To inform voters and to help the baiduhai Editorial Board make endorsements, the board posed a series of questions to the candidates running for alderman. See their answers below. See how other candidates answered here.
Name: David Herrera
Ward: 36th
Current job: Financial Consultant – Self Employed
Previous political experience: City of Chicago Aldermanic Candidate in the 26th Ward (2019)
Education: Loyola University Chicago – Undergraduate degrees in Economics and Finance
Spouse’s occupation: N/A
Sources of outside income: Investment income
The rise in violent crime remains a top priority for City Hall. Homicides, shootings and carjackings are all unacceptably high. Tell us how city government can be innovative in combating crime, and explain what measures you would propose if elected.
As you are aware, the Chicago Police Department (CPD) is at a three-decade low with 11,669 sworn officers as of March 30, down from the 11,983 reported at the beginning of the year and the 12,739 members on the force on Jan. 1, 2021, according to statistics provided by CPD to the media. In the 1990s, there were typically around 13,500 CPD officers. The result is we’re dealing with more crime with fewer officers available to patrol and answer 911 calls. In a frightening example, on New Year’s Day there were calls to 911 regarding a man with a gun at the Marriott Hotel on Michigan Avenue, but unfortunately, the overwhelmed and understaffed CPD had not one available officer to send!
Doing less with more might work in a corporation where the consequences aren’t deadly, but it’s unacceptable for city leaders to expect that of the CPD. With any ideas proposed, it’s important to understand that under the current mayor and her hand-picked superintendent, who she is loath to criticize, the opinions and/or demands of aldermen are basically ignored. The only way to have any influence over issues like district staffing is if/when the mayor needs a vote. Perhaps that will change if a new mayor is elected, but that’s not a given.
My suggested initiatives for improving public safety include:
The City needs to fill the 1,200+ uniformed police vacancies as soon as possible by ramping up recruitment efforts while also ensuring the individuals hired and trained have the proper background, temperament and mindset to serve and protect all residents of Chicago.
Chicago needs to beef-up its technology infrastructure. If we are working with a smaller police force, we need to leverage technological assets to combat crime. Below are some of my suggestions:
Install additional ShotSpotters throughout the city as they are proven to help increase response times between 1-3 minutes of shots being fired and save lives.
Install license plate readers, speed cameras along all Chicago-area expressways and Jean Baptiste Point DuSable Lake Shore Drive.
I understand Chicago only has two helicopters. We need to increase our fleet if we’re going to leverage technology. I endorse Ald. Matt O’Shea’s efforts to work with Rep. Quigley and Sen. Duckworth to get federal funds earmarked to purchase additional helicopters. I would also like to explore the feasibility of moving helicopters from Gary Airport to Midway and O’Hare.
Invest in metal detectors / x-ray scanners at all CTA train entry access points with new turnstiles that prevent access to anyone carrying a weapon on CTA property (knife or gun).
More locally, reopen the 13th Police District. The 12th District covers a large and highly congested area. This was a failed experiment and it’s not fair to the constituents within this area. Crime has spiked and we need to show results and bring those numbers back down.
The CTA, one of the nation’s largest transit systems, remains a troubled agency grappling with issues ranging from violent crime and ghost buses and trains, to flagging ridership. Give us your thoughts on what specific measures CTA should take to make train and bus service safer, more reliable and more equitable for Chicagoans.
Regarding Safety – I addressed this in question #1 above that we should invest in metal detectors / x-ray scanners at all CTA train entry access points with new turnstiles that prevent access to anyone carrying a weapon on CTA property (knife or gun).
Regarding Reliability – As a daily bus rider through high school and college, I often times noticed that bus flow is hampered by the location of bus stops before traffic lights. After pulling over to drop off or pick up passengers, buses end up waiting for red lights to change. I believe if the city relocated and moved all the bus stops to stop immediately after traffic lights, past the crosswalk it would decrease travel times. As alderman, I will propose a pilot program that would move all bus stops at all the major intersections (e.g. 4-corners) in Chicago to stop past traffic lights. As a part of the program the CTA would be required to monitor before and after travel times. Depending on the length of their trip and number of stops for other passengers, the average commuter may see a reduction in 10-15 minutes on a daily basis. If the pilot proves to be successful then I would propose expanding the relocation of bus stops to immediately past an intersection with traffic lights.
Increasing Safety and Reliability as detailed above would by default increase equity. Additionally, I would like to introduce commuter-based pricing similar to Washington D.C. and other cities. I believe in instituting transit zones with a tiered payment structure on a per stop or distance basis. This would allow the municipality to properly price commuting based on distance instead of a regressive flat rate policy. Instead of paying a flat rate no matter the usage, those commuting into Chicago from the suburbs continue to gain a partially “subsidized ride” and are not paying their fair share for the maintenance and pension obligations of the Chicago public transit system.
Ten years ago, enrollment at Chicago Public Schools was 403,000 students. In September, enrollment stood at 322,000 students. Enrollment at CPS has dropped for 11 consecutive years. What specific measures should CPS undertake to reverse the trend of ever-dwindling enrollment?
Dwindling enrollment is the result of several factors including a lower overall population, parents moving out of the city when their children become school-aged and choices like private and charter schools. The birth rate also is down, which is a shift in societal preferences whether to have children or not. While CPS administration cannot do anything to reverse what are trending societal norms, as it relates to the other factors, CPS can compete for the student base moving to the suburbs by making a CPS education attractive to those parents. That will involve working in many areas from the quality of the teachers and those teacher’s commitment to their students education, to before and after school programs to building improvements.
Disinvestment on the South and West sides is a decades-long problem with myriad causes. Give us at least one innovative idea that you believe could play a role in reversing South and West side disinvestment, and explain why the idea is realistic and feasible.
Mayor Lori Lightfoot campaigned on reallocating public funds via her INVEST South/West program. However, as reported by Crain’s, after 4-years not a single project has broken ground.
I believe one of the problems here is that if you look through the list of projects these are all large mid-rise projects that take years to get through the planning, design and approval phases. Another approach would be to spread the money around with smaller local developers that can handle smaller single family, 2-flat and 3-flat projects versus giving the public dollars and contracts to large mega-developers. Additionally, part of the goal is to build communities so the investment in housing stock should be more reflective of a neighborhood as opposed to mid-rise and high-rise development seen in the central business district.
Adding to this, I would propose creating a “Small Developers Equity fund. There are many gifted tradesmen who can build and/or rehab homes on their own or by leveraging their contacts in the trades. However, many of them may not have the equity and/or investor backing to sponsor/launch their own projects and obtain traditional project financing from a bank. Additionally, backing tradesmen on projections ensures that they are employed and, at minimum, can work and manage their projects. This is a win-win as it creates jobs, empowers our local tradesmen, and provides additional and much needed housing supply to the marketplace.
I envision establishing a program where the city would leverage this talent pool to build additional affordable housing.
The program would work as follows:
City can offer vacant lots at cost but as preferred equity position in the deal and repaid once the completed project is sold/liquidated. This would ensure that city vacant land would come online (developed versus sitting vacant).
The city’s Affordable Housing Opportunity Fund would advance 20% of each project’s cost. Equity funds to be used for “pre-development pursuit” costs such as architecture, engineering, permitting, etc. 3) The affordable housing developer would be entitled to a 5% market-based developer fee. However, this fee would act as “sweat equity” to compensate the developer fair market fee but also act as a “skin-in-the-game” in the transaction.
The remaining 70-75% of the capital structure could be obtained by transition construction lenders or the city can form a construction fund through the issuance of bonds to finance affordable housing development.
At exit, there’s a cap on the sale price. Based on my experience, I recommend a cost-plus 5.0% – 8.0% model. For example, a 3-flat built totaling $600,000 to build plus 5% ($30,000) would total $630,000 or $210,000 per unit. The developer in this scenario would make a 5.0% developer fee on $600,000 of cost plus an additional 5.0% of profit on the sale of $600,000 for a total of $60,000. The other intangible is that the developer would build track-record over time and have the potential to create a business and move-on to larger projects.
Do you support giving Chicagoans property tax relief? If yes, please explain how you would accomplish it. If no, please explain why not.
Yes, I do believe in providing Chicagoans with property tax relief. Illinoisans are second in the nation behind New Jersey when it comes to property tax. This is one of the reasons Illinois has had net outmigration for over 20-years as people seek friendlier tax environments. I would propose a property tax discount structure for long-term residents at the following intervals: 5-years, 10-years, 15-years, 20-years, etc. Long-term residents are the very fabric of our communities and I want you to stay! Below is a sample structure:
Years 1–5: 1% per year discount (compounding).
Years 6–10: 2% per year discount (compounding). So after 10yrs you’d accrue a 15% discount.
Years 11–20: 2.5% per year discount (compounding). So after 15yrs you’d accrue a 22.5% discount and after 20yrs a 30% discount would be accrued.
Years 16–20: 3.0% per year discount (compounding) up to and capped at 50%. The cap would be reached in 27 years.
Give us your take on the city’s use of tax increment financing districts. Do you feel they have been useful, or do you feel that the problems associated with them outweigh their usefulness? What if any reforms would you want to apply to the city’s usage of TIFs?
While I do believe in funding infrastructure and capital improvement projects. I do believe there is a better and more efficient way to fund these projects. My training and experience in municipal finance has shown me that municipalities can essentially borrow 100% of a project’s funds up-front via the issuance of revenue bonds and/or PAGO bonds. This is unlike traditional financing where you save for a down-payment to buy that house. In municipal finance the taxing authority can pledge a revenue stream and procure 100% of the funds required for respective project. Additionally, there is bond insurance / enhancement that further allows a municipality to tap into the capital markets to fund said capital improvement project, etc…
In this instance, the current TIF structure is obsolete. The TIFs are essentially pooling your hard-earned cash and storing the cash as equity to pay for capital improvement projects that could be financed using credit (e.g. revenue or PAGO bonds) as opposed to your hard-earned equity. This is essentially this structure and process adds a heavy weight and burden on the taxpayers. For example: would you rather buy a house with 25% down-payment (hard-earned cash) or have the ability to finance the house with 100% credit. Saving that 25% down-payment could take years and it’s money that you would otherwise spend but you’re sacrificing expenditures today in exchange for the house. Essentially, today’s taxpayer is sacrificing essential city services today in exchange for the Mayor’s pet projects funded by TIF that can otherwise be funded by the capital markets. We are being deprived much needed revenue to fund city services and the result is a repressive tax structure at the expense of city services and quality of life.
The current TIF structure needs to be reformed. TIF’s proceeds are bloated at $1.2billion per year and divert way too much of our hard-earned money away from the Chicago General fund. I would like to reallocate 50% of annual TIF revenue (approx. $600MM per year) to fund additional services many Chicagoans value and care about as detailed below:
25% ($150MM) to replace lead pipes citywide. At an average cost of $25,000 we can replace 6,000 homes per year.
25%. ($150MM) annual payment toward our pension fund obligations.
10% ($60MM) – fund head-start programs in impoverished communities.
10% ($60MM) – Affordable housing.
10% ($60MM) – Needs based / transitional housing: homeless and refugees.
8.33% ($50MM) – City Services – $1MM extra to each Ward for participatory budgeting to be voted by community.
5% ($30MM) – Public Safety Tech Improvements – surveillance cameras, shot spotters, etc.
5% ($30MM) – Green space initiatives: dog parks, gardens, skate-parks, etc..
1.7% ($10MM) – Tech Parks Initiative – Free Public wifi throughout are Parks and Boulevards citywide.
Thereafter, the remaining 50% of TIF revenues we could be a combination of giving ourselves a proprety tax holiday, fund our pension fund obligations or retaining a smaller portion of TIF funds for capital improvement projects city-wide. It would be an interesting negotiation and debate in City Council.
Lead in drinking water is a major health concern for the city. It is estimated that in Chicago there are roughly 400,000 homes and small apartment buildings with lead service lines. So far, the city has replaced less than 300 lead service lines. Do you feel the pace of lead service line replacement should be expedited, and if yes, what is the best, most feasible way to accomplish that?
Yes, 100% this has to be expediated. This should be a national emergency. We need to advocate for more federal funding. In addition to funding, we need a larger labor pool to replace 400,000 lead lines. We need to look into hiring additional labor from out-of-state to get this done over a 5-year period. We should aim to replace 20% of the lead pipes each year over the next 5years.
If you are an incumbent, please explain what is it about your service on the City Council that makes you most qualified for the job. If you have never served on the council, please explain what is it about your background that makes you most qualified.
My private sector experience within capital markets, private equity and real estate development coupled with my degrees in economics and finance give me additional distinct advantages over the other candidates. My financial skills-sets and acumen and business-like approach are desperately needed in City Hall if Chicago is going to get serious about tackling its financial and economic development shortcomings.
My policy platform is robust. I have a plan to invigorate the entire 36th Ward including reclaiming green space within the Ward through community engagement. This would begin by reviewing underutilized city owned real estate assets and vacant land within the Ward for use as dog parks, community gardens, etc. I envision powering our business districts with complimentary Wi-Fi including along Chicago Avenue, at the Brickyard Mall and along a revitalized Grand Avenue.
A priority will be to reduce blight and improve Grand Avenue beginning with reviewing all zoning along Grand Avenue with possible changes from manufacturing to mixed-use (retail/residential) to increase density and pedestrian foot traffic. I will lead in the creation of a Special Service Area (SSA) for Grand Avenue with tax revenues used to help beautify Grand Avenue via landscaping, art installations, benches, etc. A major effort will be establishing an eight-mile Grand Avenue Bike Trail stretching from the Brickyard Mall to the Western Avenue Metra Station on Hubbard Street and connecting to Milwaukee Avenue via Hubbard Street.
In conclusion, I believe my knowledge of the community, my education, professional sector specific experience and ideas to generate results make me the best candidate for residents of the West Town neighborhood as well as the entire ward.
What is the most pressing issue facing the people of your ward, and how would you address it?
According to CPD detectives, young offenders call the West Town portion of the 36th Ward, “Candyland…Because it’s like stealing candy from a baby.” The fact that there are more than 50% fewer officer in the 12th District now than when it was consolidated with the 13th District in 2012 is a hugely contributing factor to the level of crime The police force is at its lowest staffing levels in over three decades (below 12,000 uniformed officers); down 17% before Covid.
2019 – 14,046
2020 – 13,299
2021 – 12,739
2022 – 11,669
Fill the existing 1,200+ Chicago Police Department vacancies asap. Funds are available and have been allocated per the 2022 City Budget.
Petition and Lobby to re-open the shutter 13th District station). Each District on average has 300 officers on staff. With 1,000+ vacancies citywide the financial resources are there to staff and re-open District 13. This will require a majority vote (26) in City Council and the newly elected Mayor’s approval to pass. With 30% (15 of 50) of alderman retiring or taking a leave. I will work across the aisle to forge relationships with the new City Council. The timing couldn’t be better to effectuate change.
Private Security Patrols – I will dedicate up to $200k of the $1.5 million menu budget allocated to function as a matching grant for private security patrols. Other communities in Chicago are self-patrolling as well: Bucktown, Lincoln Park, Lakeview and Hyde Park. As Alderman, I will step-up and seed a neighborhood fund for constituent services above and beyond the $1.5MM allocated.
Sum up why should voters elect you and not your opponent(s)? (Please limit this to policy and approach, not a biography recitation.)
First and foremost, I have unmatched and firsthand knowledge of the area. I’m the only candidate born and raised within the West Town community, which per the November 8, 2022 gubernatorial election represents 62% of the new ward’s vote total. My family has been in West Town since 1956 and in the Ukrainian Village community since 1958. I intimately know West Town very well, every side-street, alley, etc. I have seen/witnessed firsthand the changes for the better the past 40+ years growing-up near Ohio & Leavitt Streets.
Secondly, my neighborhood affiliations include serving as the treasurer of the Ukrainian Village Neighborhood Association from 2017-2018 having joined in 2016. I also have been a regular attendee and participant of East Village Neighbors Association (2016 – Present) the West Town Neighbors Association (2017 – Present), United Blocks of Humboldt Park (2018-2019), Humboldt Park Advisory Council (2018-2020) and the Polish Triangle Coalition (2019). I also regularly attended CAPS meetings for beats in both the 12th and 14th Districts from 2016-2019, when they were in-person.
Thirdly, my private sector experience within capital markets, private equity and real estate development coupled with my degrees in economics and finance give me additional distinct advantages over the other candidates. I’m ready to tackle public policy and urban planning issues city wide.
Fourthly, my policy platform is robust. I have a vision and a plan with several ideas on how to implement that plan. My competition is campaigning on the usual “city services” platform but that is the requisite job description. What are they going to do above and beyond the job description? We need standout candidates that are ready to lead and bring bold and fresh ideas to the Chicago City Council.
In conclusion, I believe my knowledge of the community, my education, professional sector experience and ideas to generate results make me the best candidate without question. I previously ran for Alderman in 2019 in the 26th Ward and as a first-time candidate I was endorsed by the baiduhai over the incumbent. “Herrera has creative ideas to boost economic activity by opening old-time manufacturing areas to development.”