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HomeMy WebLinkAboutORDINANCES-2009-081-O-09r 8/25/2009 • 81-0-09 AN ORDINANCE Authorizing the Payment of Redevelopment Project Costs and Distribution of Excess Monies for the Redevelopment Project Area of the City of Evanston, Illinois ("Downtown II TIF") WHEREAS, pursuant to Resolutions 152-R-84, 153-R-84, and 154-R-84 adopted January 28, 1985, as supplemented and amended, the City of Evanston, Illinois (the "City") adopted a redevelopment plan and a related redevelopment project (the "Redevelopment Plan and Redevelopment Project"), designated a redevelopment project area (the "Redevelopment Project Area") (as described in Exhibit "A" attached to this ordinance), and adopted tax increment finance for the Redevelopment Project Area. • NOW, THEREFORE, BE IT- ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, ILLINOIS, as follows: SECTION 1: The Mayor and other appropriate Officers of the City are authorized and directed to effect the payment of outstanding redevelopment project costs, the retirement of all obligations, and the distribution of any excess monies, preliminary to the dissolution of the special tax allocation fund for the Redevelopment Project Area as a "redevelopment project area" under the Act. SECTION 2: Upon effecting Section 1 of this ordinance, on or before November 1 in the calendar year 2009 the City Clerk shall notify affected taxing districts that the City intends to dissolve the special tax allocation fund for the Redevelopment Project Area and to terminate the Redevelopment Project Area by December 31, 2009. • SECTION 3: This Ordinance 81-0-09 shall become effective immediately upon its passage and approval. ation by y � .Upon m. , li adopted this -day ofi�� 2009, by roll call vote as follows: • Voting "Yes" (names): Z , r�Voting "No" (names): • Atte Approved: &Ab1 f t 2009 ney eene, City Clerk EliaAeth B. Tisdahl, Mayor • Ira • STATE OF ILLINOIS ) COUNTY OF COOK ) SS. CITY OF EVANSTON ) CERTIFICATION OF ORDINANCE 81-0-09 I, Rodney Greene , do hereby certify that I am the duly selected, qualified, and acting City Clerk of the City of Evanston, Cook County, Illinois (the "Municipality") and, as such Official, I am the keeper of the records and files of the Municipality and of its City Council (the "Corporate Authorities"). I do further certify that the attached ordinance constitutes a full, true, and correct excerpt from the proceedings of the Municipality's Corporate Authorities held on October 12 , 2009, entitled: AN ORDINANCE Authorizing the Payment of Redevelopment Project Costs and Distribution of Excess Monies for the Redevelopment Project Area of the City of Evanston, Illinois ("Downtown II TIF") • a true, correct, and complete copy of which ordinance as adopted at such meeting appears in the minutes of such meeting and is hereto attached. Such ordinance was adopted and approved on the date thereon set forth by not less than an affirmative vote of a majority of the Corporate Authorities and approved by the Mayor on the date indicated thereon. I do further certify that the deliberations of the Corporate Authorities on the adoption of the above ordinance were taken openly, that the vote of the adoption of such ordinance was taken openly and was preceded by a public recital of the nature of the matter being considered and such other information as would inform the public of the business being conducted, that such meeting was held at a specified time and place convenient to the public, that notice of such meeting was duly given to all of the news media requesting such notice, that such meeting was called and held in strict compliance with the provisions of the Illinois Municipal Code, as amended, and that the Corporate Authorities have complied with all of the applicable provisions of such laws and such Code and their procedural rules in the adoption of such ordinance. IN WITNESS WHEREOF, I hereunto affix my official signature and the • seal of the City of Evanston, Illinois, this 12ttday of October , 2009. (SEAL) go7d�ney /Gr7ene, City Clerk • • • CITY OF EVANSTON DOWNTOWN II TAX INCREMENT REDEVELOPMENT AREA REDEVELOPMENT PLAN AND PROJECT September, 1984 Exhibit A Ordinance 81-0-09 and 82-0-09 • TABLE OF CONTENTS I. introduction ........................................ 1 Ii. Redevelopment Project Aiwa Legal Description: ........ 6 III. Redevelopment Plan Goals and Objectives .........._.. 8 ICI. Cot?serliati on -Area Conditions Existing in the Redevelopment Project Area ....................... lI V. Down -town II Redevelopment Project ................... 16 A. Redevelopment Plan and Project Objectives ......16 B. Redevelopment Activities .......................16 C. General Land Use Plan ..........................21 D. additional Controls and Design Criteria ........25 E. Estimated Redevelopment Costs ..................27 F. Sources of Funds to Pay Redevelopment Project Costs...............................28 G. Nature and Term of Obligations to be • 31 Issued ...................................... H. Most Recent Equalized Assessed Valuation of Properties in the Redevelopment ProjectArea................................32 I. Anticipated Assessed Valuation .................32 VI. Phasing and Scheduling of Redevelopment Project .....34 A. Initial Phase (Phase 1, 1984-1988) .............34 8. Second Phase (Phase 2, 1986-1996) ..............35 C. Third Phase (Phase 3, 1988-1996) ...............36 D. Completion of Redevelopment Project and Retirement of Obligations to Finance Redevelopment Project Costs .................38 VII. Provisions for Amending the Tax Increment Plan ......39 r� U • LJ 0 LIST OF TABLES AND EXHIBITS Tables Tauie 1 i "D';c e71'a`..ow n -ll'_Redevelooiiieiic- Pro 3ect Estimated Project Costs 30 Table 2, Block Summary of 1983 Equalized AssessedValues ................................ 33 Exhibits Exhibit 1,. Boundary Map ............................... 7 Exhibit 2, Property Ownership and Acquisition Program ........................ 18 Exhibit 3, Land Use Plan .............................. 22 I. INTRODUCTION • Evanston, Illinois, is a diverse first -ring suburb of Chicago with a population of approximately 74,000 persons. Located 12 miles from Chicago's "Loon", Evanston has an estab- lished business environment and is among Chicago's most desirable residential communities.. Thke cc:•nrnuni:.y offers a number Q£- urban- - -_ amenities including excellent public transportation and is the home of Northwestern University. These attributes are complemen- ted by Evanston's location on Lake Michigan, which provides additional natural and recreational benefits. The Central Business District (CBD) of Evanston is central- ly located in the eastern portion of the city, approximately 1 mile west of the Lake Michigan shoreline. Downtown Evanston is an established office, retail, and residential center •with an estimated 8,000 to 10,000 employees working in the downtown and another 2,000 persons living in the area. The economy is dominated by such major • corporations as Washington National Insurance Company and American Hospital Supply Corporation, which together employ about 2,000 per- sons_ Northwestern University, bordering the downtown area on the north, employs approximately 3,000 persons including faculty, and contains a student population of about 10,000. Downtown Evanston represents a highly service -oriented environment. Except for the major corporations, a majority of office space in Evanston is occupied by the medical, legal, consulting, design and financial professions. During the late 1950's, Evanston's downtown contained over 1.5 million square -feet of retail space and was the primary retail hub for the North Shore suburbs. With the development of nearby regional shopping centers, downtown Evanston has lost much of its local market share and now only contains slightly over 500,000 square feet of retail space. Although absolute retail sales in Evanston have increased steadily during the past twenty years, • -1- • Evanston's share of total metropolitan retail sales has declined from about 1.5 percent in 1963 to 1.2 percent in 1977, the date of the most recent retail census. The market share of shooters' goods sales, in particular, has eroded. Evanston's share of met- ropolitan general merchandise sales fell from 1.8 percent in 1963 to onlv'0.5 percent in 1977; the apparel and accessories market share declined from 1.4 percent to _0-.9 percent; furniture, home furnishings,.and appliance sales declined from.2.5 percent to about one percent of the market. Today, the CBD functions primarily as a specialty retail center serving local residents, downtown em- ployees and university students. Downtown Evanston is well served by the regional public transportation system. The Chicago and North Western Railroad and CTA elevated rapid transit provide excellent north -south ser= vice,to Chicago and northern suburbs. The CBD is further served by both Chicago Transit Authority buses providing transportation • from Chicago and within Evanston, and Regional Transportation Authority buses providing links to north and northwest suburbs. >° Automobile access to downtown Evanston is perceived less favorably than access by public transportation. The downtown lies approximately four miles from the nearest freeway, the Edens Ex- pressway (I-94); it is between, but not adjacent to, two major north -south surface streets, Ridge Avenue and Sheridan Road. To enter downtown Evanston from either of these routes, drivers typically use the Davis Street/Church Street one-way pair, which provides east -west access into the downtown. Chicago Avenue is the only major north -south route carrying traffic directly into the downtown. Downtown Evanston has escaped much of the deterioration and abandonment that have impacted many older urban communities. During the mid-1970's, a Special Service District was created to provide • an attractive streetscape for a large part of the CBD. The down- town is generally perceived as attractive and well maintained. -2- The only major exception to this image is the northwestern portion • o:; the CBD dubbed the "Downtown II" redevelopment area. Thi_,s par - Lion of the downtown includes about 26.acres of land in an eight - block area bounded by'Emerson Street and Elgin Road on the north, Sherman Avenue and Benson Avenue on the east, Davis Street and Clark Street on the south, and the Chicago and North Western .Railroad on the west. Seven of the blocks in the Downtown II area were approved by the City Council in 1980 as "an intensive redevelopment planning area to be approached in a unified manner", and the eighth block was added in 1982. A private development team was selected in 1981 to plan the redevelopment of Downtown II, and certain -parcels have been cleared in anticipation of future development. The area contains a wide range of uses including retail, commercial services, auto -oriented comr.:ercial, warehousing, office, residential, insti- tutional and cultural services, and large tracts of vacant property used for surface parking. Much of the vacant property was the • former site of the City's maintenance facilities. To date, many conditions have mitigated against the feasibility of private re- development in this area. As a result, the City has declared its willingness to consider a wide variety of development incentives to stimulate the private redevelopment of the Downtown II area, in- cluding the use of tax increment financing. Illinois Revised Statutes Chapter 24, Section 11-74.4-1, et seq., which sections are known as the "Real Property Tax Increment Allocation Redevelopment Act" %ras adopted in 1977. The Act `ocuses on the elimination of blighted or rapidly deteriorating areas within Illinois communities through the implementation of a redevelopment plan. The Act authorizes the use of tax increment revenues derived from the tax rates of all taxing districts in a project. area for the Payment of redevelopment project costs incurred by the municipality. Since these costs are maid for by tax revenues derived from the increase in • val=ie of redevelopment properties, no additional tax burden is Placed on anv ta.toaver other than the owners of redeveloped -3- • properties which have increased in fair market value. After -a blighted or. deteriorating area is designated as a "Redevelopment Project Area" and tax increment financing is adopted accordina to the provisions of the Act, all taxing districts cbd- tinue to receive the tax revenue they received prior to redevelop- ment from real property in -the area. The new tax revenue generated by the application of tax rates to the increase in assessed values resulting from redevelopment is described as the tax increment. If more tax increment revenue is received than is necessary to pay for redevelopment project costs and principal and interest on obligations issued to pay for such costs, the excess revenue is redistributed to the taxing districts having jurisdiction in the redevelopment project area. This Downtown II Redevelopment Plan and Redevelopment Pro- ject has been formulated in accordance with the provisions of the Act.. This plan should be used as a general guide to all proposed • public and private actions in Downtown II. It also specifically .,describes the Downtown II Redevelopment Project Area which meets the eligibility requirements of the Act. A legal description of the' area is provided in Section II of this Redevelopment Plan. After approval of the Redevelopment Plan and Project, the Evanston City Council will formally designate this Redevelopment Project Area. The Downtown II Redevelopment Plan and Project represents Evanston's most ambitious redevelopment efforts to date. It pre- sents many challenges and opportunities for a massive infusion into the local economy. The spread of blighting conditions cannot be arrested without the adoption of such a plan and project en- tailing the redevelopment program necessary for revitalization of the Downtown II area. The problems of land assembly and the mag- nitude of the investment needed to install infra -structure of •public improvements necessary for redevelopment preclude the pos- sibility of private investors undertaking the entire burden of financing the redevelopment of Downtown II. This Redevelopment -4- Project Area has not been subject to growth and development by • private enterprise, but public investment can create a stable environment that will again attract the private investors. Public and private investment is possible only if tax increment financing is used pursuant to the terms of the Act. The revenue generated by the development will play a decisive role in encouraging private development. Conditions of blight that have precluded intensive private investment in the past will be eliminated. Through this redevelopment Plan, the City of Evanston will serve as the central force for attracting the assets and energies of the private sector for a unified cooperative public -private redevelopment effort. Ultimately, implementation of this Redevelopment Plan will benefit the City, its neighborhoods and all the taxing districts which encompass Downtown II in the form of a significantly expanded tax, base, employment opportuni- ties and a wide range of other benefits. • • r a - • II. REDEVELOPMENT PROJECT AREA LEGAL DESCRIPTION Boundaries of the Downtown II Tax mere-ment Redevelopment Project Area are shown on the '3oundar. -Mao, E'xhi b; t 1 , The City of Evanston proposes that this Redevelopment Project Area encom- passes the following area within the corporate limits of the City, particularly described, -to -wit: _ A tract of land consisting of Lots and Blocks or parts thereof and streets and alleys of Blocks 1, 2, and 3 in the West part of the N.W. 1 of Section 18, Blocks 6, 7, 8 and 18 in the East part of the N.W. a of Section 18, and Block 66 in the East part of the S.W. ; of Section 18, all in the Village of Evanston, Section 18, Township 41 North, Range'4, East of the Third Principal Meridian, in the City of Evanston, County of Cook, State of Illinois and bounded as follows: Beginning at a point at the intersection of the cen- ter line of Church Street and the East line of Benson Avenue, thence North along the East line of Benson Avenue • to the South line of Clark Street, thence East along the South line of Clark Street to the East line of Sherman Avenue, thence North along the East line of Sherman Avenue to the North line of Elgin Road, thence Northwesterly along the North line of Elgin Road to the North line of Emerson Street, thence West along the North line of Emerson Street to the East line of Ridge Avenue, thence South along the East line of Ridge Avenue to the West line of the Chicago and North Western Railroad right-of-way, thence South- easterly along said West right-of-way line to the South line of Davis Street, thence East along the South line of Davis Street to the East line of Benson Avenue, thence North along the East line of Benson Avenue to the center line of Church Street, said point being the point of be- ginning, all in the N.W. 1 and the S.W. ; of Section 18, Township 41 North, Range 14, East of the Third Principal Meridian, in the City of Evanston, County of Cook, State of Illiiois. • Q� EXHIBIT - 1 Boundary Lllao BLocks: 112 1,13 113 1" c 117 12 L • TAX INCREMENT FINANCING DISTRICT LLQ9 � m r-711 FOSTER_ GARNETT ST. cz! Ll I I C:l UNIVERSITY PL. .Yoms ST. LJ CLARK } 24 cm L-Z i ri I CHURCH La > F7 DAVIS ST. c;l I H-1 UC7 GROVE ST, F-LR It 11 1 WLI ST r �l 0 z MO Cl EMERSON ST. 8 Af ST JL > T25 FLI tv, z < v 0 61 z Wh us Z.4-Q 9 CIO 17-1� \1 0 • III. REDEVELOPMENT PROJECT AREA GOALS AND OBJECTIVES The Downtown II area has been studied as a potential renewal area for more than ten years. 'It was identified in Evanston's Comprehensive General Plan of 1974 (currently being updated) as a potential redevelopment area for predominantly business and office development. Throughout -the .1.970 5 and early 1980s, the Downtown iI area -has consistently been referred to in various studies as the area of the city with the highest ;potential for redevelopment. New private investment in the Downtown II area is essential to the continued vitality of the Evanston CBD. Redevelopment in this project area will strengthen the entire city through environ- mental improvements, a greater tax base and additional employment opportunities. The joint effort between the City and the private sector to redevelop Downtown II will receive significant support • from the financing methods made available in the tax increment financing legislation. This section of the Redevelopment Plan identifies the goals and objectives of the Redevelopment Project area. These goals and objectives correlate with the revisions to the Comprehensive General Plan for citywide and CBD business development_ Sections V and VI of this Redevelopment Plan identify the more specific programs and activities, and the Redevelopment Project which the City plans to -undertake to achieve these goals and objectives. General Goals 1. To strengthen Evanston's economic position, thus improving both the quality of life provided through services and the personal prosperity of residents. 2. To enhance the economic vitality, physical • quality and diversity,of services of downtown Evanston so that it will remain. an attractive center of activity which - serves the needs of Evanston residents, businesses and users from surrounding areas. General Objectives 1. Attract and retain enterprises which strengthen Evanston's economic base. 2. preserve existing employment and create additional local job opportunities. 3. Establish and maintain a safe, pleasant, and functional environment in our com- mercial areas while encouraging new economic development. 4. Encourage diversity of activity and land uses within the Central Business District. • 5. Expand the revenue generating potential of downtown Evanston through the selective redevelopment of areas with possibilities for new growth while conserving and up- grading those buildings and features which establish the character of the Central Business District. 6. Maintain and enhance the quality of the physical environment of downtown Evanston Redevelopment Project Area, SDecific Objectives 1. Increase the opportunities for evening use of the Central Business District. 2. Encourage development of multiple -use facilities where applicable to conserve and make the most efficient use of high • value land. !M • 3. Maintain the balance of land uses by encouraging activities such as retail, hotel, residential, cultural and service unctions that complement the role of the Central business District as an office canter. 4. Encourage the creation of :facilities which serge cultural purposes.such as heaters, art galleries, restaurants, and.mu.sieal events. 5. Improve the parking and traffic system, as needed, to respond to new growth and changing system demands. 6. Establish programs to further enhance the scale, design and overall environment in order to create a pleasant pedestrian atmosphere. -10- IV. CONSERVATION AREA CONDITIONS EXISTING IN THE • REDEVELOPMENT PROJECT AREA Based upon various inspections and analyses of the area, and on official building records of the City of Evanston, the Redevelopment Project Area qualifies as a "conserAraticn area" as defined -by .the Act- The state-tcry _ quirame.n } f.�_ as - a conservation area is that 50% of the buildings in the area have an age of 33 years or greater. In addition, the presence of a combination of three or more blighting factors, rendering the area detrimental -to the public safety, health and welfare of the citizens of the city qualifies it as a conservation area under the tax increment financing legislation. An analysis was made of each of the eligibility factors listed in the legislation to determine whether each or any are present in the project area, and if so, to what extent and in what locations. A detailed study to deter- mine whether the area qualified as a conservation area was • completed in April, 1984, and is on file in the City of Evanston Planning Department. The following is a summary evaluation of each factor from the legislation that was exhibited in the Rede- velopment Project Area. A. Age Fifty percent or more of the structures in the area must be 35 years of age or older to qualify as a conservation area. Of the 41 primary structures in the Downtown II area, 30 or 73 percent are 35 years old or older based on data derived from the City of Evanston building files. No private commercial construction has occurred in the Downtown II area since 1960. B. Dilaoidation Building condition evaluations and surveys of property • conditions were conducted during the months of July, 1982, -11- • and July, 1983. Dilapidated buildings are characterized by major structural defects that are so serious and ex- tensive as to impair the continued safe use of the buildings. Dilapidated buildings are also classified as structurally substandard. On the basis o= the structural - surveys, la buildings or 24 percent of the total are di- lapidated. This factor is considered to be strongly present in the Redevelopment Project.Area. C. Obsolescence Obsolescence is present in 18 or 44 percent of the struc- tures in the Redevelopment Project Area. These structures are characterized by conditions indicating the structure is incapable of efficient or economic use according to contemporary standards. This factor includes both func- tional obsolescence, which relates to the physical utility • of a structure, and economic obsolescence, which relates to a property's ability to compete in the marketplace: Functional Obsolescence. Buildings become obsolescent when they contain characteristics or deficiencies which limit the use and marketability of such buildings. The characteristics include loss in value to a property resulting from an inherent deficiency existing from poor design or layout, improper orientation of the building, etc., which detracts from the overall use- fulness or desirability of a property. Economic Obsolescence. Economic obsolescence is normally a result of adverse conditions which cause some degree of market rejection and hence, deprecia- tion in market values. Typically, buildings classified as dilapidated and buildings which contain vacant space are characterized by problem conditions which may not be economically curable resulting in net rental losses and/or depreciation in market value. D. Deterioration • 18 or 44 percent of the structures in the Redevelopment Pro- ject Area are deteriorated. Buildings throughout the Downtown -12- • II area are characterized by defects what are causing the general decline of the structures. Deteriorating buildings contain deficiencies in one or more primary structural components or deficiencies in two or more secondary com- oonents. Primary components are defined as foundations, exterior walls, and roof and roof structure.' Secondary componentz •ara defined as elements such as-- exterior porches and stairs, windows and window units, doors and door units, exterior surfaces, gutters and downspouts, and chimneys. E. Presence of Structures Below Minimum Code Standards 19 structures or 45 percent of the total are below minimum code standards in the Redevelopment Project Area_ Many buildings in the Downtown II area no longer meet contempo- rary zoning or building codes. Some structures have a long history of code violations. Structures exhibiting any of the following characteristics were considered to be below • minimum code standards. - inadequate sanitary facilities - substandard mechanical systems - excessive dwelling unit density - apparent fire hazards - inadequate light or ventilation - uses not conforming to present zoning - unsanitary conditions - dilapidation (as defined herein) F. Vacancies or Abandonment Four buildings in the Redevelopment Project Area were found to have vacancies. Other structures that had been abandoned were demolished since 1980. Several major parcels remain vacant of any structures. • -13- G. Overcrowding of Structures and Commtnity Facilities Within certain blocks there are structures - which are charac- terized by over -intensive use. Also, loading and service for some buildings is limited to narrow alleys or to front doors thus requiring access from the public right-of-way. This contributes to problems of traffic congestion and restricts pedestrian usage of sidewalks in some cases. H. Lack of Ventilation, Light, or Sanitary Facilities Upon interior inspections of several structures in the Redevelopment Project Area, it was found that certain structures lacked adequate ventilation, lighting or sani- tary facilities according to contemporary development and current code standards. I. Deleterious Land Use or Layout Deleterious land use or layout is present in 27 or 66 per- cent of the buildings in the Redevelopment Project Area. Many of the structures in the area are land uses not in conformance with the City`s Zoning ordinance. other land uses are outmoded, having a harmful effect on the surround- ing area and contributing little to the local tax base. Additionally, the layouts of many parcels are obsolete and present a deterrent to the assembly of appropriate sites for contemporary development. This factor is also demon- strated by a wide variety of parcel sizes and shapes. The subdivision of properties is haphazard, resulting in obso- lete platting of the area. J. Depreciation of Physical maintenance • Depreciation of physical maintenance is also present in 27 or 66 percent of the buildings in the Redevelopment Project Area. Properties in the area evidence a lack of routine -14- • Maintenance of building components problem conditions include peeling or blistering paint, loose or improperly secured building materials, deteriorating accessory buildings, unkempt Storage areas, and the accumulation of debris in parking and yard areas. r.ce3ck- o-Ccmmu-. J;_`?i p? .=n ::gin q - The Downtown II area developed before the City's adoption of a comprehensive plan. Much of it was even developed before Evanston's first zoning ordinance was adopted. The platting and development shows little evidence of coordination and planning among buildings and activities. The lack of community planning throughout the development of this area has contributed to the problem conditions previously cited as characteristics of the entire area including obsolescence, overcrowding of structures and facilities, and deleterious land use or layout. Inadequate • community planning has resulted in major obstacles to re- development. • -15- • • J. DOWNTOWN !I REDEVELOPMENT PROJECT A, Redevelopment Plan and Project Objectives The City of Evanston proposes to realize its goals and objectives of redevelopment and encouraging private investment in the' Downtown Ii area through public finance techniques in- cluding but not limited to tax increment financing: (1) By implementing a plan that provides for the assemblage of sites for redevelopment through the application of appropriate land assemblage techniques, including the acquisition and re- moval of deteriorated and/or obsolete buildings and buildings so situated as to interfere with replatting of the land into parcels suitable for redevelopment and vacating certain public rights - of -way and making them a part of one or more re- development sites in accordance with this Redevelopment Plan. (2) By assisting in the relocation of residents and busines"s establishments where necessary to achieve the objectives of the Redevelopment Plan. (3) By providing for the conservation and preservation of three or more structures in the Redevelopment area. (4) By providing public improvements which may include: (a) off-street parking, (b) railroad viaduct and underpass, (c) new utilities or utility adjustments, (d) transit systems connection facility, (e) public plazas, (f) surface right-of-way improvements, (g) pedestrian walkways. (5) By entering redevelopment agreements for the rehabi- litation or construction of other improvements in accordance with the Redevelopment Plan. B. Redevelopment Activities -16- • 1. -Assemblage of Sites Tc achieve the renewal of the Downtown II Redevelopment Project area, property -identified in Exhibit t, Pronerty Ownership and Acquisition Pro- gram, may be acquired by the City of Evanston and cleared of all improvements and either (a) sold or leased for pr? vaLa -re- devei-pr-r.e^t, ar . C b x-- leased, or dedicated for construction of public improvements or facilities. The City may deter- mine that to meet the renewal objectives of this Redevelopment Plan and Project, other properties in the Redevelopment Project Area not scheduled for acquisition should be acquired, or certain property currently listed for acquisition should not be acquired. Individual structures may be exempted from ac- • quisition if they are located so as not to interfere with the implementation of the objectives of this Redevelopment Plan or the projects implemented pur- suant to this Redevelopment Plan and the owner(s) agree(s) to rehabilitate or redevelop the property, if necessary, in accordance with the objectives of the Plan as determined by the City of Evanston. Clearance and demolition activities will, to the greatest extent possible, be timed to coincide with redevelopment activities so that tracts of land do not remain vacant for extended periods of time and so that the adverse effects of clearance activi- ties may be minimized. 'The City of Evanston may choose to devote property which it has acquired to temporary uses, such as surface parking, prior to such time as property is needed for redevelopment. • -17- ri uper-fy uwner5nip aria Acquis,,tion Program E,"EAZON 57PEET UNIVERSITY UNIVERSITY pt-ACE STREET k W (L N �,\�� Property Owned by City of Evanston ton :Property Owned by Northwestern Universi Property to be Purchased `or Redevelopment State/Federal Purchase for Transportation - Center' r CLARK -18- Businesses or residences that are acquired by the • City may remain as such until redevelopment plans are prepared to be implemented. Z. Relocation Owners and tenants of businesses or residences that are displaced by the acquisition of propert-v may be provided with relocation assistance and advisory services. 3. Conservation and Preservation Conservation and preservation are important con- cepts to be considered in the Downtown II redevelopment. It is contemplated that at least three existing build- ings may be retained for preservation of their archi- tectural significance or because they can be readily rehabilitated for reuse. These include: (1) the • Commonwealth Edison substation at the southeast corner of Maple Avenue and Clark Street, (2) the brick warehouse at the northeast corner of University Place and East Railroad Avenue, and (3) the Chicago and North Western Davis Street railroad station. It is possible that certain additional structures will be proposed for retention during the course of redevelopment. The City encourages the productive use or reuse of structures in the Redevelopment Pro- ject Area insofar as those structures: (a) are located so as not to impede overall economic development, and (b)are owned by parties with whom the City has a formal agreement committing the owners to making necessary improvements to bring the buildings into accord with this Redevelopment Plan. 4. Provision of Public Improvements and Facilities • -19- • Adequate public improvements and facilities will be provided to service the entire Redevelopment Pro- ject Area. Public improvements and facilities may include, but are not limited to: a. Development of off-street parking facilities including above and below -grade structures. Cons tr-:action. of a v Laduct- and underpass at Clark Street for the Chicago Transit Autho- rity rapid transit line allowing for improved east -west access to and from the Downtown II area- C . Adjustments to or new construction of sewer and water lines and the relocation of other utility lines as may be necessary to serve and facilitate redevelopment. d. Construction of a permanent connecting concourse between the Davis Street CTA sta- tion and the Chicago and North Western • Railroad station as part of the downtown transportation center. (To be undertaken jointly with private development and the Illinois Department of Transportation.) e. Development of public plazas equipped with fountains, benches, landscaping, and other site amenities. f. The vacation, removal, resurfacing, widening, reconstruction and other improvements of streets and alleys. g.- Construction of pedestrian walkway improvements. h. Construction of a facility for civic uses. 5. Redevelooment Agreements Land assemblage shall be conducted for (a) sale, lease or conveyance to private developers, or (b) sale, lease, conveyance or dedication for the con- struction of public improvements or facilities. Terms of conveyance shall be incorporated in appropriate -20- disposition agreements whica may contain more specific • controls than those sated in this Redevelopment Plan. In the event the Citv determines that ccnstrsc- tion of certain improvements is not financially feasible, the City may reduce the scope of the pro- posed improvements. C. General Land Use Plan Redevelopment in the Downtown II area will occur for the most part on the existing pattern of the grid framework. Possible exceptions to this may include the closing of parts of East Railroad Avenue, the closing of one block of Benson Avenue, and the relocation of one block of University Place. Land uses in the redevelopment area will be significantly changed from the present. The Land Use Plan, Exhibit 3, • identifies the proposed uses for the blocks comprising the Downtown II Redevelopment Project Area. Locations are shown to indicate the preferred distribution and mix within the Redevelopment Project Area. However, without amendment to this plan, minor modifications may be necessary and bene- ficial to the redevelopment of this area. The proposed land uses conform to the Comprehensive General Plan for the City of Evanston. Rezoning of two blocks will eventually be necessary for conformance with the Evanston Zoning Ordinance. The following land use provisions are established for the Redevelopment Project Area. 1. Retail Uses Large-scale retail with a regional focus is not feasible for the Downtown II area. However, conve- • -21- LLM L rrr•i•i•�r ,r•r•ir4• ri•i•r•ir • �.•M•r. r. �..i•4rr•a• 4•� WAN on W. 1 a>w i(vt WOW ki E01C►1 _ - Ll0 llclb iL111U11P CN1t EY CALIIK OKAY 1%"QYOFEVANSTON r,�.lacla E a.Ktt ,w 009t �.K PROPOSED SCHEME tww,pa .( w.w EXHIBIT 3 uu.uun ut..m 1 If111 119F Pr AN LJ I-W-HPPH' - 9 VIWAF SYMBOL$ �- , � iWM Urf1UE/tic�ARp1 _ LLLLiI Yxto USE CIfxt YIOAItl*flllxttfAC(UIY CpVf%NiALNf fACJUIV ai4 IMLIA& VoNVLeifWlJ .teat f 1 1i wll(n41f4! Ui1.7+r� � `- DOWNTOWN AN rwln ^.e lua*r tunoc rc waif.m Aasoa Al" a Ef70 ja»w. UNIVERSITY PLACE nience and specialty retail opportunities of a • moderate size do exist. Convenience retail space servicing both residential and of"fice/research development could include: an expanded and relocated grocery store, restaurants and food shoos, retail establishments catering to noon -hour shopping re- quirements, and household -related retail facilities. Specialty retail would include the types of apparel; gift and novelty stores that downtown Evanston is still noted for. All retail development in the Redevelopment Project Area would be carefully inte- grated and construction would be phased with office, research and residential development. Ground -floor retail in office and research facilities will be encouraged. 2. Office Uses Office development will make up a major portion • of the Downtown II redevelopment. Market surveys have indicated that the majority of Evanston's office mar- ket demand would be derived from existing local service -oriented businesses. New office space users would be attracted to downtown Evanston's lower leasing costs and less traffic congestion when com- pared to Chicago's Loop, and cultural, entertainment and shopping amenities. Office development is expec- ted to be the major focus of the eastern and southern- most blocks of the Redevelopment Project Area with smaller concentrations possible in other blocks of the Downtown II area. 3. Residential Uses The potential exists for significant housing de- velopment in the Redevelopment Project Area. However, -23- • a highly successful research center may limit the opportunities -'or residential development in Downtown II. Housing development could occur in the northernmost blocks of the Downtown 11 area because they border on existing,residentiaL areas. The principal strengths supporting housing develop- ment in the Downtown II area are its proximity to major' employrnient and retailing concentrations in the CBD. Further, its proximity to mass transit connec- tions and Northwestern University make this rede- veloment area a desirable residential site for urban -oriented home buyers and renters. 4. Research Facilities A significant opportunity exists to develop a research park within the Redevelopment Project Area. • Directly adjacent to Northwestern University, a research park would offer corporations the opportu- nity to develop integral office and research laboratory facilities with a direct relationship to the major academic strengths of the university. This Evanston/University Research Park would be unique among such developments because it would focus upon the advanced technology needs of basic industries as well as high-technology firms. For smaller firms, an in- cubator facility is planned to provide low-cost opportunities for research and product development. S. Transportation Center and Other Amenities A public transportation center is planned for the southernmost block of the Redevelopment Project Area. • This center will improve train and bus access and significantly upgrade the physical surroundings of the various transportation modes. Other similar and -24- compatible downtown facilities such as a major health • club, a conference center, retention of the Levy Senior Citizen Center, a cultural arts center and public library may also be considered as part of the Downtown II redevelopment. 6. Alternate Use _ In the event that the Transportation Center office facility or a portion of the research cen- ter is not feasible or desirable at the time of construction, an alternate use of a hotel facility may be considered. D. Additional Controls and Design Criteria The following controls and criteria shall apply to redevelopment in the Redevelopment Project Area: • 1. General a. Redevelopment shall complement existing surrounding activities in use, scale and quality of materials. b, Mixed -use development and visual/functional inter -relationships are encouraged so that the entire area may appear and function as an integrated whole. 2. Pedestrian Access Design layout shall facilitate internal pedestrian circulation and movement between major traffic generators and parking facilities. 3. Ma.ssi.na of Buildings The Redevelopment Project Area will be designed as a dense, high --.intensity employment and resi- • dential center. However, building mass should -25- • be limited to the extent that it is economically feasible to do so. Design importance will be stressed in the treatment of s treetscapes, first floor activities, and the relationships of build- i,no facades . __. _ � 4-. _ ...voerd Soace= Small plazas and open spaces are encouraged to provide vistas and attractive areas for pedes- trians. Such areas can often be created from limited building setbacks. Enclosed atria are also encouraged, especially at nodes where pe- destrian routes meet or cross. 5. Parking Development should provide for an adequate supply of appropriately located short-term patron and long-term emplcyee parking spaces. Parking structures should be visually integrated with other development. Buffering, screening, or landscaping should be used to make parking faci- lities as attractive as oossible. 6. Signs The design and use of signs shall be in keeping with the area's overall architectural character and shall be coordinated in type, size and loca- tion with those in nearby developments, all in accordance with the City's sign ordinance. 7. Utilities All utility lines should be located underground. • The Commonwealth Edison substation located in the center- of- the redevelocr:ent site should be -26- aesthetically improved so as not to detract from • the attractiveness of the redevelopment. Additional planning and design controls may be included in each land disposition agreement with developers. E. Estimated Redevelopment Project Costs Redevelopment project costs mean and include the sum total of all reasonable or necessary costs incurred or esti- mated to be incurred, and any such costs incidental' to this Redevelopment Plan and a Redevelopment Project. The state legislation states that such costs may include, without limitation, the following: 1. Costs of studies and surveys, plans, and specifi- cations; professional service costs including but not limited to architectural, engineering, legal, marketing, financial, planning or special ser- vices; • 2. Property assembly costs, including but not limited to acquisition of land and other property, real or personal, or rights or interests therein, de- molition of buildings, and the clearing and grading of land; 3. Costs of rehabilitation, reconstruction or repair or remodeling of existing buildings and fixtures; 4. Costs of the construction of public works or improvements; 5. Financing 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 accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and for not exceeding 18 months thereafter and including reasonable reserves related thereto; 6. All or a portion of a taxing district's capital • costs resulting from the redevelopment project -27- • necessarily incurred or to be incurred in fur- therance of .th*e objectives of the redevelopment plan and project, to the extent the municipality by written agreement accepts and approves such costs; i. Relocation costs to the extent that the munici- pality determines that relocation costs shall be paid or is required to :Hake patrnent of relo- cation costs by federal or state Iaw; Payment in lieu of taxes. - In the event the City of Evanston issues obligations under the Act or pursuant to its home rule powers, the.pro-- ceeds of which are used to pay redevelopment project costs: �1) In any year during which said obligations are out- standing and funds in the special tax allocation fund are insufficient to pay principal and interest when • due, the City shall cover such shortfall in payment in accordance with the terms of the obligations, and any such payments made by the City shall be repaid in full to the City from the special tax allocation fund from subsequent available tax increment re- venues from improved taxable lots or parcels of real property prior to the creation of any surplus funds. (2) In any year during which said obligations are out- standing and funds in the special tax allocation fund are sufficient to pay the next due principal and interest, but it is anticipated that in subsequent years funds may be inadequate to make the current payments of principal and interest, then the City may create such reserves from the funds as it may deem appropriate to enable it to make future payments • of principal and interest under said obligations. Amounts in any such reserve shall not be deemed to I►' be surplus funds. Real estate tax increment revenues • which cantizute funds in the special tax allocation fund for the purpose of this paragraph include o^ly tax increment revenues from improved taxable lots or parcels of, real property. Estimated costs are shown in Table 1. To the extent that •-rhe City of Evanston has incurred redevelo-omenz orojecr costs prior to, but in anticipation of, the adoption of tax increment financing, the City may be reimbursed for such costs. Adjustments to the cost items listed in Table 1 are anticipated without amendment to this Redevelopment Plan. F. Sources of Funds to Pay Redevelopment Project Costs Funds necessary to pay for redevelopment project costs are to be derived principally from tax increment reve- • nues and proceeds from municipal obligations which have as their revenue source tax increment revenue_ The tax increment revenue which will be used to fund tax increment obligations and redevelopment project costs shall be incremental taxes attributable to the increase in the current equalized assessed value of each taxable lot, block,tract or parcel or real property in the Redevelopment Project area over and above the initial equalized assessed value of each such property in the Redevelopment Project Area. Other sources of funds which may be used to pay for redevelopment costs and obligations issued, the proceeds of which are used to pay for such costs, are proceeds from pro- perty sales, land lease payments, state and federal grants, investment income, and such other sources of funds and re- venues as the municipality may from time to time deem • appropriate. -29- • TABLE I DONTNTOWT� II REDEVELOPMENT PROJECT ESTIMATED PROJECT COSTS* . Program Action/Imrrovement Estimated Cost Acquisition and relocation for Blocks 112 and 303 and a portion of 125 $ ___' 4 , 50,0, 000 Demolition and Clearance 400,d00 Transportation Center Plaza 300,000 Transportation Center Concourse 500,000 Clark Street Viaduct and Underpass 11500,000 • Sherman Place Parking Garage 5,900,000 Civid Facility Improvements 4,000,000 Surface Right -of -Way Improvements and Utility Admustments 4,000,000 Planning, Legal, Studies, etc. 500,000 Contingencies (10%) 2,160,000 GROSS PROJECT COST $ 23,760,000 * All cost estimates are in 1984 dollars. In addition to the above stated costs, each tax increment bond issue may have additional costs for capitalized interest and customary • reasonable charges associated with the issuance of such ob- ligations. Adjustments to the estimated line item costs above are expected. Each individual project cost will be reevaluated in light of projected private development and resulting property tax revenues as it is considered for public financing under the provisions of the Act. -30- In the event that adequate funds are not available • From the aforementioned sources, the City may use --its general -funds and utilize its taxing power to sustain the projects and repay obligations issued in connection with the Rede- velopment Project, to be reimbursed, if possible, from tax increment financing. v - - Na _u=e -ac � Te_--?l G5 Cb? 4.yu.�._.c-n-s `.^,. ✓Y r�31:F3C - - - The City may issue obligations secured by the tax in- crement special tags allocation fund pursuant. to Sect -ion 11-74.4-7 of the Act. Such obligations can either take the form of general obligations bonds, issued by utilizing the home rule powers of the City, or tax increment revenue bonds issued pursuant to the Act. All obligations issued by the City pursuant to this Re- development Plan and the Act shall be retired not more than twenty-three (23) years from the adoption of the ordinance • approving the Redevelopment'Project Area. However, the final maturity date of each individual obligation issued pursuant to the Act may not be later than twenty (20) years from its respective date of issuance. One or more series of obligations may be sold at one or more times in order to implement this Redevelopment Plan. The amounts payable in any year as principal of and interest on all obligations issued by the City pursuant to the Redevelopment Plan and the Act shall not exceed the amounts available, or projec- ted to be available, from tax increment, revenues and from such bond sinking funds, capitalized interest funds, debt service reserve funds'and other sources of funds as may be provided by ordinance. Revenues shall be used for the scheduled and/or early retirement of obligations, and for reserves, sinking • funds and redevelopment project costs, and, to the extent -31- • not used for such purposes, may be declared surplus and shall then become available for distribution annually to taxing districts in the Redevelopment Project Area in the manner provided by -1,e Act. is H. Most Recent Equalized Assessed Valuation of Properties - in the Redevelocment Project Area 2 'Lists - t-iie ' uTOSt recent t 1 9-83 ) ecua t ized assessed valuations of properties in the Redevelopment Pro- ject Area by block. The total estimated equalized assessed valuation for the Redevelopment Project Area is $1,836,024. The Boundary Map, Exhibit 1, shows the locations of the eight blocks comprising the Downtown II area. Z. Anticipated Assessed Valuation Upon completion of the anticipated private develop- ment by the year 1997 and assuming a constant Cook County equalization multiplier of 1.9122, it is estimated that the equalized assessed valuation of real property within the Downtown II Redevelopment Project Area will be approximately $122,000,000. -32- TABLE 2 BLOCK SUMMARY OF 1983 EQUALIZED ASSESSED VALUES* • .Block No. Assessed Valuation Equalized Valuation 112 $ 587,648 S 1,123,700 113 2,200 4,207 117 -r0- -0- 118 -0- 119 690 1,702 124 -0- `0- 125 149,990 286,811 303 219,435 419,604 n U TOTAL. $ 960,163 $ 1,836,024 * Figures are subject to final verification. Initial equalized assessed valuation is $1,836,024 based on a Cook County equalization multiplier of 1.9122. After verification, the correct figure shall be cer- tified by the County Clerk of Coot County. • -33- • • Vi. PHASING AND SCHEDULING OF REDE�IELOPK.EZIT PROJECT In order to maximize program efficiency to take advantage of previous and current redevelopment actions and with full consi- deration of the availability of both public and private funding, a phased implementation strategy will be emploved. The phasing of the different components of this Redevelopment Project may overlap due to the uncertainties of market absorption patterns, availability of state and federal financial assistance, difficulty of land ac- quisition, and feasibility of private sector financing. The repre- sentations as to the amounts of space required for usage herein are necessarily approximate and may be revised pursuant to nego- tiations between the City of Evanston and developers. A. Initial Phase (Phase 1, 1984-1988) The first phase of the Redevelopment Project will require an estimated four years to complete and will involve expen- ditures from the first tax increment bond issue. Block 119 The entire block has been acquired and cleared by the City in anticipation of a two -phased office and retail complex development. The property will be leased to a private developer with an op- tion to purchase for construction of approximately 318,000 gross square feet of office space and 56,000 gross square feet of retail space. Construction will begin on the first building in 1984 and will include approximately 130,000 gross square feet of office space and 18,000 gross square feet of retail space in a nine -story glass and granite structure with surface parking. The second building and con- necting retail arcade will contain the balance o= office and retail space and are scheduled for construction in 1986. The City will finance the construction of a viaduct and underpass at Clark Street through the CTA transit lire em- -34- bankment and a narking garage (simultaneous • with the second office building) in conjunc- tion with this development. Block 303 A public transportation center will be construc- ted in 1986-67 following engineering design work •and°property acquisition. This.center will phy- sically connect the various modes of transoorta- tion that converge on this block including the CTA rapid transit line, Chicago and North Wes- tern commuter railroad, CTA buses and suburban buses. The entire area will be physically im- proved and upgraded to provide a more aestheti- cally pleasing site for public transportation patrons. The City commitment to this project will include a portion of the_ initial land ac- quisition and possibly the local matching share of construction funding. • Other Certain utility lines may need to be reconstruc- Blocks ted or adjusted in anticipation of development to take place in the second phase of this Redevelop- ment Project. B_ Second Phase (Phase 2, 1986-1996) The second phase of the Redevelopment Project is ex- pected to begin in 1986 and involve various separate but integrated developments until the completion of the entire project, projected for 1996. Phase 2 will consist of the creation of a major research and development center offering corporations the opportunity to develop office and research facilities in a setting designed exclusively for such acti- vities. This Evanston/University Research Park will, focus on the advanced technology needs of basic industry as well is high-technology firms. For large companies, the Research -35- Park will offer a first-rate research environment and spe- cial access to Northwestern University programs that facili- tate university-ir_dustry interaction. For new cr existing smaller companies, the Research Park's planned incubator facilities and services will provide opportunities for research, development, and prototype manufacturing that - might: not 'otherwise be- readily -.undertaken. - Blocks 118 Currently owned by Northwestern University, and 125 these blocks will be cleared and redeveloped primarily for office/research land uses. Anchor developments for Block 118 are pro- jected to include a Basic Industry Re- search Laboratory and a small business incubator facility. Development in Block 125 is projected to include a private • research facility and a mixed -use office and specialty retail project. Also, the Commonwealth Edison substation would be retained and parking would be provided throughout these developments. Blocks 117 Currently owned by the City of Evanston, and 124 these blocks have been mostly cleared in anticipation of future development and are currently used for surface parking. Pro- jected development is to include the con- struction of several office/research facilities with ground -floor specialty zetail, a possible addition to the Levy Center, or new civic facility, and parking for the entire development. • C. Third Phase (Phase 3, 1988-1996) The final phase of the Redevelopment Project will -36- 9 include various commercial and residential development in • Blocks 112 and 113 and a private office development in Block 303. Development of'Phase 3 is not projected to begin until 1988 and may continue until the entire Redevelopment Project is completed in 1996. Block 112 Designated property in this block -will be acquired, cleared and disposed of to a pri- vate develoQer. Possible land uses include a grocery store, health club, convenience retail, and mid -rise housing. Actual development will depend on the market demand for such uses and the success of the re- search center. Public financing will necessarily include land acquisition, demo- lition, relocation assistance, and various infrastructure improvements. • Block 113 This block is currently owned by North- western University and will be cleared for redevelopment. Housing or the continuation of the research center is projected for this block. Block 303 Designated property within this block will be acquired, cleared, and disposed of to a private developer for construction of a ma- jor office building with possible convenience or specialty retail on the ground level. This office project will be unique in that it can be physically connected to the con- course of the transportation center. Public financing will be necessary for land aquisi- tion, clearance, relocation assistance, a • -37- �• public plaza for the transportation center, and a portion of the cost of a permanent connecting concourse between the CTA and C&`SNIT stations. D. Completion of Redevelopment Project and Retirement of Obligations to Finance Redevelopment Costs - Phis Redevelopment. Prajact will he completed on or before a date 23 years from the adoption of an ordinance de- signating the Redevelopment Project Area. The City of Evanston expects that it will be completed sooner than the 23 year maximum timeframe of the legislation, depending on the incremental tax yield. Actual construction activities are anticipated to be completed within twelve years_ • -38- VI-,. PROVISIONS FOR AMENDING THE TAX 1NCRaMENT PLAN • This Redevelopment Plan and project for Downtown I -I may be �ameaded pursuant to the provisions of the Real property Tax incre- ment Allocation Redevelopment Act. • -39-