Springfield, IL (CAPITOL CITY NOW) – It was standing room only in the city council chambers Tuesday night as union laborers filled the seats and aisles. The workers were there to support union labor as aldermen considered two agenda items: a request for $500,000 in TIF funds and the authorization to use $1 million in home investment funds to build 50 low-cost homes. The Nehemiah Homes redevelopment project aims to build the new low-cost homes on Springfield’s east side.
Mike Neihaus, owner of Windsor Development, asked the council to forego the Project Labor Agreement, which is required when using city money. The PLA sets the terms and conditions for a construction project and requires all workers be paid a prevailing wage. Neihaus spoke about his company’s history of doing safe, quality work while being efficient and timely.
Labor manager Brad Schaive addressed the council on behalf of the unions represented, saying he is often approached by non-union workers who are not getting the prevailing wage. He said having a PLA in place “guarantees local labor, minority participation, that people are provided for, and the law is followed…and that makes people nervous.”
Pastor Silas Johnson with the Nehemiah Homes redevelopment project asked the council to support the funding that would help his organization improve the blighted area. Johnson said his group has already been involved in building 120 low-cost homes on the east side over the last 15 years.
Mayor Misty Buscher, speaking after the meeting, said, “the ordinance states if you’re using city money, you must pay a prevailing wage. It’s a fair wage for all people.”
According to the ordinance moved forward to next Tuesday’s debate agenda, the total price for the scope of work is $1,500,000 and the TIF request is for 33% of the project.
The additional requested sub-recipient grant agreement, if approved, would allow Nehemiah Expansion, Inc. to utilize home investment funds up to $1 million to help cover soft costs involved in the project. The grant, through the Office of Planning and Economic Development, is contingent upon an award from the Illinois Housing Development Authority.