CHA chief rethinking 17th Ward fund-raisers

April 12, 2005

BY KATE N. GROSSMAN AND FRAN SPIELMAN Staff Reporters

A day after it was revealed that CHA chief Terry Peterson's old 17th Ward organization pulled in $250,000 in donations from Chicago Housing Authority contractors over the last three years, Peterson said Monday that he may stop attending fund-raisers for the ward group.

"That's something I'll have to look at," he said.

Peterson was 17th Ward alderman from 1996 until 2000, in which year he also was briefly committeeman. For many contractors, Peterson and his ward associates are the only connection to the South Side ward. It has no public housing projects. Peterson denies asking CHA contractors to donate to the 17th Ward Democratic Organization and says he doesn't decide contract awards.

A Better Government Association and Residents' Journal investigation found 63 firms donated $250,000 to the small 17th Ward group, helping make it one of the city's wealthiest ward organizations. Residents' Journal launched the probe after residents complained about service by some contractors.

Twenty-seven firms gave to the 17th Ward Democrats within three months of receiving a CHA contract.

Mayor's position

When asked about the donations Monday, Mayor Daley seemed uncomfortable and said repeatedly it was up to Peterson and the 17th Ward organization to explain. Later, his spokeswoman Jackie Heard said the mayor ''does not want, and will not accept, contributions from developers or anyone doing business with the city because the last thing he wants is the perception that the contribution is somehow tied to the business."

Current Ald. Latasha Thomas said: "I have no names of CHA contractors. . . . I don't know who does business with the CHA."

When told that several contractors received calls or solicitation letters from the 17th Ward Democrats, she said they either had a relationship with the ward unrelated to the CHA or perhaps they gave to her first, and she followed up to ask for a second donation.

Peterson, who also goes to CAPS meetings and sits on the ward community development corporation, made no apologies.

"These people have supported me for years," he said. "Because of perception, should I leave [his office] downtown, go into my house and stay there until it's time to come back downtown?"