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HomeMy WebLinkAbout06_14_04_ccCITY COUNCIL ROLL CALL - PRESENT: June 14, 2004 Alderman Jean -Baptiste Alderman Tisdahl Alderman Kent Alderman Rainey Alderman Moran, Alderman Feldman A Quorum was present. Alderman Newman ABSENT: Aldermen Wynne, Bernstein PRESIDING: Mayor Lorraine H. Morton The OFFICIAL REGULAR MEETING of the City Council was called to order by Mayor Morton Monday, June 14, 2004, at 6:57 p.m. in the Aldermanic Library. Alderman Tisdahl moved that Council convene into Closed Session for the purpose of discussing personnel matters pursuant to 5ILCS Section 120/2 (c) (1). Seconded by Alderman Rainey. (1) The appointment, employment, compensation, discipline, performance, or dismissal of specific employees of the public body, including hearing testimony on a complaint lodged against an employee to determine its validity. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). At 8:08 p.m. Alderman Rainey moved that Council reconvene into Open Session and recess. Seconded by Alderman Tisdahl. Motion carried. Mayor Morton reconvened the City Council meeting at 9:21 p.m. in the City Council Chamber IIL/_/:V10)117_1 W.11 It;C81110 j;Illh*T Mayor Morton reported attending an organ recital Sunday at the Music Institute of Chicago, which is located in the former Christian Scientist Church at Chicago/Grove. The event focused on the institute's 90-year old Skinner organ, which was given a citation by the Organ Historical Society because it is worthy of preservation efforts. She announced that earlier, a community reception was held to honor City Manager Roger Crum, who will retire June 30. She read the proclamation "Roger D. Crum, City Manager, Evanston, Illinois — 1996-2004" Mayor Morton proclaimed June 14 "Flag Day and City of Evanston Citizen Corps Community Preparedness Day" COMMUNICATIONS: None CITIZEN COMMENT: Don Zeigler, 1430 Elmwood Ave., represented the Evanston Community Health Advisory Board and Evanston Citizens for Clean Air, which strongly endorse the proposed amendments to the City's Indoor Clean Air Ordinance. He asked them not to "water it down" and pass it as presented. He predicted that soon more health care voices would demand smoke -free workplaces everywhere here. He asked them to consider as they vote: "unfinished business, to be continued." Debbie Hilhnan. 1118 Sherman Ave., asked Council to approve the proposed zoning change at Chicago/Greenwood from B3 to B2. She noted that no one could imagine the amount of development that has occurred here in the past eight years. This portion is from Dempster to Greenwood and the residential community is fearful that downtown development may sprawl into this neighborhood because the downtown, technically, stops at Lake Street. She urged support of the Comprehensive General Plan, which recognizes this as a residential and neighborhood shopping district. Alejandro Abraham, 1710 Maple Ave., representing Fifth Third Bank, supported recognizing the Matricula Consular June 14, 2004 Identification Card as an official form of identification. He said the resolution was important because it provides the Hispanic community with a way to have a formal ID when they don't have the opportunity to have other forms of ID. The bank has a program working directly with the Mexican Consulate to help the Hispanic community get the Matricula Card and a tax identification number to give them a way to pay taxes and give back to the community they work in. He saw this as a beginning to open the door to other cultures that will come to Evanston. Tomas Ramirez, 1027 Sherman Ave., coordinates the Y.O.U. outreach team and works mostly with African -American and Hispanic youth. He supported recognition of the Matricula Consular Card and said that this ID card will help give an identity to people who have no other way to feel a part of the community while at the same time it says they count and can contribute. The Mexican Consulate is willing to discuss whether this could be falsified and purchased. Fortino Leon, 1730 Dodge Ave., president of the Evanston Latino Organization urged acceptance of the Matricula Card, citing a great need for it because that it is all they have now. He said that this is a great way for the community to show the Mexican community that they are accepted here and that Evanston welcomes diversity. Fr. Robert Oldershaw, St. Nicholas Church, said "amen" to what had been said about the Matricula Card. As the spiritual leader of many Latinos here, who number 300-400 and gather at St. Nicholas Church, he urged City Council to recognize the Matricula Consular Card as an official form of ID for Mexican nationals. He asked this as an expression of solidarity, support and welcome to wonderful people who enrich the community with their faith, heritage and family values. Mayor Morton expressed gratitude to members of the Latino community who came and spoke. She noted the Latino community is growing in Evanston. This was the first time people from that community have come before Council. Junad Rizki, 2754 Sheridan Rd., reported receiving a letter from his alderman stating that viaducts would be netted so that pigeons cannot roost. He has a problem with netting the viaducts because several years ago pigeons got hurt. He alleged the City does a poor job of managing clean up of pigeon waste. He takes the train daily and saw a city worker sweeping the droppings, which creates a health hazard from the dust. As protection, the worker wore a mask and Mr. Rizki said he was supposed to use a power washer, which the City did not provide. That viaduct has not been cleaned for quite a while. He recommended the Health Department investigate. An article in Highlights about free P.S.A. testing to people disturbed him because it set up racial criteria for testing. He asked for an explanation and thought it could possibly set up the City for legal issues. He suggested the City be more responsible in these areas. CONSENT AGENDA (Any item marked with an Asterisk*) Alderman Feldman moved Council approval of the Consent Agenda with these exceptions: City of Evanston Bills through 6/15/04; Ordinance 66-0-04 — Amendments to Sherman Plaza Approved Planned Development; Ordinance 59- 0-04 — Zoning Ordinance Text Amendment; Ordinance 64-0-04 — Approval of Proposed Township Budget; Resolution 35-R-04 — Second Amendment to Public Improvements and Ordinance 61-0-04 — Third Amendment to Redevelopment Agreement. Seconded by Alderman Rainey. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). * ITEMS APPROVED ON CONSENT AGENDA MINUTES: * Approval of Minutes of the Regular City Council Meeting of May 24, 2004. * APPROVED - CONSENT AGENDA MOTION AND ROLL CALL (7-0) ADMINISTRATION & PUBLIC WORKS: * Approval, as recommended, of the City of Evanston payroll for the period ending June 3, 2004 and authorized and charged to the proper accounts: City of Evanston payroll (through 6/03/04) $1,969,958.88 June 14, 2004 * APPROVED - CONSENT AGENDA MOTION AND ROLL CALL (7-0) * Approval of the lowest responsive and responsible bid of J.A. Johnson Paving for the Isabella St. Resurfacing Project for the Engineering Division at a cost of $969,988.75. (Funded through GO Bonds.) * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Approval of the professional services contract with Environmental Health Laboratories for laboratory testing services for the Water Department for a three-year period, with two optional extensions, at a first -year cost of approximately $6,000. (Funded in Water Operating Fund.) * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Approval of recommendation to accept the proposal of the contractor working with Northwestern University for a change order in the amount of $85,622 for the NU fiber optic cable system to extend the system to the Evanston South Water Tower at a cost of $85,622. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Neiehborhood Traffic Plan: Trial Four-Wav StoD — Consideration of a recommendation to install four-way stop signs on a trial basis at Forest Ave. and Hamilton St. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Resolution 36-R-04 — Authorizing ADDlications for OSLAD Grant — Consideration of proposed Resolution 36-R-04, which authorizes the City Manager to sign the resolution of authority for an OSLAD grant application through the Illinois Dept. of Natural Resources for Mason Park redevelopment. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) PLANNING & DEVELOPMENT: * Sidewalk Cafe Permit — Tvne Two Restaurant Ben & Jerrv's) — Consideration of a recommendation of the Site Plan & Appearance Review Committee to grant a sidewalk caf6 permit to Ben & Jerry's, 1634 Orrington Ave. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Sidewalk Cafe Permit — Tvve One Restaurant with Liquor ( Bluestone) — Consideration of a recommendation of the Site Plan & Appearance Review Committee to grant a sidewalk cafe permit to Bluestone, a Type One restaurant within 200 feet of a residential zone and outside the Liquor Control Regulations core area, at 1932 Central St. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Sidewalk Caf6 Permit — Retail Food Store (Foodstuff's) — Consideration of a recommendation of the Site Plan & Appearance Review Committee to grant a sidewalk caf6 permit to Foodstuff's, utilizing disposable flatware, dishware and containers, at 2106 Central St. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Sidewalk Caf6 Permit — Tvpe Two Restaurant (Noodles & ComDanv) - Consideration of a recommendation of the Site Plan & Appearance Review Committee to grant a sidewalk caf6 permit to Noodles & Company, 930 Church St. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Sidewalk Cafe Permit — Tvne Two Restaurant (Italian Coffee Bar) — Consideration of a recommendation of the Site Plan & Appearance Review Committee to grant a sidewalk caf6 permit to The Italian Coffee Bar, 1549 Sherman Ave. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Re -subdivision Plat at 800 E12in/1800 Sherman — Consideration of a recommendation of the SP&ARC to grant approval for a re -subdivision plat for condo/office development at 800 Elgin/1800 Sherman Ave. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) June 14, 2004 * Ordinance 62-0-04 — Amendments to Ordinance 41-0-04: 01 Office District Uses — Consideration of proposed Ordinance 62-0-04, which approves a recommendation of the Plan Commission to amend the allowed uses for the 01, Office District in Ordinance 41-0-04, adopted April 13, 2004. MARKED INTRODUCED — CONSENT AGENDA * Ordinance 60-0-04 — Zoning Man Amendment — Greenwood & Chicago Ave. — Consideration of proposed Ordinance 60-0-04, introduced May 24, 2004, which approves a recommendation of the Plan Commission to amend the Zoning Map to place the currently zoned B3 business at Greenwood and Chicago into the B2 Business District. * ADOPTED CONSENT AGENDA & ROLL CALL (7-0) HUMAN SERVICES: * ADDroval of Mav 2004 Township Monthlv Bills — Consideration of a recommendation to approve the Township bills, payroll and medical payments for the month of May 2004 in the amount of $101,865.68. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * SDecial Event — Evanston Art Center's Diamond Fest — Consideration of a request from the Evanston Art Center and Grosse Point Lighthouse Park District to hold Diamond Fest on September 12, from 10:00 a.m. to 6:00 p.m. at the Art Center, Lighthouse Park District and surrounding City property. APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Resolution 33-R-04 — Recognizing the Matricula Consular Identification Card — Consideration of proposed Resolution 33-R-04, which recognizes the Matricula Consular Identification Card as an official form of ID for Mexican Nationals in the U.S. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * Ordinance 63-0-04 — Amendine the Citv's Indoor Clean Air Ordinance — Consideration of proposed Ordinance 63-0-04, which amends the City's Indoor Clean Air Ordinance to prohibit smoking in common areas of multi -unit buildings and all workplaces except bars, restaurants and long-term care facilities. * MARKED INTRODUCED — CONSENT AGENDA OTHER COMMITTEES: * Recommendation to Provide $30,000 for Public Parking Improvements — Consideration of a recommendation of the Economic Development Committee to improve, increase and beautify public parking adjacent to a redevelopment project at 1703/1711 Darrow Ave. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) * ADDointment of Interim Citv Manager — Consideration of the appointment of Judith Aiello as interim City Manager for a term of three months ending October 1, 2004 with a stipulation that necessary department head replacements be made as acting appointments only. * APPROVED - CONSENT AGENDA MOTION & ROLL CALL (7-0) APPOINTMENTS Mayor Morton asked that the following appointments be introduced: David Angelus 911-Emergency Telephone System Board 1580 Sherman Ave. Ellen L. Schrodt Library Board 2801 Sheridan Pl. Jonell Nimock M/W/EBE Development Committee 5 June 14, 2004 1029 Wesley Ave. Tracey L. Wallace M/W/EBE Development Committee 1310 Darrow Ave. Joseph Zambreno Parking Committee 1014 Noyes St. Natalie B. Newberger Playground & Recreation Board 100 Dempster St. Monique Parsons Playground & Recreation Board 1615 Thelin Ct. Jordan M. Cramer Preservation Commission 2607 Park Pl. Ann C. Dienner Preservation Commission 1034 Sheridan Rd. Emily W. Guthrie Preservation Commission 730 Judson Ave. Tom Boggs Public Art Committee 2630 Hillside Ln. Lawrence E. Wilson Public Art Committee 2310 Thayer St. Greg Summers Sign Review & Appeals Board 1830 Ridge Ave. Mayor Morton asked that the following re -appointments be introduced: Frances Seidman Commission on Aging 600-E South Blvd. Douglas Doetsch Plan Commission 1216 Hinman Ave. Alice Rebechini Plan Commission 2022 Hawthorne Ln. Mayor Morton asked that the following appointments be confirmed: Louis J. Weathers Commission on Aging 1728 Brown Ave. For term ending June 25, 2007 Colin Matthew Proksel Housing Commission 1637 Orrington Ave. For term ending June 25, 2007 Brooke L.M. Roothaan Library Board June 14, 2004 824 Florence Ave. For term ending June 25, 2007 Karen K. Terry Library Board 1114 Judson Ave. For term ending June 25, 2007 * APPROVED — CONSENT AGENDA REPORT OF THE STANDING COMMITTEES ADMINISTRATION & PUBLIC WORKS: Alderman Jean -Baptiste moved approval of the City of Evanston bills for the period ending June 15, 2004 in the amount of $2,320,511.18. Seconded by Alderman Tisdahl. Alderman Jean -Baptiste reported a concern about a payment of $119,967.01 to Hometown Electric, Inc., on page 23 to store supplies and equipment for renovation of Ridge traffic signals. Alderman Rainey asked what happened with this project and what was this for? Public Works Director David Jennings said it was for storage of traffic signals and equipment that were manufactured for this project. There is no place to store this, so the manufacturer stored it and this was a storage charge for two years. Alderman Rainey stated this is an unintended consequence of Council's action with the mast arm versus post top traffic signals and the Preservation Commission. She expressed concern about this charge and said they must pay it. She asked in the future that Council look more deeply into issues and find out what the unintended consequences will be. She never saw this in the spreadsheets. Alderman Newman asked if she was referring to Council or staff or the actions of both? Alderman Rainey was not placing blame, but asked who knew it would cost $120,000 to store these materials? Alderman Newman said that nobody on Council was responsible for the article in Highlights mentioned in Citizen Comment about the Health Department. He said if Council is going to take an action, he would expect the experts who administer the contract to come forward. He did not think City Council had that information before them. Council members are legislators and the money is spent by administrators, who have to identify the issues. He asked if storage cost was identified at the time? City Manager Crum stated, at the time the project was stopped, these materials were already ordered through a State contract, not a City contract. The City requested they stop, change direction, then got endorsement that they would switch to post -top signals instead of mast -arm signals and the contractor had to be made whole. Everybody recognized at the time that there were additional costs the City would have to absorb. He noted that State Representative Julie Hamos has pledged another $400,000 to help make up some of the difference in cost. The good news is they hope that this will lead to getting money to pave Ridge Avenue earlier than they otherwise would have. This will be a jurisdictional transfer and is tied to federal and state budgets, which are in flux. It is hoped this matter will be resolved in the near future. Ridge Avenue will become a City street and the City will get money to repave it. Alderman Newman asked if the $120,000 would be paid from City funds or from additional money? Mr. Crum stated that would be paid out of City funds because it changed the original contract. The $400,000 is to be worked into the whole project. Mr. Crum noted it would cost more than originally estimated due to delay and design change. Alderman Rainey recalled they were told this equipment was manufactured but it never occurred to them that it would have to be stored with a storage cost. Public Works Director David Jennings stated there was no line item for storage in this contract, because they did not anticipate they would be storing material. It was bought and stored, so the City is obligated to pay. He suggested that he come back with a report on where they are going. There are other monies that will help offset some of the additional cost of this project that he does not have. Alderman Newman asked the amount of the City's loss? It could be more or less than $120,000. Mr. Jennings said there are many factors involved. Can they recover some of the cost of the mast arms they don't use? Can they use them on other jobs or sell them? They don't have answers to those questions yet. Alderman Newman asked for a full explanation of the net cost of not doing the mast -arm signals with the additional June 14, 2004 money from Representative Hamos. Mr. Jennings stated a report like that was put together months ago and he will get that back to them. He said the good news is there is $3 million in the current transportation re -authorization bill which expires June 30. That is $3 million for Ridge Avenue and the State today sent a letter pledging an additional $1 million. If the federal re -authorization bill passes, there will be $4 million available for Ridge Avenue, which is the jurisdictional transfer referred to by Mr. Crum. That sets everything in motion to complete this project. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). PLANNING & DEVELOPMENT: Ordinance 66-0-04 — Amendments to Sherman Plaza Approved Planned Development — Consideration of proposed Ordinance 66-0-04, which authorizes modifications to the Approved Planned Development between Chicago Ave., Davis St., and Sherman and Benson avenues. Alderman Kent asked Council to turn to page 5 of the ordinance (1). Delete 281.33 feet and insert 281.83 feet. He noted the third and fourth floor retail has been removed and will now house additional condominium units. He asked that this be marked introduced. Alderman Kent moved to Suspend the Rules to adopt Ordinance 66-0-04 at the meeting in which it was introduced. Seconded by Alderman Rainey. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). Alderman Kent moved approval of Ordinance 66-0-04 as amended. Seconded by Alderman Feldman. Alderman Newman said this was discussed in committee and the only changes made in this amendment were the height was reduced by about five feet and the third/fourth floor retail were removed from the project. The reason the third/fourth floor retail was removed was that the lending community would not support it. The concern was how it would be re -used if the proposed athletic club did not work out. That was a marketplace reduction in retail. The amount of ground level and second floor retail has not changed. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). Ordinance 59-0-04 — Zoning Ordinance Text Amendment — Consideration proposed Ordinance 59-0- 04, which approves a recommendation of the Plan Commission to establish minimum standards when planned developments are required. Alderman Kent reported that this item was held in committee. A meeting has been asked for on June 22 to meet with the NU/Citizen Committee. HUMAN SERVICES: Ordinance 64-0-04 — Approval of Proposed Budget for Evanston Township — Consideration of a recommendation that the City Council, acting as Township Trustees, approve the April 1, 2004 to March 31, 2005 Budget for Evanston Township. Alderman Newman reported the Human Services Committee was told the Township would need a cash flow loan and saw no explanation for that. This was an example of where issues were not identified for the trustees. He said trustees should have received a memo from the Township explaining what is going on. The committee agreed to remove $15,000 from the assessor's budget. For the trustees to think about reductions or increasing revenues, they need to know about the cash flow problem. The only place this is mentioned is in the minutes of the Human Services Committee. Mayor Morton asked who the memo was to come from and confirmed an oral request was made. Alderman Newman asked that Human Services Committee meeting minutes be distributed to the entire Council before the June 28 meeting. Mayor Morton reminded them that the City staff is not part of the Township. Alderman Newman explained that the Township June 14, 2004 is in discussion with the City to obtain a loan to get them through the next year and to deal with that and the budget, trustees need that information. Alderman Jean -Baptiste explained that Township Supervisor Vance told them the County may be late sending out tax bills so that revenue could be delayed. It is a cash flow issue but she was not certain it would happen. He supported the call for formal communication from the Township, indicating the anticipated problem and suggested resolution and did not think it would impede the budget. Mr. Crum asked Finance Director Bill Stafford to explain what is happening on the assessor's bill and the problem of cash shortages that the Township may face this fall. Mr. Stafford explained they have received preliminary information that, due to the record number of property tax appeals by the Property Tax Appeals Board, the bills for the second installment of the 2003 tax levy would be late. They believe the earliest due date will be November 1. This means that non -home rule bodies, such as schools and township, would not get half of their money until late November or December 1 and possibly into January. As a courtesy to the taxing bodies, they have talked with them about this and that they will not have the cash flow to survive that. November 1 is an optimistic date at this time according to Cook County. Mayor Morton asked that this be put in writing. Health & Human Services Director Jay Terry said the Township was asked if they have cash reserves and were told they do not have significant reserves. Ms. Vance submitted a balanced budget. Ordinance 64-0-04 was marked introduced. OTHER COMMITTEES: Resolution 35-R-04 — Second Amendment to Public Improvements Construction Agreement — Consideration of proposed Resolution 35-R-04, introduced May 24, 2004, which authorizes the City Manager to execute the Second Amendment to the Public Improvements Construction Agreement with Sherman Plaza Venture, LLC. Alderman Feldman moved approval. Seconded by Alderman Rainey. Alderman Jean -Baptiste said the entire City hopes that this project moves forward with no more delays and they can get on a timetable to get it done. Many don't understand why there is a delay or the main issues. He asked for an explanation of what is going on with Sherman Plaza, what are they looking to do and why should they believe they have a resolution? Assistant City Manager Judith Aiello said the development team would give an overview of changes to the project and Marty Stern, the City's real estate consultant, and Ms. Aiello would give changes to the documents. James Klutznick said they were there to explain revisions to the project and status of various aspects. Partners with him were Tim Anderson, John Terrell, Maury Fisher and legal counsel Steve Friedland. Status items included commercial space, condominium marketing, financing and revisions to the plan. On commercial space, in addition to retaining deals they have made and negotiated leases so they can tie into financing, they have had strong interest from the commercial sector. Recently he attended the International Shopping Center Convention and they received a number of inquiries and will send out proposals. They are in serious negotiations with a health and fitness club. He said they are strong with commercial space and at the convention it was well understood what was happening in Evanston over the years. They believe what they have will be enhanced as they move forward. Tim Anderson said the condominium market remains strong in Evanston. Revisions to the plan include additional condominium units added to the plan, which is indicative of the strength in the market. Currently they are about 48% pre -sold. News that the garage will come down shortly has increased their traffic significantly and they are pleased with the number of sales. The number of condominium sales easily exceeds their loan condition for pre -sales and are confident they will continue as they get closer to construction and after the garage is torn down. They have a loan commitment for the entire project for the retail and condominiums based on the revised plan before them. The pre -leasing requirement in the loan commitment is being met by the deals in current final negotiations. This does not require the health club, which is under negotiation now. The other aspect of the loan is scheduling the document changes in the entitlements, which is an important step. They expect to close the loan in September and start construction at that time. June 14, 2004 John Terrell reported they had made significant changes, which were driven by the financial markets. Originally they had four levels of commercial space and 220 condominium units that were approved with the parking garage containing 1,585 spaces. They went through the Plan Commission and the P&D Committee to discuss the changes which was driven by the financial community in underwriting a third/fourth floor health club that would not fly. They went back to the drawing board without changing the intent of the plan. It is the same, except they have removed the third/fourth floors and left the ground and second floor retail spaces across Church, Sherman and Davis. Previously the condominium had soft lofts that wrapped around on Davis Street. They have now wrapped those around where the third/fourth floor was eliminated. Thirty-three condominium units were added and commercial retail space reduced from 255,000 square feet to 156,000 square feet. The tower and street front are the same. The garage remains at 1,585 parking spaces. The only difference is the condominium will purchase 303 parking spaces or one bay. Alderman Newman asked Mr. Crum, who was supposed to explain to the public, what is going on with this project -- because nobody knows what is going on with it. He described this as the most misunderstood project and all these businesses in downtown Evanston don't know why there is a hole with water there and a three-year delay. Unless somebody came and read the paperwork, nobody would know that this developer would receive $3.2 million for a three- year delay. He asked how does the public understand what is going on and who is responsible to explain this to somebody out there who thinks this is the biggest boondoggle? Mr. Crum responded that all actions have been done in public and all information made public. Ms. Aiello stated there have been articles in Highlights, local publications and discussions. She spoke at the Rotary Club and other organizations over time. The City has gone to the Plan Commission with every change, the Economic Development Committee and whatever public entities that wanted them to speak about this project. Information has been presented at various forums. Alderman Newman asked if the City has explained why there has been a three-year delay in this project? Ms. Aiello stated they have gone to the Plan Commission every month and the Economic Development Committee and have indicated where they were in the process and the reasons for delay. Based on the calls he receives, Alderman Newman suggested there is a great deal of misinformation about this project. Some people think the City owns the land and some call this Block 37. There has not been a coherent answer of what has been going on with this project. He brought this out because he thought the City was doing something wrong and did not know who was responsible. That evening they were giving the developer $3.2 million, which he supported. He said the developer had done the best he could to bring a quality project to the City but did not know if the public understood this. A question he receives from people is has this developer not had any deadlines to get things done? Assuming the developer has had deadlines and not met them, he asked if the City's option is to pay $14 million for the property the developer has acquired, quickly with City funds, and so would probably have to bond for it. If they decide the delay has been too long and they want the developer out, would the City have to come up with $14-17 million? Marty Stern explained that it was important to recognize, that unlike the Church Street Plaza project, the City did not own all the land. The developer bought the land so the City is in a different position and cannot confiscate the land from the developer, who has some rights. With that, the City and developer entered into a re -development agreement. In the first re -development agreement, they anticipated the possibility of problems and put in a mechanism, if the developer did not succeed, after periods of time, the City would have the right to buy the land from the developer at the developer's cost plus carrying costs. That period has passed, so they are in a position, with 30-days notice, that the City has the right to buy the land from the developer. To do that means coming up with approximately $17 million and, equally important, starting from scratch could take another couple of years through the end of construction before a new developer could be found and a new project debated, discussed, approved, built and financed. That project would have the risks of any development. A Tax Increment Finance district has a limited timeframe so the City is always making a judgment if they are better off getting to the finish line with this group or do they need a new development group. While this has been difficult and frustrating for everyone, he works with these developers daily, and they are sincerely interested in making this project happen. The judgment is this development group is the City's best chance to get this done quickly. Alderman Newman has confidence in the development team and liked having Tim Anderson building the condominiums and the Klutznick group bringing in quality retail. He saw an advantage to having one owner of that amount of retail 10 June 14, 2004 space on one block and was convinced they made adequate progress towards getting good tenants. He said they are at a point where the developer says they are going to cross the finish line and are in a different phase with the Sherman Avenue garage closed. Now all the businesses that used the Sherman Avenue garage, prior to its closing, are being inconvenienced because they have to go several blocks to the Maple Avenue garage. It doesn't work for businesses near Tommy Nevin's Pub, some restaurant patrons and the Chandler Building. This delay has implications and they have to tell the community and developer that they have drawn a line. Council is being told the developer has financing and will be in the ground in September. Ms. Aiello stated, if approved that evening, they will start demolition of the Sherman Avenue garage hopefully within 30 days. The demolition will take 60-75 days, and then construction will begin. Alderman Newman asked that sometime in October they have the development team come and will either see construction or talk about all options and know exactly what has happened. If the project is in the ground and everything is going in September, they don't need the meeting. Downtown businesses need the Council to be on top of this and the reason they are doing the $3.2 million is because it will push the developer across the finish line and save years in getting the block built. Ms. Aiello said two new amendments were on aldermen's desks that evening and wanted to walk them through the changes. If approved the next edition of Highlights would feature the project. Alderman Feldman recalled some time ago, when they were doing the Church Street Plaza, they ran into a similar situation where there was a great divide in what staff knew and what citizens knew. That was why they hired a public relations person. He viewed such a position to inform citizens about things they should know (this project is one) and to get this information to publications. If ever there was a reason for that office, it is this project and this delay to assuage the situation with knowledge, understanding and reasoning. That is not happening. He suggested they cannot rely on open meetings to make sure that people understand so they need a steady program to bring people along with what the City is doing and make sure this information is well disseminated. Even with that they will get calls from misinformed citizens. As much as he respects Highlights, he did think it quite hacks it and thought the job of a public relations person fits the job he described. While it is good to write about somebody's 30th anniversary with the City and parties, this is the crucial information that citizens need to know. Mr. Crum took exception, noting the City does not have a public relations person on staff but a public information person whose job is to put out honest information about actual things that have happened or are happening, not to put out hopes and dreams. He said the City has been open about this project and the fact is they have been hopeful, but getting financing has been difficult and that is the story they have told. The information after that evening will be positive and the fact that the garage will be demolished is a major step forward and will give the community interest. It is time for a major update of where they have been and where they are going. He agreed with Alderman Newman that if they haven't made it by October, it is time to look at their options. This has been discussed with the developer and they agreed that the $3.2 million is money in the City's pockets. He predicted this project will be good for Evanston and they will do everything they can to move it forward. Alderman Jean Baptiste wanted to get to the substance that the community should have known by the communications sent by the City. He did not think people understand the benefits and tax revenue they will receive and how the $3.2 million will be done. All people see is a static kind of project. Three years ago he suggested Radio Evanston to get information out repetitively to inform people with discussions and people could ask questions. He said the community does not get adequate information from Highlights and other sources. Alderman Newman said if this would have remained on the Consent Agenda there would have been no discussion of this project and the developer would get $3.2 million. The $3.2 million comes from the tax increment and does not come out of any current fund or property tax. It comes from future taxes that will be collected from the project. Mr. Stern explained that the $3.2 million is a re -negotiation of what the City would pay for in the past and has paid in other projects but in this case they hoped to negotiate a better deal. In the original development agreement, the City normally paid for re -location expenses when businesses have been moved and hoped to negotiate a better deal and not pay re -location expenses. Now they came back because the developer had difficulty so they would pay about $2.5 million in re -location expenses. The second change they tried to negotiate was how demolition costs would be split. The garage 11 June 14, 2004 and other properties have to be torn down. Originally that cost was based on square footage of land. They could have shared it on the basis of square footage of buildings. They have gone to a second formula where they are sharing the demolition of the garage on square footage of buildings to be torn down. They tried to negotiate a good deal for the City and with the passage of time the developer needed help so they went back to formulas used by the City in the past. The additional $3.25 million is the City's obligation to pay either through the garage structure or through initial payments of land reimbursements to the developer in the beginning. It comes from bonding. Alderman Newman asked how does the developer get the $3.2 million and how does the City pay for it? Mr. Stern said all money comes out of the tax increment including repayment of the bonds. This will be additional bond cost. The tax increment is $48.8 million over the life of the project which is well above the cost of the bonds and will put considerable surplus money into the treasury without any increase in taxes. Alderman Newman said if the City started all over, it would lose three years and that would exceed the $3.2 million. Alderman Feldman confirmed that Mayor Morton had read about this in the Economic Development Committee minutes. She noted those minutes are a public record and available. Alderman Feldman disagreed with Mr. Crum on the difference between public relations and public information. He said public information is exactly what should be out there, not public relations nor a scheme to make the City look good, but the intent to educate citizens about what the increment means to the school districts, the difficulty the developers have had and why the City has waited for this project to come about. He said this project was worth waiting for and things don't always happen the way they plan or like. They have to stay the course. He said there are facts/figures that could have been given that showed things were happening and that they were not ignoring the hole in the ground, nor pouring funds into the developer's pockets. He discovered when people lose faith in local government, everything starts to look bad. They have an employee whom he thought was hired was to do that. Alderman Newman said the Economic Development Committee minutes would not thoroughly explain why this project has been delayed as long as it has. Most people do not read City Council minutes but have an opinion. Business people downtown, who have lost parking at the Sherman garage, don't know what is going on. If the approach is that Highlights will solve this problem, he charged that Highlights is a failure. He asked if businesses downtown get Highlights and suggested that most people don't read it. He suggested that something was needed from the City Manager's office in community newspapers. When they hired the public information person, Council specifically talked about problems the City had with communicating economic development projects to the community. They discussed what went wrong with the Church Street Plaza project. That was why that person was hired, not to come out with announcements about retirements and new Health Department policy. Alderman Newman recalled that the City had protection in other development agreements that if the developer did not meet certain timelines, they could have done something through the agreement and probably would have involved litigation. Merely saying they have these amended agreements with language to protect the City did not cut it for him. He said the developer has to come back in October and if they are in the ground there is nothing to talk about. If they are not in the ground, they have to have a serious discussion about their options. When this project started four years ago, he sat with the representative of Kane/McKenna, staff, and Marty Stern and explained how this project could be financed. He gave them the concept of the TIF district and has understood as much as anybody about this project but has not understood why the public has not understood what has happened with this project. It is not a Block 37. This project is good people trying to get things done that experienced trouble with the financial community and a problem with the club. He said they must have a representation from the developer that they are crossing the fmish line and hold them to it. He brought this up because there has been more discussion about this project that evening than in the last three years. Alderman Newman's motion was that everybody meet by the first Council meeting in October and, if this project is not in the ground, that they explore all options about what to do -- progress to date, whether the developer got the health club or not and report to the public. Seconded by Alderman Jean -Baptiste. Motion carried. No nays. Mr. Stern related that when the developer could not obtain financing, they requested twice the $3.2 million. That was negotiated down to $3.25 million and already had gotten the desired result with a financial commitment. As important as this project is to the City, they have continued to negotiate not to spend more of the City's money than is needed. Changes to the 3rd amendment. Mr. Stern explained that most changes have to do with changing dates to conform to 12 June 14, 2004 the situation and the square footages. The 3rd amendment provides that the changes have to go back before the Plan Commission, which protects the City. It has increased the amount of demolition costs they will pay by changing the formula from per building square foot to square foot of land. They have put in two protections for the City. If the developer does not start by September 15, the developer will pave the existing lot so it will be available throughout the 2004 holiday season. The paving has to be done by October 15. Between October 15 and January 1, the developer cannot start the project so parking is available through the holiday season. If the developer can start September 15, the garage can be built in 14-months and available for the next holiday season. The City will not be without a garage or substitute parking for more than one holiday season. The second protection is when the City has a right to buy land back from the developer at the cost of land plus carrying charges. As of the signing of these agreements, the additional carrying costs stop. In addition, the agreement specifies the budget for the garage will be about $24,900 per parking space. The spaces the developer buys will be sold for a little less than $22,000 and the reason is the developer has to put in an additional $3,000 per space to get the garage operational. Additionally, the developer is paying some costs in the garage that are not useful to him. They believe there is a good sharing of costs in that agreement. Some of the problems of the developer were that there were different proportions of ownership, which has caused problems. The developer has agreed to put ownership of the property under one entity where all owners have the same interest in the condominium and retail. This was a major factor in helping the developer get financing and makes things easier as they go forward. The agreement also specifies that the City will pay relocation costs, which has been done before. The relocation costs and demolition costs of the garage together cannot exceed $3.2 million. 2°d amendment to the public construction agreement. Mr. Stern explained that this amendment brings everything up to current conditions. They specify that there is some work to be done on the maximum price for the garage. They are negotiating with O'Neill regarding that cost. It specifies that the developer, in essence, is carrying the City because the developer has paid the cost of the design of the garage. The original redevelopment agreement states that reimbursement does not have to be made until the project starts. He has held costs of more than $1.5 million on behalf of the City. This specifies that, when the developer starts the garage, the City will pay. The last major provision is dealing with the fact that the garage may come down early and how does that affect agreements. They are saying this isn't the emergency condition that was contemplated. If the garage comes down, the developer starts immediately and, hopefully, it will come down in a way that the developer can continue on and build the garage without any gap in time. All changes are intended to get the project done as quickly as possible and put in place for the lender conditions they need and the City's commitment so they can complete their financing, get their bids and start construction. Alderman Newman asked Mr. Crum if there is any study being done on how many parking spaces are needed between the Maple Avenue and Sherman Avenue garages considering changes in this project. Ms. Aiello stated that KOLA is doing a parking study of downtown. There are no plans to eliminate any parking at this time but discussions continue. The City believes all the parking spaces will be used. Alderman Newman pointed out that one-third of the Maple Avenue garage has been empty with the Sherman open. Now Maple is being used for both garages. He said it would not be responsible to proceed with 2,700 spaces. Ms. Aiello said there is a high vacancy rate in the Research Park, so Maple Avenue can accommodate the extra parking. As those buildings fill up again, everyone won't be able to park in the Maple Avenue garage. She said that KOLA could do that and it should only take a week or so. Alderman Newman stated that KOLA needs to look at the 2,700 parking spaces and if only 1,100 spaces are needed, they should build that size. Alderman Feldman asked where the new health club would be if the third and fourth floors are eliminated? Mr. Klutznick said it would be mainly on the second floor with a ground floor entrance on Sherman Avenue. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). 61-0-04 — Third Amendment to Redevelopment Agreement — Consideration of proposed Ordinance 61-0-04, introduced May 24, 2004, which authorizes the City Manager to execute the Third Amendment to the Redevelopment Agreement with Sherman Plaza Venture, LLC. Alderman Feldman moved approval. Seconded by Alderman Rainey. Roll call. Voting aye — Jean -Baptiste, Kent, Moran, Tisdahl, Rainey, Feldman, Newman. Voting nay — none. Motion carried (7-0). 13 June 14, 2004 CALL OF THE WARDS: 2nd Ward. Alderman Jean -Baptiste appreciated the opportunity to work with Mr. Crum. He thought senior staff benefited from his tenure because they were able to think and act with confidence --they could make decisions and mistakes could be overcome, which allowed them to grow as leaders. He appreciated Mr. Crum's contribution to staff and to the City. A project he proposed several years ago was the Evanston Radio concept. For a long time he felt the expertise of City staff was not communicated to the community when they run into different issues, such as problems with the Sherman Plaza project or the crisis last winter with a water main break. If they had a tool to communicate continuously, without having to watch cable TV, it would be better for citizens. He asked City Manager Crum for a report on what is going on with that and whether the City could use this tool. 3'd Ward. No report. 41h Ward. No report. SthWard. Alderman Kent wished Mr. Crum good luck in the next chapter of his life and enjoyed working with him. At the last meeting there was discussion about the Strange project parking. He thanked Council for holding it so they could have a community meeting. They met with the Leinenwebers', Alderman Jean -Baptiste, Senior Traffic Engineer Rajeev Dahal, Economic Development Planner Morris Robinson and residents. He asked to be put on the agenda for the July 14d` M/W/EBE Committee meeting. He wants to speak about possible steps and ideas to deal with creating employment opportunities for people here with criminal records. 61h Ward. No report. 7th Ward. Alderman Tisdahl echoed what all said about Roger Crum, who has been a tremendous help to her in her first year as alderman. Mr. Crum has a great reputation as a good city manager in the community. That reputation has grown tremendously with her as she has worked with him due to his thoughtfulness and patience. She found him wise and helpful and thanked him. 8th Ward. Alderman Rainey stated earlier that everybody in the 8d' Ward appreciated Mr. Crum's help and the support he has shown to South Evanston. She congratulated Judy Aiello on becoming the Interim City Manager. 9th Ward. No report. V Ward. Alderman Newman congratulated Mr. Crum on appointing Alan Berkowsky as the new Fire Chief. He said in the past seven years, it was much different than with the prior manager with regard to honesty coming from his office. The former city manager eliminated City services without telling Council members, such as not trimming trees and did some short-term things that damaged the City. Mr. Crum was honest about the budget problems and identified the issues, which he appreciated. He wished him luck in his retirement. He said with changes to the Sherman Plaza project, there is no more important issue to the City than the number of spaces that are put in the downtown garages. He did not think the issue was identified properly for aldermen and most don't understand it. A mistake on the number of parking spaces could cost the school districts $7 or $8 million, so he hoped a parking study gets done. He heard from Mr. Jennings that the cost connected with the mast -arm signals for Ridge Avenue was $120,000 and they may end up with $4 million grant to take over Ridge Avenue because they went in a different direction. He spoke about proposed appointments for the Preservation Commission; did not want to single out any individual because this was not about them. He said people go before the Preservation Commission and receive architectural advice. They learn how they can do things to make their properties fit in a historical district and maintain the look, work with contractors and alternatives they can pursue. None of the three people suggested to serve on this commission have any 14 June 14, 2004 experience with architecture. There are two attorneys and a community volunteer. He went to staff to find out how many architects are on the commission and found there are a few but not enough. He suggested that this commission needed people who are moderate on preservation, understand architectural issues and can read drawings so they can advise the public. If this commission becomes a political group, it will fail. When it was created, the purpose of the commission was to give architectural advice. One third of the commission is on the table. These three people are well intended, may have strong feelings about preservation and may attend meetings but they don't have three who can help people with the renovation of their homes, which costs hundreds of thousands sometimes. One of the great services of the commission is that architects serve. He asked whether they needed to require that a certain number of people on the commission have architectural experience. He said that they rubber-stamp most of these appointments, this would be a step back for the commission and create long-term problems for the City Council and property owners. People on this commission need sufficient experience. In recent years there has been a greater disconnect between commissions and the policies of the City Council. This is an example of going in the wrong direction. Mayor Morton asked Alderman Newman if he had any names to submit? Alderman Newman responded that he has the name of an architect who wanted to get on a major commission and was sent to a less important commission. He has 30- years experience and looked to donate his time. Alderman Newman said he tries to be direct and all understand in the 1" Ward if he suggests a name, it goes to the bottom of the pile. Mayor Morton stated that was not true. Alderman Newman said that he suggested two people to serve on the NU/City Committee, which will meet June 22, and the Mayor went out of her way to find others to counteract those names. In this case, he believed those appointments would hurt people in the 1't Ward, hurt preservation and the ability of people to use the commission. Unless somebody puts this issue out there, it will never be answered. If an issue is raised, he is told there is no civility. He would rather have three qualified architects or at least one architect out of the three. He has the name of somebody who would serve the next day if he thought he could get him in. He once suggested the most qualified person to sit on the Parking Committee and that person was sent away. He said these positions should have remained open until they had people with architectural experience and, if Council appoints them, they are adding to the problem. Mayor Morton said anyone who wants to serve on a board, committee or commission may apply. No one is appointed because an alderman calls and says to appoint them. For some boards, the qualifications are stipulated in the City Code. One reason it is so difficult to find people to serve is because some with the qualifications never apply. Some boards and commissions don't have enough people to have a quorum. Anyone who submits an application and the Mayor wants to submit that name, that individual is phoned to make sure that person wants to serve. In the event somebody has wonderful qualifications but there is no vacancy on the board they would like, that person indicates other boards and commission they might like to serve on and are called. No person is ever suggested without consultation with the Mayor. She found it distressing that the names suggested were not approved by an alderman. In order not to have any embarrassment to persons who wish to volunteer on boards and commission, if there is a problem, she asked to be contacted. Now that these names have been made public, if there is dissension on anyone's name, it will have to happen on the Council floor. There being no further business to come before Council, Mayor Morton asked for a motion to adjourn. The Council so moved and the meeting was adjourned at 11:40 p.m. Mary P. Morris, City Clerk A videotape recording of this meeting has been made Dart of the permanent record and is available in the Citv Clerk's office.