Cook County Commissioners Hear from Land Bank Authority and Asset Management at Budget Hearings

Cook County Board of Commissioners Finance Committee - Departmental Budget Hearings 
November 2, 21017

Land Bank Authority
Bureau of Asset Management

Commissioners Present: Daley,Moody, Deer, Simms, Gainer, Suffredin, Arroyo, Garcia, Boykin, Schneider, Tobolski
Commissioners Absent: Moore,Fritchey,Butler, Goslin, Silverstri,Morrison,
Since the Land Bank Authority (LBA) is mostly self funded there were few substantive questions. Lots of commissioners thanked the Director, Robert Rose, for his hard work and his successes. Comm. Gainer also received much thanks as she is one of the organizers of this authority.
The Land Bank Authority’s mission is to reduce abandoned and vacant properties in Cook County. It also aims to match properties that have been rehabbed with potential home buyers and /or developers. The Home Buyer Direct Programs has been very successful for first time home buyers.
Some highlights of Director Rose’s Presentation:

1. The Land Bank Authority is the largest of its kind in the nation.
2. They have acquired 669 properties and sold over 400. They have demolished over 65 major buildings.
3. They buy and sell properties slowly and methodically. Mr. Rose compared this to Detroit that has been buying and selling properties too quickly, perhaps with not enough attention to rehabbing new buildings to code.
4. 3/4 of the homes sold to buyers, 1/4 to renters. Prices are usually in order to encourage first time home ownership.
5. The agency is self-funded, profits go back into the agency in order to acquire and rehab more properties.
6. Over $17 million has been created in new market values, amounts that can be taxed. They do work with HUD (the federal Housing and Urban Development cabinet dept.) in order to receive more money to do more work.

Questions and Answers:

1. Comm. Arroyo asked if the sold properties are “out of our hands”. Mr. Rose said that developers have 1 year to redevelop the property. If they do not do so, the property returns to the LBA. Also the same occurs if there are code violations or if they are in behind on property taxes.
2. Comm. Simms asked about the renters and if they had the “option to buy” at some point. Mr. Rose said that they did. She also asked how people find out about this program. The LBA goes out to community group meeting, housing expos, etc. and they have a website
3. Comm. Suffredin asked why the LBA needed the approval of this board (the CC Board of Commissioners) in order to continue operations. Mr. Rose said that the LBA has its own board as well. But each year, the rules state that the LBA needs a continuing resolution from both boards. This year they are asking for a $3 million line of credit in order to acquire properties a bit faster.

Commissioners Present for Bureau of Asset Management Presentation: Daley, Morrison, Silvestri, Boykin, Garcia, Moody, Suffredin, Deer, Moore, Simms, Gainer, Arroyo 
Commissioners Absent: Goslin, Schneider,Butler, Fritchey,Tobolski
The Bureau of Assets Management reported on some of the same issues as the Capital Budget Dept. The main speaker again was Ann Kalayil , the Assets Manager. She was joined by Jessica Caffrey, the Real Estate Manager, and Earl Manning, the Director of Planning and Policy. All 3 answered questions, with Ann covering most of the material. This office is new. It was born in 2015 due to President Preckwinkle’s efforts. $260 million of assets are managed by this department. Some highlights of their presentation include:

1. .$1 million was saved in 2017 by using mainly in- house workers as tradesmen and construction workers.
2. Green technology has saved energy costs equal to the amount of electricity used in over 500 homes in 2017
   
3. The “Trash into Cash” program has brought in over $200,000 mainly by recycling over 20 tons of waste in 2017.
   
4. A trade school “pipeline” has been developed in which CPS students and students in Juvenile Detention are matched up with apprenticeship programs in various areas such as pipe- fitters, electricians, and carpenters. Many have received full time jobs after learning a specific trade.
   
5. A Rosemont transit center is being planned with the village of Rosemont.
   
6. The Central Campus Hospital will be completed by June of 2018. It is expected to employ 1300 new workers. (the site of the old Fantus Clinic)
   
7. A study to improve the underground walkway or (pedway) is being commissioned.

Questions and Answers:

1. Comm. Boykin asked for a list of all new employees ( in any new project) including the neighborhoods from which they come. A report would soon follow the hiring process according to Earl M.
2. Comm. Moody asked about savings by using solar panels. Offices in the 5th district have used these panels with success. More will be forthcoming..
   
3. Comm. Morrison asked about the rental possibilities from the 3 vacated floors in the Dunne Building. Ann K. said that other governmental agencies may be interested, especially those state workers in the Thompson Building, since it will be sold soon.
   
4. Comm. Moore asked about the future use of the Hawthorne Warehouse complex. Several of the managers said it could possibly be turned into an Industrial park.
   
5. Comm. Gainer asked many questions about the abuses of FMLA (Family and Medical Leave Act). A back and forth discussion ensued with her and several of the presenters about abuses and lack of discipline for workers who take advantage of this. She blamed the abuses on a “culture of abuse”, dissatisfaction among employees, and a lax oversize style by management. Interestingly, Ann K. mentioned in her answer that much of the custodial staff used by her department came over from the custodial staff from the CC Jail. This comment earned some grunts from the audience as much has been written about the excessive absences and use of overtime at the CC Jail. The exchange ended with the presenters promising to look further into this matter in order to get to the root of the problem.

​Observer - Jan Goldberg