By Steve Rhodes
Three aldermen appeared on Chicago Tonight last night to discuss the mayor’s announced commitment this week of a blanket guarantee by the city to cover with taxpayer money any financial losses that might be suffered if the 2016 Olympics are held here. Memo to George Cardenas: If you don’t know which of you sitting at the table is the tool, it’s you.
Edited for clarity. Quote accuracy estimated at 97 percent. Rhodes commentary did not appear on-air, but could be heard within shouting distance of Beachwood HQ.
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CARDENAS: It was not a surprise to me . . . When you take a flight you buy insurance. Not because the plane’s gonna crash, but just in case.
RHODES: I wish someone would have asked Cardenas if he’s ever bought flight insurance, because I don’t know anyone who has.
JOE MOORE: This was certainly a surprise to members of the city council. Perhaps George is an exception . . . First we were not told no tax money would be spent, then that we had to put some skin in the game, then we were told that was it. Now we’re told that the mayor is about to sign an agreement that will make the city and taxpayers responsible for all of the Olympics.
MANNY FLORES: introducing an ordinance . . . to insure that we are not putting the City of Chicago in any further liability . . . enough is enough. We’ve been told time and again that the City of Chicago will not be responsible for paying . .. that line has moved time and again . . . to make a statement that the City of Chicago pledges to sign a contract when we haven’t had an opportunity to vet that contract . . . I myself have been a supporter of the Olympic Games on the premise that it was going to help the City of Chicago . . .
RHODES: I wonder where he got that idea.
FLORES: . . . without liability to the city.
RHODES: In that case, I have some parking meters I’d like to sell to you. Er, I mean, buy from you.
FLORES: It’s almost like bait and switch.
RHODES: Without the bait.
MOORE: It’s time for an independent authority to actually look at this, look at the experience of other cities, tell us just what the risks to the taxpayer are . . .
RHODES: It’s time for that if it’s 2007.
CARDENAS: We have deficits up to 2012. In times of recession, what you do is reinvest and retool . . .
RHODES: By firing city workers and delaying spending until 2016!
CARDENAS: . . . So this is preparation for what a city must do in order to compete nationally . . .
RHODES: For what, first in line in bankruptcy court?
EDDIE ARRUZA: Wasn’t it disingenuous of the mayor not to run this past you? [City officials and Chicago 2016 officials] had to know [this was coming].
CARDENAS: They knew they’d have to come up with a financial scheme.
RHODES: That didn’t border on mail fraud.
FLORES: This is a very sophisticated team.
RHODES: Unlike George.
FLORES: They were very aware that they were going to have a variety of options. The least they could have done is share those options with us.
RHODES: So we could have pretended to deliberate before giving them carte blanche.
FLORES: And in response to making an investment, all economic indicators show we are not on an upsurge. The city is running a structural deficit. Why should we gamble? It’s inconceivable.
ARRUZA: There’s been criticism that you have not done your due diligence. That’s the same criticism you received over the parking meter debacle.
MOORE: The city council doesn’t have the staff to be able to do this . . .
RHODES: Or the brains.
MOORE: We rely on outside experts.
RHODES: Then why do we elect you?
FLORES: The city council will exercise its authority . . .
ARRUZA: Aren’t you acting on this after the fact?
FLORES: There’s no signature yet on a contract.
CARDENAS: We signed a $500 million guarantee . . . the language in the ordinance clearly indicates that the mayor has the perogative to engage in other negotiations . . . we gave him that power.
ARRUZA: You have given the mayor all of the power . . .
FLORES: Maybe Alderman Cardenas is willing to cede that power . . .
ARRUZA: London has already gone way over budget . . . about triple its cost. They had to dip into their contingency funds when private sector money dried up.
CARDENAS: It’s apples and oranges. London basically had to redevelop a whole section of their city. This is different.
MOORE: London’s experience is a cautionary note to the City of Chicago and the taxpayers that despite all the assurances – I’m sure London officials said there wouldn’t be a deficit . . .
RHODES: Didn’t Pat Ryan run their bid too?
ARRUZA: Does the council have the werewithal [to engage this]?
FLORES: Absolutely. I’m introducing legislation . . .
RHODES: Officially giving us our balls back. It’s called the Cojones Reinvestment Act.
MOORE: We should have learned something from the parking meter debacle.
CARDENAS: I hope next time we debate, my colleagues do their homework so they know what they are voting for.
RHODES: That would take a different ordinance, but even if it passed, there wouldn’t be enough votes to override a mayoral veto.
Posted on June 19, 2009