month, aldermen granted the Department of Housing authority to issue an expedited request for proposals for staffing the work of distributing $80 million in rental assistance to tenants and landlords. That RFP is expected to be issued later this week.

Housing Commissioner Marisa Novara returned to the Budget Committee Wednesday seeking approval for the software needed to process those funds.

The designated contractor is Uncork, a company Novara said has a “track record of providing COVID-19 assistance portals for large jurisdictions,” including New York City and Washington D.C.

Help is urgently needed before the eviction moratorium is lifted, Novara said, adding that under federal rules, 65% of the funds must be spent by Sept. 30 or the money “can be swept by Treasury and reallocated to other jurisdictions.”

Downtown Ald. Brendan Reilly’s focus was $2 million earmarked to expand outdoor dining with a particular focus on helping bars and restaurants in “low-to-moderate income neighborhoods.”

Already, $4.1 million of the federal relief funds are earmarked for “shared streets” and “people places” closed to traffic that provide more room for pedestrians.

If there’s not enough money to go around to help bars and restaurants in downtown and River North that are also struggling, Reilly proposed the city waive permit fees and donate its heavy inventory of Jersey barriers and barricades to restaurants to help them defray the cost of closing streets to make way for outdoor tables.

“Then, we’re not having to send them a check. All we’re doing is absolving them of the incredible cost of outdoor dining,” Reilly said.

“If our thrust as a government is to really help push a recovery and provide a shot in the arm to these businesses, that is an incredible opportunity that we’re missing out on.”