The City Council authorized a massive $1.25 billion borrowing plan for economic development and housing projects on Friday, handing Mayor Brandon Johnson a key victory in his plan to wean the city off a longstanding reliance on tax increment financing districts.
It passed 32-17 despite objections from opponents seeking tighter Council oversight of future projects.
In the Finance Committee earlier in the week, Johnson allies fended off efforts by Ald. Bill Conway (34th) and Ald. Brendan Reilly (42nd) to lower the borrowing amount to $350 million and reduce the threshold for projects to require Council approval from $5 million to $1 million.
Conway made a last-ditch effort Friday to slash the amount borrowed to $750 million, while suggesting limiting the length of the borrowing to the terms of current Council members.
Reilly also tried again to lower the council oversight threshold to $1 million, but fellow council members rejected discussion on either amendment — by a narrow vote of just 27-22 on the threshold. Another effort by Ald. Ray Lopez (15th) to lower it to $2.5 million was also rejected.
With interest, the plan could cost the city $2.4 billion over 37 years, officials have said. At a news conference after the vote, Johnson called it “freaking brilliant,” arguing the money will be more than recouped by property tax revenue from expiring TIF districts.
In a TIF district, property tax revenues are diverted to fund development projects within the district — for 20 years or more. Critics have long contended the system exacerbates inequality because areas with higher property values often realize the most benefit.
Johnson and his allies have championed his borrowing plan as a more effective way to spur development on the South and West sides.
“It’s an investment. It’s a real one. Youth employment, mental health, the formerly incarcerated, environmental justice, the unhoused. Those are all critical investments that I promised to make,” Johnson said.
Reilly said the borrowing plan “could be a very powerful and impactful program,” but there were no guarantees — and “a lack of transparency.”
“We are talking about a massive amount of money here. I would have a lot of trust in the program if any investment over $1 million is approved by the 50 people in this Council,” Reilly said. “I don’t understand why we as legislators wouldn’t lower the cap for requiring approval.”
Johnson later said the higher threshold “doesn’t even come close to the type of deals that we tend to make on average.”
Council members had been expected to consider a measure giving alderpersons authority to decide whether to keep ShotSpotter gunshot detection systems in their wards, but that was pushed to a future Council meeting because it wasn’t placed on the agenda in time to allow proper public notice.
Also Friday, Council members approved $70 million in funding for the ongoing migrant crisis.
