Alderman alleges mayor demanded transfer tax vote for encampment removal

Alderman Bill Conway, of Chicago’s 34th Ward, has accused Mayor Brandon Johnson of demanding his support for two initiatives including a real estate transfer tax in order for the city to force the removal of homeless encampments.

Johnson’s proposal to raise the transfer tax rate on all property sales of $1 million and higher was recently given final approval from City Council, which sent the measure to the March ballot for voters to decide, the Chicago Tribune reported.

Johnson’s adviser Jason Lee purportedly told Conway that the perception of removing encampments might be seen as disconnected from progressive values. He argued that Conway’s support for these initiatives would help neutralize criticism and demonstrate a commitment to progressive values. Conway, however, refused to engage in what he perceived as a bargaining tactic 

“I wasn’t going to bargain with public safety,” the alderman told the outlet. Despite the alleged deal, Conway ultimately voted against both Johnson initiatives, the other being a plan to end the sub-minimum wage for tipped workers. So far, the homeless encampments remain in place.

Mayor Johnson deflected questions about Conway’s accusations in a press conference on Wednesday, calling them a “mischaracterization” and defended the administration’s focus on addressing homelessness in Chicago.

The encampments, located near Union and Ogilvie stations, have concerned Conway due to escalating issues of drugs and violent crime, he told the newspaper. Conway alleges that the fate of these encampments were linked to his support of the increased transfer tax, as well as a proposal to end the tipped wage for restaurant workers.

The transfer tax policy, called Bring Chicago home, is meant to funnel increased tax revenue stemming from the raised rate towards more affordable housing and anti-homelessness initiatives. However, Chicago’s real estate community has fervently opposed the plan, contending that it would add an additional burden to a market that’s already dealing with an array of challenges, such as rising interest rates, record-high office vacancies and a tough lending environment.

The tax would mean the rate buyers and sellers pay to the city on a huge number of commercial property deals would quadruple, as the highest tier of the new tax at 3 percent of the sale price would kick in for deals of $1.5 million or more, compared to 0.75 percent for all deals regardless of price now.

— Quinn Donoghue 

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