The Renaissance Letter: Harvey revokes business licenses and issues “reduced fines” over unpaid property taxes

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Government seizing homes. Businesses and churches upset over operating licenses. With the new fiscal year upon us, here are the top 5 things in Harvey news for the week of June 10.

5. Cook County LeadCare program restores trust in tap water use

Leveraging federal dollars, a new initiative helps childcare providers replace lead service lines for free. The pilot, which launched in 2023 in west and south suburbs, including Harvey, has now expanded across the entire County. [full story]

4. Harvey churches mulling organizing over business license requirements

One of the city’s most influential cultural sects is looking to speak with city officials after confusion and frustration spurred by a City Council ordinance. In July 2023, the City Council approved an ordinance to help better enforce business license requirements. The city’s code has always required both for-profit and not-for-profit organizations to possess a business license. That includes churches, which are obligated to pay the same licensing fees as other entities.

Not-for-profits were always supposed to have a business license, a member of the city’s corporation counsel explained at a July 2023 City Council meeting, and the ordinance clarified the city’s municipal code to make that clearer.  Nearly a year later, pastoral entities are hoping to communicate with city officials to gain better clarity of the city’s laws.

3. New fiscal year begins, with budget season around the corner

Budget season is upon us. May 1 marked the beginning of Harvey’s new fiscal year. The City Council, which didn’t have a regular meeting the entire month of May, will soon be reviewing a new budget proposal. This comes as residents continually use the Council meeting’s public comment to demand great transparency in city spending and missing treasurer’s reports.

Comptroller Louis Williams gave a comptroller’s report earlier this spring, but key items like payroll were missing from the report. City Treasurer Aisha Pickett continues to claim the finance department isn’t providing critical documents, such as monthly finance reports, so she can deliver her required treasurer’s report.

2. Myrtle Ave. residents receive buyout offers but considering legal options

In May, homeowners and renters on Myrtle Ave. received offer letters to acquire their properties for a water detention pond, but some are seeking legal assistance. Harvey and the Metropolitan Water Reclamation District are collaborating on a stormwater initiative on 153rd St. and Myrtle Ave. that aims to reduce local flooding. The District is seeking to acquire the properties to facilitate construction of the pond, while Harvey is endeavoring to build a new public park.

Residents are looking to better understand the offers or determine if they can still wage a fight to remain in their homes. The deadline to respond was June 7, meaning residents had roughly five weeks to consider the offers. If residents reject or don’t respond to the offers, the District’s legal team will file eminent domain cases in court to acquire their properties.

1. Harvey issues new fines against tax delinquent businesses

A new “settlement agreement” takes aim at businesses that are delinquent on property taxes. And it’s causing an uproar.

Harvey only collects roughly 51% of its property tax revenue, according to county records. In January, the City Council approved an ordinance that withholds operating licenses from businesses that owe property taxes. Now, if they would like to operate, they would pay either a) $20,000 up front, b) two installments of $12,000 a year, or c) a down payment of $2,500 plus an additional $2,500 a month until the business pays $30,000 in total, according to a copy of the packet obtained by the HWH via confidential source.

But there’s a catch: the city will still withhold their license and may assess a daily fine anywhere between $250 to $2,500 each day a business operates without one, foregoing that “prosecution” in the event the business makes an initial payment. Businesses that rent their facilities and aren’t even responsible for paying property taxes to begin are also having their licenses withheld and have received settlement documents, which is specifically raising concerns over whether the fines are legally viable.

Some businesses have begun to pay, sources tell the HWH, but it’s unclear how much the city has currently collected. Cook County Treasurer’s Office is the only government entity that can legally send tax bills and specifically collect property tax payments. Harvey’s document calls the payments an “agreed and reduced fine.”

Alds. Shirley Drewenski (1st), Telanee Smith (3rd), Dominique Randle-El (5th), and Tyrone Rogers (6th) voted yes while Alds. Colby Chapman (2nd) and Tracy Key (4th) voted no to the ordinance to withhold licenses. The recent fines, however, were not voted on by the Council. 

The city’s planning department reviews business licenses, which generally expire at the end of every April. The city began delivering the document just as licenses expired citywide. Sources tell the HWH businesses are expected to march toward City Hall ahead of tonight’s Council meeting at 7p.m.