HomeMy WebLinkAboutORDINANCES-2012-055-O-12•
5/16/2012
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AN ORDINANCE
Approving a Tax Increment Redevelopment Plan
and Redevelopment Project for the
Dempster/Dodge Redevelopment Project Area
WHEREAS, it is desirable and in the best interest of the citizens of the
City of Evanston, Cook County, Illinois (the "City"), for the City to implement tax
increment allocation financing pursuant to the Tax Increment Allocation Redevelopment
Act, Division 74.4 of Article 11 of the Illinois Municipal Code, as amended (the "Act"), for
a proposed redevelopment and redevelopment project (the "Plan and Project") within
the municipal boundaries of the City within a proposed redevelopment project area (the
"Area") described in Section 1(a) of this Ordinance, which Area constitutes in the
• aggregate more than one and one-half acres; and
WHEREAS, pursuant to Section 11-74.4-5 of the Act, the Mayor, and City
Council of the City (the "Corporate Authorities") called a public hearing relative to the
Plan and Project and the designation of the Area as a redevelopment project area under
the Act for May 14, 2012; and
WHEREAS, due notice with respect to such hearing was given pursuant
to Section 11-74.4-5 of the Act, said notice being given to taxing districts and to the
Department of Commerce and Economic Opportunity of the State of Illinois by certified
mail on March 27, 2012, by publication on April 19, 2012, and April 26, 2012, and by
certified mail to taxpayers within the Area on April 23, 2012; and
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WHEREAS, the City has heretofore convened a joint review board as •
required by and in all respects in compliance with the provisions of the Act; and
WHEREAS, the Corporate Authorities have reviewed the information
concerning such factors presented at the public hearing and have reviewed other
studies and are generally informed of the conditions in the proposed Area that could
cause the Area to be a "blighted area" as defined in the Act; and
WHEREAS, the Corporate Authorities have reviewed the conditions
pertaining to lack of private investment in the proposed Area to determine whether
private development would take place in the proposed Area as a whole without the
adoption of the proposed Plan; and
WHEREAS, the Corporate Authorities have reviewed the conditions
pertaining to real property in the proposed Area to determine whether contiguous
parcels of real property and improvements thereon in the proposed Area would be •
substantially benefited by the proposed Project improvements; and
WHEREAS, the Corporate Authorities have reviewed the proposed Plan
and Project and also the existing comprehensive plan for development of the City as a
whole to determine whether the proposed Plan and Project conform to the
comprehensive plan of the City,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT:
findings:
SECTION 1: The Corporate Authorities hereby make the following
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• a. The Area is legally described in Exhibit A attached hereto and incorporated
herein as if set out in full by this reference. The general street location for the Area is
described in Exhibit B attached hereto and incorporated herein as if set out in full by this
reference. The map of the Area is depicted on Exhibit C attached hereto and
incorporated herein as if set out in full by this reference.
b. There exist conditions that cause the Area to be subject to designation as a
redevelopment project area under the Act and to be classified as a conservation area as
defined in Section 11-74.4-3(b) of the Act.
C. The proposed Area on the whole has not been subject to growth and
development through investment by private enterprise and would not be reasonably
anticipated to be developed without the adoption of the Plan.
d. The Plan and Project conform to the comprehensive plan for the development of
• the City as a whole, as reflected in the City's zoning map.
e. As set forth in the Plan it is anticipated that all obligations incurred to finance
redevelopment project costs, if any, as defined in the Plan shall be retired within twenty-
three (23) years after the Area is designated.
f. The parcels of real property in the proposed Area are contiguous, and only those
contiguous parcels of real property and improvements thereon that will be substantially
benefited by the proposed Project improvements are included in the proposed Area.
SECTION 2: The Plan and Project, which were the subject matter of the
public hearing held on May 14, 2012, are hereby adopted and approved. A copy of the
Plan and Project is set forth in Exhibit D attached hereto and incorporated herein as if
set out in full by this reference.
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SECTION 3: If any section, paragraph, or provision of this Ordinance shall .
be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of
such section, paragraph, or provision shall not affect any of the remaining provisions of
this Ordinance.
SECTION 4: All ordinances, resolutions, motions, or orders in conflict
herewith shall be, and the same hereby are, repealed to the extent of such conflict, and
this Ordinance shall be in full force and effect immediately upon its passage by the
Corporate Authorities and approval as provided by law.
SECTION 5: The findings and recitals contained herein are declared to
be prima facie evidence of the law of the City and shall be received in evidence as
provided by the Illinois Compiled Statutes and the courts of the State of Illinois.
Ayes:
Nays: •
Introduced: --M a-tt Dq , 2012 Approved:
Adopted: LIVJ— 2012 2012
iEli eth B. Tisdahl, Mayor
Attest:
R6dney Grene, City Clerk
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Approved as to form:
W. Grant Farrar, Corporation Counsel
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EXHIBIT A
Legal Description of Redevelopment Project Area
THAT PART OF THE NORTH HALF OF SECTION 24, TOWNSHIP 41 NORTH, RANGE 13
EAST OF THE THIRD PRINCIPAL MERIDIAN IN COOK COUNTY, ILLINOIS, DESCRIBED AS
FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF LOT 1 IN BANBURY THIRD
CONSOLIDATION, BEING A PLAT IN THAT PART OF THE NORTHWEST QUARTER OF
SAID SECTION 24, ACCORDING TO THE PLAT THEREOF RECORDED MARCH 27, 1987
AS DOCUMENT NO. 87162463; THENCE SOUTHWESTERLY, WESTERLY,
SOUTHWESTERLY, SOUTHEASTERLY AND SOUTHWESTERLY ALONG THE
NORTHWESTERLY LINE OF SAID LOT 1 TO A POINT THAT IS 241.64 FEET
NORTHWESTERLY OF THE MOST SOUTHWESTERLY CORNER OF SAID LOT 1 AS
MEASURED ALONG SAID NORTHWESTERLY LINE; THENCE SOUTHEASTERLY AT A
RIGHT ANGLE TO SAID NORTHWESTERLY LINE 5.00 FEET; THENCE SOUTHWESTERLY
ALONG A LINE 5.00 FEET SOUTHEASTERLY OF AND PARALLEL TO SAID
NORTHWESTERLY LINE TO A POINT ON THE NORTH RIGHT-OF-WAY LINE OF
GREENLEAF STREET; THENCE EASTERLY ALONG SAID NORTH RIGHT-OF-WAY LINE
• OF GREENLEAF STREET TO THE SOUTHWEST CORNER OF LOT 1 IN ARENS
CONTROLS, INC. CONSOLIDATION, BEING A PART OF THE NORTHWEST QUARTER OF
SAID SECTION 24, ACCORDING TO THE PLAT THEREOF RECORDED MAY 20, 1992 AS
DOCUMENT NO. 92349794; THENCE NORTHEASTERLY ALONG THE WESTERLY LINE OF
SAID LOT 1 IN ARENS CONTROLS, INC. CONSOLIDATION TO THE NORTHWEST
CORNER OF SAID LOT 1; THENCE EASTERLY ALONG THE NORTH LINE OF SAID LOT 1
TO A POINT OF CURVE; THENCE SOUTHEASTERLY ALONG SAID CURVE HAVING A
RADIUS OF 40.00 FEET, AN ARC LENGTH OF 64.45 FEET TO A POINT OF TANGENCY ON
THE EAST LINE OF SAID LOT 1; THENCE SOUTHERLY ALONG SAID EAST LINE TO A
CORNER POINT FOR LOT 1 IN SAID BANBURY THIRD CONSOLIDATION; THENCE
EASTERLY ALONG THE SOUTH LINE OF SAID LOT 1 IN BANBURY THIRD
CONSOLIDATION TO A POINT ON THE WEST RIGHT-OF-WAY LINE OF BROWN AVENUE;
THENCE NORTHERLY ALONG SAID WEST RIGHT-OF-WAY LINE OF BROWN AVENUE TO
A POINT ON THE SOUTH LINE OF SAID LOT 1 IN BANBURY THIRD CONSOLIDATION;
THENCE EASTERLY ALONG SAID SOUTH LINE OF LOT 1 AND THE EASTERLY
EXTENSION THEREOF TO THE EAST RIGHT-OF-WAY LINE OF DODGE AVENUE;
THENCE NORTHERLY ALONG SAID EAST RIGHT-OF-WAY LINE TO THE NORTHWEST
CORNER OF LOT 1 IN KEAT'S RESUBDIVISION, BEING A SUBDIVISION IN THE
NORTHEAST QUARTER OF SAID SECTION 24, ACCORDING TO THE PLAT THEREOF
RECORDED SEPTEMBER 28, 1989 AS DOCUMENT NO. 89458950; THENCE WESTERLY
ALONG THE WESTERLY EXTENSION OF THE NORTH LINE OF SAID LOT 1 TO A POINT
OF INTERSECTION WITH THE WEST RIGHT-OF-WAY LINE OF SAID DODGE AVENUE;
THENCE NORTHERLY ALONG SAID WEST RIGHT-OF-WAY LINE TO A POINT OF
INTERSECTION WITH THE SOUTH RIGHT-OF-WAY LINE OF DEMPSTER STREET;
• THENCE WESTERLY, NORTHERLY AND WESTERLY ALONG SAID SOUTH RIGHT-OFWAY
LINE TO THE POINT OF BEGINNING.
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EXHIBIT B
GENERAL STREET LOCATION
The proposed Redevelopment Project Area consists primarily of retail/commercial
parcels southwest of the intersection of Dempster Street and Dodge Avenue.
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EXHIBIT C
MAP OF REDEVELOPMENT PROJECT AREA
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DEMPSTER /DODGE TIF I `"" "J 12 PRO NO.
CHRI8TOPHER B. BURKE I o�w KJR Izolo,
ENGINEERING. LTD. IN B 95T5 west Nlppins Rood CITY OF EVANSTON, IlLINOIS I cwco. eRu I $NEET 1 OF 1
jSulte 600. Rosemont, IlRnols 60018 PREPARED FOR SCALE. DRAWING No.
t84T1 823-0500 12•,So'
CITY OF EVANSTON o"� TIFtzO,olB
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EXHIBIT D
REDEVELOPMENT PLAN AND PROJECT
D-1
DRAFT
As of April 10, 2012
CITY OF EVANSTON
TIF REDEVELOPMENT PLAN
DEMPSTER/DODGE TIF DISTRICT
•
"Redevelopment plan" means the comprehensive program of the
municipality for development or redevelopment intended by the
payment of redevelopment project costs to reduce or eliminate
those conditions the existence of which qualified the
redevelopment project area as a "blighted area" or "conservation
area" or combination thereof or "industrial park conservation
area," and thereby to enhance the tax bases of the taxing districts
which extend into the redevelopment project area as set forth in •
the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-
74.4-3, et. seq.• as amended.
Prepared by the City of Evanston, Illinois
in conjunction with
Kane, McKenna and Associates, Inc.
April 2012
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• TABLE OF CONTENTS
I. INTRODUCTION...................................................................................1
II. RPA LEGAL DESCRIPTION.................................................................. 6
III. RPA GOALS AND OBJECTIVES ............................................................ 7
IV. EVIDENCE OF THE LACK OF DEVELOPMENT AND GROWTH;
FISCAL IMPACT ON TAXIING DISTRICTS...........................................11
➢ Evidence of the Lack of Development / Growth Within the RPA ..................... 11
➢ Assessment of Fiscal Impact on Affected Taxing Districts ................................ ii
V. TIF QUALIFICATION FACTORS PRESENT IN THE RPA.....................12
VI. REDEVELOPMENT PROJECT.............................................................13
➢ Redevelopment Plan and Project Objectives.....................................................13
➢ Redevelopment Activities..................................................................................14
➢ General Land Use Plan ......................................................................................15
➢ Additional Design and Control Standards.........................................................16
➢ Eligible Redevelopment Project Costs...............................................................16
➢ Projected Redevelopment Project Costs........................................................... 20
➢ Sources of Funds to Pay Redevelopment Project Costs .................................... 22
• ➢ Nature and Term of Obligations to be Issued ................................................... 22
➢ Most Recent Equalized Assessed Valuation (EAV) for the RPA....................... 23
➢ Anticipated Equalized Assessed Valuation (EAV) for the RPA ........................ 23
VII. -DESCRIPTION & SCHEDULING OF REDEVELOPMENT PROJECT.... 24
➢ Redevelopment Project..................................................................................... 24
➢ Commitment to Fair Employment Practices / Affirmative Action....................25
➢ Completion of Redevelopment Project and Retirement of Obligations to
Finance Redevelopment Costs.......................................................................... 26
VIII. PROVISIONS FOR AMENDING THE TIF PLAN AND PROJECT ..........27
➢ APPENDIX 1: Legal Description of Project Area
➢ APPENDIX 2: Boundary Map of Proposed RPA
➢ APPENDIX 3: Existing Land Use Map of RPA
➢ APPENDIX 4: Future Land Use Map of RPA
➢ APPENDIX 5: TIF Qualification Report
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I. INTRODUCTION •
The City of Evanston (the "City") is an established community located in northern
Cook County, Illinois along the shores of Lake Michigan. In this report, the City
proposes a Tax Increment Financing Redevelopment Plan (the "Redevelopment
Plan" or "Plan") to assist a strategically important area in overcoming a number
of redevelopment barriers. The City is pursuing the TIF designation as part of its
overall strategy to promote the revitalization and increased occupancy of a key
retail property located at the southwest corner of Dempster and Dodge Avenue.,
Kane, McKenna and Associates, Inc. ("KMA") has been retained by the City of
Evanston to conduct an analysis of the potential qualification and designation of
the area as a Tax Increment Financing ("TIF") District, and to assist the City in
drafting this TIF Redevelopment Plan.
The City has two fundamental goals in pursuing the potential TIF District. The
first is to promote redevelopment of the area to improve occupancy levels at one
of the largest retail establishments in Evanston (Evanston Plaza), in coordination
with a new owner that may pursue investments for the site. The second goal is to
further the City's overall economic development program and thereby diversify
its tax base. As noted in various City reports (including the annual budget, 2006
Strategic Plan and 2000 Comprehensive General Plan), a general City priority is
to implement a range of economic development efforts. For example, in the
City's most recently adopted budget, the City has "targeted business district •
revitalization efforts throughout the City, including the redevelopment potential
of Evanston Plaza."
TIF Plan Requirements. The City is preparing this Plan as required by the
Tax Increment Allocation Redevelopment Act, (the "Act") 65 ILCS 5/11-74.4-3,
et. sec ., as amended. To establish a TIF district (also known as a Redevelopment
Project Area ("RPA" )), Illinois municipalities must adopt several documents,
including a TIF Redevelopment Plan and Eligibility Report.
The Act enables Illinois municipalities to establish TIF districts, either to
eliminate the presence of blight or to prevent its onset. The Act finds that
municipal TIF authority serves a public interest in order to: "promote and
protect the health, safety, morals, and welfare of the public, that blighted
conditions need to be eradicated and conservation measures instituted, and that
redevelopment of such areas be undertaken; that to remove and alleviate adverse
conditions it is necessary to encourage private investment and restore and
enhance the tax base of the taxing districts in such areas by the development or
redevelopment of project areas" (65 ILCS 5/11-74.4-2(b))•
By definition, a TIF "Redevelopment Plan" means the comprehensive program of
the municipality for development or redevelopment intended by the payment of
redevelopment project costs to reduce or eliminate those conditions the existence is
which qualify the redevelopment project area as a "blighted area,"
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• "conservation area" (or combination thereof), or "industrial park conservation
area," and thereby to enhance the tax bases of the taxing districts which extend
into the redevelopment project area as set forth in the Tax Increment Allocation
Redevelopment Act.
Community Background. The City of Evanston is one of the oldest
communities in the State of Illinois, incorporated in 1863 during the Civil War.
After a long period of growth during the late 19th and early loth century,
population stabilized around its current level in the post-war era. As of the 2010
Census, City population is 74,486.
The City has a number of important assets that make it desirable location for
residents and that fosters a competitive environment for businesses. First, the
City has one of the most highly educated workforces in Illinois. 66% of the adult
population (over age 25) has obtained either a bachelor's degree or an advanced
degree (master's degree or other advanced degree). Secondly, the City possesses
a variety of transportation assets, including proximity to the Interstate Highway
System, state highways, a Metra train line, and a CTA ("El") train line.
Additionally, biking as a commuter option is also expanding, as the CTA and the
RTA increasingly accommodate bicyclists who make connections to downtown
Chicago and suburban destinations.
Third, the City has a long tradition of professional city management, which
ensures efficient, effective, and responsive service delivery to residents and
businesses. Under the current management team, the City has identified
economic development as a priority for service delivery and may expand efforts
in this area.
The Proposed TIF District. The proposed RPA consists of one tax parcel and
is situated at the southwest corner of Dempster and Dodge Avenue. The primary
use for the site is the Dempster Plaza, which is an older retail shopping center
comprising three buildings: a large traditional grocer (as well as connected stores
that are vacant); a series of in -line retail spaces mostly occupied by smaller
retailers; and a group of stores in an outlot building.
The area faces a number of long-standing redevelopment challenges: the
structures in the area are underutilized, the site may require infrastructure
improvements, and end users face the general risk of obsolescence. Regarding
obsolescence, the anchor tenant is a traditional grocer (Dominick's), which
operates in a highly competitive retail sector undergoing transformation as
traditional grocers face challenges from discount grocers, independent grocers,
"high -end" grocers and even atypical competitors such as national drugstores
chains (now expanding their selection of food items to include perishable
groceries). Remaining retail spaces may require reconfiguration and upgrades in
order to be competitive in the marketplace, and to assist in overcoming
obsolescence. Overall, the proposed TIF District generally suffers from a variety
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of economic development impediments as identified in the TIF Act and as •
documented in the TIF Qualification Report (Section V).
Despite the challenges, the proposed Dempster/Dodge TIF has a number of
important advantages that can be potentially leveraged via TIF establishment:
• An anchor tenant within the proposed TIF District;
• A TIF District at the junction of two arterial roads, which generates the
vehicular traffic necessary to support commercial and retail uses; and
• New ownership that intends to coordinate with the City on making
improvements to the site.
Additionally, the area as mentioned would benefit from professional municipal
management and the City's increasing priority on economic development.
On balance, the Dempster/Dodge TIF area has the potential for redevelopment of
certain underutilized properties. As such, the City has identified a number of
objectives for redevelopment, with tax increment financing acting as a tool to
achieve them. Please refer to Section III of this report for additional information
about the goals, objectives and activities to support redevelopment.
The RPA would be suitable for new development if there is coordination of uses
and redevelopment activity by the City. Through this TIF Redevelopment Plan
and as part of its comprehensive economic development planning, the City
intends to attract and encourage commercial and retail/mixed uses to locate,
upgrade, expand and/or modernize their facilities within Evanston. Through the
establishment of the RPA, the City would implement a program to redevelop key
areas within the new TIF District and in so doing, it would stabilize the area,
extend benefits to the community, and assist affected taxing districts over the
long run.
Rationale for Redevelopment Plan. The City recognizes the need for a
strategy to revitalize properties and promote development within the boundaries
of the RPA. The needed private investment would only be possible if a TIF
district is adopted pursuant to the terms of the Act. Incremental property tax
revenue generated by the project will play a decisive role in encouraging private
development. Site conditions and diverse ownership that has discouraged
intensive private investment in the past will be eliminated. Ultimately, the
implementation of the Plan will benefit both the City and surrounding taxing
districts, by virtue of the expected expansion of the tax base.
The City has determined that the area as a whole would not be developed in a
coordinated manner unless the adoption of the TIF Redevelopment Plan occurs.
The City, with the assistance of KMA, has therefore commissioned this Plan to
use tax increment financing in order to address local needs and to meet
redevelopment goals and objectives. 6,
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• The adoption of this Plan makes possible the implementation of a comprehensive
program for the economic redevelopment of the area. By means of public
investment and land assembly, the RPA will become a more viable area that will
attract private investment. The public investment and land assembly will lay the
foundation for the redevelopment of the area with private capital. This in turn
will set the stage for future retail, commercial and mixed use opportunities
surrounding the area.
The designation of the area as an RPA will allow the City to pursue the following
beneficial strategies:
• Providing infrastructure that supports subsequent redevelopment plans
for the RPA;
• Improvements to the site in preparation for redevelopment ("site prep")
and improvements to the structures in order to accommodate new
tenants;
• Entering into redevelopment agreements in order to redevelop property
and/or to induce new development to locate within the RPA;
• Establishing a pattern of land -use activities that will increase efficiency
and economic inter -relationships, especially as such uses complement
• adjacent current and/or future commercial opportunities and City
redevelopment projects within the RPA and/or surrounding area; and
• Enhancing area appearance through improvements to landscape,
streetscape and signage.
Through this Plan, the City will direct the coordination and assembly of the assets
and investments of the private sector and establish a unified, cooperative public -
private redevelopment effort. Several benefits are expected to accrue to the area:
entry of new businesses; new employment opportunities; and physical and
aesthetic improvements. Ultimately, the implementation of the Plan will benefit
(a) the City, (b) the taxing districts serving the RPA, (c) residents and property
owners adjacent to the RPA, and (d) existing and new businesses within the RPA.
City Findings. The City, through legislative actions as required by the Act,
finds:
• That the RPA as a whole has not been subject to growth and development
through investment by private enterprise;
• That in order to promote and protect the health, safety, and welfare of the
public, certain conditions that have adversely affected redevelopment within
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the RPA need to be addressed, and that redevelopment of such areas must be •
undertaken;
• To alleviate the adverse conditions, it is necessary to encourage private
investment and enhance the tax base of the taxing districts in such areas by
the development or redevelopment of certain areas;
• That public/private partnerships are determined to be necessary in order to
achieve development goals;
• That without the development focus and resources provided for under the Act
and as set forth in this Plan, growth and redevelopment would not reasonably
be expected to be achieved;
• That the use of incremental tax revenues derived from the tax rates of various
taxing districts in the RPA for the payment of redevelopment project costs is
of benefit to the taxing districts, because the taxing districts would not derive
the benefits of an increased assessment base without addressing the
coordination of redevelopment; and
• That the TIF Redevelopment Plan conforms to the Evanston Comprehensive
Plan, as detailed in Section III of this report.
Additionally, the City fords that it is useful, desirable, and necessary for the City •
to assemble land into parcels of sufficient size to encourage development
consistent with current standards.
It is further found, and certified by the City, in connection to the statutory
process required for the adoption of this Plan, that (a) the that the RPA does not
contain over seventy-five (75) inhabited residential units and (b) projected
redevelopment of the RPA will not result in the displacement of ten (1o)
inhabited residential units or more. Therefore, this Plan does not include a
Housing Impact Study.
The redevelopment activities that will take place within the RPA will produce
benefits that are reasonably distributed throughout the RPA. Redevelopment of
the RPA area is tenable only if a portion of the improvements and other costs are
funded by TIF.
Pursuant to the Act, the RPA includes only those contiguous parcels of real
property and improvements thereon substantially benefited by the
redevelopment project. Also pursuant to the Act, the area in the aggregate is
more than 11/2 acres. A boundary map of the RPA is included in Appendix 2 of
this Plan.
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• II. RPA LEGAL DESCRIPTION
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•
The Redevelopment Project Area legal description is attached in Appendix i.
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M. RPA GOALS AND OBJECTIVES •
The City has established a number of economic development goals, objectives,
and strategies which would determine the types of activities to be undertaken
within the proposed Dempster/Dodge TIF District. These efforts would conform
to and promote the achievement of land use objectives in the City's
Comprehensive Plan.
Exhibit 1
Relationship of Land Use and Economic Development Plans
As indicated in the exhibit above, the City's primary planning document is the
Comprehensive Plan which describes the overall vision for the City and is the
foundation for City initiatives such as the proposed Dempster/Dodge TIF
District. This overarching planning document determines future land uses and
influences all other City planning efforts such as the TIF planning process.
General Economic Development Goals of the City. Establishment of the
proposed Dempster/Dodge TIF supports the following City-wide objectives •
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•
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established in the Comprehensive Plan that would directly determine future
economic development activities and influence the parameters of future
redevelopment projects. Exhibit 2 identifies certain Comprehensive Plan goals
that pertain to the proposed Dempster/Dodge TIF.
Exhibit 2
redevelopment of business,
commercial, and industrial areas
Retain and attract businesses in
order to strengthen Evanston's
economic base
Recognize and support the strong
role neighborhood business
districts play in Evanston's
economy and its identity
Support and encourage efforts at
employment assistance and
linkages
expanding businesses in existing
commercial and mixed -use locations that
would benefit from redevelopment,
including the Evanston Plaza
• Support a cooperative marketing effort
[with external entities] to attract new
businesses to vacant storefronts and
commercial spaces
• Protect and enhance the traditional
character of neighborhood business
districts; carefully examine proposed
design changes using the Zoning and Sign
Ordinances, and site plan and appearance
review
• Develop strategies where feasible for
addressing parking and circulation
concerns of merchants and surrounding
residents
• Promote and supportjob readiness and
training programs as well as small business
start-up assistance programs
Invest in annual maintenance of Complete the ongoing sewer improvement
Evanston's water and sewer strategy, stressing preventive maintenance
systems as an ongoing policy for the future
Source: City of Evanston Comprehensive General Plan, 2000
TIF designation would allow the City to pursue the following objectives within the
RPA:
o Reduce or eliminate blight or other negative factors present within the area;
o Coordinate redevelopment activities within the RPA in order to provide a
positive marketplace signal to private investors;
o Accomplish redevelopment over a reasonable time period;
o Create an attractive overall appearance for the area; and
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o Further the goals and objectives of the Comprehensive Plan.
Ultimately, the implementation of the Redevelopment Plan would contribute to
the economic development of the area and provide new employment
opportunities for City residents.
The RPA-specific objectives would be fulfilled by the execution of certain
strategies, including but not limited to the following:
o Facilitating the preparation of improved and vacant sites, by assisting any
private developer(s) to assemble suitable sites for modern development
needs;
o Coordinating site preparation and rehabilitation of structures to provide
additional land for new development, as appropriate;
o Fostering the replacement, repair, and/or improvement of infrastructure,
including (as needed) sidewalks, streets, curbs, gutters and underground
water and sanitary systems to facilitate the construction of new development
within the RPA;
o Facilitating the provision of adequate on- and off-street parking within the
RPA; and/or
o Coordinating development in tandem with any transportation system •
upgrades to make the area more accessible.
To track success in meeting RPA-specific objectives and strategies, the City may
wish to consider establishing certain performance measures that would help the
City monitor the projects to be undertaken within the proposed RPA. The
Government Finance Officers Association recommends that municipalities
adopting TIF districts evaluate actual against projected performance (e.g., using
metrics such as job creation or tax revenue generation). Exhibit 3 below
identifies the types of performance measures the City may consider to track the
performance of projects within the RPA. (Section VI of this report discusses the
types of projects that the City may pursue within the RPA, with the caveat that
specific projects at this point are only conceptual in nature.)
Exhibit 3
of TIF Performance Measures
Input • Public investment W
• Private investment W
• Acres of land assembled for TIF •
• Bond proceeds
Page 9
•
Output/Workload •
Jobs created or retained
•
Number of streetscaping fixtures installed
•
Commercial space created (square feet)
Efficiency .
Leverage ratio (private investment / public investment)
•
Cost per square foot of commercial space
•
Public subsidies per iob created/retained
Effectiveness .
% change in assessed value (AV) in TIF versus AV in rest
of City
•
% change in AV within TIF before and after TIF creation
•
Municipal sales taxes before and after TIF creation
Risk •
Debt coverage ratio
•
Credit ratings of anchor tenants
•
Tenant diversification (e.g., percent of total TIF EAV
attributable to top io tenants in commercial
development)
Source: An Elected Official's
Guide to Tax Increment Financing,
Government Finance Officers Association, 2oo5.
•
•
Page io
IV. EVIDENCE OF THE LACK OF DEVELOPMENT AND •
GROWTH; FISCAL IMPACT ON TAXING DISTRICTS
Evidence of the Lack of Development and Growth within the RPA. As
documented in Appendix 5 of this Plan, the RPA has suffered from the lack of
development and would qualify as a Conservation Area (for the improved sub-
area) and as a blighted area (for the vacant sub -area). In recent years, the area
has not benefited from sustained private investment and/or development,
instead suffering economic decline. Absent intervention by the City, properties
within the RPA would not be likely to gain in value.
The proposed RPA exhibits various conditions which, if not addressed by the
City, would eventually result in blight. Those conditions include structures and
public improvements reflecting obsolescence as well as other deficiencies. These
various conditions discourage private sector investment in business enterprises.
Assessment of Fiscal Impact on Affected Taxing Districts. It is not
anticipated that the implementation of this Plan will have a negative financial
impact on the affected taxing districts. Instead, action taken by the City to
stabilize and cause growth of its tax base through the implementation of this Plan
will have a positive impact on the affected taxing districts by arresting the
potential decline or lag in property values, as measured by assessed valuations
(AV). In short, the establishment of a TIF district would protect other taxing
districts from the potential downside risk of falling AV. •
Should the City achieve success in attracting private investment which results in
the need for documented increased services from any taxing districts, the City
will consider the declaration of "surplus funds," as defined under the Act and
pursuant to any executed intergovernmental agreement. Such funds which are
neither expended nor obligated for TIF-related purposes can be used to assist
affected taxing districts in paying the costs for increased services.
Any surplus Special Tax Allocation Funds (to the extent any surplus exists) will
be shared in proportion to the various tax rates imposed by the taxing districts,
including the City. Any such sharing would be undertaken after all TIF-eligible
costs — either expended or incurred as an obligation by the City — have been duly
accounted for through administration of the Special Tax Allocation Fund to be
established by the City as provided by the Act.
An exception to the tax -sharing provision relates to the City's utilization of TIF
funding to mitigate the impact of residential redevelopment upon school
districts. In such cases, the City will provide funds to offset the costs incurred by
the eligible school districts in the manner prescribed by 65 ILCS Section 5/11-
74.4.3(q)(7.5) of the Act. It should be noted that new residential uses are not
expected as part of future redevelopment activities. (Refer to Section VI of this
Report, which describes allowable TIF project costs.) •
Page 11
• V. TIF QUALIFICATION FACTORS PRESENT IN
THE RPA
CJ
•
Findings. The RPA was studied to determine its qualifications under the Tax
Increment Allocation Redevelopment Act. It was determined that the area as a
whole qualifies as a TIF district under the Act. Refer to the TIF Qualification
Report, attached as Appendix 5 in this Plan.
Eligibility Survey. Representatives of KMA and City staff evaluated the RPA
from late 2011 to the date of the publication of this Plan. Analysis was aided by
certain reports obtained from the City, reports from City engineering consultants,
on -site due diligence, and other sources. In KMA's evaluation, only information
was recorded which would help assess the eligibility of the proposed area as a TIF
District.
Page 12
VI. REDEVELOPMENT PROJECT
Redevelopment Plan and Project Objectives. As indicated in Section III of
this Report, the City has established a planning process which guides economic
development and land use activities throughout the City. Consistent with the
established planning process, the City proposes to achieve economic development
goals and objectives through the redevelopment of the Dempster/Dodge TIF,
pursuit of projects within the RPA, and the promotion of private investment via
public financing techniques (including but not limited to tax increment
financing).
The project -specific objectives envisioned for the Dempster/Dodge TIF are as
follows:
1) Implementing a plan that provides for the attraction of users and tenants
to redevelop underutilized land and buildings that are available within the
RPA.
2) Constructing public improvements which may include (if necessary):
•
• Street and sidewalk improvements (including new street construction
and widening of current streets; any street widening would conform
with City standards for context -sensitive design);
• Utility improvements (including, but not limited to, water, stormwater •
management, and sanitary sewer projects consisting of construction
and rehabilitation);
• Signalization, traffic control and lighting;
• Off-street parking and public parking facilities; and
• Landscaping, streetscaping, and beautification.
3) Entering into Redevelopment Agreements with developers for qualified
redevelopment projects, including (but not limited to) the provision of an
interest rate subsidy as allowed under the Act.
4) Providing for site preparation, clearance, environmental remediation, and
demolition, including grading and excavation (any demolition activities
would conform to City criteria for allowing demolition) as needed.
5) Providing for the rehabilitation of structures in order to improve the
occupancy and appearance of the property within the RPA_
6) Exploration and review of job training programs in coordination with any
City, federal, state, and county programs.
7) Entering into agreements for the development and/or construction of •
public facilities and infrastructure.
Page 13
Redevelopment Activities. Pursuant to the project objectives cited above, the
City will implement a coordinated program of actions. These include, but are not
limited to, land acquisition, land disposition, site preparation, clearance,
demolition, provision of public infrastructure and related public improvements,
construction of new public facilities, and rehabilitation of structures, if necessary.
Such activities conform to the provision of the TIF Act that define the scope of
permissible redevelopment activities.
Site Preparation, Clearance. Relocation and Demolition,
Property within the RPA may be improved through the use of site clearance,
excavation, environmental remediation or demolition prior to redevelopment.
The land may also be graded and cleared prior to redevelopment. Relocation may
also be required under the TIF Act; the City would conform to the provisions of
the Act.
Land Assemblv and Disposition
Certain properties or interests in properties in the RPA may be acquired by
purchase or the exercise of eminent domain. Properties owned by or acquired by
the City may be assembled and reconfigured into appropriate redevelopment
sites. If necessary, the City would facilitate private acquisition through
• reimbursement of acquisition and related costs as well as through the write -down
of its acquisition costs. Such land may be held or disposed of by the City on terms
appropriate for public or private development, including the acquisition of land
needed for construction of public improvements.
Public Improvements
The City may, but is not required to, provide public improvements in the RPA to
enhance the immediate area and support the Plan. Appropriate public
improvements may include, but are not limited to:
• Improvements and/or construction of public utilities including extension
of water mains as well as sanitary and storm sewer systems, roadways, and
traffic -related improvements;
• Parking facilities; and
• Beautification, identification markers, landscaping, lighting, and signage
of public right-of-ways.
Rehabilitation/Taxing District Capital Costs
The City may provide for the rehabilitation of certain structures within the RPA
in order to provide for the redevelopment of the area and conform to City code
• provisions. Improvements may include exterior and facade -related work as well
as interior -related work.
Page 14
•
The City may construct or provide for the construction and reimbursement for
new facilities to be owned or used by units of local government. The City does
not expect that locally designated landmarks or properties listed on or eligible for
listing on the National Register of Historic Places (or properties significantly
contributing to districts listed on the National Register of Historic Places) will be
demolished or modified in connection with the Plan.
Interest Rate Write -Down
The City may enter into agreements with for -profit or non-profit
owners/developers whereby a portion of the interest cost for construction,
renovation or rehabilitation projects are paid out of the Special Tax Allocation
fund of the RPA, in accordance with the Act.
Job Training
The City may assist facilities and enterprises located within the RPA in obtaining
job training assistance. Job training and retraining programs currently available
from or through other governments include, but are not limited to:
• Federal programs;
• State of Illinois programs;
•
• Applicable local vocational educational programs, including
community college sponsored programs; and
• Other federal, state, county or non-profit programs that are
currently available or will be developed and initiated over time.
School District Costs
The City may provide for payment of school district costs as provided for in the
Act relating to residential components assisted through TIF funding.
General Land Use Plan. As noted in Section I of this report, the proposed
RPA currently contains primarily retail uses.
Existing land uses are shown in Appendix 3 attached hereto and made a part of
this Plan. Appendix 4 designates future land uses in the Redevelopment Project
Area and includes retail, commercial, and mixed uses. Future land uses will
conform to the Zoning Ordinance and the Comprehensive Plan as either may be
amended from time to time.
•
Page 15
• Additional Design and Control Standards. The appropriate design
standards (including any Planned Unit Developments) as set forth in the City's
Zoning Ordinance and/or Comprehensive Plan shall apply to the RPA.
Eligible Redevelopment Project Costs. Under the TIF statute,
redevelopment project costs mean and include the sum total of all reasonable or
necessary costs incurred or estimated to be incurred as well as any such costs
incidental to the Plan. (Private investments, which supplement "Redevelopment
Project Costs," are expected to substantially exceed such redevelopment project
costs.) Eligible costs permitted by the Act and pertaining to this Plan include:
(1) Professional Service Costs — Costs of studies, surveys, development of
plans, and specifications, implementation and administration of the
redevelopment plan including but not limited to staff and professional
service costs for architectural, engineering, legal, financial, planning or
other services, provided however that no charges for professional services
may be based on a percentage of the tax increment collected; except that
on and after November 1, 1999 (the effective date of Public Act 91-478), no
contracts for professional services, excluding architectural and
engineering services, may be entered into if the terms of the contract
extend beyond a period of 3 years. After consultation with the
municipality, each tax increment consultant or advisor to a municipality
that plans to designate or has designated a redevelopment project area
shall inform the municipality in writing of any contracts that the
• consultant or advisor has entered into with entities or individuals that
have received, or are receiving, payments financed by tax increment
revenues produced by the redevelopment project area with respect to
which the consultant or advisor has performed, or will be performing,
service for the municipality. This requirement shall be satisfied by the
consultant or advisor before the commencement of services for the
municipality and thereafter whenever any other contracts with those
individuals or entities are executed by the consultant or advisor;
➢ The cost of marketing sites within the redevelopment project area to
prospective businesses, developers, and investors;
➢ Annual administrative costs shall not include general overhead or
administrative costs of the municipality that would still have been
incurred by the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment plan;
➢ In addition, redevelopment project costs shall not include lobbying
expenses;
(2) Property Assembly Costs — Costs including but not limited to acquisition
• of land and other property (real or personal) or rights or interests therein,
demolition of buildings, site preparation, site improvements that serve as
Page 16
an engineered barrier addressing ground level or below ground •
environmental contamination, including, but not limited to parking lots
and other concrete or asphalt barriers, and the clearing and grading of
land;
(3) Improvements to Public or Private Buildings — Costs of rehabilitation,
reconstruction, repair, or remodeling of existing public or private
buildings, fixtures, and leasehold improvements; and the cost of replacing
an existing public building if pursuant to the implementation of a
redevelopment project the existing public building is to be demolished to
use the site for private investment or devoted to a different use requiring
private investment;
(4) Public Works — Costs of the construction of public works or
improvements, except that on and after November 1,1999, redevelopment
project costs shall not include the cost of constructing a new municipal
public building principally used to provide offices, storage space, or
conference facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel and that is not
intended to replace an existing public building as provided under
paragraph (3) of subsection (q) of Section 11-74.4-3 unless either (i) the
construction of the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was adopted by the
municipality prior to November 1,1999 or (ii) the municipality makes a
reasonable determination in the redevelopment plan, supported by •
information that provides the basis for that determination, that the new
municipal building is required to meet an increase in the need for public
safety purposes anticipated to result from the implementation of the
redevelopment plan;
(5) Job Training — Costs of job training and retraining projects, including the
cost of "welfare to work" programs implemented by businesses located
within the redevelopment project area;
(6) Financing Costs — Costs including but not limited to all necessary and
incidental expenses related to the issuance of obligations and which may
include payment of interest on any obligations issued hereunder including
(a) interest accruing during the estimated period of construction of any
redevelopment project for which such obligations are issued and for a
period not exceeding 36 months thereafter and (b) reasonable reserves
related thereto;
(7) Capital Costs — To the extent the municipality by written agreement
accepts and approves the same, all or a portion of a taxing district's capital
costs resulting from the redevelopment project necessarily incurred or to
be incurred within a taxing district in furtherance of the objectives of the •
redevelopment plan and project;
Page 17
•
(8) School -Related Costs — For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the number of
tax -increment -financing assisted housing units) on or after November 1,
1999, an elementary, secondary, or unit school district's increased costs
attributable to assisted housing units located within the redevelopment
project area for which the developer or redeveloper receives financial
assistance through an agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure improvements
within the boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by the Act, and which costs shall
be paid by the municipality from the Special Tax Allocation Fund when the
tax increment revenue is received as a result of the assisted housing units
and shall be calculated annually;t
(9) Relocation Costs — To the extent that a municipality determines that
relocation costs shall be paid or is required to make payment of relocation
costs by federal or State law or in order to satisfy subparagraph (7) of
subsection (n) of the Act;
(10) Payment in lieu of taxes;
(11) Other Job Training —Costs of job training, retraining, advanced
• vocational education or career education, including but not limited to
courses in occupational, semi -technical or technical fields leading directly
1 The calculation is as follows: (A) for foundation districts, excluding any school district in a municipality with a population
in excess of i,000,000, by multiplying the district's increase in attendance resulting from the net increase in new students
enrolled in that school district who reside in housing units within the redevelopment project area that have received
financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary
infrastructure improvements within the boundaries of the housing sites necessary for the completion of that housing as
authorized by the Act since the designation of the redevelopment project area by the most recently available per capita
tuition cost as defined in Section 10-20.i2a of the School Code less any increase in general State aid as defined in Section
18-8.05 of the School Code attributable to these added new students subject to the following annual limitations: (i) for
unit school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 25% of
the total amount of property tax increment revenue produced by those housing units that have received tax increment
finance assistance under the Act; (ii) for elementary school districts with a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 1779/6 of the total amount of property tax increment revenue produced by those
housing units that have received tax increment finance assistance under the Act; and (iii) for secondary school districts
with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 8% of the total amount of
property tax increment revenue produced by those housing units that have received tax increment finance assistance
under the Act (B) For alternate method districts, flat grant districts, and foundation districts with a district average 1995-
96 Per Capita Tuition Charge equal to or more than $5,900, excluding any school district with a population in excess of
t,000,000, by multiplying the district's increase in attendance resulting from the net increase in new students enrolled in
that school district who reside in housing units within the redevelopment project area that have received financial
assistance through an agreement with the municipality or because the municipality incurs the cost of necessary
infrastructure improvements within the boundaries of the housing sites necessary for the completion of that housing as
authorized by the Act since the designation of the redevelopment project area by the most recently available per capita
tuition cost as defined in Section 10-20.12a of the School Code less any increase in general state aid as defined in Section
18-8.05 of the School Code attributable to these added new students subject to the following annual limitations: (i) for
unit school districts, no more than 40% of the total amount of property tax increment revenue produced by those housing
units that have received tax increment finance assistance under the Act; (ii) for elementary school districts, no more than
270,6 of the total amount of property tax increment revenue produced by those housing units that have received tax
increment finance assistance under the Act; and (iii) for secondary school districts, no more than 13% of the total amount
isof property tax increment revenue produced by those housing units that have received tax increment finance assistance
under the Act (C) For any school district in a municipality with a population in excess of t,000,000, additional provisions
apply.
Page 18
to employment, incurred by one or more taxing districts, provided that •
such costs (i) are related to the establishment and maintenance of
additional job training, advanced vocational education or career education
programs for persons employed or to be employed by employers located in
a redevelopment project area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set forth in a written
agreement by or among the municipality and the taxing district or taxing
districts, which agreement describes the program to be undertaken,
including but not limited to the number of employees to be trained, a
description of the training and services to be provided, the number and
type of positions available or to be available, itemized costs of the program
and sources of funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community college
districts of costs pursuant to Sections 3-37, 3-38, 3-4o and 3-40.1 of the
Public Community College Act and by school districts of costs pursuant to
Sections 10-22.2oa and 10-23.3a of The School Code;
(12) Developer Interest Cost —Interest cost incurred by a redeveloper related
to the construction, renovation or rehabilitation of a redevelopment
project provided that:
(A) Such costs are to be paid directly from the special tax allocation
fund established pursuant to the Act;
(B) Such payments in any one year may not exceed 30% of the annual
interest costs incurred by the redeveloper with regard to the redevelopment •
project during that year;
(C) If there are not sufficient funds available in the special tax
allocation fund to make the payment then the amounts so due shall accrue and
be payable when sufficient funds are available in the special tax allocation
fund;
(D) The total of such interest payments paid pursuant to the Act may
not exceed 30% of the total (i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project costs excluding any
property assembly costs and any relocation costs incurred by a municipality
pursuant to the Act;
(E) The cost limits set forth in subparagraphs (B) and (D) of paragraph
shall be modified for the financing of rehabilitated or new housing units for
low-income households and very low-income households, as defined in
Section 3 of the Illinois Affordable Housing Act. The percentage of 75% shall
be substituted for 30% in subparagraphs (B) and (D);
(F) Instead of the eligible costs provided by subparagraphs (B) and (D),
as modified by this subparagraph, and notwithstanding any other provisions of
the Act to the contrary, the municipality may pay from tax increment revenues
up to 50% of the cost of construction of new housing units to be occupied by
low-income households and very low-income households as defined in Section
3 of the Illinois Affordable Housing Act. The cost of construction of those units •
may be derived from the proceeds of bonds issued by the municipality under
Page 19
• the Act or other constitutional or statutory authority or from other sources of
municipal revenue that may be reimbursed from tax increment revenues or the
proceeds of bonds issued to finance the construction of that housing. The
eligible costs provided under this subparagraph (F) shall be an eligible cost for
the construction, renovation, and rehabilitation of all low and very low-income
housing units, as defined in Section 3 of the Illinois Affordable Housing Act,
within the redevelopment project area. If the low and very low-income units
are part of a residential redevelopment project that includes units not
affordable to low and very low-income households, only the low and very low-
income units shall be eligible for benefits under subparagraph (F).2
The TIF Act prohibits certain costs. Unless explicitly stated herein the cost of
construction of new privately -owned buildings shall not be an eligible
redevelopment project cost. In addition, the statute prohibits costs related to
retail development that results in the closing of nearby facilities of the same
retailers. Specifically, none of the redevelopment project costs enumerated in the
Act shall be eligible redevelopment project costs if those costs would provide
direct financial support to a retail entity initiating operations in the
redevelopment project area while terminating operations at another Illinois
location within io miles of the redevelopment project area but outside the .
boundaries of the redevelopment project area municipality.3
Projected Redevelopment Project Costs. Estimated project costs are
shown in Exhibit 4 below. Adjustments to estimated line -item costs below are
• expected and may be made without amendment to the Redevelopment Plan.
Each individual project cost will be reevaluated in light of the projected private
development and resulting tax revenues as it is considered for public financing
under the provisions of the Act.
Further, the projected cost of an individual line -item as set forth below is not
intended to place a limit on the described line -item expenditure. Adjustments
may be made in line -items, either increasing or decreasing line -item costs for
redevelopment. The specific items listed below are not intended to preclude
payment of other eligible redevelopment project costs in connection with the
2 The standards for maintaining the occupancy by low-income households and very low-income households, as defined in
Section 3 of the Illinois Affordable Housing Act, of those units constructed with eligible costs made available under the
provisions of this subparagraph (F) of paragraph (11) shall be established by guidelines adopted by the municipality. The
responsibility for annually documenting the initial occupancy of the units by low-income households and very low-income
households, as defined in Section ?• of the Illinois Affordable Housing Act, shall be that of the then current owner of the
property. For ownership units, the guidelines will provide, at a minimum, for a reasonable recapture of funds, or other
appropriate methods designed to preserve the original affordability of the ownership units. For rental units, the guidelines
will provide, at a minimum, for the affordability of rent to low and very low-income households. As units become
available, they shall be rented to income -eligible tenants. The municipality may modify these guidelines from time to time;
the guidelines, however, shall be in effect for as long as tax increment revenue is being used to pay for costs associated
with the units or for the retirement of bonds issued to finance the units or for the life of the redevelopment project area,
whichever is later.
3 Termination means a closing of a retail operation that is directly related to the opening of the same operation or like
retail entity owned or operated by more than 50% of the original ownership in a redevelopment project area, but it does
• not mean closing an operation for reasons beyond the control of the retail entity, as documented by the retail entity,
subject to a reasonable finding by the municipality that the current location contained inadequate space, had become
economically obsolete, or was no longer a viable location for the retailer or serviceman.
Page 20
redevelopment of the RPA, provided the total amount of payment for eligible •
redevelopment project costs (the "Total Estimated TIF Budget" in Exhibit 4) shall
not exceed the amount set forth below, as adjusted pursuant to the Act.
Exhibit 4
Site Preparation, Including Environmental Remediation, $4,000,000
Demolition, and Site Grading
Utility Improvements (Including Water, Storm, Sanitary Sewer, $3,000,000
Service of Public Facilities, and Road Improvements)
Rehabilitation of Existing Structures; Taxing District Capital $4,750,000
Improvements
Public Facilities (including Parking Facilities and Streetscaping) $4,000,000
Interest Costs Pursuant to the Act $1,250,000
Professional Service Costs (Including Planning, Legal, Engineering, $1,250,000
Administrative, Annual Reporting, and Marketing)
Job Training $1,000,000
Statutory School District Payments $250,000
TOTAL ESTIMATED TIF BUDGET $20,000,000
Notes:
(i) All project cost estimates are in 2012 dollars. Costs may be adjusted for inflation per the TIF Act.
(2) In addition to the costs identified in the exhibit above, any bonds issued to finance a phase of the Project may include
an amount sufficient to pay (a) customary and reasonable charges associated with the issuance of such obligations, (b)
interest on such bonds, and (c) capitalized interest and reasonably required reserves.
(3) Adjustments to the estimated line -item costs above are expected. Adjustments may be made in line -items within the
total, either increasing or decreasing line -items costs for redevelopment. Each individual project cost will be reevaluated
in light of the projected private development and resulting tax revenues as it is considered for public financing under the
provisions of the Act The individual line -items set forth above are not intended to place an individual limit on the
described expenditures — provided that the total amount of payments for eligible redevelopment project costs shall not
exceed the "total estimated TIF budget" listed above.
As explained in the following sub -section, incremental property tax revenues
from any contiguous RPA may used to pay eligible costs for the Dempster/Dodge
TIF.
Sources of Funds to Pay Redevelopment Project Costs. Funds necessary
to pay for public improvements and other project costs eligible under the Act are
to be derived principally from incremental property tax revenues, proceeds from
municipal obligations to be retired primarily with such revenues, and interest
earned on resources available but not immediately needed for the Plan. In
addition, pursuant to the TIF Act and this Plan, the City may utilize net
incremental property tax revenues received from other contiguous RPAs to pay
eligible redevelopment project costs or obligations issued to pay such costs in
contiguous project areas. This would include contiguous TIFs that the City may
establish in the future. (Conversely, incremental revenues from the
Dempster/Dodge TIF may be allocated to any contiguous TIF Districts.)
Page 21
•
• Redevelopment project costs as identified in Exhibit 4 specifically authorize those
eligible costs set forth in the Act and do not address the preponderance of the
costs to redevelop the area. The majority of development costs will be privately
financed. TIF or other public sources are to be used, subject to approval by the
City Council, only to leverage and commit private redevelopment activity.
The incremental tax revenues which will be used to pay debt service on the
municipal obligations (if any) and to directly pay redevelopment project costs
shall be the incremental increase in property taxes. The property tax increment
would be attributable to the increase in the equalized assessed value of each
taxable lot, block, tract or parcel of real property in the RPA — over and above the
initial equalized assessed value of each such lot, block, tract or parcel in the RPA
in the 2010 tax year for the RPA.
Among the other sources of funds which may be used to pay for redevelopment
project costs and debt service on municipal obligations issued to finance project
costs are the following: certain local sales or utility taxes, special service area
taxes, the proceeds of property sales, certain land lease payments, certain Motor
Fuel Tax revenues, certain state and federal grants or loans, certain investment
income, and such other sources of funds and revenues as the City may from time
to time deem appropriate.
Nature and Term of Obligations to Be Issued. The City may issue
obligations secured by the Special Tax Allocation Fund established for the
• Redevelopment Project Area pursuant to the Act or such other funds as are
available to the City by virtue of its power pursuant to the Illinois State
Constitution.
Any and all obligations issued by the Village pursuant to this Plan and the Act
shall be retired not more than twenty-three (23) years after the date of adoption
of the ordinance approving the RPA, or as such a later time permitted pursuant to
the Act and to the extent such obligations are reliant upon the collection of
incremental property tax revenues from the completion of the twenty-third year
of the TIF, with taxes collected in the twenty-fourth year. However, the final
maturity date of any obligations issued pursuant to the Act may not be later than
twenty (20) years from their respective date of issuance.
One or more series of obligations may be issued from time to time in order to
implement this Plan. The total principal and interest payable in any year on all
obligations shall not exceed the amount available in that year or projected to be
available in that year. The total principal and interest may be payable from tax
increment revenues (including tax increment revenues from current or future
contiguous TIF Districts) and from bond sinking funds, capitalized interest, debt
service reserve funds, and all other sources of funds as may be provided by
ordinance.
Page 22
Certain revenues may be declared as surplus funds if not required for: principal •
and interest payments, required reserves, bond sinking funds, redevelopment
project costs, early retirement of outstanding securities, or facilitating the
economical issuance of additional bonds necessary to accomplish the
Redevelopment Plan. Such surplus funds shall then become available for
distribution annually to taxing districts overlapping the RPA in the manner
provided by the Act.
Securities may be issued on either a taxable or tax-exempt basis, as general
obligation or revenue bonds. Further, the securities may be offered on such
terms as the City may determine, with or without the following features:
capitalized interest; deferred principal retirement; interest rate limits (except as
limited by law); and redemption provisions. Additionally, such securities may be
issued with either fined rate or floating interest rates.
Most Recent Equalized Assessed Valuation for the RPA. The most
recent equalized assessed valuation for the RPA is based on the 2olo EAV, and is
estimated to be approximately $io,8i6,879. It is anticipated the estimated base
EAV for establishment of the RPA will be the 20io EAV. (The 2oio EAV estimate
herein is to be updated when the State of Illinois equalizer is published and
values are certified.)
Anticipated Equalized Assessed Valuation for the RPA. Upon
completion of the anticipated private development of the RPA over a twenty-
three (23) year period, it is estimated that the EAV of the property within the Is
would increase to approximately $30,000,000 to $35,000,000 depending
upon market conditions and the scope of the redevelopment projects.
•
Page 23
• VII. DESCRIPTION AND SCHEDULING OF
REDEVELOPMENT PROJECT
Redevelopment Project. The City will implement a strategy with full
consideration given to the availability of both public and private funding. It is
anticipated that a phased redevelopment will be undertaken.
The Redevelopment Project will begin as soon as the private entities have
obtained financing approvals for appropriate projects and such uses conform to
City zoning and planning requirements, or if the City undertakes redevelopment
activities pursuant to this Plan. Depending upon the scope of the development as
well as the actual uses, the following activities may be undertaken by the City:
➢ Land Assemblv and Relocation: Certain properties in the RPA may be
acquired and assembled into an appropriate redevelopment site, with
relocation costs undertaken as provided by the Act. If necessary, the City
would facilitate private acquisition through reimbursement or write -down of
related costs, including without limitation the acquisition of land needed for
construction of public improvements.
➢ Demolition and Site Preparation: The existing improvements located within
the RPA may have to be reconfigured or prepared to accommodate new uses
or expansion plans. Demolition of certain parcels may be necessary for future
• projects. Additionally, the redevelopment plan contemplates site preparation,
or other requirements including environmental remediation necessary to
prepare the site for desired redevelopment projects.
➢ Rehabilitation: The City may assist in the rehabilitation of buildings or site
improvements located within the RPA.
➢ Landscaping/Buffering/Streetscaninj4: The City may fund certain
landscaping projects, which serve to beautify public properties or rights -of -
way and provide buffering between land uses.
➢ Water. Sanitary Sewer, Storm Sewer and Other Utilitv Improvements:
Certain utilities may be extended or re-routed to serve or accommodate the
new development. Upgrading of existing utilities may be undertaken. The
City may also undertake the provision of necessary detention or retention
ponds.
➢ Roadwav/Street/Parkiniz Improvements: The City may widen and/or vacate
existing roads. Certain secondary streets/roads may be extended or
constructed. Related curb, gutter, and paving improvements could also be
constructed as needed. Parking facilities may be constructed that would be
available to the public. Utility services may also be provided or relocated in
• order to accommodate redevelopment activities.
Page 24
•
➢ Traffic Control/Siznalization: Traffic control or signalization improvements
that improve access to the RPA and enhance its redevelopment may be
constructed.
➢ Public Safetv-Related Infrastructure: Certain public safety improvements
including, but not limited to, public signage, public facilities, and streetlights
may be constructed or implemented.
➢ School District Costs: The payment of such costs may be provided pursuant
to the requirements of the TIF Act.
➢ Interest Costs Coverage: The City may fund certain interest costs incurred by
a developer for construction, renovation or rehabilitation of a redevelopment
project. Such funding would be paid for out of annual tax increment revenue
generated from the RPA as allowed under the Act.
➢ Professional Services: The City may fund necessary planning, legal,
engineering, administrative and financing costs during project
implementation. The City may reimburse itself from annual tax increment
revenue if available.
Commitment to Fair Employment Practices and Affirmative Action.
As part of any Redevelopment Agreement entered into by the City and any
private developers, both parties will agree to establish and implement an •
honorable, progressive, and goal -oriented affirmative action program that serves
appropriate sectors of the City. The program will conform to the most recent City
policies and plans.
With respect to the public/private development's internal operations, both
entities will pursue employment practices which provide equal opportunity to all
people regardless of sex, color, race, creed, or sexual orientation. Neither party
will discriminate against any employee or applicant because of sex, marital
status, national origin, age, sexual orientation, or the presence of physical
handicaps. These nondiscriminatory practices will apply to all areas of
employment, including: hiring, upgrading and promotions, terminations,
compensation, benefit programs, and education opportunities.
All those involved with employment activities will be responsible for
conformance to this policy and compliance with applicable state and federal
regulations.
The City and private developers will adopt a policy of equal employment
opportunity and will include or require the inclusion of this statement in all
contracts and subcontracts at any level. Additionally, any public/private entities
will seek to ensure and maintain a working environment free of harassment,
intimidation, and coercion at all sites, and in all facilities at which all employees •
Page 25
• are assigned to work. It shall be specifically ensured that all on -site supervisory
personnel are aware of and carry out the obligation to maintain such a working
environment, with specific attention to minority and/or female individuals.
•
•
Finally, the entities will utilize affirmative action to ensure that business
opportunities are provided and that job applicants are employed and treated in a
nondiscriminatory manner. Underlying this policy is the recognition by the
entities that successful affirmative action programs are important to the
continued growth and vitality of the community.
Completion of Redevelopment Project and Retirement of Obligations
to Finance Redevelopment Costs. This Redevelopment Project and
retirement of all obligations to finance redevelopment costs will be completed
within twenty-three (23) years after the adoption of an ordinance designating the
Redevelopment Project Area. The actual date for such completion and retirement
of obligations shall not be later than December 31 of the year in which the
payment to the municipal treasurer pursuant to the Act is to be made with
respect to ad valorem taxes levied in the twenty-third calendar year after the
ordinance approving the RPA is adopted.
Page 26
VIII. PROVISIONS FOR AMENDING THE TIF PLAN •
AND PROJECT
This Plan may be amended pursuant to the provisions of the Act.
•
LJ
Page 27
•
APPENDIX 1
40 Legal Description of Project Area
40
LEGAL DESCRIPTION (DEMPSTER/DODGE TIF): •
THAT PART OF THE NORTH HALF OF SECTION 24, TOWNSHIP 41 NORTH, RANGE 13
EAST OF THE THIRD PRINCIPAL MERIDIAN IN COOK COUNTY, ILLINOIS, DESCRIBED AS
FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF LOT 1 IN BANBURY THIRD
CONSOLIDATION, BEING A PLAT IN THAT PART OF THE NORTHWEST QUARTER OF
SAID SECTION 24, ACCORDING TO THE PLAT THEREOF RECORDED MARCH 27, 1987
AS DOCUMENT NO. 87162463; THENCE SOUTHWESTERLY, WESTERLY,
SOUTHWESTERLY, SOUTHEASTERLY AND SOUTHWESTERLY ALONG THE
NORTHWESTERLY LINE OF SAID LOT 1 TO A POINT THAT IS 241.64 FEET
NORTHWESTERLY OF THE MOST SOUTHWESTERLY CORNER OF SAID LOT 1 AS
MEASURED ALONG SAID NORTHWESTERLY LINE; THENCE SOUTHEASTERLY AT A
RIGHT ANGLE TO SAID NORTHWESTERLY LINE 5.00 FEET; THENCE SOUTHWESTERLY
ALONG A LINE
5.00
FEET
SOUTHEASTERLY
OF AND PARALLEL
TO SAID
•
NORTHWESTERLY
LINE
TO A
POINT ON THE
NORTH RIGHT-OF-WAY
LINE OF
GREENLEAF STREET; THENCE EASTERLY ALONG SAID NORTH RIGHT-OF-WAY LINE
OF GREENLEAF STREET TO THE SOUTHWEST CORNER OF LOT 1 IN ARENS
CONTROLS, INC. CONSOLIDATION, BEING A PART OF THE NORTHWEST QUARTER OF
SAID SECTION 24, ACCORDING TO THE PLAT THEREOF RECORDED MAY 20, 1992 AS
DOCUMENT NO. 92349794; THENCE NORTHEASTERLY ALONG THE WESTERLY LINE OF
SAID LOT 1 IN ARENS CONTROLS, INC. CONSOLIDATION TO THE NORTHWEST
CORNER OF SAID LOT 1; THENCE EASTERLY ALONG THE NORTH LINE OF SAID LOT 1
TO A POINT OF CURVE; THENCE SOUTHEASTERLY ALONG SAID CURVE HAVING A
RADIUS OF 40.00 FEET, AN ARC LENGTH OF 64.45 FEET TO A POINT OF TANGENCY ON
THE EAST LINE OF SAID LOT 1; THENCE SOUTHERLY ALONG SAID EAST LINE TO A
CORNER POINT FOR LOT 1 IN SAID BANBURY THIRD CONSOLIDATION; THENCE 9
KRlmc
S:\EVANSTOM120101\Survey\Plots\2012-02-24\Legal DesaiptimrDEMPSTER&DODGE TIF.022012.doc
• EASTERLY ALONG THE SOUTH LINE OF SAID LOT 1 IN BANBURY THIRD
CONSOLIDATION TO A POINT ON THE WEST RIGHT-OF-WAY LINE OF BROWN AVENUE;
THENCE NORTHERLY ALONG SAID WEST RIGHT-OF-WAY LINE OF BROWN AVENUE TO
A POINT ON THE SOUTH LINE OF SAID LOT 1 IN BANBURY THIRD CONSOLIDATION;
THENCE EASTERLY ALONG SAID SOUTH LINE OF LOT 1 AND THE EASTERLY
EXTENSION THEREOF TO THE EAST RIGHT-OF-WAY LINE OF DODGE AVENUE;
THENCE NORTHERLY ALONG SAID EAST RIGHT-OF-WAY LINE TO THE NORTHWEST
CORNER OF LOT 1 IN KEAT'S RESUBDIVISION, BEING A SUBDIVISION IN THE
NORTHEAST QUARTER OF SAID SECTION 24, ACCORDING TO THE PLAT THEREOF
RECORDED SEPTEMBER 28, 1989 AS DOCUMENT NO. 89458950; THENCE WESTERLY
ALONG THE WESTERLY EXTENSION OF THE NORTH LINE OF SAID LOT 1 TO A POINT
OF INTERSECTION WITH THE WEST RIGHT-OF-WAY LINE OF SAID DODGE AVENUE;
THENCE NORTHERLY ALONG SAID WEST RIGHT-OF-WAY LINE TO A POINT OF
• INTERSECTION WITH THE SOUTH RIGHT-OF-WAY LINE OF DEMPSTER STREET;
•
THENCE WESTERLY, NORTHERLY AND WESTERLY ALONG SAID SOUTH RIGHT-OF-
WAY LINE TO THE POINT OF BEGINNING.
KRfjmc
S:\EVANSTOM120101\Survey\Plots\2012-02-24\Legal DescriptiorrDEMPSTER&DODGETIF.022012.doc
•
APPENDIX 2
Boundary Map of RPA .
•
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•
APPENDIX 3
Existing Land Use Map of RPA •
0
CURRENT LAND USE MAP
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APPENDIX 4
Future Land Use Map of RPA •
U
FUTURE LAND USE MAP
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DEMPSTER /DODGE TIF cALr AJc PROJECT R0.
CHRIBTOPHER B. BURKE DMa KJR Izolol
JR. FE
ENGINEERING, LTD. IN � ser t OF t
B 9575 west HIQQIns Rood CITY OF EVANSTON, ILLINOIS 06D• d Y
CSulte 600, Rosemont, Illlnols 6o016 PREPARED FOR SCALE: ORA111N0 No.
(847) 823-D500 I"•t50'
TIFlzolole
CITY OF EVANSTON
DATE, 02-24-2012
S:\EVANSTDN\120101\SURVEY\TIF120101B.SUR
•
APPENDIX 5
TIF Qualification Report
Prepared by Kane, McKenna and Associates •
•
DRAFT
• As of April 10, 2012
CITY OF EVANSTON, ILLINOIS
PRELIMINARY TIF QUALIFICATION REPORT
PROPOSED DEMPSTER/DODGE
REDEVELOPMENT PROJECT AREA
A preliminary analysis to assess the likelihood that all or a portion of an
area located in the City of Evanston would qualify as a blighted -improved
area as defined in the Tax Increment Allocation Redevelopment Act, 65
ILCS 5/11-74.4-3, et seg., as amended.
• Prepared for: City of Evanston, Illinois
Prepared Jointly by: Kane, McKenna and Associates, Inc.
and
The City of Evanston
April 2012
0
•
PROPOSED DEMPSTER/DODGE REDEVELOPMENT PROJECT AREA
TIF QUALIFICATION ASSESSMENT
TABLE OF CONTENTS
SECTION TITLE PAGE
Executive Summary
i
I. Background 1
II. Qualification Criteria 2
III. Evaluation Methodology 5
IV. Qualification Findings for Proposed RPA 6
V. Summary of Findings; Overall Assessment io •
of Qualification
0
•
EXECUTIVE SUMMARY
Kane, McKenna and Associates, Inc. (KMA) has been retained by the City of Evanston,
Illinois (the "City") to conduct an analysis of the potential qualification and designation
of certain property located in the City, to be addressed herein as the proposed
Redevelopment Project Area (the "RPA" or "TIF District").
The City is pursuing the RPA designation as part of its strategy to promote the
revitalization of the property and thereby assist the City in achieving its public policy
goal of promoting economic redevelopment. By undertaking the designation, the City
will help strengthen the RPA as a significant contributor to the City's overall economic
base.
Based upon the preliminary analysis completed to date, KMA has reached the following
conclusions regarding the potential qualification of the RPA as a TIF District:
1) The proposed TIF District meets the criteria for a `blighted area" with
improvements, as the term is defined under the TIFAct — Overall, the parcels within
the proposed TIF District either have declined, or are in danger of declining, toward a
blighted condition. This condition prevents, or threatens to prevent, the healthy
economic and physical development of properties in a manner that the community
deems essential to its overall economic health.
• 2) Current conditions impede redevelopment — The conditions found within the
proposed TIF District present a barrier to the area's successful redevelopment. Without
the use of City planning and economic development resources to mitigate such
conditions, potential redevelopment activities are not likely to be economically feasible.
3) Viable redevelopment sites could produce incremental revenue — Within the
proposed TIF District, there are parcels which potentially could be redeveloped or
rehabilitated and thereby produce incremental property tax revenue or additional sales
tax revenue. Such revenue, used in combination with other City resources for
redevelopment incentives or public improvements, would likely stimulate private
investment and job creation in these sites and ultimately throughout the TIF District.
4) Pursuit of TIF designation is recommended — To mitigate the existing conditions
(thereby promoting the improved physical condition of the proposed RPA) and to
leverage the City's investment and redevelopment efforts, KMA recommends that the
City pursue the formal TIF designation process for the RPA.
Because the City will not pursue the redevelopment of residential parcels that could
potentially dislocate io or more residential units within the proposed TIF district, the
City will not conduct a housing impact study pursuant to the TIF Act.
•
I. BACKGROUND •
In the context of planning for the proposed Redevelopment Project Area, the City has
initiated a study of the area to determine whether it would potentially qualify as a TIF
District. Kane, McKenna and Associates, Inc. agreed to undertake the study of the
proposed RPA or TIF District on the City's behalf.
Current Land Use. The proposed RPA is a compact area situated at the southwest
corner of Dempster Road and Dodge Avenue. The Dempster/Dodge intersection is a
key commercial node in Evanston, and though currently underutilized, it has a number
of assets that could be leveraged as part of its future redevelopment.
Overall, the area faces a number of redevelopment impediments as described in Section
IV of this report. Obsolescence and excessive vacancies are the principal impediments
that reduce the competitiveness of the area.
General Redevelopment Objectives. The redevelopment of the proposed RPA is
consistent with the City's overarching land use objectives, which are contained in the
Comprehensive Plan, zoning ordinance and other land use planning elements. In the
Comprehensive Plan adopted in 2000, the City has articulated a number of economic
development objectives which would be supported by the City's adoption of the
proposed RPA as a TIF District. For example, a goal is to promote "growth and
redevelopment of businesses, commercial, and industrial areas" including the
Dempster/Dodge area. It further states that the City of Evanston "has an interest in the •
success of this important intersection and should support redevelopment plans that will
enhance the commercial area."
Given the gap between the City's goals for the area versus the current conditions
described in this report, the City has determined that the redevelopment of the proposed
RPA would be highly beneficial to the community. With a redevelopment strategy in
place, the economic base of the RPA would be stabilized and increased — thereby
benefiting the community as a whole. Without such a redevelopment strategy, the
adverse conditions identified in this report would likely worsen.
General Scope and Methodology. KMA performed its analysis by conducting a
series of meetings and discussions with City staff, starting in September 2011 and
continuing periodically up to the date of this report. The purpose of the meetings was to
gather data related to the qualification criteria for properties included in the study area.
These meetings were complemented by a series of field surveys for the entire area to
evaluate the condition of the proposed RPA, on a parcel -by -parcel basis. The field
surveys and data collected have been utilized to test the likelihood that the proposed
RPA would qualify for TIF designation.
The qualification factors discussed in this report would qualify the proposed RPA as a
blighted -improved area, as the term is defined pursuant to the TIF Act.
For additional information about KMA's data collection and evaluation methods, refer •
to Section III of this report.
•
II. QUALIFICATION CRITERIA
With the assistance of City staff, Kane, McKenna and Associates, Inc. assessed the
proposed RPA to determine the likelihood that qualifying factors listed in the Act would
be present. The relevant provisions of the Act are cited below.
The Act sets out specific procedures which must be adhered to in designating a
redevelopment project area (RPA). By definition, a "redevelopment project area" is:
"An area designated by the municipality, which is not less in the aggregate than
11/2 acres and in respect to which the municipality has made a finding that there
exist conditions which cause the area to be classified as a blighted area or a
Conservation Area, or a combination of both blighted areas and Conservation
Areas."
Under the Act, "blighted -improved area" means any improved or vacant area within the
boundaries of a redevelopment project area located within the territorial limits of the
municipality where certain conditions are met, as identified below.
TIF Qualification Factors for a Blighted -Improved Area. In accordance with
the TIF Act, KMA performed an assessment to determine if the proposed RPA qualified
as a blighted -improved area. The following factors were examined to determine TIF
• qualification:
If a blighted -improved area, industrial, commercial and residential buildings or
improvements are detrimental to the public safety, health or welfare because of a
combination of five (5) or more of the following factors, each of which is (i) present, with
that presence documented to a meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent of the Act and (ii) reasonably
distributed throughout the improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair or neglect of necessary
repairs to the primary structural components of building or improvements in
such a combination that a documented building condition analysis determines
that major repair is required or the defects are so serious and so extensive that
the buildings must be removed.
(B) Obsolescence. The condition or process of falling into disuse. Structures
become ill -suited for the original use.
(C) Deterioration. With respect to buildings, defects include but are not
limited to, major defects in the secondary building components such as doors,
windows, porches, gutters, downspouts, and fascia. With respect to surface
improvements, that the condition of roadways, alleys, curbs, gutters, sidewalks,
• off-street parking and surface storage areas evidence deterioration, including, but
2
limited to, surface cracking, crumbling, potholes, depressions, loose paving •
material and weeds protruding through paved surfaces.
(D) Presence of Structures Below Minimum Code Standards. All structures
that do not meet the standards of zoning, subdivision, building, fire and other
governmental codes applicable to property, but not including housing and
property maintenance codes.
(E) Illezal Use of Individual Structures. The use of structures in violation of
applicable federal, State, or local laws, exclusive of those applicable to the
presence of structures below minimum code standards.
(F) Excessive Vacancies. The presence of buildings that are unoccupied or
under-utilized and that represent an adverse influence on the area because of the
frequency, extent or duration of the vacancies.
(G) Lack of Ventilation. Licht, or Sanitary Facilities. The absence of adequate
ventilation for light or air circulation in spaces or rooms without windows, or that
require the removal of dust, odor, gas, smoke or other noxious airborne
materials. Inadequate natural light and ventilation means the absence of
skylights or windows for interior spaces or rooms and improper window sizes and
amounts by room area to window area ratios. Inadequate sanitary facilities refers
to the absence or inadequacy of garbage storage and enclosure, bathroom
facilities, hot water and kitchens and structural inadequacies preventing ingress
and egress to and from all rooms and units within a building. •
(H) Inadequate Utilities. Underground and overhead utilities such as storm
sewers and storm drainage, sanitary sewers, water lines and gas, telephone and
electrical services that are shown to be inadequate. Inadequate utilities are those
that are: (i) of insufficient capacity to serve the uses in the redevelopment project
area; (ii) deteriorated, antiquated, and obsolete or in disrepair; or (iii) lacking
within the redevelopment project area.
(I) Excessive Land Coveraze and Overcrowding of Structures and Community
Facilities. The over -intensive use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem conditions warranting the
designation of an area as exhibiting excessive land coverage are: (i) the presence
of buildings either improperly situated on parcels or located on parcels of
inadequate size and shape in relation to present-day standards of development
for health and safety and (ii) the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage, these parcels must exhibit
one or more of the following conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking or inadequate provision for loading
service.
•
• (J) Deleterious Land -Use or Lavout. The existence of incompatible land -use
relationships, buildings occupied by inappropriate mixed -uses, or uses
considered to be noxious, offensive or unsuitable for the surrounding area.
(K) Environmental Clean-UD. The proposed redevelopment project area has
incurred Illinois Environmental Protection Agency or United States
Environmental Protection Agency remediation costs for (or a study conducted by
an independent consultant recognized as having expertise in environmental
remediation has determined a need for) the clean-up of hazardous waste,
hazardous substances or underground storage tanks required by State or federal
law. Any such remediation costs would constitute a material impediment to the
development or redevelopment of the redevelopment project area.
(L) Lack of Communitv Plannine.. The proposed redevelopment project area was
developed prior to or without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption by the municipality of
a comprehensive or other community plan or that the plan was not followed at
the time of the area's development. This factor must be documented by evidence
of adverse or incompatible land -use relationships, inadequate street layout,
improper subdivision, parcels of inadequate shape and size to meet
contemporary development standards or other evidence demonstrating an
absence of effective community planning.
• (M) "Stagnant" EAV. The total equalized assessed value (EAV) of the proposed
redevelopment project area has declined for three (3) of the last five (5) calendar
years, or is increasing at an annual rate that is less than the balance of the
municipality for three (3) of the last five (5) calendar years, or is increasing at an
annual rate that is less than the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor or successor agency for
three (3) of the last five (5) calendar years. The finding is based on the last 5
years for which information is available.
•
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III. EVALUATION METHODOLOGY
In evaluating the proposed RDA's potential qualification as a TIF District, the following
methodology was utilized:
i) Site surveys of the RPA were undertaken by representatives from Kane, McKenna
and Associates, Inc., supplemented with photographic analysis of the sites. Site
surveys were completed for each parcel of land within the proposed RPA.
2) KMA conducted evaluations of exterior structures and associated site
improvements, noting such conditions as overcrowding and obsolescence.
Additionally, KMA reviewed the following data: 2005-2010 tax information from
Cook County, Sidwell parcel tax maps, historical aerial photos, site data, local
history (including discussions with City staff), and an evaluation of area -wide
factors that have affected the area's development (e.g., obsolescence, deleterious
land -use and layout, etc.).
3) Existing structures and site conditions were initially surveyed only in the context
of checking, to the best and most reasonable extent available, TIF Act factors
applicable to specific structures and site conditions of the parcels.
•
4) The RPA was examined to assess the applicability of the different factors required
for qualification as a TIF district. Examination was made by reviewing the
information and determining how each measured when evaluated against the •
relevant factors. The RPA was evaluated to determine the applicability of the
thirteen (13) different factors, as defined under the Act, which would qualify the
area as a TIF district.
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• IV. QUALIFICATION FINDINGS FOR PROPOSED RPA
Based upon KMA's preliminary evaluation of parcels in the proposed RPA and analysis
of each of the eligibility factors summarized in Section II, the following factors are
presented to support qualification of the proposed RPA as a blighted -improved area
under the TIF Act. These factors are summarized in the table below.
Exhibit 2
13 5 6
• Lagging EAV
• Excessive Vacancies
• Obsolescence
• Deleterious Layout
• Inadequate Utilities
• Environmental Remediation
Findings for RPA. The proposed RPA meets the qualifications for a blighted -
improved area under the statutory criteria set forth in the TIF Act. KMA reviewed the
criteria needed to qualify the area as a blighted -improved area, determining that 6
factors were likely to be present:
1. Laimina or Declining &W The EAV of the TIF District has grown at a rate slower
than the City-wide EAV for 4 of the last 5 years (refer to chart below). Additionally, TIF
District EAV has lagged the Consumer Price Index for 4 of the past 5 years. Therefore, a
fording of lagging EAV is made pursuant to the TIF Act.
Exhibit 3
EAV Trends for Proposed TIF District
Total EAV for io,8i6,879
10,712,129 14,148,341
13,508,513
13,346,272 13,493,788
TIF District
EAV Change 1.0%
-24.3% 4.7%
1.2%
(%)
City-wide EAV 3,031,067,208
3,295,277,240 2,924,249,551
2,758,831,5i6
2,232,546,474 2,229,259,234
(Excluding TIF)
City EAV Change
M -8.0%
12.7% 6.0%
23.6%
0.1%
CPI 1.6%
-0.4% 3.8%
2.8%
3.2%
Notes:
(1) Figures in bold for those years in which City EAV exceeded growth rate of EAV within
proposed TIF District.
(2) Reassessment years asterisked.
Source: Cook County and U.S. Bureau of Labor Statistics
2. Excessive Vacancies. The TIF Act states that this finding is characterized by the
presence of unoccupied or underutilized buildings that represent an adverse influence
on the area. The proposed Dempster/Dodge TIF District has numerous vacant or
partially vacant structures, including partial vacancies for 3 structures having the
following addresses/users:
Dempster/Dodge Plaza — Buildina 1
• Former A.J. Wright retailer
• 1112 Dodge •
• n18 Dodge
• 1122 Dodge
• 19o8E Dempster
Dempster/Dodge Plaza — Buildina 2
• Former Frank's Nursery
• Former Dollar Store
• 1938 Dempster
• Former EZ Laundry
• 1958 Dodge
• 196o Dodge
Demaster/Dodae Plaza — Buildina _q_ (Outlot)
• 1152 Dodge
• 1168 Dodge
• 19ooA Dempster
According to the current property owner, only 52% of the plaza is leased as of January
2012. Moreover, the remaining unused space is not caused by transitional vacancies or •
turnover, but instead are relatively long-term vacancies of approximately one year or
• longer. Because of (a) the reduced economic activity associated with vacancies, (b) the
size of the facility (over 200,000 square feet of built space), and (c) the prominent
location along two major local roads, the vacant structures represent an adverse
influence on the overall TIF District.
3. Obsolescence. The Act states that obsolescence is the condition or process of falling
into disuse or structures that have become ill -suited for their original use. Overall, the
RPA exhibits both functional and economic obsolescence.
Economic obsolescence is manifested by the lagging EAV first and foremost. As
mentioned, the EAV has lagged the City EAV growth rate for 4 of the past 5 years.
Moreover, the most current EAV figures (tax year 2oio) are still below the 2005 levels
and have not rebounded.
The numerous store vacancies observed among the 3 Dempster/Dodge Plaza buildings
reflect both economic obsolescence and (in functional terms) a literal "disuse" of
structures. Additionally, the larger vacant spaces are obsolete and would need to be
adapted for smaller end users (requiring the space to be reconfigured for a smaller
layout, changed loading bays, etc.).
4. Deleterious Lavout. As noted in Section II, a municipality can make a finding of
deleterious layout or land use when there exists either (a) incompatible land -use
relationships, (b) buildings occupied by inappropriate mixed -uses or uses considered to
be noxious, or (c) uses offensive or unsuitable for the surrounding area. Most of the
• problems in the area reflect incompatible land use relationships. The area reflects
piece -meal, uncoordinated development, in which competing land uses abut each other
-- e.g., commercial uses are situated next to residential uses within the TIF District, and
residential uses outside the TIF District abut commercial uses within the TIF District.
KMA observed the following indicators of deleterious land-use/layout:
Minimal buffering between a residential and non-residential uses - In particular, the
commercial structures along Dodge Avenue are situated directly against residences,
with minimal or no buffering.
Ingress and egress are problematic — It is difficult for cars to exit leaving the Dodge
Avenue structures and then turning south (into traffic). The ingress/egress
problems are exacerbated by the fact that the traffic volume is heavy along Dodge
Avenue, in comparison to other north/south streets in the neighborhood.
• Loading and unloading — The southern side of the Dempster/Dodge Plaza facility
has a narrow approach for the larger trucks serving the Dominick's food store.
5. Inadequate Utilities. The Act states that overhead or underground utilities that are
deteriorated, antiquated, obsolete or in disrepair are considered inadequate. Also, those
utilities that lack the capacity to meet future development demands are considered
• inadequate. Utilities would include: storm sewers, storm drainage, sanitary sewers,
water lines and gas, telephone and electrical services.
8
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Based on the City's Director of Utilities analysis from December 2011, the existing public
utilities in the area are antiquated and obsolete, and certain components reflect
deterioration/disrepair. In particular, aged water mains and combined sewers
demonstrate obsolescence and require repair. The City Engineer's analysis
demonstrates the following conditions:
The combined sewer system is generally inadequate, due to age (over ioo years
old) and use of obsolete materials;
Materials such as brick, cast iron, and clay tile are obsolete, because modern
materials such as PVC pipe, ductile iron and reinforced concrete are now the
industry standard; and
Water and sanitary sewer for certain components need replacement, including
sewer along Dodge Avenue extending from Dempster to Crain.
According the Director of Utilities, the modern materials are more durable and would be
less likely to fail.
6. Environmental Remediation. As indicated in Section III, a qualifying factor under
the TIF Act relates to environmental remediation if the area has (a) incurred
Illinois/U.S. Environmental Protection Agency remediation costs, or (b) a study has
determined a need for environmental clean-up. The area has previously incurred said
costs, with a "No Further Remediation" letter indicating the absorption of said costs.
Moreover, the efforts to address the environmental problems have resulted in an
"engineered barrier" to prevent the migration of contaminants. While necessary to is
protect the environment and complete the clean-up project, the need to leave the
engineered barrier in place has limited the marketability of the parcels within the
proposed TIF District and reduced the re -use potential of the site — thereby creating an
impediment to the redevelopment of the project area.
•
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• V. SUMMARY OF FINDINGS; GENERAL ASSESSMENT OF
QUALIFICATION
The following is a summary of relevant qualification findings as it relates to the City
potentially designating the proposed RPA as a TIF District.
• The area is contiguous and is greater than it/2 acres in size;
• The proposed RPA meets the criteria for a blighted -improved area TIF District, if
the City pursues this course of action. The qualifying factors found in the
proposed RPA are present to a meaningful extent and are evenly distributed
throughout the proposed RPA. A more detailed analysis of the qualification
findings is outlined in Section IV of this report;
• All property in the area would substantially benefit by the proposed
redevelopment project improvements;
• The sound growth of taxing districts applicable to the area, including the City, has
been impaired by the factors found present in the area; and
• The area would not be subject to redevelopment without the investment of public
funds, including property tax increments.
• In the judgment of KMA, these preliminary findings support the case for the City to
initiate a formal process to consider the proposed RPA as a TIF District.
is
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55-0-12
Alderman ►JdA- t ..ca moved and Alderman W ���u.rG., seconded
the motion that said ordinance as presented and read by the City Clerk be adopted.
After a full discussion thereof including a public recital of the nature of the matter
being considered and such other information as would inform the public of the nature of
the business being conducted, the Mayor directed that the roll be called for a vote upon
the motion to adopt said ordinance as read.
Upon the roll being called, the following Aldermen voted AYE:
The following Aldermen voted NAY: (1 ) J-"4l.-/
Whereupon the Mayor declared the motion carried and said ordinance adopted,
approved and signed the same in open meeting and directed the City Clerk to record •
the same in full in the records of the Mayor and City Council of the City of Evanston,
Cook County, Illinois, which was done.
Other business not pertinent to the adoption of said ordinance was duly
transacted at the meeting.
Upon motion duly made, seconded and carried, the meeting was adjourned.
C Clerk
0
55-0-12
• STATE OF ILLINOIS )
)SS
COUNTY OF COOK )
CERTIFICATION OF ORDINANCE AND MINUTES
I, the undersigned, do hereby certify that I am the duly qualified and acting City
Clerk of the City of Evanston, Cook County, Illinois (the "City'), and that as such official I
am the keeper of the records and files of the Mayor and City Council of the City (the
"Corporate Authorities').
I do further certify that the foregoing is a full, true and complete transcript of that
portion of the minutes of the meeting of the Corporate Authorities held on the.,' day of
V.v "-e_ 2012, insofar as same relates to the adoption of an ordinance entitled:
Approving a Tax Increment Redevelopment Plan and Redevelopment
Project for the Dempster/Dodge Redevelopment Project Area.
a true, correct and complete copy of which said ordinance as adopted at said meeting
appears in the foregoing transcript of the minutes of said meeting.
I do further certify that the deliberations of the Corporate Authorities on the
adoption of said ordinance were conducted openly, that the vote on the adoption of said
• ordinance was taken openly, that said meeting was held at a specified time and place
convenient to the public, that notice of said meeting was duly given to all of the news
media requesting such notice; that an agenda for said meeting was posted at the
location where said meeting was held and at the principal office of the Corporate
Authorities at least 48 hours in advance of the holding of said meeting; that said agenda
described or made specific reference to said ordinance; that said meeting was called
and held in strict compliance with the provisions of the Open Meetings Act of the State
of Illinois, as amended, and the Illinois Municipal Code, as amended, and that the
Corporate Authorities have complied with all of the provisions of said Act and said Code
and with all of the procedural rules of the Corporate Authorities.
IN WITNESS WH RrOF, I hereunto affix my official signature and the seal of the
L City, this , day off y , 2012.
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City Clerk
(Seal)
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