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HomeMy WebLinkAboutMinutes 2001DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING M1 NTTES WEDNESDAY JANUARY 24, 2001 ROOM 1404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Ald. Wynne, Percy Berger, Walter Clarkson, Sydney Grevas, Lucille Krasnow MEMBERS ABSENT: Aid. Engelman, Aid. Moran, Aid. Newman PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Roger Crum, Dennis Marino, Morris Robinson, Lloyd Shepard OTHERS PRESENT: Dennis Harder- Joseph Freed & Assoc., Martin Stern-U.S Equities Realt. Inc., Ann Dienner-Plan Commission Summary of Actions: Aid. Feldman called the meeting to order at approximately 8:11 P.M. The first order of business was a request for a motion to enter into Executive Session for the purpose of discussing a proposal for land sale. The discussion may also reference possible proprietary financial data pertaining to Mark Goodman and Associates. Morris Robinson conducted a roll -call voice vote to enter into executive session and the motion passed unanimously. Executive Session began at 8:14 P.M. Executive Session ended at 8:20 P.M. Resuming the regular open meeting, the previous minutes of December 13, 2000 were unanimously approved and the communication items contained in the packet were briefly discussed. Aid. Feldman asked when the construction of the Mesirow Stein/McDougal Little mixed -use office building will be completed. Roger Crum stated that the target completion date is April 2002. Aid. Feldman asked how long the Chefs Station Restaurant would have to endure the hardships created by all of the construction activities surrounding the establishment. Mr. Crum responded that probably until the project is close to completion. 3 DRAFTWOTAPPROi ED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 24. 2001 PAGE 2 The fourth item on the agenda was a presentation from Freed and Associates regarding the lease status and new project proposals related to the Dempster Plaza shopping center. Ald. Feldman welcomed Mr. Dennis Harder, a principal with the firm. Mr. Harder began his presentation by displaying a plat which illustrated the shopping center layout and the various tenants occupying spaces within the center. He commented on the first class appearance of the new Dominick's grocery store, stating that in his estimation it is better looking and better functioning than any he has witnessed before. Mr. Harder also stated that Freed has received reports indicating sales have exceeded Dominick's expectation. The store is staffed with people from the area and the store is professionally managed. Ald. Feldman concurred, adding that the employees were also very friendly. Proceeding with the presentation, Mr. Freed stated that the other businesses within the shopping center were reporting increased sales. Mr. Harder was glad to report that Pay Less Shoe Store was returning to the Plaza and a lease agreement had been executed. Other shoe stores were looking at spaces next to Frank's Nursery and craft. The shell and core for the newly created 18,000 square foot space has been completed and the structure is now being subdivided into five spaces. Currently, a lease is being negotiated with GNC for the corner space and five or six other companies have expressed interest in the remaining spaces. Freed is exercising selectivity in who they will consider as tenants. Of concern is the closing of the Office Max store. Freed has engaged in preliminary but significant negotiations with N J Wright, a separate fashion clothing retail division of TJ MaxxlMarshall's to occupy the vacated space. It is an eastern based retailer and this proposal, if successful, will establish it as one of the first such stores in the mid -west. Frank's is still a stronk presence in the center and there is no reason to think there are reasons for any plans to change. Freed continues to collect rent from the closed Leaps and Bound store and negotiations are underway to resolve the future of the space. Freed is also actively pursuing tenants for the other smaller, vacant spaces. Mr. Harder stated that the most recent significant proposal which has been presented to the City is the plan to demolish the two structures which contained the closed Kids R Us and Pizza Hut. The plan calls for replacing the structures with one new, better designed building with a better site position, at approximately 20,000 square feet in size. The space will be subdivided to accommodate multiple tenants. The proposal has received concept approval from the Site Plan and Appearance Review Committee. A brief discussion ensued concerning the positive merits of the proposal as well as the apparent success of the new Dominick's. DRAFT-4YOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 24. 2001 PAGE 3 Mr. Harder concluded the presentation by stating that Freed is pleased with the development and will continue to exercise selectivity with regards to leasing the remaining spaces in the shopping center. Aid. Feldman thanked Mr. Harder for the presentation. Item five on the agenda called for project updates and Aid. Feldman asked Dennis Marino to proceed. Mr. Marino stated he had two projects to report on. The Main Street Newsstand was well into the rehab phase and although the weather had slowed the process, the schedule to open on or about April 1, 2001 is still the expectation. Secondly, the Optoma project is proceeding as planned. The demolition of the former BankOne building at Sherman and Davis has commenced to make way for this mixed -use residential development. Ald. Feldman inquired about the proposed pricing of the units. Mr. Marino wasn't sure but he thought they were in the range of S400k to $600k. Pre -selling has begun and the expected completion date will be approximately ten to twelve months. Mr. Marino concluded the updates by advising the EDC that Judith Aiello will provide a more comprehensive projects update at the February meeting. Ms. Lucille Krasnow asked for an update on the Klutarick project. Mr. Roger Crum stated that little has changed. There still remains the issue with acquiring the Osco building parcel. Some progress has occurred with the acquisition of the Olive Mountain restaurant. Negotiations continue for both parcels and Sears is waiting for a resolution. Dennis Marino proceeded with the next agenda item. Following up on an update from the last EDC meeting, Mr. Marino informed the EDC that the Storefront FaVade Improvement Program was in need of refunding if the program is to continue. Previously, Mr. Marino had proposed that both the Storefront Fagade and Neighborhood Business District Improvement Programs be funded from the EDC budget, rather than the Community Development Bloc Grant and Capital Improvement Program allocation respectively. Mr. Marino distributed brochures describing the Fagade Program and examples of the application packets. He proceeded with a highly effective slide program, displaying site examples where matching fagade funds had been used in various parts of the City. Mr. Marino explained to the EDC that the City would match only on a dollar for dollar basis to the approved project and the 50% reimbursement was distributed only after the work was completed and invoices submitted. During the slide program, Mr. Marino explained to the EDC the eligible City areas which met CDBG mandates as well as where and why the funds were used for certain projects in the neighborhood business districts. His narrative also included just what improvement was achieved at each location and where the relative benefits were derived. Mr. Marino also demonstrated some areas in need of similar fagade improvement assistance, especially on the West Side of the City. DRAFT =NOT APPRO VED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 24, 2001 PAGE 4 Aid. Feldman expressed his concern about the need for quantifying the value of a project in other ways than just the end result being a more attractive fagade. Mr. Marino concurred. Aid. Feldman asked if income was a criteria for facade assistance eligibility. Mr. Marino's response was that income was not a consideration. While expressing his appreciation for all of the projects, Aid. Feldman commented on the Main Street improvements as being particularly impressive and stated that he would like to see more such larger, clustered efforts because of the more imposing effect. The other members were in general agreement. A general discussion about the pros and cons of how the program should operate ensued as the slide overview concluded. Moving on to the Neighborhood Business District Improvement Program, Mr. Marino advised the EDC that this program was very successful. It to is in need of refunding. The program was initiated in 1998 by way of presenting Requests for Proposals to the local business associations. Projects in the various business districts were funded in the same dollar for dollar matching requirement used in the Fa;ade Program. The varied projects included such improvement projects as landscaping, seasonal winter lighting, lamp post banners, sidewalk benches, potted plantings and even a web site. Mr. Marino stated that this program might not be one that we would do every year but surely every two years or so would be desirable. Unfortunately the West and Southwest sides of the City did not participate to the degree staff would like to see but extra effort will be extended in the future to increase participation in those areas. The EDC members concurred and expressed their desire for staff to rind a means for providing expertise to merchants on how to better organize business associations and become more effective in funding procurement. Again, a general discussion ensued regarding this program and some possible ways to follow up with required, on -going maintenance of landscaping. Mr. Marino concluded the agenda items by providing a brief update on recent development proposals. A new rental residential project consisting of 180 units has been preliminarily proposed for the old Whole Foods site at Ridge and Emerson. A brief discussion began concerning rental price points, potential traffic problems and speculation about the intended market for the proposed development. There being no further business, Aid. Feldman adjourned the meeting at approximately 9:45 P.M. The neat EDC meeting is scheduled for Wednesday. February 28.2001 at 8:00 P.M. in room 2404. Civic Center. Respectfully submitted, Moms E. Robinson Economic Development Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY FEBRUARY 28, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Aid. Wynne, Percy Berger, Walter Clarkson, Sydney Grevas MEMBERS ABSENT: Aid. Engelman, Aid. Moran, Aid. Newman, Lucille Krasnow PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCEL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, OTHERS PRESENT: Bridget Lane-Evmark Tinsley Garris-ECYB. Carolyn Topcik-ECYB• Lee Cabot -Evanston Historical Society, Heather Goldman-,lYtltan Garden Hotel. Paul Giddings-Chicago/Detrtznter Merchgr.Qp:, Ann Dienner-Plan Commission Summary of Aciioms: Aid. Feldman called the meeting to order at approximately 8:15 P.M. The previous minutes of January 24, 2001 were unanimously approved after Morris Robinson distributed a replacement for page 3, which corrected a reference error on the original document. The communication article concerning the downtown developments which was included in the packet was briefly discussed. ALL Feldman welcomed Bridget Lane, the new Evmark Executive Director. This was her first appearance before the EDC since assuming the position last year. Ms. Lane expressed her pleasure for the opportunity to present an overview of Evmark activities and its direction going forward. Ms. Lane proceeded with her presentation, which included the use of an overhead slide projector and detailed slides as visual aides. Ms. Lane described her considerable background work experience. and formal education. Ms. Lane stated that the reason she was excited about appearing before the EDC was because she was anxious to spread the news as to why these are wonderfid times for downtown Evanston. She continued by explaining the various programs that Evmark administers in the downtown area. DRAFT -NOT APPRO t;ED ECONOMIC DEVELOPM]UNT COMMITTEE MINUTES-FEBRUARY 2& 2001 PAGE 3. Ms. Lane concluded her presentsdon by explaining that E%wwWs budget has not increased in several years. Evmark's marketing r.�, �•••. are reliant on nmdsant complimentary financial support for advertising and other services. Support of this type is provided to merchants for fret in other communities. Ms. Lane also shard her ideas for combining, where possible, the few smaller, persistently vacant and vintage spaces to make them of a size more appealing for leasing. Ald. Feldman asked if the EDC had any questions with regard to the presentation and a general discussion ensued. Ms. Lane .i,...... —Aed that contrary to tine early concerts of some merchants that the Research Park development would dry up business in the south downtown area, the opposite has occurred. Most retailers all o-. rr downtown are .�,.,,, .k.».. a :,.�...,..��J business volumes. Also, it appears that the viaducts have not posed the impediment to connectivity as originally believed. There was also some disaussic a on Evmark expanding its focus to other business districts outside of the downtown area. The EDC was advised that although Evmark's budget does not allow it to expand out of the downtown area, the Evmark staff would be pleased to share its expertise and offer help in the development of organizations in other business districts. All agreed that a general business districts tie-in is desirable particularly with way -finding signage and other marketing synergies. A presentation by the Evanston Convention and Visitors Bureau and a request for support of continued City funding was the next agenda item. Ms. Teasley Garris introduced Ms. Lee Cabot„ Director of the Evanston Historical Society and member of the ECVB board, as the first speaker for the ECVB report. Considerable advertising pieces and collateral material had previously been distributed. Ms. Cabot expressed her pleasure in appearing before the EDC and briefly commented on a movie scheduled to be filmed in part at the EHS mansion and grounds. Ms. Cabot commented on the accomplishments of the ECVB during the past year. The ECVB annual budget is $255,000, of which the City has historically provided 550,000. Ms. Cabot stated that the key purpose for the presentation is to secure EDC support for re -funding of the City portion of the burdget for the new fiscal year. The state also matches the City's contribution on a dollar for dollar basis. Ms. Cabot stressed how important the ECVB activities are to the Historical Society because of the Society's limited budget, a budget that is funded strictly by private means. Only a few thousand dollars are earmarked each year for advertising and markedrg. Ms. Cabot Emphasized the point that when the ECVB includes the Historical Society and the photograph of the Dawes House in the various advertising venues, it allows the Society to reach broader markets, up to 500,000 people, it other wise would never have the funds to reach. The Society staff has anecdotally quantified the r effect of the ads by informal visitors surveys. Overall, hotel tax revenues for the year was over $600,000, an increase of 61/6. This increase outpaces the aaxtional rate, which is 4%. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 24. 2001 PAGE 3 Mr. Harder concluded the presentation by stating that Freed is pleased with the development and will continue to exercise selectivity with regards to leasing the remaining spaces in the shopping center. Ald. Feldman thanked Mr. Harder for the presentation. Item five on the agenda called for project updates and Ald. Feldman asked Dennis Marino to proceed. Mr. Marino stated lie ha.I two projects to report on. The Main Street Newsstand was well into the rehab phase and although the weather had slowed the process, the schedule to open on or about April 1, 2001 is still the expectation. Secondly, the Optoma project is proceeding as planned. The demolition of the former BankOne building at Sherman and Davis has commenced to make way for this mixed -use residential development. Aid. Feldman inquired about the proposed pricing of the units. Mr. Marino wasn't sure but he thought they were in the range of S400k to $600k. Pre -selling has begun and the expected completion date will be approximately ten to twelve months. Mr. Marino concluded the updates by advising the EDC that Judith Aiello will provide a more comprehensive projects update at the February meeting. Ms. Lucille Krasnow asked for an update on the Klutznick project. Mr. Roger Crum stated that little has changed. There still remains the issue with acquiring the Osco building parcel. Some progress has occurred with the acquisition of the Olive Mountain restaurant. Negotiations continue for both parcels and Sears is waiting for a resolution. Dennis Marino proceeded with the next agenda item. Following up on an update from the last EDC meeting, Mr. Marino informed the EDC that the Storefront Fagade Improvement Program was in need of refunding if the program is to continue. Previously, Mr. Marino had proposed that both the Storefront Fagade and Neighborhood Business District Improvement Programs be funded from the EDC budget, rather than the Community Development Bloc Grant and Capital improvement Program allocation respectively. Mr. Marino distributed brochures describing the Facade Program and examples of the application packets. He proceeded with a highly effective slide program, displaying site examples where matching facade funds had been used in various parts of the City. Mr. Marino explained to the EDC that the City would match only on a dollar for dollar basis to the approved project and the 50% reimbursement was distributed only after the work was completed and invoices submitted. During the slide program, Mr. Marino explained to the EDC the eligible City areas which met CDBG mandates as well as where and why the funds were used for certain projects in the neighborhood business districts. His narrative also included just what improvement was achieved at each location and where the relative benefits were derived. Mr. Marino also demonstrated some areas in need of similar facade improvement assistance, especially on the West Side of the City. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 24. 2001 PAGE 4 Aid. Feldman expressed his concern about the need for quantifying the value of a project in other ways than just the end result being a more attractive fagade. Mr. Marino concurred. Aid. Feldman asked if income was a criteria for fagade assistance eligibility. Mr. Marino's response was that income was not a consideration. While expressing his appreciation for all of the projects, Aid. Feldman commented on the Main Street improvements as being particularly impressive and stated that he would like to see more such larger, clustered efforts because of the more imposing effect. The other members were in general agreement. A general discussion about the pros and cons of how the program should operate ensued as the slide overview concluded. Moving on to the Neighborhood Business District Improvement Program, Mr. Marino advised the EDC that this program was very successful. It to is in need of refunding. The program was initiated in 1998 by way of presenting Requests for Proposals to the local business associations. Projects in the various business districts were funded in the same dollar for dollar matching requirement used in the Fagade Program. The varied projects included such improvement projects as landscaping, seasonal winter lighting, lamp post banners, sidewalk benches, potted plantings and even a web site. Mr. Marino stated that this program might not be one that we would do every year but surely every two years or so would be desirable. Unfortunately the West and Southwest sides of the City did not participate to the degree staff would like to see but extra effort will be extended in the future to increase participation in those areas. The EDC members concurred and expressed their desire for staff to find a means for providing expertise to merchants on how to better organize business associations and become more effective in funding procurement. Again, a general discussion ensued regarding this program and some possible ways to follow up with required, on -going maintenance of landscaping. Mr. Marino concluded the agenda items by providing a brief update on recent development proposals. A new rental residential project consisting of 180 units has been preliminarily proposed for the old Whole Foods site at Ridge and Emerson. A brief discussion began concerning rental price points, potential traffic problems and speculation about the intended market for the proposed development. There being no further business, Ald. Feldman adjourned the meeting at approximately 9:45 P.M. The next EDC meeting is scheduled for Wednesday. February 28.2001 at 8:00 P.M. in room 2404. Civic Center. Respectfully submitted, Morris E. Robinson Economic Development Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MII' UTES WEDNESDAY FEBRUARY 28, 2001 ROOM 240".00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Aid. Wynne, Percy Berger, Walter Clarkson, Sydney Grevas MEMBERS ABSENT: Aid. Engelman, Aid. Morn, Aid. Newman, Lucille Krasnow PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, OTHERS PRESENT: Bridget Lane-Evnrark Tensley Garris-ECVB, Carolyn Topcik&M Lee Cabot -Evanston Historical Societv, Heather Goldman- it A Garden Hotel, Paul Giddings-Chicago/Demysler Merchanls Assm Ann Dienner-Plan Commission Summary of Actions: Aid. Feldman called the meeting to order at approximately 8:15 P.M. The previous minutes of January 24, 2001 were unanimously approved after Morris Robinson distributed a replacement for page 3, which corrected a reference error on the original document. The communication article concerning the downtown developments which was included in the packet was briefly discussed. Aid. Feldman welcomed Bridget Lane, the new Evrnark Executive Director. This was her first appearance before the EDC since assuming the position last year. Ms. Lane expressed her pleasure for the opportunity to present an overview of Evrnark activities and its direction going forward. Ms. Lane proceeded with her presentation, which included the use of an overhead slide projector and detailed slides as visual aides. Ms. Lane described her considerable background work experience, and formal education. Ms. Lane stated that the reason she was excited about appearing before the EDC was because she was anxious to spread the news as to why these are wonderful times for downtown Evanston She continued by explaining the various programs that Evmark administers in the downtown area. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-FEBRUARY 28. 2001 PAGE 2 These programs include such services as protiiding extra streetscage maintenance, marketing, advertising support for City events and public relations. Evmark is also engaged in recruiting businesses into the downtown area and maintains a database of commercial space availability. Evmark maintains a membership in the International Council of Shopping Centers, (ICSC) and represents Evanston at the annual conventions. Ms. Lane advised the EDC those Evmark also coordinate programs with the Evanston Convention and Visitors Bureau (ECVB), the Evanston Chamber of Commerce and other organizations to avoid duplication of efforts. Ms. Lane briefly reviewed the year 2000 expansion programs such as Evensfest which replaced the "World's Largest Garage Sale," other holiday festivities and tree lighting ceremony. initiatives to promote downtown connectivity included print media, billboards, radio advertising spots,,. r.+.��� .:.1 "doggie connectivity bags" and several other programs. Plans for 2001 have been developed and L%ey include the continuation of the previously rendoned programs. Other measures planned are enhanced connectivity programs, particularly way -finding directions, installing newly developed directories in the garages and theaters as well as enhanced efforts to better connect with the various new downtown residential projects. In addition expanders marketing activities are planned to include joint promotions. Ms. Lane explained that one example of the joint promotion program is to allow theater ticket stubs to be used for special deals with participating retailers in the downtown area south of the viaducts. Another example is to create a new lamppost banner design and production to replace the current banners. Ms. Lane advised the EDC of other planned marketing activities including speaking engagements, increased public transit advertising opportunities by worsting closely with the CTA, Metra and Pace marketing groups. Television spots and direct mail marketing are also envisioned in the mix. Ms. Lane mentioned that a major goal is for retail shopping time expansion. This effort entails convincing the merchants to remain open in the evening. The major bookstores have repotted impressive late hour success and their experiences are being publicized aggressively. By using incremental steps toward this objective, the goal of Evmark is starting in May 2001, to fuss obtain the merchants buy -in and then initiate and promote an "open late every Thursday evening" � ,1 4 Y s ... The ultimate goal is convincing the retailers to remain open every night as the holiday season approaches. Ms. Lane informed the EDC that parking issues during the construction phases of the devckq m M projects are of prime concern to her and the downtown merchants. She stated that her commitment to the merchants was to begin a parking education program "in-house" fast. Of key importattce is the issue of downtown employee's practice of meter feeding. An awareness and educ a Tonal program is underway in an effort to curtail this practice. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMt s i r_r. MINUTES-FEBRUARY 28. 2001 PAGE 3 Ms. Lane concluded her presentation by explaining that E, i,mark's budget has not increased in several years. Evrnark's marketing programs are reliant on merchant complimentary financial support for advertising and other services. Support of this type is provided to merchants for fire in other communities. Ms. Lane also shared her ideas for combining, where possible, the few smaIkr, persistently vacant and N intage spaces to make them of a size more appealing for leasing. Ald. Feldman asked if the EDC had any questions with regard to the presentation and a general discussion ensued. Ms. Lahr commented that contrary to the early concerns of some merchants that the Research Park development would dry up business in the south downtown area, the opposite has occurred. Most retailers all over downtown are �.Y �.:.....,� increased business volumes. Also, it appears that the viaducts have not posed the impediment to connectivity as originally believed - There was also some discussion on Evmark expanding its focus to other business districts outside of the downtown area. The EDC was advised that although Evrnark's budget does not allow it to expand out of the downtown area, the Evmark staff %%xRdd be pleased to share its expertise and offer help in the development of similar organizations in other business districts. All agreed that a general business districts tie-in is desirable particularly with way -finding signage and other marketing synergies. A presentation by the Evanston Convention and Visitors Bureau and a request for support of continued City funding was the next agenda item. Ms. Tensley Gams introduced Ms. Lee Cabot, Director of the Evanston Historical Society and member of the ECVB board, as the first speaker for the ECVB report. Considerable advertising pieces and collateral material had previously been distributed Ms. Cabot expressed her pleasure in appearing before the EDC and briefly commented on a movie scheduled to be filmed in part at the EHS mansion and grounds. Ms. Cabot commented on the accontpGshments of the ECVB during the past }tar. The ECVB annual budget is $255,000, of which the City has historically provided $50,000. Ms. Cabot stated that the key purpose for the jv. —, LX-on is to secure EDC support for it -funding of the City portion of the budget for the new fiscal year. The state also matches the City's contribution on a dollar for dollar basis. Ms. Cabot stressed how important the ECVB activities are to the Historical Society because of the Society's limited budget, a budget that is funded strictly by private means. Only a few thousand dollars are earmarked each year for advertising and marketing. Ms. Cabot Emphasized the point that when the ECVB includes the Historical Society and the photograph of the Dawes House in the various advertising venues, it allows the Society to reach broader markets, up to 500,000 people, it other wise would never have the funds to reach. The Society staff has anecdotally quantified the effect of the ads by informal visitors surveys. Overall, hotel tax revenues for the year was over SW,000, an increase of 6%. This increase outpaces the national rate, which is 4%. DR4FI =NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE IMNUTES-FEBRUARY 28. 2001 PAGE 4 Ms. Cabot stated that what makes this accomplishment noteworthy is that within the immediate Evanston area, hotel room inventory has increased 43% directly to the west of the City and 33% directly to the south. What is impressive is that the 601* increase the City experienced not only exceeded the national norm but was also achieved in an environment of significantly increased competition in the surrounding area. ECVB staff also attended four trade shows, wtdch in turn generated sixty-seven leads that resulted is twenty-eight actual bookings. Those bookings in turn had an economic positive impact on the City of over $300,000. Another forty percent of the leads we pending and they have the potential of berating additional bookings with a potential $600,000 plus impact on the City. Ald. Feldman asked what the ECVB believed to be the dominant reason was for those entities that decided not to use Evanston. Ms. Garris responded that the reasons vary and gave examples such as the availability less expensive locations; the erroneous perception that Evanston is difficult to get to; or the inability of the ECVB at times, to get all of the hotels to coordinate and secure enough rooms for enough nights for larger groups. Ms_ Carol Topcik added that at times the meeting spaces were inadequate for the purposes required. Although the new hotel will help in capturing some of %tat has been lost business, the market for Evanston will still be for groups not numbering more than 50 to 75 people. In addition, the availability of convenient public transportation remains a big selling point for Evanston. Summing up, Ms. Cabot stated that the ECVB reached over six million households last year via advertising and over nine million with story placements. Web -site traffic rose to over 180,000 representing a 200% increase. There were 20,000 requests for information on Evanston and its attractions, which represents a 15% increase over last year. Next year the ECVB plans to enhance the v4,r"te and these actions will make the site even more dynamic. The improved web -site will be lao mcbod in March 2001. In addition the ECVB intends to partner with other Evanston based organizations to better leverage marketing efforts, benefit from synergies, increase efficiencies and minimize expenses. Ms. Cabot cited the restaurant guide as an example, which was created in conjunction with Evmark. Also, connecting initiatives with other cities convention and visitors bureaus to increase awareness in larger market bases. Percy Berger asked how if at all, does the ECVB coordinate and work with Northwestern University and Evanston Northwestern Healthcare. Ms. Garris responded that not only is Northwestern a financial partner, but the ECVB works closely with the university on a number of projects citing the trolley service as an example. Two Northwestern representatives also serve on the ECVB board of directors. In addition the ECVB is prominently represented on the university's web -site. With regard to Evanston Northwestern Healthcare, Kendall College and other employers, the ECVB'- routinely provides their visitors with collateral material. .J DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-FEBRUARY 28. 2001 PAGE 5 Ms. Cabot outlined the ECVB measurable goals for the ensuing year. The goals are: to supply the hotels and other attractions with 125,000 leads; book 1,400 room nights; experience a 50% increase in web traffic and generate 25,000 request for information. Ms. Cabot concluded by requesting the EDC to recommend to the City Council, approval to continue that portion of the ECVB funding provided by the City, in the full amount of 550,000 for thew next fiscal year. A general discussion ensued regarding the benefits of a regional strategy and an ECVB sponsored feasibility study by outside consultants is currently underway. Evanston has the only established visitor's bureau in the immediate surrounding suburban area Ms. Garris introduced Ms. Heather Goldman, Director of Sales with Hilton Garden Hotels. Ms. Goldman briefly remarked on the support she has received from the staffs at ECVB and Evmark and endorsed the benefits provided by the ECVB. The new hotel is due to open in June 2001. After more general discussion, Ms. Garris commented on the need for the ECVB to be located on a ground floor location with a true visitor's center. Mr. Dennis Marino stated that the EDC received a memo confirming the 535,000 increase in hotel tax revenue, which is relevant to the funding terms required by the City. The City's funding agreement with the ECVB provides up to 550,000, of which 534,000 is a base giant. The remaining S 16,000 is designed as an incentive grant based on the performance of the hotel tax over the fiscal year compared to the previous fiscal year. The performance of the hotel tax clearly indicates that the ECVB has earned full consideration for the entire amount. As such, staff recommends approval of the formula and funding recommendation for the next fiscal year. Aid. Wynne had to leave the meeting early and as such the EDC lacked a quorum to vote on the funding renewal issue. The EDC decided to refer the funding renewal request for the ECVB to the City Council with a consensus of support by the EDC members present. Ms. Judith Aiello provided the EDC with a new downtown development map, in color, and a brief update on the various development projects. Little had changed since the last update although some interesting news has been received concerning future funding for reconstructing the five viaducts at Church, Davis, Main, Dempster and Greenwood. Mr. Marino concluded the agenda items by providing a brief update on the Main Street Newsstand and recent development proposals. A new rental residential project consisting of 180 units has been preliminarily proposed for the old Whole Foods site at Ridge and Emerson. There being no further business, Ald. Feldman adjourned the meeting at approximately 10:05 P.M. ''�,Is DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE NQNUTES-FEBRUARY 28. 2001 PAGE 6 The next EDC meeting is scheduled for Wednesday. March 28, 2001 at 8:00 P3L in room 2404. Civic Center. fdWly submitted, tF- insonc Detloptnent Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY MAY 2, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Aid. Engelman, Aid. Newman, Ald. Wynne, Walter Clarkson, Lucille Krasnow, John Lyman MEMBERS ABSENT: Aid. Moran, Percy Berger, and Sydney Grevas PRESIDING OFFICIAL: Ald. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Bernstein STAFF PRESENT: Roger Crum, Judith Aiello, William Stafford, Dennis Marino, Morris Robinson, Lloyd Shepard OTHERS PRESENT: Tensley Garris-ECVB, Jack Kaye-$nni Orrin an Jonathan Perman- Ev. COC, John Shunick-Omani Orrington, David Reynolds -The Homestead, John Szostek-Custer Street Fair. Inc. Summary of Actions: Aid. Feldman called the meeting to order at approximately 8:17 P.M. The previous minutes of February 28, 2001 were unanimously approved. Aid. Feldman asked William Stafford, Director, Finance Department to address the EDC regarding the proposed hotel tax increase. A memorandum and supporting financial documents were enclosed in the EDC packet. Mr. Stafford briefly explained that the original hotel negotiations and financial pro -forma contained provisions that called for financial assistance for the hotels during the remaining life of the TIF. A Hotel Tax increase in the amount of 4% with a 2% rebate to each of the hotels was proposed and incorporated into the Redevelopment Agreement with Arthur Hill. The 40/6 increase was also included in the official bond documents required for the bond issued for the financing of the Maple Avenue C e, the proposed Levy Senior Center and other TIF capital improvements in the Church Street Plaza project. In effect, the new gross tax would become 15%. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COSIMITTEE MINUTES -MAY 2, 2001 PAGE 2 After taking into consideration the competitive disadvantage concerns raised by hotel managers and Tinsley Garris. Director ECVB, a compromise proposal to limit the tax to only 2.5% with a rebate only to the Hilton Garden Hotel was agreed to by all parties. If approved, the gross tax would then be 13.5% and although still high, it would be less onerous to the hotel managers and other merchants affected by any potentially lost business. Mr. Jack Kaye, Manager, Omni Orrington asked if the proposal is approved, if it is the intention of the City to review the arrangement on an annual basis. If so, could it be assumed that if the' T1F performance exceeds expectations the arrangement could be changed. Mr. Stafford expressed agreement to the assumption, emphasizing that the City certainly prefers an exceptionally performing TIF. Aid. Engleman asked for a clarification of what was meant by a reevaluation of the arrangement. Ms. Judith Aiello stated that the approved tax increase would be in effect for the remaining life of the TiF, however any rebate to the hotel could certainly be reviewed annually. Jonathan Perman, Director, Evanston Chamber of Commerce, commented that the supporting financial pm -forma data was old and that new financial data should be provided before any decision is trade. Ms. Aiello conceded that the data was old but defended the need for the tax increase citing the impact of the delay in developing the residential component, the slower than expected leasing of the retail spaces and the decisions made concerning the Levy Center. Ms. Aiello continued by stating that completely new data is being developed and will be provided as soon as possible, but she doubted the pro-fonmas would be completed prior to the next meeting. A general discussion ensued culminating with Aid. Newman asking if new financials for the Maple Street Garage performance could be ready by the next EDC meeting. Ms. Aiello said that although a more definitive performance projection could be accomplished in six months, an effort would be made to complete a written financial document prior to the May 23'd meeting. Additional discussion ensued by both members of the EDC and members in the audience. Mr. David Reynolds, Manager of the Homestead used the opportunity to advise the EDC of recently lost group business due to the higher taxes applied to the cost of staying in Evanston. The discussion was brought to a close with a motion from Aid. Newman to refrain from making a recommendation decision until the May 23`d meeting, with the assurance that new financial data on the garage will be provided prior to the meeting. Aid. Wynne seconded the motion, which carried unanimously. Ms. Aiello proceeded with the agenda items by providing the EDC with a brief update on the Downtown development projects. Of note with the Church Street Plaza project is the notification that a developer for the residential component of the project has been selected. Optima, a developer well known on the Northshore will construct the component and they have already appeared before the Site Plan and Review Committee with preliminary design concepts. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 2. 2001 PAGE 3 Optima also understand that their building must mash the deliberately unadorned, rough finish south facade of the `laple Avenue Garage. The Focus Group mixed use residential project is proceeding as planned and an architectural rendering was presented to the members. At the same time ADA required renovations have begun on the Church Street Nietra station. In addition, the Mesirow Financial mixed -use office project is proceeding basically on schedule although some delays were experienced due to problems connected with the cranes. With regard to the Klutznick Sherman Plaza project, Ms. Aiello advised the EDC that all of the properties have been acquired. Mr. Handler, the owner of the property leased by Osco Drugs, agreed to the purchase amount of $3.4 million for the property which is higher than what the developer initially intended to pay. There will be a joint Council, EDC, Plan Commission meeting on May 16d, at the Civic Center for the purpose of the Klutznick group to provide a thorough update to include progress or lack thereof with Sears. A Redevelopment agreement is expected to be completed by July 2001 and site demolition is anticipated to commence in September 2001. Aid. Engelman provided an update on the status of the Central Street Theaters and the efforts of two performing arts companies to ascertain the suitability for converting the theaters to performing arts use. Light Opera Works and the Dance Studio are the lead participants and their respective representatives will appear before the EDC at the May 23`d meeting to make a presentation and for a funding request to conduct a feasibility study. Mr. John Szostek, Director, Custer Street Fair, Inc., presented the EDC with an update on the renovation of the Main Shred Depot Metre Station. The architectural renderings of the elevations met with approval by the EDC. The new facility will be available for small conventions for fifty or less and training concerns. Following Mr. Szostek, Mr. Dennis Marino provided a brief update on the Main Street Newstand, The grand opening is scheduled for the month of May. Ald. Feldman suggested that the EDC be invited. Mr. Marino concurred. Mr. Marino next provided the EDC with an update on the Neighborhood Business Districts Improvement Program, which was recently re -funded in the amount of fifty thousand dollars. Aid. Feldman suggested that staff should make outreach efforts to those business communities that are more economically challenged. Mr. Marino concurred and stated that one area has already been identified and contacts made. Staff will develop Requests For Proposals for the program and they will be distributed in the near future. Mr. Marino also provided an update on two recent development proposals. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 2. 2001 PAGE 4 The fast, a warehouse renovation project is underw-av by Mr. Andy Spatz, in a commercial area north of Simpson Street and this project represents a unique and interesting redevelopment project for that area. Secondly. a new rental residential project consisting of 202 units has been proposed for the old Whole Foods site at Ridge and Emerson and Architectural renderings were shared with the EDC members. After Mr. Marino concluded his updates, a brief and general discussion ensued regarding the recently approved Ordinance Number 42-0-01 which authorizes a "Moratorium on New Construction (designated as) B-3 Zoning in the Main Street Business District". Ald. Feldman acknowledged the communication items included in the package. One of the items, "Available Commercial Space" inventory developed by Morris Robinson, sparked some discussion. Ald. Newman noted that a broker with Wilmette Realty represented several of the vacant spaces. In the Alderman's opinion, the broker's expertise is more in line with residential sales rather than in orchest atfng deals for commercial space leasing. Aid. Newman suggested that this lack of specific expertise might be why the spaces remain vaunt. The vacancies in turn, impacts negatively on the Evanston business district(s). Ald. Newman asked Jonathan Penman for assistance in arranging for the broker to appear before the EDC. Mr. Penman said he would attempt to fulfill the request. There being no further business, Ald. Feldman adjourned the meeting at approximately 9:30 P.M. The next EDC meeting is scheduled for Wednesdav, Mav 23. 2001 at 8:00 P.M. in room 2404. Civic Center. Respectfully submitted, o is E. Robinson Economic Devc[opment Planner DRAFT -NOT APPRO VED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY MAY 23, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Ald. Engelman, Ald. Moran, Ald. Newman, Ald. Wynne, Percy Berger, Walter Clarkson, Lucille Krasnow MEMBERS ABSENT: The Plan Commission member EDC seat is currently vacant. PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Roger Crum, Judith Aiello, William Stafford, Dennis Marino, Morris Robinson, Maureen Barry, Lloyd Shepard OTHERS PRESENT: Tensley Gams-ECVB, Bridget McDonough --Light Opera Works, Pamela Rosenbusch-Lieht Opera Works, Mary Rouleau-Li ht QPera Works, Bea' Rashid -Dance Center Evanston, Carol Daskais Navin - Dance Center Evanston, Barbara Goodman -Dance Center Evanston, Ben Ranney-Arthur Hill & Assoc., Ann Dienner-Plan Commission, Doraine Anderson -Plan Commission, Gordon Magill -Owner, Central Street Theaters Sammary of Actions: 1. Ald. Feldman called the meeting to order at approximately 8:15 P.M. IL The previous minutes of May 2, 2001 were unanimously approved. Additional documents were distributed to the EDC members by Tensley Gams, including a letter from Jonathan Perman and addressed to the attention of Ald. Feldman. III. Judith Aiello provided the EDC with a brief update on the Sherman Plaza proposal and advised the committee that the latest information is also available on the City's website. Negotiations between the City and the Developer are ongoing. There is a deadline of July 16, 2001 for the Developer to close on all of the required properties. A special early June meeting will be scheduled to present a construction schedule and all of the agreement document drafts. DRAFT =NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 23, 2001 PACE 2 IV. Aid. Feldman asked William Stafford, Director, Finance Department to address the EDC Regarding the proposed hotel tax increase. A memorandum and recent supporting financial pro - forma documents and charts, prepared by staff and Kane McKenna were enclosed in the EDC packet. Mr. Stafford briefly explained that the original hotel negotiations and financial pro -forma contained provisions that called for financial assistance for the hotels during the remaining life of the TIF. Mr. Stafford then reiterated the reasons that a Hotel Tax increase in the amount of 4% with a 2% rebate was initially proposed. As Ms. Aiello mentioned in the EDC Meeting of May 2d°, 2001, consideration was given to the competitive disadvantage concerns raised by hotel managers and Tinsley Garris, Director ECVB. A proposed compromise to limit the tax increase to only 2.5% with a rebate only to the Hilton Garden Hotel was agreed to by all parties. The latest financial data included in the packet also confirms the need to proceed with a hotel tax increase and the limited increase of 2.5% appears to be sufficient to meet debt services. This determination is based on the results of two major areas which are addressed in the latest pro - forma. The first issue concerned expenditures projections, which were discovered to have not changed form the original projections, nor has operating expenditures which are also basically tucking unchanged. The second issue addressed is revenue projections, where it was determined that a slight decrease has occurred during the past year. The decrease in revenue projections can be attributed to the way the redevelopment project was phased in. Delays were experienced in leasing -up the Main Pavilion, starting the residential component, and the Scribcor II building, (which is now expected to be completed approximately a year later than originally planned). The conclusion derived from the new analysis is that during the next two years, net revenues will be reduced by approximately $300,000.Over the life of the project that figure rises to approximately $800,000. As a result the hotel tax increase is clearly needed and although the recommended 2.5% will not completely cover the gap by itself, enough tolerance in the revenue mix projections exist to balance the difference. As such, staff believes that the 2.5% tax increase compromise will work, and recommends EDC support for Council approval. Aid. Engelman asked for a clarification of which project components, as well as their construction start dates were included in the revenue projection charts provided in the pro -forma analysis. Mr. Stafford and Ms. Aiello jointly provided Aid. Engelman with a clarification. Aid. Engeeman then stated that there were construction cost overruns associated with the new Maple Avenue garage and that an appment overrun will occur with the new Levy Center. In fight of these ovenvns constituting several million dollars, Aid. Engleman asked why the projection outlook doesn't reflect a more profound change. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 23. 2001 PAGE Ms. Aiello's response was that the Levy Center overruns will be covered with earned interest, which has been accruing at a rate of 6.5 % and more interest will be earned as time goes on. As such, staff is reasonably confident with the analysis but will have Robert Rychlicki of Kane McKenna revisit this issue. Likewise, staff is reasonably confident with the Maple Avenue garage analysis since the cost will not exceed the projected $25 million. Some brief but general comments were made by other members of the EDC. Ald. Newman asked why the McDougal Littel building was not included in the financial analysis projections. Mr. Stafford stated that although it was not included in the original pro -forma, 501/a was included in the June 2000 and the current analysis. Ald. Newman suggested that an annual, analysis review should be initiated and sunset the 2.5% increase to insure a meeting occurs. Ms. Aiello and Mr. Stafford asked if the first meeting could be set for eighteen months rather than twelve. This extra time would allow for enough performance experience for staff to develop more meaningfid projection data and to visit with the bond providers if necessary. Aid. Newman moved to recommend approval of the 2.5% increase in the hotel tax and for staff to draft language requiring an annual review with the first review set for eighteen months. Ald. Engelman seconded the motion. Aid. Engelman then asked about the performance accuracy of the projections for the year 2000 and the first five months of 2001. Ms. Aiello and Mr. Stafford stated that the projections were on target and tracking with the cinema goal of attracting one million visitors a year. Aid. Engelman than asked Mr. Stafford to advise the EDC on the performance of the innovative bonding program selected for the new garage, compared to the performance the City would have experienced if the City had opted for level bonds over a twenty year period. Also, has thought boar given to switching to a lower, fixed interest rate -bonding program. Mr. Stafford stated that staff will be reviewing a fixed rate option but has postponed doing so while waiting to see what the outcome of the Klutznick project would be. Now that the Sherman Plaza project is proceeding, a bonding review will be made for both garages and both projects in their entirety. The EDC cast a unanimous vote for the motion to recommend approval to the City Council for a 2.5 % hotel tax increase, to be reviewed annually, with the 5rat review due is eighteen months. V. Agenda item V. concerned a proposal from the Light Opera Works performing arts company and the Dance Center Evanston for funds request in the amount of$56,100, from the City. The funds would be used to conduct a feasibility study to determine if the closed Central Street theaters are suitable for developing the properties into a performing arts center, primarily for the previously mentioned organizations but also for other performing arts organizations in the City. DRAFT -NOT APPRO;ED ECONOMIC DEVELOPmE1ti r COMMITTEE MINUTES -MAY 23. 2001 PAGE 4 Ald. Feldman asked %cs. Pamela Rosenbusch, Light Opera Work's Board President to begin the presentation. Ms. Rosenbusch began with a direct request for City provided funding for the feasibility study. She stated that the vision for the proposed performing arts center site would include a rehearsal studio, performance stages, and office and retail spaces. Ms. Rosenbusch advised the EDC that scares of citizens and private businesses have expressed their support for a performing arts center based in Evanston and that Light Opera Works was proud to be taking a leadership role in achieving this objective. The location of the center in the closed Central Street theaters would serve as an economic anchor for that particular neighborhood business district. Ms. Rosenbusch concluded her remarks by urging the EDC to approve the recommendation for the funding request and stated that she, Bridget McDonough. LOW General Manager, and Mary Rouleau, LOW Board Member wem present to answer any questions. Aid. Feldman asked if there were additional presenters. Ms. Carol Daskais Navin introduced her self as an Evanston resident and a parent of a child who has participated in Dance Center Evanston for the past five years. She also sits on the board of the Evanston Dance Ensemble. which is the performing company of DCE. Ms. Navin also urged the EDC to support the request for funding of the feasibility study. She commented that Bea' Rashid's DCE has become a valuable community asset for the City. Since 1994, Ms. Rashid has grown the Center from a seventy student ballet school to a true community arts institution serving more than six hundred students ranging in age from three to eighteen in a wide variety of classes. Over the years, Ms. Rashid has had to find spaces in several locations to accommodate the growth of the DCE and the ability to consolidate all activities under one roof at the Central Street theaters is a wonderful opportunity. Ms. Navin continued by stating that to observe classes at DCE mirrors the Evanston communities, in that children, teens and adults "of all colors, shapes and sizes" are represented, learning the disciplines of dance from one of the finest professional dance staffs in the mid -west. In Ms. Navin's opinion, the conversion of the Central Street theaters into a performing arts center, housing LOW, DCE and EDE would be an appropriate transformation of the space. It would also ensure that two of the City's leading, cultural institutions would remain in the City for a very long time to come. Ms. Navin concluded her remarks by once again urging the EDC to support the funding request. She, Bea' Rashid, Director of DCE and Barbara Goodman, Board President, DCE were also present to answer any questions. Ald. Feldman thanked the presenters and began with the first question by asking if the 600 students enrolled at DCE were all Evanstonians. Ms. Rashid stated that approximately 70 %of the students are from Evanston, 10-15 % are from Rogers Park, approximately 5%firm Skokie and about IUK are from Wilmette, Winnetka and Glenview while about r10 come from a greater distance. DRAFT-NOTAPPROP D ECONOMIC DEVELOPMENT COMMITTEE :tiIINUTES-MAY 23. 2001 PAGE 5 Ald. Feldman asked if the DCE was an institution that sought students from all economic strata, from different communities in Evanston and is representative of the Evanston population. Ms. Rashid's response was affirmative. Ald. Feldman asked if scholarships were available. Ms. Rashid stated that DCE offers financial assistance for those in need rather than a scholarship program and that no request has ever been denied DCE intends to have a true scholarship program once a permanent site is obtained. AkL Feldman advised Ms. Rashid that the purpose for his line of questioning is because if public funds are used in this proposal, the EDC wants to ensure that those funds are not being used just to aid a private enterprise but rather serves all sections of the community. Ms. Rashid acknowledged the concern. AkL Feldman stated that if a feasibility study proves to be positive, what is the next step; particularly where does the money come from for not only the renovation of the site but also for continued operating expenses into the future and for other debt obligations. Ms. McDonough advised the EDC that unlike previous attempts, in the current situation, two organizations, LOW and DCE were the lead organizations willing to assume the long term Iease for the site. In addition, both organizations have already begun the process of assessing their fund raising potential and in fact, initial contacts have already been made with certain donors. In terms of continuing operating costs, both organization already manage substantial annualized operating costs and after discussions with the owner, right now it appears that in comparison, the theater site would be affordable. AIL Feldman asked if other Evanston based performing arts organizations, specifically the Next Treater, the Piven Theater Workshop and the Evanston Symphony have more than just an interest in the site and if so, how are they envisioned to participate. Ms McDonough stated that all of the organizations mentioned are very eager to participate in a new, modern facility. The feasibility study will determine whose needs can be met by the proposed conversion of the theaters. Ald. Feldman asked %,here the other organizations were currently housed. Ms. McDonough provided the information. AkL Feldman asked if LOW and DCE if they had explored the possibility of obtaining grants from other fine arts or state organizations in addition to approaching the City for funding. Ms. McDonough's response was that the City was approached because of the time constraint issue with regard to leasing the property and for the sake of expediency. If applications were made to the other organizations, even if considered, the process would take nine months to a year. The owner would be placed in a very unfavorable position if he had to leave the site vacant that long with no indication of the feasibility. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 23. 2001 PAGE b It is believed that going back to Rep. Schoenberg again would be unwise because of his involvement in the previous effort, which produced $1 million for the City, but the City was unsuccessful in obtaining a performing arts center. Other potential donors will be petitioned for funds for the renovation phase, in the future. Mr. Percy Berger asked if any of the proposed space would be used by for profit organizations. Responding, Ms. Rashid's stated that Dance Center Evanston was a for profit business while the Evanston Dance Ensemble is a non-profit, which she would be willing to change. Ms McDonough said LOW is a 501 C3 organization and the other groups mentioned were also 501 C3 organizations. Mr. Berger asked if other arts groups have been asked to share the risk by making contributions to the feasibility study. Ms. McDonough said not at this time. Ms. McDonough said the City is being asked for the full amount, adding that the City is not alone in sharing the risk since LOW and DCE are taking on major risks also. A great deal of unpaid time and effort have already been provided by the two lead organizations as well as other groups in the City and no request for reimbursement are included in the proposal. Mr. Berger asked if the architeca=-consulting firm being considered to perform the feasibility study had been approached to make a portion of their fee gratis. Ms. McDonough stated that the fee had already been decreased by 10%. Ald. Newman asked for a clarification for the what will actually be provided by the feasibility study, how long will the study take and how long is the owner willing to keep the property available. Mr. Gordon, the family member representing the family owned property responded. Mr. Magill stated that he believes in and is committed to the project.. He is willing to wait as long as positive efforts are proceeding. He is also willing to forego immediate occupancy, of which several offers have been made, if eventually there is "light at the end of the tunnel". Mr. Magill expressed his confidence that a performing arts center is the best use for his property and for Evanston. The family trust is behind the project and is willing to wait for the results of a feasibility study and even during the fund raising period. Since they have no mortgage on the property and since his property stands to be substantially improved, the risk is a worthwhile risk. Ms. McDonough stated that the study will assess the capability of the theaters being converted for live performances. The architectural study will include the feasibility for a fully functioning west theater with a stage, orchestra pit, lighting positions, acoustical questions, d r cdng rooms, storage, etc. Also the east theater will have similar study requirements made for the DCE. Mr. Berger asked if all parties would be willing to sign a letter of agreement. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 23. 2001 PAGE 7 Mr. Gordon agreed to such a measure and Ms. Rashid, speaking for the arts companies, also expressed a willingness to comply. Aid. Engelman stated that a unique situation exists and Mr. Magill is a unique individual. He has opportunities to lease the property to other entities who are willing to start paying rent immediately, but has instead opted to work with LOW and DCE for the past three months because he is committed. Aid. Engelman suggested that the City seize this opportunity. Aid. Engelman asked Dennis Marino what the source would be for the requested funds. Mr. Marino suggested the Economic Development Funds among cthers was one source for some of the required funds. Ms. Aiello stated that the preference would be to secure the funds from a single source and assured the EDC that the funds can be procured. Aid. Wynne expressed her support for the proposal adding that this was a unique opportunity the City should not let slip away. Ald. Engelman posed the question that if early into the study, it is determined that the theaters cannot be converted in the desired martner, can the unused portion of the funds be returned to the City. Ms. McDonough assured the EDC that she would confirm the possibility before the next Council Meeting. Aid. Engelman moved to recommend to the City Council to approve the expenditure of $56,100 to conduct a feasibility study to convert the closed Central Street theaters into a performing arts center. Aid. Moran seconded the motion. Mr. Berger attempted to amend the motion. His amendment would have the other performing arts groups assume liability for a portion of the required feasibility study funds, ensure that no, for profit organizations are included and that it be stipulated that the project is for all of Evanston. A general discussion ensued, concluding with Ms. Lucille Krasnow suggesting that the amendment not be considered as part of the original motion. The amendment was defeated for lack of a second. Of the eight EDC members present, the original motion to recommend approval for funding the feasibility study passed, with seven aye votes and one nay vote which was cast by Mr. Berger. Vl. The sixth agenda item was an update on the renovation of the Main Street Newsstand. Mr. Marino advised the EDC that the Newsstand is slated to open on Tuesday, June 10, and an open house, ribbon cutting ceremony is planned for Tuesday, June 19'b. VD. Mr. Marino also provided the EDC with a brief update on two recently proposed project. DRAFT-NOTAPPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -MAY 23. 2001 PAGE 8 VIII. There were no communication items in the packet. IX. There being no funber business, Ald. Feldman adjourned the meeting at approximately 9:35 P.M. The next EDC meeting is scheduled for Wednesday. June 27.2001 at 8:00 P.M. in room 2404. Civic Center. submitted, .nt Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY JUNE 18, 2001 PARASOL ROOM -7:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman. Aid. Engelman, Aid. Moran, Aid. Newman, Percy Berger, Richard Cook, Lucille Krasnow MEMBERS ABSENT: Aid. Wynne The ZBA member EDC seat is currently vacant. PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Roger Chun, Judith Aiello, William Stafford, James Wolinski, Dennis Marino, Morris Robinson, Lloyd Shepard OTHERS PRESENT: James Klutznick, Klutznick-Fisher Dev. Co., Maurice Fisher, Klutznick Der. Co., Steven Friedland, SchifHardin & Waite, John Terrell, The Prime Groun, Martin Stern, U.S. Eauities, William Ryan, Rvan And Rvan, Robert Perlmutter, Davis St. Land Co., Ben Ranney Arthur Hill & Assoc. Bridget Lane, Evmark Summary of Actions: I. Aid. Feldman was briefly delayed. Aid. Newman, serving as acting chair, called the meeting to order at approximately 7:15 P.M. II. The previous minutes of May 23, 2001 were unanimously approved without corrections or additions. III. Judith Aiello began the meeting by advising the EDC that the City deceived a request from Glenlake Limited, previously known as Scribcor, for an extension of the construction start date at the 1881 Oak Avenue site. The City had initially asked the Developer to delay construction for a year so that the site could be used for parking while the new Maple Avenue Garage was undo construction. DRAFT -NOT APPROVED ECOtiOMIC DEVELOPMENT COMMITtEE MINUTES-JUNE 18, 2001 PAGE 2 The Developers have until September 2001 to commence construction but have now found it necessary to obtain an extension. Staff is reviewing the request and will present a recommendation to the EDC at the September EDC meeting. There %%x a no questions regarding this issue from the EDC. IV. Ald. Newman asked Ms. Aiello to proceed with the next agenda item, which concerned the Redevelopment Agreement for the Sherman Plaza project. Ms. Aiello stated that the purpose for the special EDC meeting was to obtain the EDC approm1 for the various rcdevdopmrnt agreement documents required to proceed with the development project. Ms. Aiello advised the EDC that progress on the project had slowed during the protracted proraty acquisition period, particularly with the issues concxining the Osco Building owned by Mr. Handler. Now that the acquisition issues have been resolved, the project has new and improved design aspects and is moving forward, having received the endorsement from the Plan Commission. The EDC members had previously been provided with drafts of the Redevelopment A6 --...4 the Public Garage Construction Agreement; Parking Leases and the Completion Guarantee document. An additional document, the Reciprocal Operating and Easement A,..,. —.1 will have to be completed within 180 days as stipulated in the draft Development Agreement. The draft agreement stipulates that no more than 95% of the space can be non -retail. The project will consist of approximately 245,000 square feet of retail, services and fitness space. The Citf s desire is to have as much retail as possible for sales tar generation. Further stipulations are set to restrict the first and second floors uses for retail only atterprises while only one restaurant, not to exceed 5,000 square will be allowed. The residential component will be comprised of 200 units, 150 designated as senior independent living and 50 units designed and reserved for senior assisted living. In the event the developer is unable to obtain Financing for senior housing, the agreement has a provision which will provide the developer with the flexibility to present an alternative option at a later date, while pnx=ding with the retail portion of the project without loss of momentum. If the developer returns to the City with an alternative residential proposal significant cha Vm in design or financial ramifications can be expected and additional negotiations will be required. If there is a change in the housing component, the developer will also have the cost obligation for building panting space cordon to meet zoning requirements. , % Ms. Aiello informed the EDC that Kenig, Lindgren, O'Hara, Aboona, Inc. (KLOA) was asked to re -analyze and update their traffic analysis for the new parking garage, based on the recent modifications to the project, particularly as they pertain to the fitness facility and redaction of the retail piece. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUNE 18. 2001 PAGE 3 The KLOA updated report %%-as included in the packet as Exhibit B, and it presents their recommendation for a garage facility containing approximately 1.420 spaces. It is not yet certain as to %fiat the final number of spaces will be. Staff and the consultants A&ill continue to review this issue until a definite amount that the City can afford is determined. Experience gathered from the new Maple Avenue Garage indicates that S 19,500 per space can be expected. Staff believes the new garage will be feasible at this point, but together uith the consultants will also continue to review projected revenue streams and other funding resources to pay for the garage. The City will provide the resources to prepare the site for development, wfiich include demolition and detention costs. Ms. Aiello advised the EDC that to date, the developer has committed S14.5 million to the project for land acquisition and relocation assistance and that the City has not contributed to those expenses. She also stated that the City has offered the developer an incentive to include more retail space. It has been suggested and the developer is considering adding an additional 29,000 square feet of retail in the basement of the Sherman Avenue structure. If the developer agrees to do so, the City will assume more site preparation costs creating a 50.50 % split. If the developer fails to create the additional retail space, the City's obligation ail] be reduced to 30%. The City's consultant, Mr. Martin Stem, U.S. Equities, was asked to continue with the agreement overview. He advised the EDC that detailed financial pro-formas were conducted and condensed in the summaries provided to the EDC members. The average rent projected for the retail spaces is $24 per foot, which computes to an ROI of approximately 11%. Although 11.25-11.50 % appears to be feasible, as is the usual practice, a more conservative stance is taken. With regard to the senior residential component, the projected return appears to be slightly higher at 11.5o%. However, because it is considered that the supply of senior housing in some areas may be adequately supplied, (although Evanston is not in such an area), this component may experience some financing issues based on the method lenders use to allocate funds. Fenders observe real estate categories by class and make funding allocations by class. For example, the lender's policy may be to allocate only 10% of loans in the real estate ventures class, and of that amount, only 2.0°/4 will be in senior housing, regardless of the merit of the project. Timing is critical for the project and Mr. Stern stressed the importance of all parties proceeding together. Staff and consultants are reviewing the means in which the developer can be provided with the time needed to bring all elements of the project together. A contingency is provided in the agreement which allows the developer a period up to one year to begin. The current schedule calls for demolition of the garage after the first of the year, 2002, thus avoiding the holiday season. If demolition is accomplished as planned, the retail elements can open in the spring of 2003 and the senior residential building can open in the fall of 2003. If financing of the project becomes problematic, the developer will have up to a year from the date of sighing the agreement to commence with the project. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -TUNE 18. 2001 PAGE A If in the event the project can't go forward, a 180-day provision beyond the year is allowed for the developer to present feasible alternatives to the City. Mr. Stem also advised the EDC that unlike the Hill project, in this case the developer, not the City, ovms the land and these cooperative provisions are needed. Provisions have also been negotiated which will allow the City to acquire the site for the garage if the project ultimately fails to materialize. Mr. Stern concluded his remarks by requesting EDC approval of the agreement. Ald. Feldman arrived at approximately 7:30 PM. After apologizing to those assembled he assumed his duty of presiding over the meeting. (Ald. Feldman later introduced Mr. Richard Cook, as the new Plan Commission liaison member of the EDC, replacing Sydney Grevas). Ms. Aiello asked Mr. William Ryan, of Ryan And Ryan, and the City's legal consultant to summarize the safeguard provisions for the City. Directing the EDC to page 15 of the agreement, Mr. Ryan informed the EDC of the eleven conditions which must be met by the developer prior to the conveyance of the properties. (Please refer to the agreement for particulars)! Mr. Ryan stated that with regards to the construction of the new public garage, page 16 outlines the ei ht conditions which must be met by the developer, before demolition of the old garage and the construction start for the new garage can occur. (Please refer to the agreement for particulars)! At the conclusion of Mr. Ryan's remarks, Ms. Aiello asked if anyone else from the development team wished to comment prior to entering the question and answer phase of the meeting. Mr. James Klutznick commented on the cooperative nature of the negotiations and expressed his confidence in the feasibility of the agreement. Ms. Aiello advised the EDC of the four remaining documents presented to the EDC. The documents are parking leases and they are a culmination of all that staff has learned from parking lease documents from previous development projects. The leases provide for retail lease terms for forty years and after that the City is not obligated to rebuild the garage. On the senior residential component, the lease term is for 75 years and the developer is obligated to assist with the rebuild of the garage at that point in time and after it has served it's useful life. Another provision allows for the emergency demolition of the existing deteriorating garage if need be and converting the site to surface parking until the new development project gets underway. In addition, if buildings within the project become vacant in the construction interim, it is incumbent on the developer to maintain the structures to prevent the appearance of blight or other ill effects. The question and answer phase began with Ald. Newman. He stated that he wanted it to be made clear that with regard to the space restriction for the restaurant, the developer never wanted very much restaurant space. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUNE 18, 2001 PAGE 5 As such, the space restriction provision should not be construed as a concession from the developer. Further. it is uncertain as to how much leverage the City has to elicit from the developer those terms which concern their ability to enter the market place and fill their space. Ald. Newman suggested that care must be taken to dispel the false perception that the City Council dictates to the developer as to who can and cannot fill the spaces. Ms. Aiello's response was that the intent is to get larger retail spaces rather than the relatively small restaurant space. Citing experience with the Hill project, Aid. Newman asked if the language in the redevelopment agreement allows the developer a provision for contesting the payment rate of real estate taxes. This is an important issue since the City is relying on the real estate taxes to meet debt obligations during the life of the TIF. Ms. Aiello explained that the provision was included because the City's tax consultant, Chapman and Cutler advised staff that the City can no longer quote a dollar figure associated with the protesting of taxes. Aid. Newman asked how can one determine if the agreement is protecting the City's real estate talc revenues at the required level to meet the bonding debt obligation, in the event of a tax challenge by the developer. Mr. Ryan directed Aid. Newman's attention to page 33 of the agreement and explained the two real estate tax provision designed to protect the City. Mr. Ryan and Mr. Stem also suggested that Chapman and Cutler, which firm was not represented at the EDC meeting, should also respond to the question with regards to potential fluctuations in the amount of taxes. Mr. Ryan commented that the cities of Chicago and Rosemont also use Chapman and Cutler as tax consultants. Ms. Lucille Krasnow asked, in light of all the other large residential developments occurring in Evanston, how feasible is it to construct similar type housing in the event the senior housing component fails to get funding. Mr. Klutznick stated that the housing markets are constantly changing but within the Chicago Metropolitan area the market remains strong. If the alternative is to opt for conventional housing, condominium or rental, the prospect for the near range remains positive. The prospects are enhanced with the periodic federal Reserve interest rate reductions in the general economy. In addition, Evanston has proved to be and is currently, a very strong market. Mr. Ryan referred Ms. Krasnow to page 15, paragraph 7 of the redevelopment agreement which concerns the multi -family alternatives, details the protection provided to the City, with regards to penalties and potential losses, in the event the senior housing does not occur. Aid. Engelman asked about the provision in the redevelopment agreement which allows for the senior housing structure to assume tax exempt status after the year 2017. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUNE 18. 2001 PAGE 6 Ms. Aiello stated that 2017 is the year that the TI1= term expires. During this period the City requires both the real estate tax and sales tax revenue streams to pay for the new public garage. Aid. Engelman asked if the kind of senior housing contemplated is the type of residential that is generally tax exempt. Mr. Klutznick's response was "no". Ald. Engelman continued, asking if the City will know which type of residential will be in the project prior to construction of the garage, so that a determination can be made for additional parking spaces if needed. Ms. Aiello stated that the developer isn't able to secure financing until that determination is made. This safeguard is also provided for in the agreement. Arrangements for the developer to cover expenses for the required parking spaces for the residential component are also stipulated. Aid. Engelman asked if the medical office space will be located on the fourth floor and about the parking ramifications. Ms. Aiello responded affirmatively adding that it would only be created if a tenant were pre -determined. The current design of the garage provides a capacity for 1,590 cars and the determination for the actual number to built is yet to be made. The KLOA shared parking analysis takes into consideration the needs for McDougal Little, Hill, and the fitness center. Aid. Newman asked if it is assumed the senior housing is built, will the garage have 1,590 or 1,420 spaces. Ms. Aiello response was 1,420 would meet the demand. If another type of non -senior residential building is erected, although a review will have to be made, it is likely that the scenario for 1,590 is likely. Ms. Aiello again stated that before the construction of the garage begins, the developer will advise the City of the housing decision and that it should be determined by the end of the year. A general discussion ensued regarding parking spaces culminating with Aid. Newman and Aid. Engelman having Ms. Aiello and Mr. Stem clarify the cost responsibilities for the spaces as well as the supply and demand requirements for parking spaces in excess of those required for the project. Aid. Feldman asked Mr. Klutznick to explain the particulars of his commitment of $14.5 million to the project. Mr. Klutznick explained that the real estate contracts require closing on all the properties by July 16, 2001. Currently the developer has several million on deposit, but by the July 16 date, the entire $14.5 million will be due. Aid. Feldman then made the point that the July 16 date was the reason for the haste to have this special meeting and not the ground breaking. Mr. Klutznick concurred. Aid. Feldman than asked for a review of the project timetable. Mr. Klutznick reiterated the point that the earliest start for demolition of the garage would be after the holiday season, sometime during the first quarter of 2002. Also, it is expected that it will take till the end of the year to secure all of the required financing. Aid. Moran referred Ms. Aiello's attention to page 6 of the agreement. DRAFT -NOT APPRO QED ECONOMIC DEVELOPN1ENT COMMITTEE MINUTES-JUti E 18, 2001 PAGE 7 Aid. Moran said it appears that the owner of a certain property component could as of September 2, 2017, apply for a tax exemption and if this is the case, why isn't there a provision to prevent this possibility. Its. Aiello stated that the City is protected during the life of the TIF. Aid. Moran understood that point but wanted to understand why the City would want allow tax- exempt status after the TIF expiration date. Especially since the component would contribute a large part of the tax revenues after the TIF ends. Mr. Ryan state that the tax rate changes. During the TIF the City gets 100% of the increase, after the TIF the City's share drops to 18%. Mr. Klutmick stated that he would certainly like to have the ability to file for tax exempt status because there is no way to know what the market will be for refinancing the project at that time. Aid. Moran deems this tax-exempt issue to be a very important provision and it calls for continued scrutiny. Ald. Moran cited the Evanston Northwestern Hospital wet -lab building stating it does not and will never have the tax-exempt option. Ms. Aiello concurred. Moving on, Aid. Moran asked for a clarification of the building materials to be used. Ms. Aiello stated that materials are outlined in the agreement but not down to details such as color of bricks. The Site Plan and Review Committee process will resolve the details. Aid. Moran requested an explanation to the numerous references to office space occurring in the agreement. Ms. Aiello said the references concerned the fourth floor medical office speculative space consisting of approximately 25,000 square feet. Aid. Moran next referred to page 12 of the agreement, and asked for a clarification of the provision which gives the developer license to develop signage on and around the garage 90 days after July 9, 2001. He wanted to know why this is being allowed on a building the City will own. Mr. Ryan explained that the developer would have no right to place signs on City owned property. The provision allows for the developer to get permission from the City, provided the signs requested are in accordance with all ordinances. Ms. Aiello added that the size of the development would call for a unified sign package and appear before the Sign Review Appeals Board. Aid. Moran remained uncomfortable with the wording or lack of clarification of the provision. He stated that the esthetics of the garage is key to the project. Mr. Ryan acknowledged the point. Aid. Moran than referred to page 27 of the agreement stating that the first paragraph concerning the conveyance of the property and responsibility for payment of property taxes and tt7trtsfer taxes is confusing. He asked for and received a clarification from Mr. Ryan. Aid. Moran next referred to page d table three of the KLOA Exhibit B document and asked for a clarification to the reference made to a Performing Arts center. Ms. Aiello explained the reference to Aid. Moran's satisfaction. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -JUKE 18. 2001 PAGE 8 Aid. Newman took the opportunity to follow-up on the tax exempt issue emphasizing to the developer that the reason the City is involved with the project is not just to build a new garage but to also to expand the tax base. Aid. Newman asked Ms. Aiello to review the agreements with all of the other major developments the City is involved with where the provision is either not allowed or is positioned to do so in the very distant future and develop similar agreement language for this project. Mr. Berger commented on the MBE'/WBEIEBE provisions in the agreement, which calls for 25 % participation goal. Mr. Berger considers this goal reasonable, but wondered how the City fared with the actual experience with the Hill project. Ms. Aiello asked Mr. Lloyd Shepard, the MBE Coordinator to respond. Mr. Shepard advised the EDC that although all the data is not in, the Main Pavilion is at 21% and the Garage is approximately 12%. The combined participation for both is approximately 16%. The Hotel is averaging about 21%. Figures aren't available yet for the McDougal Little project and the participation level for Evanston Northwestern Laboratory project is 23.5%. Mr. Berger asked the developers if they thought the 25% objective was feasible. Mr. Klutznick stated that the goal was reasonable and achievable and every effort will be made to meet the objective. Aid. Moran stated that the recent change of a major tenant in the project to that of a fitness facility has caused concern among the existing fitness facilities in Evanston and asked the developer if he was aware of these concerns. Mr. Kluturick stated that they had recently been made aware of the concerns. However, he advised the EDC that the developer had been approached early on by four major fitness club operators who are seeking an opportunity for a presence in this market. Aid. Newman expressed his lack of enthusiasm for a health/fitness club but understands that the City can not dictate to whom a developer can lease space. Aid. Newman asked if the project was viable without the fitness facility. Mr. Klutznick said it is an integral component of the project and it fits well in the project. Aid. Newman asked what contingencies were made for employee parking and if the garage space projections include consideration for employees. It is difficult for Ald. Newman to imagine minimum wage, or slightly higher earners paying $75 per month to park in the garage. Ms. Aiello stated the KLOA analysis takes everyone into consideration. The issue is a Citywide concern and it should be dealt with from a broader perspective to determine a proper solution. Aid. Engelman asked if the obligation to maintain and or rebuild the garage is for forty years. Ms. Aiello stated that the obligation is for seventy-five years. A brief discussion ensued with regard to the garage rebuild stipulations for the other developments. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUNE 18. 2001 PAGE 9 Citing the relatively brief thirty-year life of the current garage, Aid. Newman and Ms. Aiello made it clear that the new construction techniques and the use of reinforced concrete significantly increases the life of parking facilities. Aid. Engelman asked if Dryvit construction material was contemplated for use on the parking facility. Mr. Klutznick assured the EDC that Dryvit material will not be used. Aid. Newman asked Mr. Robert Perlmutter, the developer of the nearby Chanter's Building, for his opinion regarding the Sherman Plaza project. Mr. Perlmutter views the project as highly beneficial in several ways. Mr. Berger moved to approve the motion as recommended to the EDC and Mr. Richard Cook seconded the motion. After a brief discussion the motion was amended to include resolution to the taxation issue raised and clarification of the signage language. The amended motion passed unanimously. V. There being no further business, Aid. Feldman adjourned the meeting at approximately 9:10 P.M. The next EDC meeting is scheduled for Wednesday. June 27.2001 at 8:00 P.M. in room 2404. Civic Center. submitted, E. Robinson aic Develonm t Planner DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY JULY 25, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Moran, Aid. Newman, Percy Berger, Richard Cook, Barbara Putta i MEMBERS ABSENT: Aid. Wynne, Lucille Krasnow PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Lloyd Shepard OTHERS PRESENT: Doraine Anderson -Plan Com., Ann Dienner-Plan Com., Alice Rebichini-Plan Cam., harry Widmier, David Hovey-O�tima,,Tod Desmarais-OOgtima, Matthew Cison-O Irma, Jonathan Perman- Evanston Chamber Of Commerce Summary of Actions: I. Aid. Feldman called the meeting to order at approximately 8:11 P.M. II. The previous minutes of the June 18, 2001 special meeting were unanimously approved without corrections or additions. Ald. Feldman also welcomed Ms. Barbara Putta as the latest member to join the EDC. Ms. Putta will serve as the Zoning Board representative member Hof the EDC, III. Aid. Feldman announced that the purpose for the Optima development team's appearance before the EDC is to deliver a special presentation of the proposed residential component of the Hill project. Aid. Feldman granted a request by Optima to change their agenda position to first, acknowledging the presenter's time constraints. The Optima representatives identified themselves as David Hovey, Tod Desmarais and Matthew Cison. They were welcomed by Aid. Feldman. Visual aids included plan view and elevation renderings of the proposed development and a scale model of the concept. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULV 25. 2001 PAGE 2 Mr. Hovey guided the EDC through the entire concept of the residential condominium development to include it's positioning on Maple Avenue, parking and retail space. Aid. Newman asked for confimYation of the number of residential units. Mr. Hovey confirmed the number as 182 units. Aid. Newman also asked for the number of residential parking spaces reserved, which in turn was confirmed at 230 spaces, representing a ratio of "1.33 " per unit according to the developer. Ms. Aiello interjected that under the plan development. the requirement for the residential component was one space per unit. The requirement for residential parking is exceeded for the development. The structure will have seven residences per floor and will contain an out door grecert space, a swimming pool, a party room and an exercise room. Each residential unit will have a'northeast view towards NU and the lake. Each unit will also have a private outdoor balcony space. A general discussion ensued with regard to the esthetics of the project design, residential parking and the retail element. Utilizing a scale model of the project, the presenters oriented the EDC to the exact positioning of the building. Tile sizes of the units will range from 880 square feet for a typical one bedroom unit up to 1,800 square feet for the typical three bedroom unit. However, there will be some special units that will range from 2,000 to 3,000 square feet and will be located on the upper floors of the structure. The price points for the units will be $175,000 to $550,000 for the typical units. For the special units the range will be higher. The special units will have two stories and the developer believes their project will have more amenities than other Northshore developments of its type. The retail space encluded in the project will be approximately 5,300 square feet and will be purchased be the Hill development team upon completion. The construction schedule require a commencement date of November 1, 2001 and it is believed that the first occupancy of the building will be approximately February or March of 2003. The general discussion continued for a brief period, primarily concerning the possible building materials. The developers estimate that starting in 2004 the building will generate approximately $1.7 to $2.0 million annually in tax revenues. Ald. Feldman thanked the presenters and continued with the meeting, returning to the original order of the agenda IV. The communication items included in the packet were briefly discussed. Aid. Engelman clarified item `D.' concerning a zoning ordinance map amendment proposal to rezone the area from B3 to B2 at Main and Chicago Avenue west of the track alley to Hinman Avenue btd only on the north side of Main Street. Also the Plan Commission recommended rezoning to CIA the area north of 603 Main. However the actual vote by the Planning & Development Com ninee was to rezone the whole area in question as C i A. DRAFT-NOTAPPROVED ECONO3IIC DEVELOPMENT COMMITTEE MINI7TES4ULY 25. 2001 PAGE 3 Additional discussion ensued as to the possible consequences for the current developer at Main and Chicago and future development proposals within the affected area as a result of the change. The EDC members agreed that more information would be required to ascertain the full ramifications of each proposed ordinance item, particularly as the changes pertain to the number of required parking spaces. The various issues raised by the proposals will require studied consideration as they proceed in the responsible committees. V. Aid. Feldman next asked Judith Aiello to provide the EDC with an update on the deadline extension request made by the Glenlake Ltd. Construction Co. ( formerly Scribcor). Ms. Aiello stated that as indicated in her memorandum to the EDC, The redevelopment agreement required Glenlake to commence construction on the 1881 property within six months after the completion of the municipal garage. The six months period will expire in August of this year. Glenlake is requesting an extension to May of 2003. If construction doesn't start as agreed, the City has the right to repurchase the property for the same $400,000 price Glenlake paid to the City. Staff recommends granting the extension to May 2002, with six month review intervals designed to assess the market and to keep the City's repurchase option available if it is deemed necessary to exercise that remedy. if the EDC agrees to the extension, an amendment will be presented to the City Council at the August Council Meeting. Glenlake will continue to allow the City to use the lot for interim parking, which has 100 spaces, during the construction of the Sherman Avenue Municipal Garage. Aid. Engelman offered a motion for the EDC to support the recommendation from staff. Aid. Newman seconded the motion which passed unanimously. VI. Ms. Aiello next provided the EDC with a brief update on the • Sherman Plaza Redevelopment Project. She was pleased to report that on July 16, 2001 the Kiutznick development team closed on $14.5 million worth of real estate and now has title to all of the required properties. Plans are proceeding and the Sherman Avenue Garage will be closed after the Christmas season. Demolition of the old parking facility and Champs will occur during the first quarter of 2002 and there will be an approximate fourteen month construction period for the new garage. There are no known environmental concerns associated with the land. VII. Dennis Marino provided the EDC with a brief update on a recent development proposal by Prentis for 1800 Sherman. Judith Aiello commented on the proposal presented by Davis Street Land Company ( Chandlers Building developer) but subsequently denied by the Zoning board of Appeals. The developer proposed to construct a mixed use, four story, all masonry building on Davis Street, east of the Chandlers Building. The design was well received by the Site Plan and Review Committee but a zoning variation is required. ZBA DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUTLY 25. 2001 PAGE 4 denied the proposal because it failed to meet a specific standard. The proposal will next be presented to the Planning and Development Committee. Aid. Feldman expressed his pleasure for the construction progress being made on the Steak And Shake project being erected in the Howard Hartry Shopping Center. Aid. Engelman asked EDC member Richard Cook for a status update on the proposal for the redevelopment of the old Whole Food site at Ridge and Emerson. Mr. Cook advised the EDC that he was not at the last Plan Commission meeting. However, Ann Dienner and Doraine Anderson, both of whom were present at the Plan Commission meeting as well as in the EDC audience advised the EDC that the Plan Commission first recommended rezoning the site from C2 to R5 and secondly, denied the project proposal. Some discussion envied regarding the need for new developments and the taxes they generate. VIII. There being no further business, Aid. Feldman adjourned the meeting at approximately 9; l5 P.M. The next EDC meeting is scheduled for Weduesday. August 22. 2001 at 8:00 P.M. in room 2404. Civic Center. �t lly submitted, 10 s E. Ro 'nson )mic Development Planner DRAFT -NOT APPROVED ECONO.%1IC DEVELOPMENT COMMITTEE MEETING MINUTES %%TDNESDAX OCTOBER 3, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Percy Berger, Richard Cook, Lucille Krasnow, Martin Norkett, Barbara Putta MEMBERS ABSENT: None PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Lloyd Shepard, James Wolinski OTHERS PRESENT: Thorsten Bosch-D.P. Coflev do Assoc., James Klutznick Team- Kluttnick Deu Co., John Terrell -The Prime Groua, William Ryan- Rvan & Rvan, Steven Friedland-Schift'Harden & Waite, Bridget Lane-Evmark Summary of Actions: I. Aid. Feldman called the meeting to order at approximately 8:05 P.M. U. The previous minutes of the July 25, 2001 meeting were unanimously approved without corrections or additions. 111. Aid. Feldman welcomed Mr. Martin Norkett as the latest member to join the EDC. Mr. Norkett will fill the vacancy created by the departure of Ms. Lucille Krasnoai who has served the maximum two -term limit, as an EDC member. Ald. Feldman noted that Mr. Norkett was a previous member of the EDC and that it was a pleasure to have him back as a member. IV. Proceeding with the meeting, Aid. Feldman changed the agenda to allow the Klutznick Development Co. representatives to be the first presenters. ` '' im DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 3, 2001 PAGE 2 Aid Feldman ad,67sed the EDC that the primary focus for the presentation is to obtain approval for the proposed First Amendment to the Redevelopment Agreement and the Public Improvement Construction agreement, copies of which were previously distributed to the members. The Klutznick representatives, who are well known to the EDCC re -introduced themselves and also introduced Mr. Thorsten Bosh who operated the technical devices used in the presentation. The development team was welcomed by Aid. Feldman. Visual aids used for the presentation included plan views and elevation renderings of the project components as well as a computer generated, animated virtual tour of the Sherman Plaza development project. Ms. Judith Aiello advised the EDC that they would first be treated to the animated visual tour of the redevelopment project, which reflects the latest concept revisions. Ms. Aiello also noted that the developer had opted to exercise an option to change the residential component from seiuors residential to market rate condominiums. Commencing with the visual tour, Mr. John Terrell, member of the development team, guided the EDC through the design concepts for the proposed municipal garage, residential condominium tower, health club and retail spaces which are to be included in the development. Mr. Terrell mentioned that the new garage will have 1,596 spaces with two entry points on either side. One of the significant revisions in the project design is the residential component where the design has been enhanced and a wing has been added. This added wing will allow the developer to increase the square footage for the condominium units which will now average about 1,300 square feet per unit as opposed to the 775 square feet originally planned for the senior's average unit,. Additionally the design precludes the need to go higher and the wing hides the garagc`from the front. The residential component will have approximately 212 high -end units. Some of the units will be larger, two-story loft style residences. The fitness facility will also be two -levels high with a total of 80,000 to 100,000 square feet in size. There will be a direct entry feature from the garage to the health facility. After Mr. Terrell advised the EDC of the design features of the garage, an extended, general discussion ensued concerning the development and architectural aspects of the projects. Mr. Terrell stated that more refinements to various aspects of the project are planned. Ald. Moran commented that the detail provided on the design concept for the new garage was appreciated and the general design was much improved. Of particular note was the fact that the garage floors are designed with flat bays to eliminate the outside view of up and down ramps. which adds to the positive esthetics of the facility. '' DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 3, 2001 PAGE 3 Ms. Lucille Krasnow wanted assurance that the number of parking spaces still met the original projection. Ms. Aiello stated that based upon the KLOA comprehensive study, to include the new garage in the Hill project, the combined potential of both garages will provide sufficient parking spaces to meet tenant needs as well as a surplus for future growth. Ms. Krasnow also had concerns regarding the harsh glares emanating from car headlights inside the new Maple Ave. garage during night periods and wondered if a similar situation will result in the Sherman Plaza Garage. Mr. Terrell stated that the height of the floors in the Maple Ave. Garage appears to contribute to that glare problem. The Sherman Plaza Garage will not have the expansive floor space and the view lines that the other garage has, and these factors combined with other design features will eliminate the chance for a similar problem. In addition some screening will be incorporated into the design enhancements. Aid. Wynne reminded the EDC that the decision to increase the height and lighting of the floors in the Maple Ave. Garage was purposeful. The idea of a more open, brighter space together with other measures were intended to instill a sense of security for the users of the facility. Aid. Wynne wanted to know the planned height for the floors in the Sherman Plaza Garage and if the reduced height will negate the security measures mentioned. Mr. Terrell stated that although he could not advise the EDC of the exact height of the floors at this time, he assured the Committee that the garage will meet all security expectations. Aid. Newman suggested to Ms. Aiello that a few more Parking Committee meetings were in order to address the garage refinements. Ms. Aiello concurred. Aid. Newman continued by commenting on the need to make the garage easy to locate, particularly since the development design revisions will hide the facility from view. The comments spurred a brief discussion on the pros and cons of the visibility of the garage from different directions and the location of appropriate signage, especially the large sign located on the Sherman Ave. fagade. Mr. Terrell assured the EDC that with close cooperation with the City, an agreeable resolution will be found for this concern. A few additional comments were made regarding the project site plan at which time Ms. Aiello asked Mr. William Ryan, the attorney for the City, to advise the EDC on the First Amendment Changes to the Redevelopment Agreement and the Public Improvement Construction Agreement. Mr. Ryan began by stating that with regards to the First Amendment, the document accomplishes three or four changes. (1) The original agreement provided for the construction of a building comprised of approximately 200 senior citizen living units. The amendment changes the residential component to approximately 175 to 212 condominiums: (2) The original document provided for the senior living project to purchase 55 parking spaces from the City. The amendment change, will provide for the project developer to purchase from the City, either 203 or 256 spaces on 4'or 5 bays: and (3) The original document provided for the City to lease 55 parking spaces to'the developer. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 3. 2001 PAGE 4 The amendment change will allow the City to create a sub-di-t7sion and convey the air space to the condominium project. The foregoing represents the changes in terms of the redevelopment agreement. The other changes to the document concern the addition of other parties who have an interest in the project. Jordan and Walter Kaiser, the other interested parties, will be involved with the condominium and health club components of the development. The final change to the agreement grants the developer the right to have a separate conveyance of the health club to a separate entity as well. Mr. Ryan stated that the summation of these changes related to the first amendment. The second document, the Public Improvement Construction Agreement was originally entitled the Public Garage Construction agreement. It was changed to "Improvement" because now the detention basin beneath the garage, site improvement and the entire garage facility will be included in the agreement. In general, after the document is executed and approved by the City Council, within 30 days of that date the developer is compelled to provide the city with an estimated budget for the garage and public improvement. The developer agrees in the document that the cost in the estimated budget will not exceed $19,500 per parking space. What will not be included in that cost is the shell cost of the retail which the City will own and lease back to the developer. Before construction begins on the garage. the developer must present a final budget to the City that cannot differ from the $19,500 per parking space by more than 7%. As such the final budget has to be within 107% of the initial estimated budget. In terms of financing the public improvement, the developer will get 3.5% construction fee and they will obtain financing for the construction of the garage during construction. The developer will have to provide the City with three term sheets from three lenders to finance the garage. If the City dislikes the term sheets it reserves the right to finance the project. Within six months after the garage construction is completed, the City will pay for the facility with 1,591 less the amount for the 256 spaces purchased by the condominium development. Mr. Ryan concluded his summation by stating that this timing provides an opportunity for the City to sell bonds during a time when it is most favorable to obtain the best rate. Ald. Newman asked how the City will know which parking bays will be sold to the condominium development. Mr. Terrell identified the bays utilizing the architectural renderings. The parking spaces will be dispersed on different floors and conveniently segregated. Ms. Aiello distributed to the EDC, a memorandum form the City's consultant, Mr. Martin Stern of U.S. Equities recommending approval of the agreements. Mr. Stern was not able to appear in person but conveyed his analysis of the documents and recommendation for EDC and City'Council approval in writing. Mr. Stern pointed out the greater risk to the developer, particularly in lieu of DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES4X-rOBER 3.2001 PAGE 5 their acquisition of the properties and a debt obligation of S 14.6 million. Ms. Aiello brought to the attention of the EDC that the development will have vertical sub- divisions. All of the issues pertaining to the vertical sub -divisions will be addressed in the Reciprocal Easement Agreement, (REA) which is still in the finalization process. However, the presenters wanted to preview the agreement concepts with the EDC tonight. Primarily the agreement outlines the responsibilities for maintaining the lobby, elevator cores, the streetscape etc. Mr. Terrell distributed color -coded renderings of the "five lot" development components as part of the proposed Reciprocal Easement agreement. Mr. Terrell then guided the EDC through the concepts with a brief description of how the agreement would be implemented and; the corresponding ownership, a shared or common wall, access tights, and maintenance responsibilities for each party. -Mr. Steven Friedland, attorney for the developer, further explained that the REA acknowledges that each of the five paroels illustrated in the renderings are integrated to the point that they cannot exist as stand-alone properties. Each require access to other portions of the development that might be owned by one of the other parties. The REA document basically details three purposes: (1) each parcel receives an easement for their structure over any other parcel; (2) All the parcels receive an easement for the utilities and facilities needed for their properties, and; (a) a general easement for minor encroachments for each parcel. Mr. Terrell concluded the summary by advising the EDC that maintenance responsibilities will also be confirmed. Ald. Feldman asked if an independent maintenance company will be hired to perform mainterim-= for all the buildings comprising the project including the garage. Mr. Terrells' response was affirmative. However, with regards to the garage, Sherman Plaza Venture will have the maintenance responsibility only for the elevator lobbies and stairwells. The City will maintain the floors of the garage and detention basin. Sherman Plaza Venture will also maintain all landscaping and snow removal. Ms. Aiello staled that the summary of the REA concludes the presentation. She informed the EDC that what is being requested tonight is approval for the First Amendment to the Agreement and the Public improvement Construction Agreement. The REA agreement will be a fifty -five -page document and will be presented to the Council at a later date. Ald. Newman asked Mr. Terrell what the status was for leasing and financing the project and asked Ms. Aiello where the cash flow is derived in order for the City to pay for the bonds used to finance the garage, particularly since the sales tax portion doesn't begin for two years. Ms. AieUo stated that the real estate taxes will begin as construction is in progress. Kane McKenna recently completed a pro -forma base on 212 units and projects that property taxes rviU begin in the third year. , DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COH&iITTEE MINUTES-OCTOBER 3.2At11 PAGE 6 For the fast few years, the City will do capitalized interest from the bond issue, until the tax pieces take effect.. At this point, Aid. Moran expressed his concern regarding the separation of ownership of the five parcels within the main structures, particularly the first and second floors and the third and fourth floors. He requested more assurance from the developer that future complications can be a%oided. Mr. Terrell reiterated the importance of the need for independent ownership of certain parcels Mr. Terrell explained why it was in the best interest for the City and the developer to proceed with the integrated ownership. Also Mr. Klumnick spoke to the logical aspect of the arrangement especially when the matter of development control of the third and fourth floors is considered. After a brief discussion, Aid. Moran' concerns were generally resolved. With regard to Aid. Newmans' question about leasing and financing the project, Mr. Terrell advised the EDC that at this point they are working with major users requiring space in the 20to 30,000 square foot range. Several are expressing serious inwrest in combination with some smaller r•�'r���• Osco Drugs is scheduled to return as a tenant, and will represent approximately half of the available retail space excluding the health club. in addition, the developer will participate in the International Council of Shopping Centers ICSQ due to convene in Chicago at the end of October. The developer is confident that they will be successful in their pre -leasing activities to achieve the City and financing requirement of 601/6 lease -up. Aid. Newman asked if the City will know who the tenants will be prior to the demolition of the garage. Mr. Terrell assured the EDC that there will be a future announcement identifying the tenants as well as financing aspects for the project, prior to the City transferring the land. - Aid. Feldman asked Mr. Cook to brieflv inform the EDC of the discussion the Plan Commission had with regard to the project. Mr. Cook stated that the discussion basically concerned the pariang issues but the Plan commission exhibited overall satisfaction with the development project. Mr. Ryan briefly addressed Ald. Moran' previous concern. Mr. Ryan informed the EDC that through the year 2017, the end of the TIF, a transfer of any parcel requires the City's' ca..,,...:...'..,. and the transferee has to have the name experience of financial responsibility and they would have to assume the provisions of the redevelopment agreement. Ald. Moran move to approve the First Amendment to the Redevelopment Agreement and -the -Public Improvement Construction agreement and the motion was seconded by Aid. Wyrtne. The motion was unanimously approved. Ald. Feldman thanked the presenters and continued with the meeting by returning to the original order of the agenda. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMIMITTEE MINUTES-OCTOBER 3.2001 PAGE 7 V. Mr. Dennis Marino briefly reviewed the eleven communication items included in the packet. VL Mr. Marino also advised the EDC that the state mandated, Joint Review Boards Annual Mooting for the four TIF Districts is scheduled for Monday, November 12, 2001 at 8:30 A.M. The various taxing district representatives are invited. Mr. Marino requested a motion to be on record for formally recognizing the announcement. The motion was made, seconded and unanimously approved. VIL Mr. Marino next advised the EDC of the Request For Proposals from the various business districts as the fm step in processing appmved grants from the Neighborhood Business Districts Improvement Program. The deadline has been extended to provide more time for responses. VUL Mr. Marino next addressed a recent development proposal, advising the EDC that Mr. John Leineweber, a developer who has projects on the .Ashland Avenue corridor north of Simpson, has purchased one of the Strange Engineering buildings at the corner of Church and Darrow. Mr. Leineweber has plans to redevelop this space of apprroximately 14,000 square feet and lease space to small business concerns at a reasonable rate. Stall' believes that this is a positive project for the area Mr. Marino also informed the EDC of a group known as E-Town which has also purchased two properties in the immediate area. Staff expects to be coordinating more with this group in Ahe firwre. . Ald. Moran asked if staff typically has an exit intern iew process with companies leaving the City. Mr. Marino stated that although there is no formal process, attempts are made to meet with the owner once we are aware of the intention. With regards to Strange Engineering, several discussions were held with Mr. Stange, the owner. Ald_ Moran asked Mr. Marino to prepare a confidential report for the EDC disclosing the content of those discussions for teaming purposes: Ald. Newman asked if there was any leasing progress made at the Dempster/Dodge Shopping center. Mr. Marino advised that a meeting was scheduled with Freed representatives during the following week. Mr. Morino further advised the EDC that the Dominicks was performing well but lease -up has not met expectations. Ald. Feldman commented that both personal observation as well as comments from neighborhood residents indicate that this particular DominWs is operated at a significantly lower WOW standards than the store on Greenbay Road, both in terms of staffing and quality of produce:,Ald. Feldmen suggested that this situation is a recipe for the stores' demise. ,, T11W, DRAFT•NOT APPROVED ECONOMIC DEVELOPMENT CO.NL'NITTEE MINUTES-OCTOBER 3. Z001 PAGE 8 Aid. Feldmen also stated that members of the Dewey Community Council, who have vested interested in the complete success of the store and shopping center have expressed their concern and plan to make the situation an issue at their next meeting. Aid. Feldman also shared a personal experience he witnessed with regard to understaffing at the service desk, and lines of waiting customers, and how the incident added to other customers' dissatisfaction. Mr. Percy Berger related similar dissatisfaction, citing the discontinuance of certain wine brands, as an example, which had been replaced with lesser quality products, adding that the change in the shore has been dramatic. r Mr. Cook stated that he lives in the Dewey community and that he and his wife frequently shop at the Dempster Plaza Dominicks, usually on Saturdays. They too have experienced what they believe to be a change in the products. In general the service has been okay but not great.. � i Ald. Feldman again recounted an unpleasant experience with spoiled Dominicks' brand cottage cheese and when he returned the item to the store and checked the cooler, he noted that the other containers were swelling. Returning to the store a few weeks later, he observed the same conditions and doubted it was coincidence. Aid. Wynne interjected that she and Judith Aiello were meeting next week with representatives of Safeway, the parent company, next week regarding the closed Dominicks' site on Chicago Avenue. She advised the EDC that she will share these concerns with the representative at the meeting. Aid. Newman added that the situation was of such importance that City needs a written response from Safeway after the meeting. Mr. Marino summed up the concerns, indicating that there are three issues that should be addressed quickly. The first issue is staffing and servicing; the second is product mix and shifting product mix; and thirdly, product quality. Ald. Newman suggested that the,question is also whether. or not the Dempster store and the Greenbay stone are operated in the same manner, and if not, there should be explanations for the difference. The store discussion continued briefly and ended with an assurance from staff that the concerns would also be conveyed to the developer. Next, Aid. Feldman recognized the significant contributions made by Lucille Krasnow, who was attending her last meeting as a member of the EDC. Her eight yearn of service to the EDC and the City is appreciated and a plaque and or certificate will be presented to her at,a later date to commemorate her valued and stellar service. i DRAFT NOTAPPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 3.2001 PAGE 9 Aid. Moran noted that five or six years ago, Ms. Krasnow was directly involved with the development of the concept for an RFP for the redevelopment of the west side of Sherman Ave. to Benson Ave., between Davis St. and Church Street. It is ironic that at her last EDC meeting the City is presented with the dynamic Sherman Plaza project that encompasses those concepts in the RFP. The Committee concurred. Ms. Aiello distributed a memo from Ms. Bridget McDonough which advised EDC of the status of the performing arts conversion feasibility study underway for the closed Central St. movie theaters. It appears that projected costs are higher than hoped and the concepts are being reevaluated. The interested parties will appear before the EDC at a future meeting. Mr. Marino briefly provided the EDC with two additional updates. The first concerned the proposed residential project at the old Whole Foods site at Ridge and Emerson. There is an alternative proposal has been submitted, which now involves a design change for a four story building with I95 units. The previous proposal was for nine stories with about 205 units. A number of previous iterations for the proposed project have previously been presented. The latest iteration will be presented to the Plan Commission in the near future. Secondly at next Wednesdays' Plan Commission meeting there will be a continuation of a presentation by Prentiss Properties, for an office building/planned development at the comer of Sherman Avenue and Elgin Road. UL There being no further business, Aid. Feldman adjourned the meeting at approximately 9.50 P.M. The next EDC meeting is scheduled for Wednesday. October 24. 2001 at 8:00 P.M. in room 2404. Civic Center. submitted, hobi:son nic DevlopAt Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY OCTOBER 24, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Mown, Ald. Newman, Aid. Wynne, Percy Berger, Richard Cook, Lucille Krasnow, Martin Norkett, Barbara Putta MEMBERS ABSENT: Aid. Engelman PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Lloyd Shepaid, OTHERS PRESENT: David Kamp & Bridget Lane-Evmark, Jonathan Permah-Ev 'COC., Alex Sproul Summary of Actions: I. Aid. Feldman called the meeting to order at approximately 8:16 P.M. IL The previous minutes of the October 24, 2001 meeting were unanimously approved without corrections or additions. III. Ald. Feldman invited Bridget Lane, Executive Director, Evmark to begin her presentation with particular focus on the downtown vacancy rate. Ms. Lane had previously distributed a "destination Evanston" Packet to the EDC members, which contained various articles, maps demographics, commuter facts and data regarding the Cite, as well as Evmark's marketing campaigns. Ms. Lane commented as to why this was an opportune time to appear before the EDC inasmuch as the annual meeting of the International Council of Shopping Centers OCSQ was scheduled to be held in Chicago during the following week. Ms. Lame will attend the conference and the same packets distributed to the EDC VAll be made available to attendees. Ms. -Lam briefly explained the contents of the packet and directed the attention of the EDC members to current downtown vacancies, which now total nine spaces. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 24, 2001 PAGE 2 The nine spaces are the focus of an active marketing campaign. Two of the spaces comprise approximately 12,000 square feet. They are brand new and are located in the Church Street plaza. Ald. Feldman asked Ms. Lane for a comparison of vacancy rates of three years ago and the present level to date. Ms. Lane's response was that it was her understanding that the rate was approximately 12% three years ago compared to 4.5% to date. Ms. Lane also said that as far as she knew the current vacancy rate is the lowest it's been in recent times. Jonathan Perman reiterated the point, stating that it is certainly lower than it has been in the last decade. Aid. Newman expressed his concern about the chronic vacancies and the type of tenants associated with the Carlson Building. Aid. Newman also questions the ability of the Carlson Building owner, who primarily owns residential property, to properly market this retail property, citing the experience and marketing success of other downtown property owners in comparison. As such; the downtown suffers from the negative impression caused by the prolonged vacancies. Ald. Newman asked how the City and Evmark can help this prime property owner in particular and others of the nine who may lack the ability to properly market their retail spaces. Ms. Lane stated that her staff speaks with the owner at least once a month and that the owner has even been invited to the meetings as well as being asked to join the Evmark Board. He has declined to serve. After further consideration of the situation, Ms. Lane added that the vamt retail space will be marketed at the ICSC conference next week and assured the EDC that frequent contact with the owner is on going. Ms. Lane added that the owner has previously volunteered to appear before the EDC and arrangements will be made for him to appear at a future meeting. Ms. Lane continued the presentation by advising the EDC of Evmark's marketing and enhancement plans to focus attention on Davis Street west of the viaducts. Ms. Lane concluded the presentation by describing the remaining contents of the Evmark marketing package. Particular note was made of the enclosed transit map, which bore the header "All Roads Lead to Evanston". The map also highlighted the need to encourage visitors and people employed in Evanston to use the transportation systems. Ms. Lane then entertained questions from the EDC members. Ald. Newman raised the issue concerning the requirement of additional retail construction along Clark Street as part of a mix use office building project proposed by Prentiss Properties. The City would appreciate input from the Evmark Board and its members as to the level of support they have for making retail a requirement in the plan. Ms. Lane commented that the Evmark Board is in frequent contact with the developer regarding new TCWI space needs, especially when the new spaces created by the Hill and Klutznick projects are considered. The Evmark Board believes more clustering of retail is desirable and Ms. Lane said that she would provide staff with more information on retail clustering after the ICSC conference. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 24.2001 PAGE 3 Ald. Newman asked Mr. Richard Cook what the Plan Commission thought of having retail along Elgin Road in the proposed project. Mr. Cook stated that the idea was not well received. Ms. Aiello stated that the reason the developer preferred Elgin for retail is because there is a higher automobile traffic count. However for an automobile to enter the proposed development from Elgin Road is nearly impossible. Ms. Aiello said that an invitation has been made to the developer to meet with the Site Plan And Appearance Review Committee (SPAARC) to help the developer better understand the difficulties associated with havitg retail located along Elgin Road nether than on Clark Street. Md. Newman c6ncluded the remarks by stating the most important factor to keep in mind is the completion of the development project, which will potentially produce $1 million in real estate taxes with or without a retail component. As a final question, Aid. Newman asked Ms. Lane's opinion of the Shop Evanston Campaign. Ms. Lane said the feedback they have received over the past year has been very positive in terdis of sales growth although the current Evmark campaign does not use the theme. Lastly, Mr. David Kump, Evmark Board Chairman, assured the EDC that the issues raised concerning the Carlson Building, Davis Street west of the tracks and retail along Clark Street will be items receiving extra consideration by Evmark. Those efforts will include meeting with the owner -of the Carlson Building prior to the owner appearing before the EDC. Mr. Kump's remarks prompted a brief discussion, particularly concerning the Carlson Building owner and the perception that other downtown developers have greater success in- leasing space to more appropriate businesses. Aid. Feldman Thanked Ms. Lane and Mr. Kump and proceeded to the next agenda item. IV. Mr. Dennis Marino began the project update by briefly describing a recent meeting staff had with Mr. Dennis Harder, a representative of Freed & Associates, the developers of Dempster Plaza. Mr. Harder reports that Dominicks is meeting projections and is'doing well. The existing tenant base has also stabilized. The developer is currently working with prospective tenants for the undeveloped out -lot parcels as well as for the former Office Depot space. Freed will also have representatives at the ICSC conference next week to market the shopping center. Mr. Harder has also agreed to appear before the EDC at the November meeting. Ald. Feldman reported that since the perceived deteriorating service at Dominick's issue was raised at the last EDC meeting, there has been a change in management and a dramatic overall improvement change at the store. Aid. Feldman expressed his pleasure with the improvements. A general discussion ensued with regard to leasing the vacant spaces and Mr. Marino stated that Mr. Harder will provide more detail when he appears before the EDC. Ms. Aiello next provided the EDC with brief updates on the status of Sherman Plaza. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 24.2001 PAGE 4 Ms. Aiello advised the EDC that the City Council approved the First Amendment to the Agreement and the Public Improvement Agreement for the Sherman Plaza project at the last Council Meeting. Ald. Moran asked Ms. Aiello if there is a possibility to negotiate with the developer to make a contribution to the garage design and construction. This question spurred some discussion concerning the benefits accruing to the developer for a well designed garage. The discussion concluding with Ms. Aiello agreeing -with a recommendation from the EDC that staff' should pursue a request for assistance towards the garage design enhancements from the developer. Ms. Aiello also provided other brief updates on the Optima project, the McDougal Littell office/retail project, the Hotel and the Hospital Building. V. Mr. Marino advised the EDC of the Joint Review Boards Annual Meetings to review the annual performance of each of the four Evanston Tax Increment Financing (TIF) Districts, and share the information with the various concerned taxing bodies. The meetings will occur in succession, on Monday, November 12, 2001, beginning at 8:30 A.M., at the Civic Center in Room 2404. VL Mr. Marino text provided the EDC with a written and verbal summary of five proposals For grunts, from neighborhood business organizations who have applied for participation in the Neighborhood Business Districts Improvement Program. The five organizations are Dr. Hill Business Association; Chicago/Dempster Merchants' Association. Evanston Chamber of Commerce/Evnrark; E-Town Community Ventures and Central Street Business Association: Staff has not completed the application and hands on review processes with all of the groups applying for funds, but will have completed the tasks before the November 14`h meeting. If the EDC so desires, representatives from each of the organizations will be invited to that meeting for comments. Staff will be prepared to make recommendations at that meeting also. A brief discussion followed the summary with Aid. Newman expressing some concern with the possibility of The Chamber/Evmark's participation in the program since it is not a neighborhood district. Aid. Newman also expressed some concern with E-Town's request since they currently have a Community Development Block Grant (CDBG) funds request pending, in the amount of $250,000. Mr. Jonathan Penuan and Ms. Lane interjected the point that their request was for the benefit of the neighborhood business districts inasmuch as the funds will be used entirely to support marketing initiatives in those outlying areas as well as to share expertise. Mr. Alex Sproul, a member of the Main Street Merchants Association supports the Chamber/Evmark proposal. The discussion ended with staff assuring that the EDC will be provided in advance, with copies DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 24.2001 PAGE 5 of written proposals and other pertinent background information. VII. Mr. Marino next directed the attention of the EDC to the Draft Executive Summary of the "Downtown Transit Study Recommendations". This study was conducted approximately one year ago and was primarily funded by a grant from the RTA. Other funds providers were Evmark, Evanston Inventure, Arthur t Iill and Sherman Plaza representatives. The purpose for the study was to consider transit issues as they relate to downtown Evanston and Jo develop recommendations for an overall strategy to increase transit rider -ship in Evanston. Approximately 110 recommendations were ultimately formulated. Staff recommended inviting W. Robert Teska, the consulting team leader, to conduct a presentation at the November 10 EDC meeting, as well as inviting members of the Plan Commission and Parking Committee members. After some discussion, it was decided that Mr. Tesca should appear before the EDC at the December meeting. VIII. Mr. Marino next provided a brief update on a recent development project concerning a proposal by Prentiss Properties. The retail aspect of the project was been previously discussed earlier in the evening. An update was also provided on the redesigned, proposed residential development on Ridge and Emerson at the former Whole Foods site. Aid. Newman recounted the litany of hurdles the developer has been subjected to and suggested that the developer meet with the Plan Commission prior to having a presentation before the EDC. IX. Mr. Marino shared an architectural rendering of a new smaller scale, tastefully designed residential development taking place at 1939 Sherman. Mr. Marino stated that this project is indicative of a number of smaller scale developments in the four to eight unit range, that are occurring in the City. These smali-scale development concepts were the topic of a general discussion amongst the members regarding unit sizes, price points and locations. X. No communication news items were included in the packet. XI. Ms. Aiello provided a brief update on the progress of the feasibility study underway on the closed Central Street Theaters on behalf of two local performing arts companies (Lite Opera Works and Dance Evanston). No specific details are available yet, but an appearance before the EDC by the performing arts representatives is anticipated at the November EDC meeting. XII. There being no further business, Aid. Feldman adjourned the meeting at approximately 9:30 P.M. DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 24.2001 PAGE 6 The next EDC meeting is scheduled for Wednesday. November 14. 2001 at 9:00 P.M. in room 2404. Civic Center. ReWffWly submitted, If. rds E. Robinson nomic Development Planner , I. I :' Ai f �r DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEMBERS PRESENT: MEMBERS ABSENT: MEETING MINUTES WEDNESDAY NOVEMBER 14, 2001 ROOM 2404-8:00 P.M. CIVIC CENTER Aid. Feldman, Aid. Moran, Ald. Newman, Ald. Wynne, Richard Cook, Martin Norkett, Barbara Putta Aid. Engelman, Percy Berger PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson OTHERS PRESENT: Gabriel Cheifetz, et al, E-Town Community Ventures, Lois Combs, et al -Central Street Business Association, Paul Geddings, et al- C, hicatrolDemmter Merchants Association, John Leinewebber, et - al -Dr. Hill Business Association, Alex Sproul -Evanston Chamber 'Commerce Summatv of Actions: 1. Aid. Feldman called the meeting to order at approximately 8:05 P.M. IL The pmvious minutes of the October 24, 2001 meeting were unanimously approved without con=tions or additions. 111. Dennis Harder, Development Manager, Joseph Freed And Associates, Inc. was scheduled to appear before the EDC but was unable to attend due to a family emergency. Dennis Marino suggested that Mr. harder could be rescheduled for the December meeting. Aid. Feldman concurred. IV. Presentations by representatives of five neighborhood business district associations were Scheduled as the primary agenda item during the November 14'h EDC Meeting. Each of the five organizations had previously submitted funding proposals in response to Requests for Proposals from staff, and copies of these proposals were included in the EDC packets. The submittals served as applications from each organization for matching project funds, pursuant to the provisions contained in the Neighborhood Business District Improvement Program sponsored by the City. , 4w". DRAFT=NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVENIBER 14, 2001 PAGE 2 The first group to speak were representatives of the Dr. Hill Business Association headed by Mr. John Leineweber. fir. Leineweber began by identifying the boundaries of his organization. This neighborhood business district is bounded by Greenbay Road to the east. Simpson Street to the south extending to Bridge Street. The North Shore Sanitary Drainage Canal represents the northern boundary. and together these boundaries form a triangular shaped footprint for the district. Mr. Leineweber paused to introduce some Board members of the Dr. Hill Business Association. The complete list of board members are referenced in their Request For Proposal. Responding to a request by Ald. Feldman, Mr. Leineweber also head a fist of approximately forty businesses, developers and neighborhood organizations and property owners, which comprise the Dr. Hill Association. The Dr. Hill proposal identified a number of improvement issues in the district which need to be addressed such as, new sidewalk repairs, garbage cans, planters, banners and other beautification enhancements. The Dr. Hill Association also intends to fund the development of a master improvement study plan for the area. Their request from the City is for the amount of $10,060 in matching funds. Ms. Barbara Putta asked how staff intends to monitor the use of the funds. Mr. Marino stated that as in the past, the City would basically reimburse the associations upon receipt of paid 'and approved invoices or have the product/service provider directly bill the City if cash flow is an issue with this particular association. It is incumbent upon the association to provide the City with proof of matching funds expenditures. Mr. Marino also noted that when the program was last conducted, staff was advised to make outreach efforts to other business communities in need of improvements and that the Dr. Hill Association district exemplifies the successful effort made on the West Side. Ald. Feldman asked for a clarification on the amounts requested from the five organizations as well as the amount available for disbursement. Mr. Marino response was that it is coincidental that each group's request is for $10,000. The amount of $50,000 from the Economic Development Fund was approved to re -fund the program for this fiscal year, and a Capital Improvement Program carry over balance in the amount of $12.000 from the program conducted a few years ago, combine for a total of approximately $62,00D in available fiends. Aid. Newman asked Mr. Leineweber if $ 10,000 is required for Phase I of the project, how does the association intend to fund Phase II. Mr. Leineweber stated that his organization anticipated fewer applicants for the program and had intended to apply for more funds as a result. Barring that option, The organization would complete Phase I and perhaps reapply next year. Ald. Newman expressed his pleasure in the Dr. Hill Proposal, stating that it is exactly the type of proposal for which the program is intended. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT CONBUTTEE 1HIN-17- ES-NOVEMBER 14. 2001 PAGE 3 The second group of presenters. led by fir. Paul Giddings. represented the Chicago/Demnster Merelrants Association. Taking his Queue from the previous presenter. Mr. Giddings provided the EDC with a list of forty-five member businesses belonging to his association. Sur. Giddings began the presentation by informing the EDC that his organization was comprised of two branches. Aside from the merchant membership association branch, there is also is 503C branch which is used to find an annual festival during the month of May. Mr. Giddings also introduced the officers of the organization who had accompanied him to the EDC Meeting. Mr. Giddings advised the EDC of the manner the funds were used in the previous improvement r.�ty.�.... were used. The Chicago,Dempster Association developed and continues to maintain a WEB site, ShopEvanston Com. a brochure was developed and over 17,000 copies have since been distributed but it is now basically obsolete, and sixteen planters were installed within the district This neighborhood business district has lost some significant members due to recent residential developments, which has resulted in significant reductions in their contributions. What the association is seeking assistance for during the current improvement program is to obtain matching funding for four actions. The first is to purchase replacement, cast concrete planters for those that have been damaged by vehicles and the effect of weathering. The second is for redesigning and updating the business district brochure in such a way that future updates will be facilitated simply by changing removable pages. The association would like to purchase additional banners The fourth action, and the one considered to be of the highest priority by the association is to purchase and install holiday lights in the many, tall trees in the district, the lights only last for one season. The group did not consider side walk benches for the current improvement initiatives. The Chicago/Dempster Merchants Association is seeking a total of S10,000 in matching funds. Ald Newman commented on the complaints he has received from the proliferation of newspaper boxe& there are currently twenty-six in the area. Mr. Giddings and Ald. Wynne replied., stating that this issue is being legally resolved and ultimately the newspaper boxes will be contained in a fenced area designated by the City. Within thirty days, this concern should be resolved. The third presenter was Mr. Alex Sproul who represented the Evanston Chamber of Cowaae ce/Evmark- Mr. Sproul advised the EDC that he would provide the EDC with a list of board members at a later date. Mr. Sproul informed the EDC that the joint organizations proposal is for a funding assistance request to develop brochures and promotional material for a Transit Check Program. With the eminent shutdown of the Sherman Avenue Municipal Garage, every effort aceds to be made to encourage as many employees of local businesses as possible to switch from their private vehicles and onto trains and busses. The ECOC and Evmark suggest that the Transit Check Program is an alternative that businesses can support DRAFT -NOT APPRO I D ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVEMBER 14. 2001 PAGE 4 The intent is to expand the program throughout the City. the premise being that all the other business districts will benefit by having their employees use public transportation. The Main Street Business Association consider this project to be important enough that they decided to forego the submission of a proposal of their own, in order to support the ECOC/Evmark endeavor. The brochure will explain how Transit Check will work and outline the benefits. Aside from encouraging the use of public transportation, the program has a tax-deductible advantage for the employer and is not reportable as income to the employees. Brochures will be made available in all business districts, there will be targeted mailings to employers and follow up door to door contacts. A $10,000 matching funds grant is requested. A pledge has been obtained from the RTA to provide some matching funds, if the proposal is approved. Aid. Feldman asked if there were questions. There being none, the Chair thanked Mr. Sproul for his presentation and proceeded with �the agenda. The fourth group of presenters, led by Mr. Gabriel Cheifetz, and Mr. Paul Wallace, represented the E-Town Community Ventures. This too is a new organization formed primarily in the Church and Dodge area The goal of the organization is to promote and support the growth of locally owned businesses that will serve this targeted community. The E-Town proposal is primarily for street beautification within the area, primarily by providing planters and installing banners and holiday lighting, as has been done in other business districts. Aid. Feldman asked for questions. Aid. Newman asked about the amount and purpose for a funds request proposal from the E Town organization, which was presented previously to the Community Development Block Grant Committee. Mr. Cheifetz said the proposal was for $200,000 and that the purpose for the funds, if approved, is for assistance with major rehab work required for commercial buildings recently purchased by the organization. The amount requested is just a fraction of what will be used to rehabilitate the properties. Ald. Newman asked Mr. Cheifetz to identify the businesses supported by ETown and specifically if the store at Church and Dodge was owned by the organization. Mr. Cheifetz explained that the property in question was not owned by E-Town and proceeded to advise the EDC of the businesses in the area who are supported by E-Town Community Ventures. After additional discussion of the general neighborhood improvement goals and organization activities, Aid. Newman asked if the High School was in support of the E-Town endeavors. Mr. Cheifetz stated that a meeting had been held with Dr. Alan Alson, the District Superintendent, and a presentation was made to the School Board Budget Committee and their hill support was obtained. r• f 4 DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVEMBER 14.2001 PAGE 5 Aid. Newman asked if the School Board has contributed any funds toward the activities. Mr. Cheifetz stated not at this time, but they will again approach the administration for assistance in the future. Mr. Wallace reiterated the goals of the organization and after a clarification of the desired items included in the proposal was provided and a method suggested for the businesses in the area to maintain a cleaner and less littered appearance, the discussion ended. Mr. Marino interjected that the Church Dodge area was also part of the targeted areas identified for the on- going neighborhood planning process. The E-Town Community Ventures organization is also seeking a $10,000 matching funds grant. The fifth presentation was conducted jointly by Ms. Lois Combs, Mr. Tom Hurd and Ms. Stephanie Riley, representing The Central Street Business Association. Ms. Combs, the Association President, began by identifying the boundaries of the organization, stretching west form Greenbay Road to Lincolnwood. The merchants within this district have primarily focused their efforts in promoting and conducting the annual Central Street Fair. This event is the primary fundraiser for this Association. As a result of their deliberations on how best to use improvement funds, the organization decided to pursue advertising as the best way to generate business in the district. Ms. Combs stated the proposal had three components, which are the development of WGN radio spot advertising; the creation of a new brochure and the hiring of a public relations consultant to assist with a marketing concept. Secondarily, the Association would like to enhance street beautification with holiday lights, garlands, pole decorations and spring plantings. Ald. Feldman asked if the WGN radio ads would be designed to promote the Central Street Business District. Mr. Hurd response was that at this time, uncertainty remains as to when is the best time to air the spots, or if radio advertising is preferable to print advertising. The intent is to allow a professional consultant the opportunity to assess the plan and make recommendations and provide coaching. Mr. Hurd indicated that the Association was taking a risk in using $3,000 of its budget, an amount constituting mc.,', of their available funds. Aid. Feldman expressed concern that an Association representing such a large, successful, vibrant and desirable district, containing many charming businesses would contribute so little to the well being of its business district. Ms. Riley stated that the Association developed and printed their last brochure at their own expense. Ms. Combs also advised the EDC that business solicitation letters had been recently mailed and responses were being received Thus far approximately $1,800 in additional funds have been collected. Ms. Riley interjected that most of the shop owners do an excellent job in beautifying their own establishments to include providing and maintaining planters, litter maintenance and snow removal. DRAFT-NOTAPPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVEMBER 14.2001 PAGE b The intent of the proposed advertising campaign is to promote all of the Central Street Business District especially outside of Evanston where the shopping area is less well known. The request is for $10,000 in partially matched funds. Aid. Newman commented that the Central Street district is impressive, adding that the city has made investments in the area. As examples, Ald. Newman cited a recent grant for $57,000 for a feasibility study for the conversion of the Central Street movie theaters into a performing arts anchor as well as a $40,0000-$50,000 parking study conducted to resolve parking issues for the district. Considering radio advertising as too speculative, Aid. Newman stated that he would fetid it difficult to support the advertising component of the proposal, indicating, as an example, that he would rather see the funds used to repair sidewalks. Aid. Moran stated that staff has reviewed the applications, and that no limitations are contained in the provisions of the program, which prevents the Association from asking to use the funds in the manner, proposed. The program is meant to promote numerous activities, including creativity on the part of the participating merchant associations. Aid. Moran continued by asking staff if it is true that it is also the intent of the program to solicit from merchant associations their opinions of what would be the best contribution the program can make in their respective districts. Dennis Marino response was yes. Continuing, Aid. Moran asked if it has ever been the objective of the program to have the EDC tell the applicants appearing before the Committee what they should or should not ask for. Mr. Marino agreed that it wasn't the intent for the EDC to do so. Aid. Moran then stated that he didn't recall any application being disallowed. Aid. Moran concluded by commenting that the Chicago/Dempster Association had conducted non -ordinary marketing activities in the past program. Aid. Newman stated that he wanted the minutes to reflect that he did not say that the expenditure request in question was disallowed. Md. Newman also commented that it is not the role of staff to determine how public funds are spent. Aid. Newman said the reason the program was initiated was because so much was being spent on the downtown streetscape, it was determined that similar programs were needed in the neighborhood districts. Whereas it is appropriate for an association to ask for whatever they want including funding for advertising, but whether or not City tax revenues should fund the activity is a questionable issue. The funds might be better used to repair sidewalks where needed. A general discussion ensued regarding the pros and cons of how the use of business district improvement funds can or should benefit a district as well as how the input from the associations should be considered. WEI .f . DRAFT --NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVEMBER 14. 2001 PAGE 7 Aid. Feldman announced that the discussion period had ended and asked for a motion on one or all of the proposal. Ald. Moran moved to recommend approval to grant $10,000 to each of the five proposals to the City Council and Aid. Wynne pro%ided a second. During the discussion phase another debate ensued with regards to how appropriate it would be to use funds for advertising. EDC members made points and counter points and the Central Street representatives indicated their willingness, to be flexible with the advertising component of the proposal. The debate Culminated with Aid. Feldman expressing his desire to have an amended motion since he could not support funding the radio ads. Aid. Newman amended the motion to recommend approval for all but with regard to the Central Street Proposal, approve $5,000 for holiday lighting and decorations and to reserve the remaining $5,000 for them, until such time as an appropriately revised concept is presented to the EDC. Martin Norkett seconded the amended motion. Aid. Moran voiced his concern about the way in which the matter had been deliberated and the inconvenience caused for the merchant association. Aid. Wynne and Mr. Norkett suggested that the Central Street proposal was not as definitive as the others were and the action to be voted on is appropriate. Aid. Feldman ended the discussion and called for the vote on the amended motion. The motion passed with one dissenting vote cast by Aid. Moran. Aid. Newman proposed another motion to grant the Dr. Hill Business Association an additional $5,000, for a total of $15,000, with that additional amount earmarked for Phase II=of 1the Association's improvement project. Aid.Wynne seconded the motion. .li ' Aid. Moran voiced his concern regarding the awarding of an unexpected increase in the'grant requcsL Stating that the amount is more than the maximum limit, Aid. Moran questibned'the fairness of the motion considering the fact that the opportunity for additional funding was not extended to all program applicants. 1,1 , Aid. Newman asked if there is a City Council Resolution limiting the grant amounts. Mr.' Marina said the limitation was defined in the RFP. Aid. Feldman asked whether or not the EDC had the discretionary ability to ,revise recommendations to the Council. Mr. Marino concurred that the role of the EDC was to -make considered recommendations to the Council. Ald. Newman stated that the other neighborhood business districts had received funding from the past program, and will again be funded from the current program. Because this new organization holds so much promise for an area in need of substantial assistance, the Dr. Hill group is descrying of the extra amount. , • 1P 1 DRAFT-NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVEMBER 14. 2001 PAGE 8 Aid. Wynne voiced her opinion that the rules have not been changed and that it is fair that some extra money was found to bolster a new group, in a targeted area with an exceptional improvement plan. She called for the question. The motion passed with one dissenting vote cast by Aid. Moran. Aid. Feldman advised the Central Street representatives to coordinate with staff for their return visit. V. Ms. Judith Aiello provided brief project updates on Church Street Plaza, particularly on the recently opened art gallery, the future relocation of the Arthur Hill development office to the Plaza and the eminent announcement of a mini anchor. Ms. Aiello also briefly commented on the progress of the Sherman Avenue Parking Garage design. Ms. Aiello mentioned that participants at the ICSC Conference exhibited a great deal of interest in Evanston development projects. Additionally, Steak & Shake is due to open shortly after Thanksgiving. Ald. Feldman said that he noticed "now hiring" signs at the site and reminded staff that Evanston residents were to be given priority. Staff will coordinate with the establishment with regards to this issue. VL Mr. Dennis Marino briefly eomnxmted on other recent development proposals, commenting particularly on the design progress of the Atlantic Realty development proposal for the 1930 Ridge site. The Plan Commission was meeting next door on the proposal, at the same time the EDC was meeting. Mr. Marino also provided a status update on tk proposed 1800 Sherman mixed use retail/office building. VIL The communication items contained in the packet were briefly acknowledged. Particular reference was made to the annual financial reports for the four TIF Districts, which were recently reviewed at the annual Joint Review Boards Meetings, which were convened on November 12, 2001. The EDC members had no questions with regard to the foregoing VIII. There being no further business, Aid. Feldman adjourned the meeting at approximately 10:30 P.M. The next EDC meeting is scheduled for Wednesday. December 12, 2001 at 8:00 P.M. in room 2404. Civic Center. fully submitted, M Morfs E. Robinson Economic Development Planner