After hours of tense and bitter debate, the Chicago City Council approved Friday two of Mayor Brandon Johnson’s top priorities: his $1.25 billion dollar borrowing plan for economic development and affordable housing and $70 million to help the city shelter migrants.

Fractures among the council and its caucuses were on full display during debate over the spending items. The votes came after alderpersons from across the political spectrum aired their discontent with Johnson for a lack of transparency over spending and wanting a greater commitment for long disinvested communities.

“While the city was able to tap into the rainy day fund to come up with $70 million dollars to bring the migrants inside, Black folks are left standing outside in the rain again,” said Ald. Desmon Yancy, 5th Ward, who urged Johnson to commit the same amount to the Black community and “no longer put Black Chicago on the back burner.”

And alderpersons pointed fingers at each other. Ald. Byron Sigcho-Lopez, 25th Ward, called colleagues out for what he described was “bigotry and ignorance” during the debate on migrant funding. That drew sharp rebuke and a request from Ald. Anthony Beale, 9th Ward, for a public apology.

The borrowing plan was ultimately approved by a 32 to 17 vote, while the $70 million for migrant spending was approved by a 30 to 18 vote — with ten members of City Council’s Black Caucus voting against it.

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The borrowing plan is the freshman mayor’s first major development proposal, and it relies on the expiration of dozens of controversial tax increment financing, or TIF, districts — which siphon tax dollars away from the city’s general funds to pay for local development projects.

The plan earned the endorsement of prominent fiscal groups like The Civic Federation, which praised the proposal for resetting the city’s reliance on TIF districts and directing recaptured revenue toward affordable housing and economic development.

City officials anticipate expiring TIF districts will lead to roughly $2.2 billion in additional revenue coming back to the city in the next 15 years alone. The city would use the recouped tax money to pay for the debt, which is expected to total $2.4 billion over 37 years.

Funds from the first five years would be split evenly between the city’s departments of housing and planning and development to fund neighborhood development grants, small business support, the construction and preservation of affordable rental housing, homeownership preservation, and more.

While intended to reduce blight, critics say TIF districts aren’t effective in distressed areas that need development and investment most.

“I’m excited that communities like Rogers Park, like Englewood, like Auburn Gresham, and other parts of the city who don’t have development tools are finally going to get some attention,” said Ald. Maria Hadden, 49th Ward.

In response to initial concerns about how projects would be chosen, Johnson’s administration included beefed up transparency measures and City Council approval for projects that will receive more than $5 million in funding under the plan.

But it wasn’t enough for several council members who once again attempted Friday to lower the overall bond amount and give City Council even more say.

Alderpersons defeated an effort by Ald. Bill Conway, 34th Ward, to lower the bond amount to $750 million dollars, and more narrowly beat back attempts by Alds. Brendan Reilly and Raymond Lopez, to lower the threshold for City Council’s approval to $1 million and $2.5 million dollars, respectively.

“This threshold is just too high,” Ald. Samantha Nugent, 39th Ward, said of the $5 million dollar limit. “…There is not enough transparency. I do not believe that simply putting projects on a website is particularly transparent or is a pass for oversight.”

Migrant funding approved

Budget Committee Chair Ald. Jason Ervin, 28th Ward, stressed the $70 million additional dollars Johnson advocated for spending on migrants is just a fraction of the city’s nearly $16.8 billion dollar budget, as he urged his colleagues to approve the funding.

“A rising tide lifts all boats,” Ervin said. “But again, we cannot continue to divide ourselves into such small pieces that we become ineffective. Who wins then?”

The approval of moving the money from city reserves to fund migrant care comes amid other layers of government sending infusions of money to support migrants: on Thursday, Cook County Commissioners unanimously approved sending up to $70 million of county disaster response and recovery funds to the city to help offset costs.

As part of a joint funding plan announcement two months ago — from which the city was notably absent — Gov. JB Pritzker also said he would seek an additional $182 million in the state budget to support migrants.

And Cook County offered the suburbs $20 million in grants to support migrants, though few suburbs have applied for it. Beale urged the city to stop providing support.

“If you cut off the funding spigot they won’t come,” Beale said to a shout of “good” from the audience.

More than $310 million has been spent to house, support and care for asylum-seekers arriving in the city, according to city data as of April 10.

Johnson’s budget director told alderpersons this week that the $70 million is expected to carry the city through the end of the year. Despite assurances that pulling from the city’s reserves won’t negatively impact the city’s fiscal health or commitment to advance pension payments, some alderpersons still had heartburn over the move and raised long standing complaints that disinvested communities have not received an infusion of funding in-turn.

“That’s a conundrum. I mean, they want to help. They want help,” Ald David Moore, 17th Ward, said of his residents.

Several alderpersons pointed to expensive contract rates that have eaten up funds already allocated, with Ald. Nicole Lee, whose 11th Ward borders a crowded Pilsen shelter where there’s been a recent measles outbreak and a boy died of sepsis last year saying: “We’re paying Ritz Carlton rates for Super 8 service.”

“You can order steaks all you want from the menu but somebody’s gotta pay. The problem is, the ones paying ain’t eating,” Ald. Jim Gardiner, 45th Ward, said. “The only ones eating are those with the contracts. They’re at an all-you-can eat buffet.”

Ald. Andre Vasquez said the division and discord only serves to benefit the Republican Party in the long-term.

“The folks that are sending buses out here want to see all of us fighting because this is Chicago. It’s hosting the Democratic Convention,” Vasquez said.

On Friday, the City Council also accepted $48 million in state and federal grant funding for the Department of Family and Support services to support the shelter and care of asylum-seekers. Additional federal funds are coming down the pipeline.

Tessa Weinberg covers Chicago government and politics for WBEZ.