HomeMy WebLinkAboutMinutes 2002DRAFT -NOT APPROVED
ECONOMIC DEVELOPMENT COMMITTEE
MEETING AIINUTES
WEDNESDAY JANUARY 23, 2002
ROOM 2403-7:30 P.M.
CIVIC CENTER
!lI
MEMBERS PRESENT: Ald. Feldman, Ald. Newman, Aid. Wynne, Martin Norkett, Alice
Rebechini
MEMBERS ABSENT: Ald. Engelman, Aid. Moran, Percy Berger, Barbara Putta
PRESIDING OFFICIAL: AUL Feldman, Chair
OTHER COUNCIL
MEMBERS PRESENT:
STAFF PRESENT:
Aid. Jean -Baptiste
Judith Aiello, Dennis Marino, Moms Robinson, Lloyd Sheppard
OTHERS PRESENT: Dennis Harder- Freed & Associates, Charles Smith -Executive
Director. E-Tronolis, John L.einewebber-Dr. Hill Business
association, Neal Davisan-Indenemkw Contractor, David'Dwyer-
Pronerty Owner, Bob Seidenberg -City Editor. Evanston Review
Sommary of Actions:
L Prior to convening the regular Economic Development Committee Meeting, members
of the EDC participated in joint discussions with members of the Parking Committee. The -
joint discussions took place in Room 2403 and lasted from approximately 7:45 P.M. to 9:05
P.M.
The purpose for the discussions were to begin considering the feasibility for having staff
research and establish a policy for identifying City owned surface parking lots, which could
become eligible for Request for proposals and joint development projects.
The perceived benefits from the projects would be: returning under utilized properties to the''
tax roll; retaining covered public parking in the new development(s) and enhanced
development projects. After considerable debate, it was decided that this issue was of such,
importance that it would require an EDC meeting devoted solely to its resolution. The
summary minutes of the joint discussions were prepared by Ms. Jacquelyn Johnson and are
included in the EDC packet for the February 27, 2002 meeting.
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II. After Aid. Newman, Chair of the Parking Committee concluded the initial joint
discussions, Aid. Feldman, Chair of the Economic Development Committee, convened the EDC
Meeting at approximately 9:05 P.M. in the same room, 2403. Ald. Feldman recognized and
welcomed Alice Rebechini as the new member of the EDC, replacing Richard Cook as the Plan
Commission representative.
ID. The previous minutes of the November 14, 2001 meeting were unanimously approved
without corrections or additions.
IV. Dennis Harder, Development Manager, Joseph Freed And Associates, Inc. was scheduled
as the first presenter. Aid. Feldman thanked Mr. Harder for his appearance before the Committee.
The purpose for Mr. Hardees visit was to update the EDC on the status of retail leasings in the
Dempster Plaza and advise the members on other concerns occurring at the shopping center.
Mr. Harder distributed a proprietary site map of the center, which identified all of the spaces in the
center. Mr. Harder advised the EDC that the site map was not for public distribution at this time
and that he would have to collect the copies after the presentation. Mr. Harder proceeded to
provide a detailed explanation of the current retail leasing status, both for those under contract as
well as those pending.
Stating the rationale for razing the Kids Are Us and Pizza Hut buildings, Mr. Harder informed the
EDC that aside from removing them as visual obstructions, they were a hindrance to the success
of the center. Some soil remediation is requ h ed in this area of the center. It is anticipated that
construction on the cleared site will begin in the spring of 2002 and tenants will be able to occupy
the spaces in the fall of 2002.
Mr. Harder went on to advise that the Dominick's food store is doing very well and is ahead of
projections. Mr. harder then referred the EDC to the site map and continued providing the
members with an update of the leasing activities. Because much of what was presented 1 is
proprietary information, some of the information is not detailed in this summary.
However, the leaseing news is generally optimistic, particularly with the announcement that A J
Wright, an apparel store and a division of T J Maxx, is slated to open in May of 2002, in the
former Office Depot Space next to Dominick's. Primarily an East Coast based retailer, this AJ
Wright will be. one of four stores the corporation will open in the Chicago area. The theory is that
with the addition of this major retail establishment, it will spur additional demand for the
remaining spaces.
The east side of the center, the former Silo space has been completely renovated and negotiations
are ongoing with prospective tenants. r'"'
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Frank's Nursery and Crafts will continue to operate their store in the southwest comer of the
center.
Ms. Aiello asked Mr. Harder to elaborate on the type of apparel store A] Wright purports to be.
Mr. Harder stated that the store will be similar to the parent TJ Maxx store as well as the
Marshall's already in Evanston and yet have a distinct identity.
Aid. Wynn asked Mr. Harder what tenants are expected in the out lots, stating that originally it was
understood that restaurants were envisioned. Mr. Harder advised Ald. Wynne of the current
prospects and said the spaces are flexible and that his firm is also reviewing other opportunities
for the spaces. In addition Mr. Harder mentioned some restaurant franchises which are being
investigated for suitability.
Aid. Feldman asked for Mr. Harder's personal opinion on the progress of the center and it's future.
Mr. Harder stated that given the standards his firm applies to the center on the one hand and :the
physical problems which needed to be remedied at the site, his opinion is that even with the initial
disappointments in procuring tenants the firm is gratified'that it held out in order to attract'the
caliber of tenants the center is now attracting. In the long run, it is believed that the tenants will
be the types that will stay in the center and prosper.
Ald. Feldman briefly advised Mr. harder of the previous problems with the Dominick's store'and
the very much appreciated turn around the store has undergone. Mr. Harder concurred and advised
the EDC of the reinforced emphasis Safe Way is placing on delivering quality products "and
service.
Aid. Newman thanked Mr. Harder for the presentation and stated that the most critical site on the
neap is space number 15. Ald. Newman wanted some assurance from Freed & Assoc. that the
tenant slated for the site will meet the standards that both the center and in particular the north end,
requires. Mr. harder provided an explanation for the tenant selection rationale as well as more
information on the proposed tenant.
Mr. Marty Norkett inquired about the irregular stretch of land just south and in back of the center.
Mr. Harder said the land is a remnant which is approximately one half acre and that it is non-
functional with regard to the center. Mr. Norkett suggested that the District 65 School District, is
looking for storage, but Ms. Aiello quickly interjected that three, potential tax paying prospects
have expressed an interest in the land.
AK Feldman thanked Mr. Harder for his time and thorough presentation.
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PAGE A
V. Ald. Feldman next welcomed Mr. Charles Smith, Executive Director E-tropolis who was
appearing before the EDC to provide an update and clarifications where needed, for the activities
and purpose of the organization. Materials concerning the organization's activities were included
in the packets.
Mr. Smith began by advising the EDC that the organization had obtained its 50IC-3 status
positioning it as a non-profit entity. Mr. Smith then proceeded to provide an overview of E-tropolis
activities.
The organization is engaged in computer collection and recycling. individuals and small businesses
donate the computers and Mr. Smith is pleased to provide the pick-up services required.
Volunteers refurbish the units and they are distributed primarily through the Fleetwood/Jordain
Community Center.
Mr. Smith informed the EDC of an essay contest activity his organization is engaged in with ETHS
students who do not have computers. The objectives of the essay contest is two -fold, to obtain'an
accurate measurement of those students who don't have computers or access to the Internet and
to select some winners and provide them with equipment.
Another activity that E-tropolis has been concentrating its efforts on is the development of its web -
site, which is now fully functional. The web -site is made available to residents and businesse%'and
they are permitted to use the site to post up to two pages of information. Mr. Smith stated that the
web -site hits are increasing, noting that a considerable number of new condominium owners in the
new developments have contacted E-tropolis already via the site.
Mr. Smith briefly reviewed the communication items he provided for the EDC packet and
continued the presentation by stating that the E-tmpolis main focus is now directed at providing
computers and internet access to school children in Evanston who are currently lacking the
opportunities. Based on anecdotal information, Mr. Smith suspects that the preponderance of
children who fall into the needs category are those not performing at the higher academic standards
and tend to be from lower income families. The expectation is that the academic levels can be
raised with the benefits of E-tropolis' computer provision and Internet access program, citing the
success of his children as prime examples. Further rippling benefits will be gained when the
equipped children become technically proficient; they will share the skills with siblings, parents
and friends.
Mr. Smith stated that E-tropolis has been procuring several Internet access points in Evanston and
he cited a recent success at Family Focus as one of a few that has been performing well. Family
Focus has been the recipient computer donations provided by Ameritech. E-tropolis has DSL wired
the Family Focus site and has provided hubs and technicians to connect the donated computers.
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Mr. Smith briefly commented on future planned activities and needs, reviewed the benefits of the
E-tropolis programs and concluded the presentation by uniting questions from the EDC members.
Ald. Newman asked Mr. Smith to clarify the original mission of E-tropolis adding that there was
once an E-tropolis storefront office on Noyes Street, Mr. Smith advised the EDC that the program
he outlined was the original mission.
The organization that Ald. Newman alluded to was E-tropolis Partners which was formed as a for
profit concern as opposed to E-tropolis Evanston which is not for profit and headed by Mr. Smith.
The for profit E-tropolis is no longer in existence. Aid. Newman asked how many E-tropolis board
members are there. Mr. Smith stated there are currently seven members and that some Council
members are on the advisory board. Aid. Feldman directed Ald. Newmans' attention to the E-
tropolis cover letter, which contained the list of board and advisory board members. Aid. Newman
complimented Mr. Smith on the wonderful activities in which E-tropolis is involved.
Ms. Alice Rebechini commented on having previous contacts with Mr. Ron Kesiak concerning the
vision of E-tropolis before the distinction of the "for and not for profit" division. An in progress
map was provided at that time which depicted how the different broad band service lines were
distributed throughout the City. Ms. Rebichini went on to relate the disappointments she has
encountered with attempts to successfully connect into one of the line providers. Ms. Rebechini
offered the suggestion that if advisory information were provided as to what services arc available
in a particular community, it would enhance the E-tropolis activities. Mr. Smith concurred stating
that currently, Evanston is one of the most accessible cities in the country.
Mr. Martin Norkett asked Mr. Smith How E-tropolis is currently being funded. Mr. Smith stated
that he is operating on the remains of last year's budget comprised of funds from Evasston
Hospital, Northwestern University and a grant from Peapod. The Peapod grant is renewable each
year for now and E-tropolis is currently seeking new funding with two new grant request recently
submitted to other entities.
After some additional general discussion points, Aid. Newman encouraged Mr. Smith to prepare
an application for Community Development Block Grant funding, expressing his willingness to
support the request.
Ald. Feldman thanked Mr. Smith for his presentation and expressed his appreciation for the
endeavors of E-tropolis. Ms. Judith Aiello was then asked to provide updates on the development
projects.
VI. Ms. Aiello provided brief updates on the new tenants including Hill employees, in.*,
'_Church Street Plaza retail spaces, the status of Mesirow Ste"mNcDougal Little Office building
and the Sherman Plaza /Municipal Garage development project.'
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Ms. Aiello noted that the doctor's who currently have offices in 500 Davis Street will be moving
into the McDougal Littell building. The pronouncement spurred some general discussions
concerning the ramifications resulting from the move.
Ms. Aiello also commented on the successful relocation of the businesses from the Klutznick
development area to other locations in Evanston, which were all accomplished by the developer.
Aid. Newman made the point that the successful relocations contradict the allegations made by
vocal citizens and groups that the "quick take" efforts and the development would drive the small
businesses out of the City. Ms. Aiello concurred, stating that this type of information should be
made public by way of the local media. Ald. Feldman suggested that the Public Relations office
in the City should issue a press release to this end. Aid. Newman added that the smeessfuh
relocations underscore the fairness of the City mandated relocation policies and the improved
establishments are a direct benefit to the business owners. Aid. Newman also suggested that a press
release should be issued with regard to the tremendous success of the cinemas.
Ms. Aiello concluded her presentation with a status report on the Optima residential tower, which
will be emted across from the cinemas. Ms. Aiello also provided a brief status report of the art
designs for the four panels on the east wall of the main pavilion.
VII. Mr. Marino next provided a brief update on recent development project proposals. Included
in the updates were the ninety townhouses proposal by David Dubin, on Chicago Avenue and
South Boulevard, site of the closed Dominck's, and 1930 Ridge, an apartment complex, comprised
of 195 units, proposed by Atlantic Realty partners. Aid. Newman commented on some "erroneous'
tax calculations with regards to this project, information purported to have been publicized by the
Testa design firm. Mr. Marino concluded his comments by providing a brief update on the
expansion of Lamoi Hardware and advising the EDC of a Plan Commission meeting which will
have binding appearance review as a primary issue.
VIH. Continuing with the agenda items, Aid. Feldman briefly commented on the various
communication documents and memoranda which were included in the EDC packet.
IX. Following the comments on the communication items enclosed in the packet, there was no
other business on the agenda.
X. There being no further business, Aid. Feldman adjourned the meeting at approximately
10:08 P.M.
I
The next EDC meeting is scheduled for Wednesday. February 27. 2002 at 8:00
P.M. in room 2404. Civic Center.
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Resnt
fully submitted,
Morris E. Robmson
Economic Development Planner
PAGE 7
Joint meetina of the Parking Committee and the Economic Development
Committee to discuss the use of city parkina lots for housinq. oarkine. and
or other uses
Minutes from the Meeting
Of January 23, 2002
Parking Committee
Members Present: Aid. Newman, Aid. Bernstein, Troy Thiel, Aid. Wynne,
Jonathan Perman, and David Reynolds (Associate Member)
Parking Committee
Members Absent Richard Cook, George Woolridge, and Paul Giddings
Staff' Present: David Jennings, Keith Fujihara, and Jacquelo-Johnson
EDC Members
Present: Aid. Feldman, Aid. Newman, Aid. Wynne, Martin Norkett, .
and Alice Rebechini y
EDC Members 's
Absent: Aid. Engleman, Aid. Moran, Percy Berger, and Barbara` Putts;
Staff Present: Judith Aiello, Dennis Marino, Morris Robinson, and Lloyd -
Shepard
Visitors: David Dwyer, Neil Davidson, Bob S€denberg, John
Lienwebber, and Charles Smith
Aid. Newman called the meeting to order at 7:45 pm "
Aid. Newman opened the meeting by giving a background on the project at
Chicago and Dempster. City Parking Lot 60 had about 46 parking spaces; the "
property was off the tax roles and generating approximately $46,000.00 which
goes to the parking fund. A developer had an interest to building condominiums
on the property adjacent to the city lot. A conversation was held between the
Ward Alderman, city staff, and the developer asking the developer if they would
be interested in buying this lot. The purchase was on the condition that the
development would include the same number of parking spaces and allow the
city to continue to collect the revenue and make the spaces available to the
public. The developer agreed to the purchase in the amount of $800,000.00, a
substantial profit to the city.
The property went on the tax roles with an estimated 45 units being bulit'over the'
city lot. The 45 units will be generating approximately $3,000.00 to $4,000.00 In
property taxes and perpetuity.
PC/EDC Minutes
January 23, 2002
Page 2
The business district will still have their needed parking spaces and the parking
fund will be getting the revenue from the meters. Aid. Newman stressed it was a
very positive "win/win" situation for everyone.
Based on that positive experience, Aid. Newman explained the idea was put
forth, should the City look at using other city parking lots for development. This
idea is experimental, but if the City could sell some of the publicly owned lots and
have developers put up housing while maintaining the same number of public
parking spaces, we would be putting property back on the city tax roles.
The issue for the meeting is, is this something the City would want to pursue in
other parts of the city. Aid. Newman opened the meeting to the floor and
requested that anyone speaking state his or her name for the minutes.
Aid. Newman recognized Dave Dwyer who owns the property at 929 Sherman
adjacent to a city parking lot. Mr. Dwyer told the committee he put in a proposal
to Mr. Jim Wolinski to make a trade with the city and wanted to know if this was
appropriate for this meeting. Aid. Newman told Mr. Dwyer that for this meeting
we are only talking general policies and not specifics. He told Mr. Dwyer he
could bring his proposal to the Parking Committee if it was regarding a city
parking lot. Aid. Newman referred Mr. Dwyer to Mr. Jennings, Ms. Judith Aiello,
or Mr. Dennis Marino to be placed on the Parking Committee agenda.
Ms. Aiello explained that they included Mr. Dwyer in this discussion because it is
the concept of making a trade with the city. Mr. Dwyer explained he wanted to
trade the back of his lot for the front of the city lot so he could build two town
houses. This would move the city lot to the back and no parking spaces would
be lost. Ms. Aiello stated that the issue is that, if the City is going to proceed it
would have to be on a public bid basis. Aid. Newman felt that Mr. Dwyees
proposal is a good idea and merits review, knowing that Mr. Dwyer may have to
bid against other developers.
Alderman Gene Feldman said it appears to him that the purpose of this meeting
is to decide if the policy that was used on Dempster and Chicago is a policy the
City wants to continue. If the City wants to continue to encourage this policy they
must determine what restrictions and constraints this kind of program would
need. Ald. Feldman felt there were lots on the city map that were clearly not
appropriate for this idea. Ald. Newman explained that he was not sure the city is
going ahead with this idea, but he is trying to give the public time to express their
feelings on this subject.
PCIEDC Minutes
January 23, 2002
Page 3
Mr. Neil Davidson, a local housing developer, felt that the program should
continue. His proposal is to put more affordable housing on the city lots while
maintaining the parking.
Aid. Newman gave the floor over to Aid. Wynne. Aid. Wynne felt this was a good
topic to discuss. It has been a topic of discussion in the third ward for a while
because the various lots in the area are quite large. She wants the city to
proceed with caution. In her ward the areas, where the lots are, are already
dense and in order to meet the required parking needs and the needs of the
developer, the height of the building may not fit into the area. She also wanted to
know if any other lots were as under utilized as City Lot 60 once was?
Ald. Newman requested that the staff look at five lots that are underutilized lots.
Mr. Jennings told Aid. Newman that they could look at five lots, but felt that each
lot must be looked at on an individual basis. Mr. Jennings said that he and Me.
Aiello felt it would be better to look at some of the policy issues and do an RFP.
The staff was hopping to get some direction from the Parking Committee and the
Economic Development Committee before proceeding. Ald. Newman asked
what city lots Mr. Davidson was looking at. Mr. Jennings stated he was looking
at City Lot 1 at South Boulevard and Hinman and City Lot 23 at Dempster and
Elmwood.
Ms. Aiello explained if we were to develop a RFP, are we saying to the
development community that they would have to provide what the city needs,
then they can provide what is allowed by zoning. Would the City give the
developer an allowance because they are giving the City parking? What are the
policy issues that the City would use to make it fair to the development
community? How much density do we want this neighborhood to have? Aid.
Newman felt that the zoning requirements would dictate what was built in an area
and asked what is the zoning in the Hinman neighborhood. Ald. Wynne stated'
the current zoning ordinance allowed for 85 feet in height, which is much higher
than any building in the area currently.
Aid. Newman next recognized Aid. Lionel Jean -Baptiste. Ald. Jean -Baptiste feels
that the city needs to decide what we want to do. Because the City has already
started developing one parking lot, it proves as a policy, we are open to the idea.
He thinks it would be better to choose the lots that the City would want to develop
opposed to opening the door to developers to choose the lots they might want to
develop. Aid. Newman stated that City lot 1 at South Boulevard and Hinman was
severely underutilized until the Dominick's closed. The Parking Committee was
aware of this for a long time, but Afd. Newman did not know of the current
occupancy at this point.
PClEDC Minutes
January 23, 2002
Page 4
Aid. Jean -Baptiste was asking, do we want, as a rule, to identify the lots the City
thinks should be developed instead waiting for developers to come in and make
a proposal to the City for any lot.
Ms. Aiello stated that the process they would recommend is that, if the Parking
Committee and City Council were open to the idea, they would work with a sub-
committee of the Parking Committee and the EDC to come up with criteria for
development. In the memorandum they prepared they came up with some of the
issues they felt were important Aid. Wynne brought up the density issue. Ms.
Aiello questioned how much extra parking and are we looking for fair market
value? Ms. Aiello stated we are far from ready to go on this process and there Is
a great deal of discussion needed before we proceed.
Aid. Newman agreed with Ms. Aiello, but stated the issue is should the City be
keeping any property off the taut roles when a lot is underutilized? Are we doing
a public service in keeping property off the tax roles that could be generating'-'
hundreds of ttwusands of dollars in taxes when the lot is not accomplishing what
it was intended for?
Aid. Feldman was next recognized for comment. He felt the issue for under '
utilization or being utilized can be mitigated by a policy that states the existing
parking spaces must be replaced. if the lot is heavily or not heavily utilized it
goes on the tax roles. The parking must be banked, even on underutilized
parking lots that the City decides to develop, for parking that might be used at
any given time for the way the city grows and changes. He next stated that he
wants a policy that duplicates the existing parking, gets money for the lot, puts
the property on the tax roles, and increases the value to the community. His next
question is, will there be a policy that states that all parking, or that under certain
circumstance 80% will be replaced or 50% will be replaced. This policy must be
worked on and decided. Aid. Feldman also questioned that although that a lot is
developable, do we want to develop it to it full zoning capacity in certain areas.
What will the restrictions for development be? None of the lots on parks or public
facilities should be considered for development. He sighted the Noyes Cultural
Center, Chandler Center, or The Robert Crown Center as examples. Aid.
Newman explained that all the lots on the map are not being considered such as
those Aid. Feldman mer:tioned. Ali. Feldman stilt feels it should be in the policy
that these lots will not be included in future consideration. Aid. Feldman agrees
with Ms. Aiello and that the policy must be developed, talked out, and refined
before staff can even consider talking to developers. Aid. Newman did question
Aid, Feldman that was he in agreement that the city should proceed with this idea
and Aid. Feldman agreed.
Aid. Newman next recognized Mr. Jonathan Perman. Mr. Penman said he
agrees with everything that has been said. He would like to add a few more items
and feels that this public land that the City is sitting on must be looked as a real
estate asset. The City must determine who is this public land benefiting? Is it
the public that is benefiting or a select few that are benefiting? Aid. Newman
asked Mr. Perman to explain what he means by a select few. Mr. Perman
explained that some of the public lots that are in reality only serving a select few
of the public, whereas other lots are serving masses of people depending on
k)cabon and how it is being used. He feels that each of these particular assists
must be examined are being used, what the projected use is going to be, and is
the current use the best one. He gave the example of the packers using City Lot
1, is this best place for these people to park, it may or may not be. He next
suggested that some kind of RFP needs to be developed through a joint meeting
between the Parking Committee and the EDC to walk through want elements
UM want to see in an RFP. Before the RFP can be created the City must
determine what are the policy goals. Is one of the goals to enhance the tax base,
if so to what degree, is it to preserve the character of the neighborhood, is it to
provide more housing and what kind, and are there commercial services that are
needed in the area of the IoL The RFP should also have a fair amount of
fie)dbility to allow the development community to be creative. Even though we
are in a recession, Evanston is still a hot real estate market and this a perfect
time to meet some of our goals. Mr. Penman again recommends a joint meeting
with Parking Committee and EDC with staff input and guidance to develop a
RFP.
Ald. Newman agreed that There is a lot to debate in what Mr. Perman said,
especially who benefits from the development of a parking lot. Aid. Wynne also
agreed and said that she wanted to discuss whom benefits from a lot.
Aid. Wynne said that if you look at the lots in her ward, some hold up to 55 cars.
If these cars were to paste an the street it would create a powerful ripple effect
through the neighborhood. Some of her constituents feel that if you have a
parking lot permit they should not be allowed to park on the street. She does not
agree, but it is a powerful ripple that occurs. Aid. Wynne also stated that the
parking maintains the value of so much of the condominium market in the area
and this cannot be underestimated.
Aid. Wynne stated that she wants to slow down this process, even though the
City Lot 60 project was in her ward and that there were special circumstances.
She is concerned that the momentum starts rolling and that this is land and it is a
hot real estate market, but she wants to look ahead. One of these lots in the
future could have a very simple three-story city parking structure on It. Instead of
a building that is seven or eight stories of housing above the parking. She is not
advocating land banking, but there is some benefit to maintaining some of these
surface lots as surface lots.
PC/EDC Minutes
January 23, 2002
Page 5
Aid. Wynne is concerned that if the door is opened too wide we will be asking
developers to be creative and we will end up with things that will be much more
difficult to say no to. She wants to proceed with extreme caution in this process.
Aid. Newman asked Ald. Wynne to define the caution she is talking about. She
does not want to see any lot adjacent to a park is considered. Also, that the size
of the lot will remove them from the process because they will not have the space
needed for the necessary parking ramps. She did agree with Aid. Fieldname's
Ideas, but we should always replace the parking and never lose any parking
spaces. She also thought that before anything could be put on the table the City
must decide what potential future use the lot may have. The City must be
extremely cautious in proceeding and thinking of all these variables. Ald. Wynne
wanted the group to remember that these lots are open spaces and there Is
value in that.
Aid. Newman recognized Mr. Troy Thiel. Mr. Thiel agreed with Aid. Wynne and
her conoems. He felt the process would be easier if the City would identify the
lots to be considered then start the process from there. He felt the template of
the Roszak project (Lot 60) was interesting because there was private property
adjacent to the city property that made the project. This is not easy to do with the
remaining lots in the City except for maybe one or two. He has a very short list of
properties that he sees are fit for development in today's market. He slightly
disagreed with Mr. Perman on his comment about the hot real estate market. Mr.
Thiel, sine he received the meeting agenda, talked to a few developers and the
market is slowing down. Aid Newman asked Mr. Thiel how many lots does he
see are fit for development if the City goes for the RFP process. Mr. Thiel said
there were three that he thought could work. Aid. Newman asked that of the
three Mr. Thiel identified were any the ones that were presented tonight by Mr.
Dwyer or Mr. Davidson. He said yes Mr. Dwyer's lot at Sherman and Main and
City Lot 9 at Hinman and South Boulevard suggested by Mr. Davidson.
Aid. Newman raised the question that the City would want to look at the tots Mr2F.
Thiel suggested or choose fire lots that may work. Mr. Perman disagreed and
felt that all the lots should be looked at. He felt that some lots may be discounted
immediately, but at least they should be looked. Aid. Newman felt if five lots
were looked at we would be able to work through the process and answer any
questions that might come up. Looking at five lots would not preclude looking at
other lots that developers might want to consider.
Aid. Feldman said he did not mind looking at five lots, but wanted agreed on
goals and standards regarding this issue. He feels this is a very delicate process' -
and that we must be sensitive to the needs of the community, the developer, arid'"
the development based on the zoning laws.
PC/EDC Minutes
January 23, 2002
Page Six
Ald. Newman said he wants to take the other side and look at specific tots to
determine the City policy. The criteria and needs of the lot and its neighborhood
will dictate what the policy will contain. He came into the meeting thinking the
Roszak criteria would be sufficient, but as the meeting progressed the identified
lots presented much different needs than what was used for City Lot 60. Mr.
Perman wanted clarification that the chosen lots were for example only and not
that they would be considered for development. Ald. Feldman said he had no
problem to use five lots, as an exercise to determine policy, consequence and
ramification is fine. He asked Mr. Thiel if the lots he chose were off the top of his
head. Mr. Thiel said that the suggested lots were ones that he developers had
asked him about previously. Most of the questioned tots were in the 3`d Ward,
but the lot with the most potential for the development community would be the
one behind the library. Mr. Thiel felt that this lot would have the same, if not
more impact, as the Roszak project and expects that even more parking would
be obtained. Aid. Newman said he had no problem with that lot, but wanted it '
understood that parking be replaced. He asked that it be made clear, especially
with press coverage in attendance, that those lots are not being considered for
development. Mr. Perman suggested that the committees should state that the'
five lots were only being used for policy development purposes only. Aid.
Newman and Ald. Wynne agreed that even if stated as such it would not be
interpreted that way and that comment should not be made.
Ald. Steven Bernstein requested to speak. He said that if any lot is identified It
would be ad -hoc and not with standing that we are using these to develop the
standards. Ali. Bernstein feels that standards should be developed before we
look at any lots. Then we will eliminate lots based on size and what is adjacent
to them as we go down the road. if a developer does come in with a request for
development, it would be looked at on a case by case basis and you would not
have to particularize lots. This would help the exercise, but the choosing lots
would not really assist in the process. Ald. Newman agreed and said that he
would like to look at the lots, did not want the ramifications of having a lot
identified. Ald. Bernstein said that once you start identifying lots the newspaper
thinks we are going to develop the corner of "X" and "Y". It is not the intention of
this process to develop a per lot basis, but to develop a city policy initially. He
agreed with Ald. Jean -Baptiste that we have already accepted the policy of a
public/private partnership with respect to one of the City lots.
Aid. Newman asked Mr. Jennings and Ms. Aiello if they could get pictures of the -
lots
lots and the surrounding neighborhoods and the footprints. Mr. Jennings agreed
to provide them. r ;;
i 0S7
I
PC/EDC Minutes
January 23, 2002
Page Seven
Ald. Newman opened the discussion to the floor and recognized Ms. Alice
Rebechini. She wanted to know what if any thought had been developed, if there
were a policy that would allow the existing zoning and replace the parking, would
that then constitute a zoning change since the parking increment would be larger.
Or would this drive a PUD on these lots that were being considered. Ald.
Bernstein answered by saying that it would be a policy issue since the lots are
not zoned, but happen to be in zones. If the lot happens to be adjacent to an R5
then it is considered an R5. If the Plan Commission were looking at the
individual parcels they may make it a R1. Ald. Newman asked why Aid.
Bernstein said they are not zoned and stated that they are in zones. Aid.
Bernstein said he understands that, but they are only zoned because of the
property they are adjacent to or contiguous with. He feels the zone may have
been different if these lots were considered for development. Back in 1993 when
the zoning ordinances were reconfigured it was an open space and the concept
of developing the City lots was not considered. Will these lots be new zones or,
are they a PUD7 Do we start at minims of R1 and move up from there.
Ald. Newman recognized Mr. John Lienwebber. Mr. Lienwebber said he thinks.
the City needs to be careful in setting standards because the situation in City Lot
60 was a homerun. The City got $850,000 for a lot, replaced the parking, still
has the income, and got a four-story building where there could have been an
eight -story building. The City needs to establish that every lot is not going to.be
like this situation and that you will need to look at each lot on a case by case
basis. if the City develops set standards you will not be able to develop any of,;,,
the lots because they are not like the Chicago and Dempster lot.
Ald. Newman questioned if the staff was hearing all the comments and asked if
they could come up with a proposed policy that would include the zoning, the
replacement policy on the spaces, and the RFP issue.
He next addressed the committee and asked if there was anything they wanted t
to put in. Ald. Wynne said she still wants to proceed with caution and that unless
It is a homerun it is not worth doing. She agrees to some extent with what was
said, but these are assets that unless you are really going to make an enormous .
dramatic change then it is almost a negative and that we should leave it alone.
Also, if we were going to develop a policy, she doesn't think that means we are
going to do any tiring with it. She does not like doing things in the moment and
really wants to start thinking more long term here.
Ald. Newman asked Ald. Wynne that even if instead of getting, like Roszak,
$800,000.00 you got one dollar for the lot, but received $400,000.00 a year in
perpetuity, from the lot that was not that well utilized.
PC/EDC Minutes
January 23, 2002
Page Eight
In ten years that is $4,000,000,000.00 even though you are not getting the price
for the land. Ald. Wynne said there must really be a whole array of positives.
The Roazak project had really no negatives and we may not replicate that every
place, but you have to be really careful and cannot have the dazzle of the dollar
sign in front of us. Also, if we create a policy it does not mean we have to
implement it.
Aid. Feldman said he was sympathetic to Ald. Wynne's comments and the case
for development should be compelling. Also, he is not sure what the result would
be, but he does not feel we can afford to rush ahead on this unless we can get
certain things out of the way. For example, is there a value in land banking, is
there a value in keeping those lots open, and under what circumstances would
any society want to do that? Can we envision them at any other time as a drop -
In center or a community center? He does not know, but thinks we have to talk
and is there any value at all In leaving these things undeveloped. Then balance
that with the compelling benefit as a result of losing the option of that property.
There may be areas that we know that are not big enough to do anything. He
would like to, as part of the discussion, talk about the question if whether or not
there is any reason at all to take any number of properties and say we think it is
appropriate that these remain fixed?
Ald. Bernstein stated that into that equation we also have to calculate, unlike the
private sector, we have the ability to expand from an open lot outward through
the power of eminent domain. If we decide that this is a good location for a
center, the people adjacent are gone if it is in the greater good of the community.
We would give that up by limiting ourselves to one person's vision. He feels this
is a big deal and it is wonderful to talk because we are land locked, but we have
to think of both sides. We have the availability of adjacent spots or the potential
desire for us to knock down and expand out.
Ald. Newman wanted to respond to Ald. Wynne on the basis of one lot. He
referred to City Lot 1 at Hinman and South Boulevard which is in the third ward.
He disagrees with Ald. Wynne in that if a lot has a history of under utilization in
the use the city intended, the City does not have a right to keep the property, that
could be contributing in a significant way, off the tax roles, unless there is a
legitimate on going public purpose that exists. If there is a case where there is a
history that the public purpose, that was selected, is not being met over the
course of time, it is our duty to the community to reconsider the use of the
property. Ald. Bernstein agreed that history is important, but in the case of City
Lot 1 the history does not apply. The change was immediate and will be long
lasting with the construction of the 90 to 350 units that will be going onto the old
Dominick's lot.
I
PCIEDC Minutes
January 23, 2002
Page Nine
Aid. Newman sees Aid. Bernstein's point in reference to lot 1, but as the
custodians of the public property, we have a responsibility to loop at how a
property is used and return it to the tax roles if possible.
Ald. Newman asked staff if any other city might have a policy on this issue. Staff
said they would investigate and report back.
Aid. Newman recognized Mr. Charles Smith. Mr. Smith stated that parking playa
a big role in mass transit and mass transit is going to play a role in the future of
any development. That in developing a policy, the location of the mass transit
should be considered.
Aid. Newman asked staff how long they would need to develop the policy.: Ms.
Aiello said she thinks they could have a policy ready by the March meeting:', Aid:
Newman stated that this will be the only agenda item for the March fleeting- = _•
which will be dedicated to the policy and its development. a'
Adjournment was at 8:45 pm ,
E b!A
-It r10j
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ECONOMIC DEVELOPMENT COMMITTEE
MEETLNG MINUTES
WEDNESDAY FEBRUARY 27, 2002
ROOM 2444-8:00 P.M.
CIVIC CENTER
MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Newman, Aid. Moran, Martin
Norkett, Barbara Puta, Alice Rebechini
MEMBERS ABSENT: Ald. Wynne
PRESIDING OFFICIAL: Aid. Feldman, Chair
OTHER COUNCIL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, William Stafford,
James WolinsW
OTHERS PRESENT: Tinsley Garris, Paul Giddings-ECVB, Bridget McDonough, et al-
f�Owra Works, Bea Rashid -Dance Center Evanston,' David
Woodhouse, D. Woodhorere Architects, Bob Saidenberg-fit
Editor. Evanston Review
Summary of Actions:
I. Aid. Feldman, Chair of the Economic Development Committee, convened the EDC
Meeting at approximately 8:10 P.M. in Room 2404.
H. The previous summary minutes of the January 23, 2002 EDC Meeting were unanimously
approved without corrections or additions.
IIL Aid. Feldman changed the order of the agenda by asking William Stafford, Finance director
for the City, to be the first to present and to comment on two reports contained in the packet. The
first report charted the growth of Equalized Assessed Valuation (EAV) from the four T1Fs in the
City and other developments. The second report charts the tax revenue generated from the growth
increases of the EAV's. '' ` `, ;
Ald. Feldman stated that the reason for presenting this information was to satisfy the many requests
from citizens to explain the beneficial tax effects that the developments will have for taxpayers.
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PAGE 2
Mr. Stafford stated that staff' performed the analyses on revenues generated from all four TIF
Districts. The tax revenues generated from the districts are used to pay for the development
projects and the improvements made by the City. When the term of the TIF Districts expire, the
revenue is then perceived by the tax collector as taxes on new properties and the funds become
available for the school districts. The significance of this process is that the school districts are not
classified as non- home rule districts and as such are restricted by tax caps. With the properties
treated as new, they can be likened to annexing new properties and will be taxed in that manner.
The TIF Districts have lives that terminate ranging from year 2008 to 2017. The Downtown 11 TIF
District will expire in 2008, the Southwest TIF District will expire in 2013, the Howard/HaMey
TIF District will expire in 2015 and the Washington National District will end in 2017. Referring
to the reports and using Downtown II as an example, Mr. Stafford explained that this TIF District
is projected to generate $82 million in new EAV, which in turn is projected to generate $$.4
million in new taxes. Of this amount, $3.1 million will go to School district 65; S2.2 million will
go to School District 202 and S80 thousand for the Township.
Noting that the analyses were relatively conservative, Mr. Stafford said the projections were
developed to provide an idea as to how the developments will eventually benefit the various taxing
bodies. Mr. Stafford briefly walked through similar scenarios with the three other TIF districts. All
of the information is contained on the reports and are available to any interested parties.
Recapping his presentation, Mr. Stafford informed the EDC that the projected EAVs, reflected in
the last column of the report, combined, will generate approximately $100 million in new taxes
between 2008 and 2017. During the same period, $37 million will go to School District 65 an S26
million will go to School district 202 and M million to the Township.
Ald. Feldman thanked Mr. Stafford for the update, adding that he had taken the liberty to submit
copies of the reports to Dr. Alan Alson, District 65 Superintendent and Dr. Hardy Murphy,
Superintendent of School District 65. They in turn have expressed their pleasure in the prospects
the future holds. Ald. Feldman also stated that the revenue projections are gratifying to the Council
members, staff and all that have worked so diligently to achieve these financial goals.
IV. Ald. Feldman announced that the next item on the agenda was the presentation of a new
budget and organizational proposal by Ms. Tinsley Gams, Director of the Evanston Convention
& Visitors Bureau, (ECVB) and Mr. Paul Giddings, Board Member. Considerable material was
concerning the issues were included in the packet.
Mr. Giddings began by thanking the EDC for the opportunity to make the presentation and
proceeded to review the four year funding history of the ECVB and the expansion of the story of
Evanston's attractions beyond the City's border. Mr. Giddings stated that it is his belief that the
efforts have been successful.
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MINUTES-FEBRUARY 27, 2002
PAGE 3
However, from the beginning, it has been the intention of all involved with the ECVB to eventually
make the concept a regional initiative as opposed to City specific.
Mr. Giddings continued, stating that there are several reasons for adopting a regional concept, not
the least being that most of the other state organizations are already organized on a regional basis.
Additionally, it is impossible for a small city with a small number of hotel rooms to get the amount
of state money, as do others. Mr. Giddings impressed the EDC as to how imperative it is for the
ECVB to use its available funds to tell the Evanston story to tourist, people participating in
meetings and small convention attendees. These are the types of visitors the ECVB wish to attract
to Evanston and the region to spend their dollars and increase tax revenues.
Mr. Giddings stated that the ECVB staff views the bureau as a public service organization and,
more importantly, as an economic development tool for the City. Mr. Giddings stated that it is their
belief that it is the ECVB that is primarily getting the word out about the Evanston attributes and
perhaps the region and in the future, outside of the state. Mr. Giddings advised the EDC that
several people representing various sectors of the economy had accompanied the ECVB staff to
assist in answering any questions the EDC might have.
Mr. Giddings announced that Ms. Tinsley Garris has been the director of the ECVB since its
founding and is the resident convention expert and was the person who has lead the ECVB to this
point. Ms. Gams has recently decided to accept the position to head the Chamber of Commerce
in the Village of Northbrook, although she will continue to assist the ECVB in its effort to evolve
into the regional concept.
Mr. Gams continued the presentation with a brief update of the ECVB accomplishments for the
benefit of the new members on the EDC. Continuing the dialogue with a slide presentation, Ms
Garris stated that the ECVB operates on S263,000 budget This amount is derived from $50,000
contribution from the City of Evanston; S113,000 from the State of Illinois; $37,000 from
Northwestem University and the remainder is derived from the hotels, restaurants and other
retailers who participate in various buy -in programs.
Ms. Gams went on to advise and illustrate to the EDC how the ECVB provides a variety of
advertising, perform public relations services on behalf of the community and produce
informational brochures that are distributed throughout Illinois, all with the end goal to attract new
people to Evanston. The ECVB also has a sales program designed to solicit the media and event
planners to bring their activities to the City.
Commenting that although some of the ECVB activities are difficult to quantify, Ms. Garbs
provided examples of those that can be measured. Included in this category are group bookings,
which Ms. Garris explained that 49 groups had been booked for the year. This number of bookings
represents an 85% increase over the previous year.
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PAGE 4
These groups spent 2,344 room nights in Evanston hotels, which had a positive economic impact
for the City in the amount $565,000.
In addition to those efforts, the ECVB conducted a variety of internet marketing packages and
special promotions that generated 484 additional room nights for Evanston hotels which created
total direct spending activities that totaled $650,000. Ms. Garris said that ECVB advertising
reached 5.6 million people and story placements in various travel magazines reached 8 million
people. Circulation of other collateral material reached 75,000 people and 106,000 people are
saved annually via the ECVB web site.
Ms. Garris stated that as impressive as these numbers may seem, when compared to what other
bureaus are able to do with greater financial resources, it re -enforces the fact that the City can do
better by joining forces with other communities on the north shore. Ms. Garris provided the EDC
with other examples of regional convention and visitors bureaus in Illinos. The village of Oak Park
represents ten communities and the Greater Woodfield area represents twelve communities.
Ms. Garris informed the EDC that eighteen months ago, The ECVB had the opportunity to work
with state representative Jeff Schoenberg to receive special funding in the amount of $126,000 for
the purpose of investigating the viability of establishing a regional convention and visitors bureau.
A task force was formed with representatives from the ECVB board, the village of Skokie, City
staff' and the Marketing Director from Old Orchard. A portion of the funds was also used to
commission a feasibility study, conducted by the Tourism and Development Associates firm.
The targeted municipalities that don't currently have convention and visitors services include
Evanston, Skokie, Wilmette, Glenview, Northbrook, Winnetka, Kennilworth, Glencoe, Northfield
and Lincolnwood. The economic analysis portion of the feasibility study indicated that working
together on a regional basis, $10.7 million could be generated in new direct spending, 157 new
jobs would be created and $738,000 in new state and local tax revenue would be generated for all
of the communities combined.
After completing the economic development analysis, Tourism and Development Associates
suggested marketing and operating plans for the "Chicago's North Shore Convention and Visitors
Bureau", designed to work towards a budget of $536,000 for the first year and $712,000 the
second year. The first year would include participation from Evanston, Skokie and Wilmette. The
second budget year is calculated on the inclusion of either Glenview or Northbrook.
With added resources the City would be able to significantly increase all aspects of its advertising
and marketing initiatives. If the City continues to try to go it alone, it will not be able to continue
competing. If the bureau is expanded as proposed it would be eligible for more funding from the
Illinois Bureau of Tourism. in the first year it is anticipated that the expanded bureau would
receive $250,000 from the agency, as well as additional funding from the marketing partnership.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-FEBRi;ARY 27, 2002
PAGE 5
Having discussed the state and the private sector -funding portion for the proposal, Ms. Gams
began to explain the municipal contribution portion.
In developing the proposal, the task force had to determine away in which all of the participating
communities could contribute to the bureau in an equitable manner. It was decided to propose
requesting from those communities with hotels to contribute 15% of 3% of their local hotel tax
collection. For communities without hotels, the requirement would be to make contributions based
on their population.
As an example, for Skokie the amount is calculated at S106,000, for Glenview, joining in the
second year the amount would be $84,000 and for Evanston the amount would be $60,000. The
other second year participant's contributions are, Northbrook at $36,000 and Lincolnwood at
S31,000. Wilmette will be asked to contribute $l0, 000. Winnetka and Glencoe $6,500 each and
Northfield and Kennilworth at $3,500. in addition, small businesses and retailers will be asked to
pay a nominal amount to join the bureau.
If Evanston chooses not to participate, it is understood that Skokie will start its own Bureau. Ald.
Newman suggested that the Chamber of Commerce Board or ECVB should approach
Northwestern and urge the University to voluntarily pay the hotel tax for the Allen center visitors
just as the other hotels in the City.
Aid. Engleman asked Mr. Stafford to provide the EDC with the actual hotel tax data for the past
four years. Mr. Stafford agreed to do so. In addition, it was confirmed by staff that, that in an ideal
situation, $80,000 is the most the City would ever contribute based on the premise of maximum
occupancy in the Evanston hotels.
Aid. Newman asked for and received a clarification regarding the term commitment expected
from the City. Mr. Giddings stated that the agreement would be a non -binding three-year
participation arrangement subject to an annual review. Aid. Newman suggested that the ECVB
staff provide the Council will a separate letter prior to the next Council meeting, describing the
source of all funds, the breakdown of the amounts from all participants and the expected iacrease
in matching funds from the state.
After a lengthy general discussion with the ECVB .;.r:.,..,tatives together with input from local
retailers, a motion was made by Aid. Newman to support the program and it was seconded by Ms.
Rebeehini. The motion was for the EDC to recommend approval to the City Council to fund the
ECVB/Chicago's North Shore Convention & Visitors Bureau for a total $60,000 for the fiscal year
beginning July 1, 2002-June 30, 2003; to recommend approval for the City to participate in the
regional concept and provide a certification letter indicating so; and to support the funding formula
of 15% of the 3% hotel tax collections. The measure passed unanimously.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-FEBRUARY 27.2002
PAGE 6
V. Aid. Feldman announced the next agenda item as an update on a feasibility study, funded
by the City. The purpose of the study was to enable the performing arts companies to determine
the suitability of converting the eiosed Central street Theaters complex into a live performing arts
venue for several Evanston Based performing arts companies.
Ms. Bridget McDonough introduced herself as the Managing Director and Co-founder of the Light
Opera Works. Some members of her board, Ms. Bea Rashid of Dance Center Evanston and Mr.
David Woodhouse, Principal, David Woodhouse Architect consulting firm, were also present. A
considerable amount of material concerning the study was included in the EDC packets including
architectural schematic drawings, and elevations. Also included in the material were the projected
conversion cost for each option provided in the feasibility study.
Ms. McDonough began the presentation with a brief recap of the origin and purpose for the
$53,000 grant from the City. The charge to the consulting architect firm was to see what the
structure could accommodate, with Light Opera Works and Dance Center Evanston being the
primary, permanent tenants.
Ms. McDonough introduced Mr. Woodhouse and asked him to proceed with the presentation. Mr.
Woodhouse explained that two different schemes were developed, although 80% of the scheme
is common for both. Mr. Woodhouse exhibited two diagrammatic charts for the first floor plans
and the proposed necessary remodeling required for both theaters. The vi-,ual aids also highlighted
the differences in the plans. The projected cost for the first scheme at 50,000 square feet, is
approximately $13 million and the cost for the second scheme at 43,000 square feet, is projected
to be approximately $14 million. These costs include the possibility of accommodating full
orchestras on stage, which widens the venue options to include the Evanston based orchestras. If
new construction for similar space were considered the projected cost would be approximately
$19.3 million.
Ms. McDonough explained at length as to how the various benefits of the proposed schemes and
how the design flexibility provides for various uses by different groups.
Ald. Newman commented on how good the quality of the plans were, but wanted to know the
reaction the performing arts managers had to the projected costs for the conversion. Aid. Newman
further suggested that the remaining time be spent on this issue as well as explainining the means
in which the companies intended to fund the project.
Ms. Rashid said that although she only recently received the projected cost report and has not fully
reviewed the data, she believes her portion could be raised. Ms. McDonough stated that the figures
were higher than anticipated but for a project of this size, ownership of the property is a must, in
order to launch a capital funding campaign. Ms. McDonough agreed with Ms. Rashid regarding
fund raising.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-FEBRUARY 27, 2002
PAGE 7
The funds could be raised by forming a public/private partnership arrangement combined with the
aspect of using low interest loans. An allowance for speck zoning variances will be required for
the property conversion, particularly for the eighty- foot tall fly tower as depicted in both schemes.
Aid. Newman asked Ms. Aiello about the particulars of the center that was proposed for Church
Street Plaza and the fund rising projections determined from a feasibility study done at the time.
Ms. Aiello and Ms. Mary Rouleau, LOW board member. stated that the size of that proposed
center was less than half of the current proposal, with approximately 300 fewer seats and would
have cost roughly the same. The feasibility study at the time indicated that the ability to privately
raise more than $3.5 million was doubtful, however some doubt exist about the validity of this
amount.
Aid. Engelman and Ms. Rouleau quickly pointed out that unlike the center proposed for the Church
Street Plaza, this center would be an anchor. Designated anchors are likely to generate more
funding than non -anchors.
Ms. Rebichini asked Ms. McDonough about the purchase price of the property. Ms. McDonough
mentioned that the property was appraised and the appraiser was present. After providing a lengthy
explanation for his assumptions, having performed similar property comparisons in Evanston,
raising other "white elephant" issues and considering demolition cost if used for purposes other
than a theater, the appraiser stated that in his estimation the appraised property value, sold as
vacant land, would be $ 1.5 million.
A general discussion ensued regarding the retail leases on the premises, sofa: and future operating
costs.
AU Engelman asked that aside from the eighty foot fly tower, what other zoning variances are
required. Mr. Woodhouse stated that an increase in area per use since the proposed new use would
double the B2 allowable limit of 3,000 square feet. Also the set back requirements would change
significantly under the new proposals. Other issues would be parking, providing a loading dock
and use of the alley.
After considerably more general comments and conjectures on the pros and cons of the project,
Ms. Rouleau assured the EDC that the companies will find a way to make the project work. Ms.
Rouleau also stated that fmm the start the owner has been involved and informed on all aspects
of the project strategies.
Ms. McDonough thanked the EDC for the grant stating that the money was well spent. Aid.
Feldman brought the discussions to a close and thanked the presenters.
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ECONOMIC DEVELOPMENT COMMITTEE
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VI. Ms. Aiello provided brief downtown updates on the status of Church Street Plaza retail
spaces, as well as the status of Mesirow Stein/McDougal Littel Office building and the Sherman
Plaza /Municipal Garage development project.
VIL Mr. Marino also provided a brief update on other recent development project proposals.
VIA. The remaining communication items enclosed in the packet were acknowledged..
IX. There being no further business, Aid. Feldman adjourned the meeting at. approximately
10:15 P.M.
The next EDC meeting is scheduled for Wednesd=v. ADAI 3. 2002 at 8:09 P.1% ln'Room
2404. Clvic Center.
Wly submitted
Robinson
Development Planner
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ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES
WEDNESDAY APRIL 3, 2002
ROOM 2404-5:00 P.M.
CIVIC CENTER
MEMBERS PRESENT: Aid. Feldman, Aid. Moran, AId. Newman, Aid. Wynne, Marvin
Juliar, Martin Norkett, Barbara Puta, Alice Rebechini
MEMBERS ABSENT: Ald. Engelman
PRESIDING OFFICIAL: Ald. Feldman, Chair
OTHER COUNCIL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Lloyd Shepard,
James Wolinski
OTHERS PRESENT: Stephen Kardel-Glenlake Capital Partners, Ron Kysiak &
Inventure, Bridget Lane- vmark, Dick Peach-Evu Chamfer Ql'
Commerce, Jonathan Perman-Ev. Chamber ofCommerce
Summary of Actions:
L Aid. Feldman, Chair of the Economic Development Committee, convened the EDC
Meeting at approximately 8:15 P.M. in Room 2404.
II. Aid. Feldman welcomed Mr. Marvin Julian as the new member of the EDC, replacing Mr.
Percy Berger. Mr. Julian is a former Evanston Alderman and has been a concerned and civic
minded resident for many years.
M. 'Me previous summary minutes of the February 27, 2002 EDC Meeting were unanimously
approved without corrections or additions.
IV. Aid. Feldman announced that the first presentation on the agenda had to do with issues
pertaining to the vacancy status of downtown office space. Ms. Bridget Lane, Director of Evmwk
and Mr. Ron Kysiak, Director of Evanston Inventure were introduced to the EDC as,tbe
presenters. Mr. Kysiak began the presentation, stating that the recession has caused the office space
market to deteriorate to the point of creating a high vacancy rate in our downtown. Inventure
recently completed a survey of the nine owners of "class A" buildings in Evanston.
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The results of the survey revealed an overall vacancy rate of 20%. In effect the buildings are not
profitable because of the vacancy rate. The problem is exacerbated when you add in those spaces
that have been sub -let and generally leased at below the market rate. This category of sub -leased
space constitutes approximately 6% to the spaces.
The result of the 20% vacancy rate and the 6% sub -lease space has the effect of dragging rent
revenues down and lower rents devalue the buildings. The negative impact will impact the City
in a few years, because the Assessor's Office calculates property taxes based on the value of the
buildings. Buildings reduced in value generate reduced tax revenues. Mr. Kysiak further explained
that the vacancies translate to fewer customers for local restaurants and merchants and detracts
from the vibrancy of the downtown.
Mr. Kysiak recalled that about twelve years ago when American Hospital Supply was absorbed by
Baxter and relocated. The move resulted in approximately 200,000 square feet of downtown vacant
office space, which significantly drove down the tenant office space market. The building owners
began vigorously competing for the smaller tenant market universe and as a result, everyone
suffered.
At that time, Evmark was just being organized and Inventure was asked for assistance because they
knew the building owners. Inventure managed to host a meeting with the building owners and
determined that their inability to afford marketing campaigns outside of the City was the major
problem they confronted. Inventure convinced the owners to develop a means to assess themselves
so as to contribute to a common pool for the purpose of creating a general marketing program for
downtown office buildings.
The effort was successful in attracting companies from outside of the City. Contacts were made
to commercial brokers in municipalities such as Northbrook, Oakbrook and other places and
presentations were conducted. Brochures and other collateral material were created and distributed.
A "Brokers Book" and a video were also developed. These measures created a stronger, unified
synergistic effort to effectively pursue outside markets.
Mr. Kysiak commented that based on that successful background, Bridget Lane recognized that
efforts of the previous sort were needed in today's market and she asked if Inventure could once
again lend assistance. To date, Inventure has convened a meeting with the owners and apprised
them of the situation. Mr. Kysiak asked Ms. Lane to continue at this point, particularly to explain
the proposed remedial efforts.
Ms. Lane stated that at the owners meeting, four of the five major property owners expressed an
interest in starting a joint marketing program. The owners requested Evmark to develop marketing
programs that will ensure that both the regional and national markets are made aware of what the
City of Evanston has to offer.
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The Evanston buildings offer unique "boutique Office space" that now have different and
enhanced advantages they did not have in the past. Notably, access to the C.T.A and Metra rail
lines for employees make Evanston particularly attractive especially since much of the market must
rely on driving routes and the use of congested highways.
Ms. Lane stated that the meeting with the building owners was held approximately two weeks ago
and marketing plans and funding am underway. The EDC will be provided with copies of all
documents pertaining to the marketing program in the near future. The marketing program will
capitalize on much of the existing image marketing, designed to reach people who reside along the
easily accessible, northerly oriented transportation corridors that are convenient to Evanston.
The transportation study that Ev7nark conducted last year revealed that in most instances, the
executives tended to live north while the employees live south and that north/south public
transportation is key. In addition to transportation access, the many restaurants and other amenities
located in Evanston provides the core of the marketing c.aai paign. The final program is not yet
approved, however approval is imminent and the program is expected to be launched on or before
May 15, 2002.
A business oriented web site, (evmurkorg) is being developed by a group of Northwestern
students and it will debut %ithin a month Postings on the site will include downtown
retail/commercial and office A, B, and C class space vacancies. The campaign is designed to lend
meaningful support to brokers in their client acquisition endeavors. Ms. Lane advised the EDC
that within the last six weeks there have been some fairly significant improvement in the market
and that the data included in the packet should probably be favorably adjusted to reflect the
improvement.
Ald. Newman brought Ms. Lane's attention to the office space vacancy data presented by Stephen
Kardel, President-Glenlake Capital Partners. Aid. Newman suspected that the issue may not be
as grave as the data suggest. Questioning first the status of the 1830 building which is commonly
referred to as the "Incubator", Ald. Newman asked if the new owner, Mr. mark Goodman,
displaced any tenants. Mr. Kysiak stated that 15,000 square feet of space became vacant due to the
state of the economy. Ald. Newman also suggested that 1800 oak also ,,..,ts a situation where
the anchor tenant, Our House.com left, resulting in a 25,000 square foot vacancy. If the two
buildings in question were not factored in the overall vacancy data, the listed vacancy rate should
be lower.
Mr. Kysiak presented data base documents which reported vacancies by individual buildings and
these reports are what was used to develop the data Responding to Aid. Newman's question, Mr.
Kysiak said that if the two buildings in question were deleted the vacancy rate would be Iowered
to approximately 8%.
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PAGE 4
A general discussion ensued concerning space and tenants in the various buildings in the Research
Park and tenant movement from one downtown building to another, such as in the case with
Evanston Northwestern Healthcare and McDougal Littel relocating to the new Mesirow Stein
building in the Church Street Plaza area The discussion culminated with Ald. Feldman's request
for Evnwk to keep the EDC apprised of developments and to provide the members with all
marketing campaign collateral material when the items become available.
V. Ald. Feldman continued with the agenda by announcing that Mr. Stephen Kardel, President,
Glenh&c Capital Partners has presented a development extension request for the property at 1881
Oak. Mr. Kardel began by stating that his analysis of the office spar market agrees with the data
submitted by Mr. Kysiak. Mr. Kardel advised the EDC that just as Motorola and Lucent
downsizing has contributed to the office space problem in their respective communities, Evanston
too has experienced a negative impact on available office space due to the dot com collapse.
Mr. Kwdel stated that his preparation for the presentation included discussions with eight of the
nine leasing brokers in downtown Evanston and determined that year end 2001 they had no activity
and the activity that is occurring now is for space under 10,000 square feet. With the exception of
the Shand Morahand building, none of the brokers had any non -Evanston prospects. Further
investigation has determined that the situation is not just unique to Evanston.
Ald. Feldman asked if Mr. Kardel had any idea as to what Glenlake is prepared to build on the
1891 site presuming that the answer is unknown. Mr. Kardel concurred. The extension request is
simply for the purpose of more time, without a guarantee that construction wH1 commence at a
specified time.
Ms. Rebechini asked Ms. Aiello about the rights for the parties during an extension period. Ms.
Aiello stated that the second amendment allowed Glenlake the provision to approach the City
with an additional extension request, no later than April 30, 2002. Proof in the form of credible
data indicating adverse economic conditions as the basis for Glenlake's inability to commence
construction, with City concurrence was also required. In addition, second amendment provisions
allows the city to repurchase the parcel of land for S402,980, the same price it sold the property,
if the foundation has not been poured by May 31. A sixty-day written notification of the intent to
repurchase would be required..
Ms. Rcbechini asked if there were any mitigating reasons for the City to repurchase the parcel
instead of granting the extension request. Ms. Aiello stated that the City could land bank the
property since it is the last available parcel designated for office buildings.
Ald. Newman expressed his opposition to the land -bunking concept. With only six years remaining
7777,
on the TIF the idea of land banking the site could prevent the City from receiving any iiii iaue
from the property.
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MINUTES-APRIL 3.2002
PAGE 5
Projections indicated that the City would receive S300,000 from the developed site. As such, land
banking would prove to be an expensive option for the City.
Agreeing that the City wants to see the property developed, Aid. Newman stated that the issue is
whether or not the property can be developed as office space or as something else. Cuffent
conditions indicate that it will not be developed as office space for the next few years.
Aid. Newman informed the EDC that he recently received a telephone call from Mr. Roszack, a
local developer, who has expressed an interest in developing the property. The question now is
does the Citywish to pursue other development opportunities , which will return the property to
the tax roll. Aid. Newman concluded by stating that there would be no reason to approve the
extension if Glenlake can't construct the building in a year.
Ms. Aiello said that high density residential may not be the best land use for the site and that the
plan was to preserve the integrity of using the north end of the "Research Park" for office facilities.
Ms. Aiello advised that careful consideration must be given to alternative uses and the Plan
Commission should also be involved in the decision.
Ald. Newman referenced residential projects that were built or are in the process of being built
across from the site and question why residential would be undesirable in this case. Aid Newman
asked hypothetically that if condominiums could be erected by 2004, paying $500,000 a year in
taxes for example, the City would receive approximately S2.5 million during the remaining life of
the TIF, to service the debt for the garage. Ms. Rebechini also stated that she saw no advantage to
the City by granting another extension, but disagreed with Aid. Newman on opening the site to
residential devilment.
Aid. Feldman noted that residential re -developments are occurring in office buildings in many
areas of Chicago without specified use dedication. Aid. Feldman stated that he is not convinced
that a specified "critical mass" of office space is essential and that previous pans favored mixed -
use developments with more people living downtown.
Aid. Moran asked Ms. Aiello to explain the benefit to the City to have a land parcel developed as
a commercial development as opposed to a residential development. Ms. Aiello said that a higher
taxation rate is applied to commercial enterprises and generally provides greater tax benefit for
the City.
After a general discussion concerning the pros and cons of opening the site to the market and the
potential benefit to the City, Aid. Moran moved to recommend approval for the extension but the
motion failed to receive a second. Ms. Rebechini moved to not recommend approval for the
extension and Aid. Wynne provided a second to the motion. Aid. Newman added an amendment
to the motion, which would refer the land use issue to the Plan Commission for hearings.
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MINUTES-APRIL 3.2002
PAGE 6
The Plan commission would then report back to the EDC in 120 days. Ms. Aiello advised the EDC
that the Second Amendment to the Redevelopment Agreement allows both parties the opportunity
to extend the foundation construction date for one ninety -day period. Notification to do so must
be provided in writing. Written notification for repurchase calls for a sixty-day time period and
these stipulations must be considered in the EDC decision. Aid. Newman also advised the EDC
that if the City repurchased and controlled the lot, the City will save an additional $5,000 a month
in rental fees for the parking lease.
Aid. Feldman called for the vote and the measure passed with a majority vote with one no vote by
Aid. Moran and one abstention by Mr. Norkett. Aid. Feldman advised Mr. Kardel of the EDC
decision thanked him for his time.
VI. Ms. Aiello provided brief downtown updates on the status of Church Street Plaza retail
spaces, as well as the status of Mesirow Stein/McDougal Littel Office building and the Sherman
Plaza /Municipal Garage development project. Ms. Aiello concluded her presentation with these
status reports.
VII. Mr. Marino also provided a brief update on other recent development project proposals.
VIII. The communication items enclosed in the packet were acknowledged. Aid. Newman and
Aid. Feldman expressed their concern to staff that the EDC did not review and approve the
consulting report conducted and produced by Tracy Cross, concerning market potential for
.residential development on Howard Street. Mr. Martin Norkett also expressers his opinion that the
report did not represent value for the price. Although staff believed the project was conducted
under approved procedures which stipulates expenditures under the amount of $15,000 did not
require Council approval, Aldermen Newman and Feldman asked that in the future such proposals
be presented to the EDC for review and staff concurred.
IX. There being no further business, Aid. Feldman adjourned the meeting at approximately
10:15 P.M.
The next EDC meeting is scheduled For Wednesday. Antrli 24. 2002 at 8:00 P.M. in Room
2404, Civic Center.
submitted
E. Robinson
mic Development
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ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES
WEDNESDAY MAY 24, 2002
ROOM 2404-8:00 P.M.
CIVIC CENTER
MEMBERS PRESENT-. Aid. Feldman, Ald. Engelman, Aid. Moran, Ald. Newman, Ald.
Wynne, Martin Norkett, Barbara Puta, Alice Rebechini
MEMBERS ABSENT: Marvin Juliar
PRESIDING OFFICIAL: Aid. Feldman
OTHER COUNCIL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, William Stafford
OTHERS PRESENT: Ann Diener
Summary of Actions: '"
� ;;
1. Ald. Feldman, Chair of the Economic Development Committee, convened the EDC
Meeting at approximately 8:IS P.M. in Room 2404.
H. The previous summary minutes of the April 3, 2002 EDC Meeting were unanimously
approved with one minor correction of word on the fifth page.
III. Ald. Feldman announced that the first agenda item pertained to the proposed agreement
extension for the TIF District's revenue sharing with School districts 65 and 202. A memorandum
from staff recommending approval, addressed to the attention of Roger Crum, together with a copy
of the proposed agreement were enclosed in each EDC packet. Ald. Feldman asked Mr. William
Stafford, Director of Finance for the City to proceed.
Mr. Stafford advised the EDC that the proposal would actually be a continuation of an agreement
that was approved approximately three years ago. The agreement was the result of an EDC
directive to analyze the performance of the TIF districts to determine the possibility of revenue
sharing with the school districts. The resultant analysis and projections indicated that the revenue
performance of the Southwest TIF district was sufficient enough to share with the two school
districts. A three-year agreement was approved and each year the schools received $400,000 from.
the City, which they divided.
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MINUTES -MAY 29.2002 PAGE 2
The City has to maintain the financial viability to retire the 20-year bonds associated with the TIF.
For this reason, language %as included in the original agreement which allowed the City to
terminate the payments to the school districts if it can be demonstrated that continued payments
would jeopardize the City's ability to service the debt. The revenue sharing with the school
districts is predicated on the funds being earmarked for career development and training, as
allowed by the TIF statutes. Precedent has been established in numerous municipalities through
the state and the relevant portions of the act are included in the original agreement as vmH as in the
new proposal.
Staff recently performed another due -diligence analysis of the TIF districts and determined do the
share amount for the school districts can be increased from S400,000 to $600,000, in the event the
proposed extension is approved. Staff specifically recommends that the EDC supports approving
the extension of a three-year revenue sharing agreement with school districts 65 and 202.
Additionally, the shared funds should be in the amount of $600,000 per year which the .two
districts will divide, and that the funds are to be made available in July 2002. The agreement is
basically the same as the original, the exception being the dollar amount.
Aid. Feldman asked for questions. Ms. Ann Dienner asked if the funds are derived principally from
the Southwest TIF district. Mr. Stafford's response was affirmative. The other three TIF districts
have constraints or stability issues associated with them, which severely limits the City's ability
to share revenues.
Aid. Engelman asked if the shared funds were used to augment the school districts job training and
vocational/career education programs or are the funds used to pay for the programs entirely and
thus allow the school districts to re -allocate funds for other uses. Mr. Stafford stated that his
discussions with the districts indicate that the funds have been used for augmentation purposes.
However, Mr. Stafford did not have specific data, which would verify this issue.
Aid. Engelman suggested that it would be helpful for accountability purposes if the City, was
provided with statistics on the use of the funds from the school districts. Mr. Stafford stated that
he would certainly make that request.
AId. Feldman asked if the School districts have previously articulated their acknowledgement that
the shared funds were for a particular purpose and that they agree with the requirement. Mr.
Stafford stated that while it is true that the school districts have acknowledged agreement with the
terms associated with the funds sharing, Ald. Engeleman would still like to see some manner of
documentation.
Aid. Engelman added that the first part of his question regarding augmentation had been answev4
The concern was that the high school has dropped some of their non -college preparatory 6,10 A...s,
which has an impact on the use of the funds. r
r
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MINUTES -MAY 29, 2002 PAGE 3
Mr. Stafford said that while that may be true, the high school has also added more technical
classes. Mr. Stafford said these questions further illustrate the point that information is needed
from the school districts and assured Aid. Engelman that a request for information will be
presented.
Aid. Moran stated that he would be particularly interested in obtaining data, which provides direct
indication as to how the funds are used. Ald. Moran related a situation that occurred several years
ago when the City was examining economic development policy issues. Visits were made to a
number of businesses located in the West Side industrial corridor. It was determined that many of
the businesses were going outside of the City to recruit young people to move into tradesmen
training positions. It was disconcerting to learn that the recipients of the training pr+ograirns and
subsequent employment were being recruited from other western suburbs in Dupage county and
even further west It didn't appear that there was a direct connection between these businesses and
the Evanston school districts. Ald. Moran concluded his comments by stating that if the funds are
for the stated use and given the employment opportunities, this issue should be closely examined.
Mr. Stafford agreed., adding that the kind of potential tradesmen jobs also need to be reviewed. Mr.
Stafford cited an experience he had with a "summer youth" hire that turned out to be a
mathematics whiz who was able to perform functions that would have cost the City much more
had he not been available. Ald. Mown stressed his concern that career opportunities for young
people in Evanston, who may not complete a full college education in need of good jobs, get the
opportunities. Aid. Moran suggested that perhaps some of the funds could be used not just for
training, but also for establishing means of communication and programs that will provide direct
links between the school districts and employers in the City.
Ald. Newman stated that he wanted it clearly understood that the foregoing views were those of
just two members of the City Council and not necessarily shared by the other Council members.
Ald. Newman said that if the funds weren't going to the school districts the money would be sitting
in an account doing nothing. The school districts are taxing bodies under tremendous pmssure, and
they don't have the ability to raise funds by assessing fees for various services, as does the City.
Indicating that one of the concerned EDC members was also a member of the City/School Liaison
Committee. Aid. Newman suggested that the types of questions raised should be directed to the
superintendents at the meetings. Aid. Moran interjected that those discussions had occurred. Aid.
Acknowledged the comment adding that from his point of view that he trusts the school districts
will use the money for the proper purposes and when possible, extra TTF monies should be shared
with these taxing bodies.
Aid. Engelman said that when he speaks at the EDC Meetings, he speaks as an EDC member and
does not imply anything on behalf of the City Council.
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Aid. Engelman continued, stating that TIF statutes allows the City to rebate monies to certain
taxing bodies for certain purposes and his question was to determine if the City was rebating funds
for the allowed purposes. Aid. Engelman noted that there is something else the money could be
used for and suggested that the funds would not just be sitting in an account. If the funds were not
shared they could be used to service the bond debt which would pay off the obligation earlier and
create funds for all of the taxing bodies. Aid. Engelman said that the EDC has an obligation to
insure that monies that are generated by economic development are plowed back into economic
development.
Aid. Newman differed with that assessment stating his opinion is that the purpose for the City's
policies concerning economic development is to improve the situation for the Evanston taxpayers
rather than just to improve the economic position of the City. Aid. Newman's concerns are more
for the tax paying citizens and the school districts of Evanston as opposed to Oakton Community
College or Cook County receiving extra funds. Ald. Newman also said he was not in favor of
establishing certain conditions for the school districts to meet in order to receive the fiords.
Aid. Feldman agreed with Aid. Newman's opinion, adding that the actions taken to dispense the
funds are exactly what needs to be done and that is to facilitate the process of getting the funds to
the school districts as quickly as possible. Aid. Feldman indicated that he has no intention of
fomring some type of oversight committee to examine how the funds are used, especially since the
districts have informed the City that the fimds are being used as mandated.
Ms. Ann Dienner commented that it appears to her that terms listed on page 2 (which she read) of
the proposed agreement requires oversight actions particularly with the employment aspects. Mr.
Stafford advised Ms. Dienner that the agreement is based on the interpretation of the TIF Act, by
the TIF Association legal consultants and the City's program conforms to the broad definition.
Mr. Martin Norkctt asked if the City meets the terms of the agreement when the funds are
dispensed to the school districts. Mr. Stafford stated that to date, the City has. Mr. Norkett asked
if the agreerent specifically requires the City to provide oversight on how the funds are spent. Mr.
Stafford replied that the terms of the TIF Act is the oversight in that the funds can only be spent
as specified, but the City does not conduct audits. Mr. Norkett stated that if in the event citizens
should inquire of the EDC for an accounting then the City would be required to audit the program
at that time.
Aid. Main interjected that he did not suggest the creation of an oversight committee, his concern
was simply to be provided with a report as to how the funds are spent. The EDC should be
prepared to respond to anyone with some certainty as to how the funds are spent and that the
spending conforms to the state's TIF statutes which specifies approved uses.
; I J
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PAGE 5
Aid. Newman commented that the school districts are aware of the TIF statutes and are aware of
how the funds must be specifically used. Aid. Newman suggested that this topic should be a
continuing agenda item for discussion, for the EDC member who is also the City/School Liaison
member. The EDC in turn should be provided with continuos reports from that member as to how
the job -training program is working and how funds are spent. Perhaps both superintendents could
appear before the EDC for a first hand briefing. Ald Newman stated that in his opinion, the school
districts could be trusted to follow the law.
Mr. Norkett ask if Mr. Stafford has asked for information in the past. Mr. Stafford indicated that
he has and that he was advised that there are no objections to providing information.
Ms. Aiello stated that although the exhibits to the agreement are not attached to the proposal, they
in fact do require the school districts to provide pertinent information and the reason the exhibits
are not attached is because they are in the process of being completed.
Ald. Engelman asked Aid. Feldman if it was stairs intent to have a recommendation vote from
the EDC at this time, or was a return visit required once the exhibits were received. Aid. Feldman
said the intent was for immediate action on concept approval. Mr. Stafford said that the exhibits
would be attached before going to the full Council.
Aid. Engelman moved to recommend approval for the proposed extension agreement, subject to
obtaining answers to the questions raised and the exhibits. A brief debate ensued regarding the
clarification of the questions raised, culminating with Ald. Feldman stating that any member of the
EDC can submit questions to staff with no problem. Aid. Newman expressed his view that the
minutes accurately reflect the discussion and concerns of some EDC members, and that the school
districts boards are provided with copies of the minutes. Ald. Feldman called for the vote and the
motion received a unanimous approval.
IV. Ms. Alice Rebichini, the Plan Commission liaison member of the EDC was called upon
to provide an update on the Plan Commission's preliminary discussion regarding the re -use of the
1891 Oak Avenue lot. The discussion was summarized in the Plan Commission minutes, which
were included in the packets.
Ms. Rebechini stated that before the Plan Commission is ready to provide an official report or
conduct a hearing, the content of the public hearing and who should attend must be clarified. Also
the Plan Commission perceives the targeting of the site for an alternative condominium
development as an issue because of the need for clarity on the status of the condominium market,
sales data and the future viability of that market. There is a concern that the condominium product
is becoming over developed The research results will be discussed at the next Plan Commission
Meeting.
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PAGE 6
The Plan Commission also desired a better understanding of the TIF financials relative to the
timing of the delivery of a development product and the benefits of one development product over
another with regard to the associated real estate taxes. This issue is also slated for discussion at the
next Plan Commission Meeting.
Md. Feldman interjected that he assumed that the Plan Commission's dialogue would have
centered on a perspective of what would fit in the City's overall plan, which was drafted by the
Plan Commission. Also, would condominium use or any other development be an appropriate use
in accordance with the Plan and what vmuld be the benefit to the City of one specific use as
opposed to another. Ald. Feldman said he did not assume the Plan Commission would get into
trying to determine if a market were sustainable, or whether or not the original decision was to be
office space or condominium development because policy can be easily changed. The guidance
he requires from the Plan commission has to do with the Commissions unique perspective as
stewards of the City's Comprehensive General Plan.
Ms. Rebichini stated that Ald. Feldman's perspectives were not lost on the Plan Commission
members. The update provided was intended to advise the EDC as to what remains to be
accomplished before the final report is ready. However, Ms. Rebechini said when evaluating
development possibilities where there has been a change in potential use, the issue of economic
benefit is a natural progression for PC members to explore and can the members cannot be kept
entirely off that topic.
On the matter of the public hearing which was requested by the EDC , the Commission members
have to resolve the type and nature of the hearing it wants to conduct. The question is to either fast
conduct an information gathering session or have a full public hearing involving all of the
identified issues. Particularly should the topic of the hearing be for the purpose of advancing a
promoted use via a Request For Proposals (RFP) or by some other mechanism. Consideration was
also given to asking the EDC to convey what its specific purpose is for requesting a public hearing.
Mr. Dennis Marino stated that the request for a public hearing was treated as a formal reference
from the EDC to the Plan Commission to review possible land uses for the 1881 Oak site. Mr.
Marino said the question is does the EDC believe the Plan Commission should conduct a public
hearing or should they make that determination themselves.
Ald. Newman was under the impression that the Plan commission would conduct a public
discussion but not necessarily organizing a hearing. Ald. Newman asked what the thinking was if
an RFP was presented to all developers asking for what they would like to do. Ms. Rebechini said
that idea was discussed as an alternative tool but when a consensus was reached on the desired
objective, the Commission believed man a more specific RFP could be developed.
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The RFP would be an either or scenario, residential or research and development use, as long as
either use conformed to planning parameters and proved to satisfactory to the Plan commission.
The multiple, general RFP concept was deemed to be inefficient and confusing. The Plan
Commission is heading in the direction of preferring a more structured RFP.
Ald. Feldman asked Ms. Aiello about the current status of the 1881 property. Ms. Aiello informed
the EDC that the owner, Glenlake, has applied for a foundation permit to construct an office
building. If this occurs before August 31, Glenlake will comply with the terns of the amended
agreement. If Glenlake does not meet that deadline, then the City can proceed with the repurchase
initiative. The City continues to use the site for parking and staff is monitoring the situation.
Ald. Feldman asked if the foundation deadline is met, what length of time will Glenlake have to
construct the building. Ms. Aiello and Ms. Rebechini both commented that the standard agnx-ment
period is usually two years.
Considering this new information, Ms. Rebechini asked if it would be improper for the Plan
Commission to continue in the direction they have taken. Ms. Aiello stated that it is appropriate
for the Plan Commission to continue discussing this issue.
Ms. Rebechini stated that the Plan Commission was not comfortable with the concept of a `ride
open, unstructured brain storming public hearing". A more desirable concept is to organize an
invitation session for adjacent property owners. A brief general discussion arose regarding the
adjacent properties remaining research and development permanently and the viability of any new
development diverging from the original R&D concept.
Ald. Feldman summed up the issue stating the question is whether or not an office building can
or will be constructed on the site. If it can, that will be fine, but if one can't be constructed, what
is a viable alternative. Secondly, if the Plan Commission feels strongly enough that any new
construction should be R&D cohesive with the existing buildings, should the site be land banked
until such time as an R&D development is viable. Ms. Rebechini said that this assessment is not
necessarily the answer but the Plan Commission will need further discussion to sort out the
situation.
Aid. Newman stated that the Plan Commission was doing a great job and should continue with its
efforts. As a former Glenlake employee, Mr. Norkett asked if he would be able to make comments
on this issue at some future point in time. The EDC unanimously agreed that comments from Mr.
Norkett on this issue would not be inappropriate.
Aid. Engleman asked how many parking spaces were on the lot and is the lot always fully
occupied. }
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PAGE 8
Ms. Aiello replied that there are approximately 80 spaces and the lot is not always full.
Ald. Engelman asked if it is anticipated that the situation will change once the Sherman Avenue
Garage is razed. Ms. Aiello stated that the issue has been reviewed by the Parking Committee and
increased usage is not expected. Ms. Rebechini added that the Plan Commission was also
considering this aspect to determine if short or long term parking for the site is a viable alternative
within the scheme of all that is occurring downtown.
Ald. Newman asked what the City pays to use the lot for parking. Ms. Aiello said the lease is for
$5,000 per month. Ald. Newman stated that if the City should happen to repurchase the site, a
determination to hold the property longer at that time.
Aid. Engelman asked if the Plan Commission has considered if it is in the best interest of the City
to repurchase the lot or leave it in the hands of Glenake. Ms. Rebichini replied that the Plan
Commission felt strongly that the EDC made the correct decision.
Ald Newman suggested that the collective judgement of the EDC should be to not allow the parcel
to remain undeveloped for the next five or ten years. Ald. Engelman said that he did not .....-."-:ly
disagree with that view, but the City did landbank twenty- three acres of land prior to creating the
Research Park. At that time there was a great deal of pressure from several sources not to do so.
After land banking was established there was considerable pressure to reverse the decision. Had
the City not land bunked the property, and when the economy improved, the current development
projects would not have occurred.
There being no further discussion on this issue, Ald. Feldman thanked Ms. Rebechini and moved
to the next agenda item.
V. Ms. Aiello quickly advised the EDC of a change in the TIF language which makes it clear
that the in the last year of the TIF, the municipality receives the taxes the following year.
VI. Ms. Aiello provided the EDC with brief updates on the Sherman Plaza development project
and other downtown projects
VII. Mr. Marino provided brief updates on recent development proposals and the status of other
approved projects.
VII. Mr. Marino advised the EDC that recently released census demographic data was included
in the packet and provided a brief overview of some of the more interesting data
VIII. There was no other new business.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTE&MAY 29. 2002
PAGE 9
VIII. There were no comments on the communication items enclosed in the packets.
X. Them being no further business, Aid. Feldman adjourned the meeting at approximately
10:15 P.M.
The next EDC meeting is scheduled for Wednesday. June 26 at 8:00 P.M. in Room 2404,
Civic Center.
Respectfully submitted
r.
*Wo*E. binson
Econbmic Development Planner
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ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES
WEDNESDAY JULY 24, 2002
ROOM 2404-8:00 P.M.
CIVIC CENTER
MEMBERS PRESENT: Aid. Feldman, Aid. Moran, Aid. Newman, Marvin Juliar, Martin
Norkett, Barbara Putta, Alice Rebechini
MEMBERS ABSENT: Aid. Engelman, Aid. Wynne
PRESIDING OFFICIAL: Aid. Feldman, Chair
OTHER COUNCIL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Lloyd Shepard,
William Stafford
OTHERS PRESENT: Ann Dienner, Paul Giddings- Board Chair. CNSCVB, Maria Berg -
Stark -Exec. Din.. CNSCVB, James Klutznick, Maurice Fischer, John
Terrell- Sherman Plaza Demloomoent Proiect, Jonathan Penman-Dir.
,Ev. COC
Summary of Actions:
I. Aid. Feldman called the meeting to order at 8:10 P.M.
II. The previous minutes of May 29, 2002, were unanimously approved with one connection. On
page 7, second to last paragraph, the word `Inappropriate' was changed to `appropriate'.
III. Ald. Feldman announced that the Sherman Plaza development team was present and that he
was going to allow them to be first on the agenda. Mr. James Klutznick was asked to introduce the
team members and to begin the presentation. Mr. Klutznick started by explaining what he believed
was the market perception and the of the Sherman Plaza project.
The heart of the project is the retail component. Mr. Klutznick advised the EDC that because
sensitive lease negotiations are currently underway, providing specific names of potential tenants
would not be appropriate at this time. Mr. Klutznick explained that the commercial portion of the
project contains approximately 250,000 square feet, consisting of 150,000 on two levels on the
Sherman Avenue frontage, 10,000 square feet at the base of the garage and 90,000 square feet for
the new health club.
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MINUTES-JULY 24.2002
PAGE 2
The proposed health club plans are proceeding and it will be a very nice. glassed -in facility,
occupying space on the third and fourth floors. It will have a climbing wall. basket ball court, other
court games, swimming pool, sun deck, and other amenities. It is the developer's belief that the
facility will be the finest course within the entire north shore area.
The two floors of retail space between Church and Davis streets, on Sherman have been well
received by the market. A major tenant is expected to lease 30,000 square feet, on two levels, at the
corner of Church and Sherman. The Osco drug store is expected to return to the west end of the
Church Street frontage and the store will occupy 9,000 square feet on the upper level and 4,000 on
the lower level. A lease agreement is currently underway with a desirable restaurant and several
nationally known "furnishing companies" are negotiating with the developers for the 10,000 square
feet anchor position at the other end of the complex. Other apparel and specialty stores are expected
to occupy spaces in between the corners. in addition, another national tenant is expected to occupy
30,000 square feet from the ground level to the upper level of the middle of the building.
From the standpoint of interest in the retail frontages of the project, the developers are pleased with
the reception they've experienced in the market place. Mr. Kluumick said his redevelopment project
has been the beneficiary of the success from the Arthur Hill, Church Street Plaza redevelopment
project. The cinemas are particularly well known within the industry and they have been especially
successful. It is Mr. Klutznick's understanding that the cinemas are the highest grossing theaters in
the entire metropolitan area. Mr. Klutznick added that although Old Orchard is the major shopping
center for this region, Evanston has managed to attract an appreciable percentage of the market.
Although there are some prospects with regard to the proposed garage retail space, the development
team has not concentrated it's efforts to secure leases because the belief is that the space will be
relatively easy to lease to smaller concerns. In summation, considering the 160,000 square feet of
retail space (the footage exclusive of the health club), the developers are within the two thirds range
of lease -up and are confident of achieving 100 % by completion of the project.
Mr. John Terrell continued with the presentation, stating that the confidentiality of the leasing
program at this point is paramount because the ability to obtain financing for the project is tied
directly to the success of these lease -up efforts. Currently, the developers are completing their
construction documents and other pertinent paperwork.
The redevelopment project has been split into three components, 1.) the public garage and
condominium parking; 2.) the 200 + units condominium residential piece, and 3.) the "retail
podium". Mr. Terrell again mentioned the qualities of the new health club. Late August or September
2002 is the anticipated completion time for obtaining all financing requirements for the project.
Some demolition activity on the south end of the site has commenced and it is anticipated that
demolition will proceed from south to north in earnest starting in mid September.
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MINUTES-JULY 24. 2002
PAGE 3
Evanston is a high profile area in what is considered to be a generally positive Chicagoland
development arena. The major lenders who have been approached by the developers have expressed
significant interest in the project and discussions on rates and terms are underway. At this point, the
development team expects to again appear before the EDC in late August or early September 2002
to provide a more definitive update and discuss adjustments to the redevelopment agreement where
required.
Aid. Feldman asked if once a tenant has actually signed a lease agreement, will the developer then
be in a position to identify the business entity. Mr. Terrell said that most likely they would be able
to do so. Aid. Feldman then asked when they would start selling the residential. Mr. Terrell said that
unlit plans were currently being completed and should be ready within the next couple of weeks. The
marketing efforts should start in earnest in late September 2002. A search is on for a downtown
marketing office.
Mr. Marvin Juliar inquired about the size of the unit(s). Mr. Terrell said the sizes vary. There are
primarily three options: 1.) 1,200 to 1,600 square feet range for the "soft loft" units on the lower
floors; 2.) Within the `Mower" the units will average 1,300 square feet, and 3.) the Penthouse units
will may average from 1,800 to 2,400 square feet depending on the location.
Ms. Alice Rebechini asked if the developers had actually obtained a letter of commitment from any
lender. Mr. Terrell stated that they do not have a letter of commitment but they are engaged in
serious discussions with several lending sources. This process places them in an advantageous
position to negotiate the right situation with the right lender. Ms. Rebichini asked about the expected
time plan for completing and signing loan documents. Mr. Terrell answered that late September or
early October is the probable completion period. The timing may seem aggressive, but the
developers have already been in discussions with lenders for a considerable amount of time.
Aid. Newman asked for a clarification of the quality of prospective tenants. Are they meeting or
exceeding the developers expectations. Mr. Terrell assured the EDC that the prospective retailers
meet the quality expectations. Without naming them, Mr. Terrell described them as being as
"lifestyle or main street" types of centers such as you would find in Highland Park, Naperville and
other similar communities. All prospects are first rate and have been seeking urban locations like
Evanston for some time. At the recent Urban Land Institute seminar held in Chicago, Evanston was
recognized nationally, as an exceptional example of the urban type downtown area retailers finds
so attractive.
Aid. Newman asked for Mr. Terrell's opinion regarding a proposed binding design review ordinance
for the City. Mr. Terrell's response was that naturally developers would prefer as few constraints
as possible. On the other hand, it is recognized that communities have the right to have input on
design proposals. Mr. Terrell continued, stating that quite frankly the Evanston market is so desirable
That with or without binding reviews, developers find it compelling to do business in the City.
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MINUTES-JULY 24.2002 PAGE 4
Mr. Terrell said that his development teams experience with Evanston has been very good.
Ms. Judith Aiello gave a brief update on the design of the new municipal garage. It is anticipated
that the Parking committee will also have signed the approval documents for the structure in time
for the next EDC meeting . Also, staff will appear before the Public Arts Committee on August 13,
2002 to ensure that the an components planned for the garage will be integrated within the required
time line. The financing issues concerning the construction of the garage are also receiving due
diligence by Mr. William Stafford and other appropriate staff members.
Mr. Stafford stated that the City is negotiating a $20 to S25 million bond transaction related to the
new garage project. City staff anticipates a variable rate issuance will be the most economical term
interest vehicle for the garage. There is also a related SI 1 million CIP issue as well as some other
refunding possibilities which have to be resolved. Staff will introduce the pertinent proposed
ordinances to the City Council in August for introduction and for final approval in September 2002.
Ms. Aiello had Mr. Lloyd Sheppard update the EDC on the status of MBE/VIBE/EBE participation
requirements for the Sherman Plaza project. Mr. Sheppard advised the EDC that preparations have
been made with the developer and the construction firm of W. E. Oneal to smoothly reach the
aspiration goal of 25% participation for Evanston based businesses. Mr. Scott Fontaine, a member
of the Evanston Chamber of Commerce has also been enlisted to facilitate meetings with interested
Evanston based businesses who wish to participate.
Aid. Newman asked if there was a MBE/WBE/EBE report for Arthur Hill project. Mr. Shappard's
response was affirmative. Aid. Newman said his purpose for asking was that in his experience he
has not received reports indicating whether or not any Evanston residents received permanent
employment. The concern is not for non -Evanston residents to reap the benefits of development
projects, aspuation that does not necessarily improve Evanston's economy. Aid. Newman wants to
see employment reports at the completion of projects. Ms. Aiello and Mr. Sheppard concurred.
Ms. Aiello concluded the comments by advising the EDC that Staff will again appear before the
EDC in late August or early September 2002, with minor adjustments to the agreement document
and to finalize any financing issues. The September Council Meeting is targeted for final approval
to get the project underway.
Aid. Feldman ased Ms. Aiello and Mr. Klutznick if they see anything on the horizen which could
delay the project further. The answer for both was no.
Aid. Newman stated that he believed that closing the garage in November could be an issue. Ms.
Aiello stated they she is coordinating with Ms. Bridget lane, Evmark Director to develop alternative
parking solutions while not delaying the project. There being no further questions from the panel.
Aid. Feldman thanked the Klutznick team for their presentation.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-JULY 24. 2002
PAGE 5,
IV. Aid. Feldman announced that the next agenda item was a presentation from the newly
organized Nerth Shore Convention and Visitors Bureau. NSCVB Board Chairman Mr. Paul
Giddings began by advising the EDC of the progress made towards establishing the new regional
bureau since his last appearance before the EDC. The EDC previously recommended supporting the
effort and the City Council approved the stratef• of transforming the Evanston Convention and
Visitors Bureau into a regional bureau with other north suburban municipalities.
Subsequently the villages of Wilmette and Skokie approved the strategy and joint plans have
progressed. Ms. Maria Berg -Stark has been hired as the new Executive Director, replacing Tinsley
Gams who left to head the Northbrook Chamber of Commerce. The first NSCVB board meeting has
convened and officer elections have been held. Mr. Giddings is serving as its first Chairman. The
terms for officers and members will be for one year. At the end of the first year the terms will expand
on a staggered basis in an alphabetical sequence Mr. Giddings then read the roll call of the board
members, noting that City staff member, Mr. Dennis Marino and Jonathan Perman, Evanston
Chamber of Commerce also serves on the board.
The board officers will comprise the Executive Committee. The members are: the Chairman, Paul
Giddings; the President, currently vacant until December 2002. (This waiting period will allow time
for the members to become familiar enough with each other and will enable them to better select
the person they would like to lead the organization); the Treasurer, is Lee Cabot of the Evanston
historical Society and the Secretary is Sandy Stamp also with the Chamber of Commerce. Evanston
and Skokie contribute the most to the NSCVB and therefore each has a seat on the Executive
Committee. Dennis Marino represents Evanston and Anne Tennence represents the Village of
Skokic.
Also serving on the Executive committee are the heads of the tub primary committees: the Tourism
Committee headed by Mike Guberman, Evanston Arts Center and the Hotel Committee headed by
Mike Genter of the Hilton Garden Hotel. Ms. Lucille Krasnow, representing Northwestern
University and Jim Henson representing Old Orchard Shopping Center serve as the Members At
Large.
Mr. Giddings believes this make-up creates a nicely balanced committee. In addition, a lease has
been signed for the NSCVB office headquarters. The office is located in the Old Orchard Shopping
center for some very good reasons. First, Old Orchard has contributed S28 thousand for build -out
and leasehold improvements. Secondly the first eighteen months will be rent free, effectively saving
the NSCVB approximately S70,000, which makes this an offer difficult to refuse. The site is a retail
space and once the build -out is complete, the NSCVB will have approximately 12,075 square feet
of office, work area and conference space. In addition to the headquarters, the intent is to have
satellite locations in various communities. An Evanston location in the Maple Avenue Municipal
Garage is currently under consideration with city staff and it is anticipated that the Evanston NSCVB
satellite facility will open in the near future.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTESJULY 24. 20D2 PAGE b
Ald. Feldman advised Mr. Giddings that an Evanston NSCVB presence is extremely important
particularly because of the support and resources provided by the city. Mr. Giddings concurred.
Mr. Giddings next introduced Ms. Maria Berg -Stark who resumed the presentation. Ms. Berg -Stark
provided the EDC with a copy of her resume' and a brief synopsis of her background. Ms. Berg -
Stark also provided the EDC with financial data reports which illustrate the funds derived from
contributing members of the NSCVB as well as other sources of revenues.
Aid. Newman asked if Best Western (formerly the Holiday Inn) is a participant. Ms. Berg -Stark
stated that a commitment has yet to be obtained. Mr. Giddings added that there is a transition period
for the hotels in the scheme of events and that additional work is required.
Aid. Ncaman asked how many hotels were participating in the NSCVB. Mr. Giddings reply was that
there are five in Evanston and five more in the other communities. Aid. Newman asked if all of the
hotels are contributing. Mr. Giddings stated that the Village of Skokie is paying their hotels share
for the first three years.
Ms. Berg Stark provided the EDC with examples of brochures and collateral material designs and
briefly discussed her ideas and concepts for the direction of the NSCVB. Branding and logo
identification are high of high priority. The web site development will also receive more attention
The web site address is www.visitchicaizonorthshore.com. Any one visiting the current Evanston
web site will also be directed to the NSCVB site.
Ms. Berg -Stark advised the EDC of the marketing concepts highlighting those groups which are
highly desirable. Mr. Giddings emphasized the fact that with more funding available the NSCVB
will haze the necessary collateral material and will be able to aggressively pursue conventions. A
general discussion ensued regarding staffing to enclude a sales position in the NSCVB and the
positive aspects of having convention bureaus. Various members related their personal experiences.
Ald. Feldman said that the City must be provided periodically with data illustrating the return on the
funds invested in the NSCVB. Past attempts to illustrate actual ROI have been unsatisfactory. Ms.
Berg -Stark stated that when all staff is in place, weekly sales meetings will be implemented and lead
geaaa . and sales reports will be required Similarly, "sponsor marketing" reports will be required
from the marketing staff person. Verification follow-ups with the hotels will also be implemented.
Mr. Giddings added that not only is this data required by Evanston, but Skokie and Wilmette has
mjuested ROI reports. The NSCVB will provide periodic accountability reports to all participating
municipalities.
Aid. Newman asked about the potential for other municipalities joining the NSCVB. Mr. giddings
stated that initially all of the communities in the region were contacted. Now that the NSCVB is up
and naming, it is anticipated that other communities will start signing on.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-IULY 24. 2002 PAGE 7
Aid. Feldman thanked the NSCVB representatives for the update and announced the next agenda
item.
V. Mr. Marino advised the EDC that the owners of the Main Street Newsstand exercised their
option to extend their lease for the property from the City for five years. The establishment is doing
extremely well at the location. The proprietor also prepaid the first year rent in advance. In addition,
the proprietors recently received an award from the Chicago Realtors Association for innovative
commercial retail projects. Aid. Newman expressed his view that the operation has been a
tremendous success for the City and the retailer.
VI. The next agenda item concerned the Plan Commission's formal, written recommendation for
the 1 881 Oak parcel. The recommendation serves as the official response to the request from the
EDC for the Plan Commission to consider the appropriate development use for the parcel, in the
event the City repurchased the property. The first recommended preference is for a commercial
retail/office development project and the second choice was for residential as part of a mixed use
/office development project.
Aid. Newman commented that the recommendations were now inconsequential because of recent
events concerning the property. Ms. Aiello explained that the Owner, Mr. Steve Kardel of Glenlake
Properties, in compliance with the Devlopment Agreement has pulled his foundation permit and has
notified the City. A full set of construction drawings have also been submitted to the Site Plan and
Appearance Review Committee (SPAARC) for approval. As such the City is now obligated to return
the lot to Mr, Kardel in its original condition and the site will no longer be available for parking.
Glenlake now has up to one year to commence construction.
Aid. Newman asked about the cost for these latest initiatives. Ms. Alice Rebechini estimated that
Glealake's expenses for the recent efforts and fee requirements may have already exceeded
$500,000.
VIL Ms. Aiello next advised the EDC that Borders Books representatives requested that they be
removed from this agenda They may be ready by the next scheduled EDC Meeting.
VIII. Mr. Dennis Marino completed the agenda items by providing brief updates on recent
development proposals. Mr. Thomas Roszak has proposed constructing a new residential building
on the site of the old state unemployment office at Maple near Davis. Mr. Roszak's plans have
received design approval from SPAARC. The old Great Bank building at Main and Chicago has
been stripped to the foundation walls and some structual reinforcement tests have been completed.
The principals have been before SPAARC and some design issues are being resolved. The structure
at the former Whole Foods site at Ridge and Emerson has been razed and construction of the
residential development is eminent. Mr. Marino also advised the EDC of recent site improvements
proposals by the CE Niehoff.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-JULY 24, 2002 PAGE 8
This significant Evanston based company manufactures alternators for large vehicles and employs
approximately 190 people.
Aid. Feldman asked Mr. Lloyd Sheppard to also provide the EDC with the number of Evanston
residents employed by Steak and Shake restaurant. Mr. Sheppard said he would provide the
information.
Aid. Newman asked that a future agenda include the owner of the Carlson Building. There appears
to be inept management of the property and the quality of some tenants have been questionable, even
though the commercial spaces in the building are excellent sites. Aid. Newman stated that if the
building were to be sold it would be beneficial to the downtown business district.A general
discussion ensued regarding the quality of other proposed tenants for the building. Ms. Aiello
assured the EDC that this matter will be pursued.
IX. Ms. Aiello next advised the EDC that the 909 Davis Street Building developed by McDougal
Littell is in the process of being sold. Under the terms of the Redevelopment Agreement, McDougal
Littell must seek approval from the City. McDougal Littell is currently preparing the necessary
financial information, including information on the potential buyer and will be presenting this data
to the City's consultant, U.S. Equities, for their review. The timing for the sale is late September or
early October 2002.
Ms. Ann Dienner asked about the hole in the ground on the north side of Davis Street between
Orrington and Chicago and the deplorable conditions it has created. Aid. Newman advised Ms.
Dienner that he has had regular conversations with the property owner and that a development
project is eminent.
Mr. Marino advised the EDC that the final tax sharing payment will be made to the Davis Street
Land Company for the redeveloped Chandler Building. This project was a stellar success.
X. The communication items which were included in the EDC packets were acknowledged.
XI. There being no further business, the meeting was adjourned at approximately 9:40 P.M.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-JULY 24, 2002
PAGE 9
The next EDC meeting is scheduled for Wednesday. August 24.2000 at 8:00 P.M.
in room 2404, Civic Center.
Respectfully submitted,
i
Morris E. Robinson
Economic Development Planner
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ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES
WEDNESDAY SEPTEMBER 25, 2002
ROOM 2403-8:00 P.M.
CIVIC CENTER
MEMBERS PRESENT: Aid. Feldman, Ald. Moran, Ald. Newnvv4 Aid. Wymre� Marvin Juliar,
Martin Norkett, Barbara Putta,
MEMBERS ABirr. is Ald. Engelman, Alice Rebechini
PRESIDING OFFICIAL: Aid. Feldman, Chair
OTHER COUNCEL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Morris Robinson, William Stafford
I!I:.:I, ii
OTHERS PRESENT: Ann Dienner, James Klutznick, Maurice Fischer, John .Termil-
Sherman Plaza Development Proiect, Jonathan Pennan-Dir. Ev.
COC, Martin Stern-U.S. Eauities
Summary of AeNoss:
I. Aid. Feldman called the meeting to order at 8:15 P.M.
IL The previous minutes of July 24, 2002 were unanimously approved.
III. Aid. Feldman announced that the Sherman Plaza development team was present to provide
the EDC with details of the latest design changes to the Shaman Plaza Development Project as well
as to review proposed changes to the development agreement.
Ms. Aiello introduced the agenda item by explaining that she, the Klutznick development team,
Marty Stem and William Stafford Will coordinate the update, which is intended to not only update
the EDC but also to inform them of the next stage for the development.
Ms. Aiello advised the EDC that the changes in the packing shucture had previously been presented
to the Parldng Committee and tonight's presentation to the EDC was made to the Plan Commission
earlier in the evening.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-SEPTEMBER 25.2002 PAGE 2
After the presentation. the Plan Commission unanimously approved the amendments to the
development.
Ms. Aiello explained that the Sherman Plaza development team will present the proposed changes.
Ms. Aiello and Marty Stern. US Equities, will present the recommended changes to the development
documents although they were not yet complete or available for a review at this EDC meeting.
It is anticipated that the amended documents will be completed and ready for presentation to the City
Council on October 14, 2002 and staff is requesting authorization from the EDC to proceed directly
to Council as such. The documents requiring specific revisions are are:1.) The addition of a Second
Amendment to the Redevelopment Agreement; 2) The Public improvement Construction
Agreement; 3.) The Reciprocal Easement Agreement which was a draft exhibit to the agreement,
but never approved; 4) Two Parking Lrases, to meet the zoning requirements for the retail space
and the health club and the final document S.) The Retail Lease for the retail space located in the
new garage. The space will be owned by the City but leased to the developer with both sharing in
the revenue. There is a remote possibility that this last document may not be ready by October 14.
Another document, a plat of subdivision and vacation, will not be presented to the EDC. The
document will go directly to the Planning Development Committee at their October meeting and then
to Council. The reason for the plat is because a vertical sub -division of the development parcel will
result in five separate "lots and a sixth sub -lot". The surveyors, the attorneys and US Equities are all
involved to ensure standards are met. At this point, Ms. Aiello asked the Sherman Plaza development
team to proceed with their portion of the presentation.
Mr. James Klutznick began with the formality of reintroducing to the EDC, himself, Maurice Fischer
and John Terrell, the other members of the Sherman Plaza development team. Referring to large-
scale design renderings of the various elevations of the project, Mr. Klutznick explained that the
presentation will focus on design detail changes in the project from the less detailed concept to the
pnesant. in addition, the update will inform the EDC of the progress made to date, regarding potential
retailers, the health club and all the information pertaining to the condominiums as all the efforts of
each piece relate to the market place, to date. Mr. Klutznick asked Mr. Terrell to proceed.
Mr. Terrell presented before and after renderings of the planned development project. Over a period
of time, the developers have been able to get a better understanding of scale and dimension issues
of the project. This understanding has enabled the developers to create better detailed and highly
enhanced renderings, to the point that they are now in the process of developing construction
documents and anticipate entering the market with Guaranteed Maximum Price (GMP).
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-SEPTEMBER 25, 2002 PAGE 3
The first significant design change appears in the corner building, which was originally conceived
for Sears. The new and enhanced layout will afford a more distinct identity for the new retail tenants
slated to occupy the space. A redesigned fagade will give particular definition for the Osco Drug
Store space.
With regards to the athletic club, the more defined design now properly positions the pool and out-
door space on the roof, and the design is more distinct. Therewill also be a restaurant as part of the
club with an outdoor seating amenity. A 50-foot climbing wall will also be part of the health club
complex.
Ald. Newman asked if them was a reason why the developers are not using the names of the tenant
Mr. Terrell indicated that they have not gone public at this time because the negotiations are
currently in the lease execution stage.
Ald. Wynne asked if the health club will occupy the entire second floor. Mr. Terrell `s answered yes,
up to the Osco space. Above the Osco will be a retail/office space of approximately 10,000 square
feet. A general discussion ensued regarding the details and landscaping of the four-story roof.
Mr. Terrell next addressed the discreet manner in which the mechanicals for both the condominium
and health club/retail structures are located out of the line of sight on the roof of the condominium
building. A terraced area will also mask a large wall that is an exhaust and supply vent for the
venting requirements for the residential and retail components. The result of the design renders the
vents undetectable. Mr. Terrell briefly mentioned other aspects of the design aspects as they pertain
to the visually pleasing way in which the roof mechanicals will be dealt with.
Mr. Terrell advised the EDC that the enhanced design of the residential component will be slightly
taller by thirty-two feet, than originally conceived. Th need for the increased height was determined
from a consultant study which noted that without the adjustment, some terrace unit spaces could not
be accommodated in the residential complex and that, in turn, would not work for the developer. Mr.
Terrell then provided the EDC with a complex explanation concerning the sole and square footage
requirements for each of the different residential units. The new height for the structure will be
increased form 254 feet to approximately 286 feet.
Aid. Feldman asked Mr. Terrell if he could provide a price range for the units. Mr. Terrell stated the
estimation would be to enter the market at approximately S290 to $300 per square foot. The loft units
will start at about S450 K to over S600K.
Aid. Wynne asked how the lighting will be handled at the top of the residential tower. Mr. Terrell
explained the type of glass used and the non-resident lighting will only be architectural lighting.
Although there will be exterior lighting at the top, the lighting will be subtle.
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ECONOMIC DEVELOPMENT COM411*1ITTEE
MINUTES-SEPTEMBER 25, 2002
PAGE 4
Aid. Newman asked if all of the City's sidewalks will be replaced around the development.
Mr. Terrell's response was affirmative. Ms. Aiello added that the City gets back exactly what it has
currently. Aid. Newman continued by asking whose responsibility it will be to maintain the walks
including trash and snow removal. Ms. Aiello stated that a maintenance agreement was in the
negotiation process. Mr. Terrell stated that the negotiation issues are who will have direct
responsibility for maintenance and who will actually perform the maintenance. Aid. Newmart's
preference is for the developer to be directly responsible for the service. A general discussion ensued,
citing maintenance examples of other parts of the downtown and the need for any budgeted TIF
funds earmarked to mitigate impact issues such as the need for enhanced maintenance.
Mr. Terrell concluded his presentation and Aid. Feldman asked if there were anymore committee
responses. Aid. Newman asked for a demonstration of the route and distance that a person would
take from the garage to, as an example, the Flat Top Grille. Mr. Terrell provided an illustration using
the visual aid. The demonstration led to a general discussion for the need to provide excellent way
finding signage, better and more visible than those recently erected as voiced by Ald. Newman.
Ms. Aiello took the opportunity to explain in detail, the proposed new "way finding" signage for
garage and project. A general discussion ensued regarding the visibility of and the ease of locating
the new garage, concluding with Ald. Newman stressing the importance of appropriate signage for
the benefit of both garage users and the business community. Aid. Newman also asked staff to ensure
that the surrounding business owners have the opportunity to review the garage "way finding"
signage for their general approval. In addition, it must be understood by all potential users that it is
a public garage and not only for the use of the development complex. Aid. Moran joined the
discussion by expressing his pleasure in the enhanced design and the project.
Mr. Norkett asked if the demolition of the old parking structure will be delayed until after the
holidays. Mr. Terrell said that demolition would be delayed at least until January 2003.
Mr. Juliar asked if there will be parking on the roof of the new garage. Ms. Aiello stated that there
will be approximately ISO parking spaces on the roof.
Aid. Feldman concluded the discussion by expressing his pleasure in the overall pmjcct.
IV. Next, Mr. Stern provided the EDC with a review of the proposed changes in the various
agreement documents listed and highlighted on the second page of these minutes. Although the
documents were not available for the EDC Meeting, Mr. Stern provided careful explanations for the
logical consideration for each of the required changes. A motion for approval for the changes to the
documents was not required. As previously noted, the amended documents will be presented to the
full City Council for approval at the October 14, 2002 Council Meeting.
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MINUTES-SEPTEMBER 25, 2002 PAGE 5
Ms. Aiello concluded the remarks by advising the EDC that an additional plat of sub -division
document was in the preparation stage.
This document will also encompass the contractual, administrative arrangement between the City
and US Equities %%bo will perform in the capacity of Project Manager of the development project on
behalf of the City. There will possibly be a day to day US Equities supervisory representative on
site, but cost factors for utilizing other alternatives will be considered also. A brief discussion
ensued as to how this function was handled on past projects. Ms. Aiello stated that another aspect
of this document Kill enable the City to perform additional value engineering to ensure that the City
will maximize the value for every dollar spent. Ms. Aiello asked Mr. William Stafford to further
explain cost saving efforts regarding the selling of the City's bonds for the garage.
V. Mr. Stafford advised the EDC that that the sold all $35 million worth of bonds today with
no problem. A local Illinois bank, Northern Trust bought them all and before the end of the day, the
Northern had sold them all. Mr. Stafford advised the EDC that he was pleased with the floating rate
he received for the bonds which today is 1.75% for that portion which is tax free ($29,5 million) and
1.90% for the remaining amount ($5.5 million). According to Mr. Stafford said that in his 25 years
of experience he has not experienced such favorable markets. Another favorable aspect of the
transaction allows the City to retire the bonds on demand. Mr. Stafford provided the members of the
EDC with voluminous documents detailing the terms of the transaction. The discussion sparked a
brief discussion on the merits of early repayment of the bonds. Mr. Stafford and Ms. Aiello
explained those scenarios that would best benefit the City.
VI. Mr. Morris Robinson next advised the EDC that it was necessary to establish a date for the
annual Joint Review Board Meetings for the four Evanston Tax Increment Financing Districts. Staff
recommended the date of Tuesday, November 19, 2002 at 8:30 A.M. at the Civic Center. The EDC
voted unanimously in favor of the date, time and location.
VII. There were no new development proposals to report.
VIII. Ms. Aiello and Morris Robinson provided the EDC with brief updates on other proposed
projects.
IX. The communication items included in the EDC packets were acknowledged.
X. There being no further business, the meeting was adjourned at approximately 10:00 P.M.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-SEPTEMBER 25.2002 PAGE 6
The next EDC meeting is scheduled for Wednesday. October 23.2002 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 MINUTES
WEDNESDAY NOVEMBER 13, 2002
ROOM 2403-8:00 P.&L
CIVIC CENTER
MEMBERS PRESENT: Ald. Feldman, Ald. Engelman, Ald. Newman, AId. Wynne, Marvin
Juliar, Martin Norkett, Barbara Putta,
MEMBERS ABSENT: Ald. Moran
PRESIDING OFFICIAL: Ald. Feldman, Chair
OTHER COUNCIL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, James Wolinski
OTHERS PRESENT: Ann Dienner
Summary of Actions:
I. Ald. Feldman called the meeting to order at 8:08 P.M.
II. The previous minutes of September 25, 2002 were unanimously approved.
M. Ms. Aiello began the meeting by providing a brief update on the Sherman Plaza Development
Project. She advised the EDC that the city Council approved the recommended changes to the
various development agreement documents which were presented at the September EDC meeting.
The project architect is finalizing the changes to the stnrcturm and the contractor is out to bid. Staff
is engaged with value engineering and is exploring insurance options. Lease negotiations are
underway with several prospective tenants. The project received favorable responses at the recently
held international shopping Center Conference that took place in Chicago during the month of
October.
The plan is to close the Sherman Avenue Garage during the first week of January 2003. If it appears
that the schedule is up to date the closing could be moved up to December 31, 2002 since the facility
will be closed on that night anyway for "First Night ` fireworks. If circumstances prevent closing
prior to the middle of January, patrons will be allowed to park on a day to day basis until such time
as it is necessary to discontinue the practice. Once demolition of the garage is complete, construction
of the new facility will begin on the Davis Street side. A few ancillary issues were presented to the
Parking Committee but for the most part, the schedule is up to date.
4
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MINUTES-NOVEMBER 13.2002 PAGE 2
Condominium sales have begun and the project is proceeding as expected.
Ald. Feldman asked if there were going to be any significant design changes from the new
architectural renderings which were presented to the EDC at the September EDC meeting. Ms.
Aiello stated that there were no changes at this time and if there were to be any, they would have to
return to the Plan Commission as well as to the EDC.
Ms. Alice Rebechini stated that if the developers had bank term sheets in October, it would take
three or four months to close the loan. Ms. Aiello said the timing is admittedly tight and optimistic
but the developers still advises staff that the plan remains as presented.
IV. Mr. Dennis Marino continued the presentation by providing a brief update on the closed
Builders Square property located in the Main Street Commons Shopping Center. Mr. Marino
informed the EDC that the Marshall's discount department store is the major tenant in the property
at this time. However there is good news to report. A developer has a purchase contract on the
property and is in the process of performing due diligence. The intention of the new owner is to
develop the property as a retail center.
Ald. Feldman asked what kind of time frame could be expected for the finalization of the due
diligence process. Mr. Marino stated that the purchase option could allow up to ninety days or longer
to complete the due diligence portion. Staff has made contact with the buyers and will continue to
communicate with them.
Ald. Feldman asked if the buyer has requested information or guidance from the City. Mr. Marino
said that there was request for information only at this point.
Ald. Feldman asked if it were possible to provide the EDC with more information about the
developer. Mr. Marino informed the EDC that the developers are two brothers who have primarily
operated in California with an emphasis in residential and retail projects, and they have a few
projects in the Chicago area. Ms. Aiello also commented on the confidence of the buyer noting that
that the price of the property remained the same when it was purchased.
Ald. Feldman asked if the buyer planned to demolish the building. Ms. Aiello said it depended on
who thew ultimate tenants will be. The buyer will rehab the building if multi -tenants use it or raze
the structure if a "big -box " tenant is signed. A preliminary architectural rendering was shared with
staff ofa proposed reuse. Marshall's has expressed its desire to stay at their site.
Ald. Feldman asked if the buyer is familiar with the Evanston Plaza development at Dempster and
Dodge and if so how will this prospective development differ. Ms. Aiello said that the buyer was
familiar with Evanston Plaza and that this proposed development would be similar in the kinds of
uses.
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MINUTES-NOVEMBER 13.2002
PAGE 3
Mr. Marino stated that another aspect of this potential development scheme is to convert the garden
area of Builders Square which fronts Main Street into new retail shop space. Two out -lot parcels
would also be developed for retail space. The parking lot will be rehabilitated also.
Ms. Barbara Putta asked if there was an explanation as to why the property remained vacant for so
long a period Mr. Marino explained that K Mart held a lease on the property at a relatively low rate,
for an extended period, which hampered the marketing of the property to other retail competitors.
After K Mart was out of the picture, the owners held fast to their sale price for an extended period
also. Other parties have expressed interest in the property but for reasons unknown to staff, nothing
has gelled until now. There is an indication that even though staff has been diligent in contacting the
property management agent located in Indianapolis, the update efforts were not reciprocal.
V. Mr. Marino next informed the EDC of recent development proposals. Brief updates were
Provided on the David Dubin townhouse project on Chicago Avenue, the 1900 Ridge Avenue
apartment complex development project the recently approved Roszak twenty unit condo
development project on Maple Avenue and the Optima condominium tower across from the Century
Theaters.
V1. Mr. Morris Robinson next provided the EDC with brief funds disbursement updates awarded
from the Neighborhood Business District Improvement Program to five community business
organizations. The recipients are the Central Street Business Association, E-Town Community
Ventures, Evanston Chamber of Commerce, ChicagolDempster Merchants Association and the Dr.
Hill Business Association.
VII. The communication items included in the EDC packet were acknowledged.
The EDC was informed of the rescheduling of the annual Joint Review Boards Meeting for the four
TIF Districts. The EDC was also made aware of two requests for CDBG funds related to economic
development ventures. The committee expressed particular concern regarding the request from YJC
Enterprises for operating funds to be used in a start-up Ben & Jerry's enterprise with a primary focus
of training disadvantaged youth. In general, the request was not favorably received. It was noted that
the request was under consideration at the same time the EDC Meeting was in session.
The Building Permit & Construction Value Financial Report for the month of October was briefly
discussed.
Additional discussion ensued with regard to the commercial space inventory, which although
improved, still requires low -tech fieldwork, and inadvertent property omissions can and do occur.
EDC members expressed their pleasure with a favorable Tribune article concerning the success of
the new Century Theaters.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-NOVEMBER 13. 2002 PAGE 4.
VIII. There being no further business, the meeting was adjourned at approximately 9:38 P.M.
The next EDC meeting is scheduled for Wednesday. December 11. 2002 at 8:00
P.M. in room 2404. Civic Center.
Respectfidly submitted,
Economic Development Planner
DRAFT -NOT -APPROVED
ECONOMIC DEVELOPMENT COMMITTEE
MEETING MINUTES
WEDNESDAY DECEMBER 12, 2002
ROOM 2403-8:00 P.M.
CIVIC CENTER
MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Newman, Aid. Wynne, Martin
Norkett, Alice Rebichini
MEMBERS ABSENT: Aid. Engelman, Aid. Moran, Marvin Juliar, Barbara Putta
PRESIDING OFFICIAL: Aid. Feldman, Chair
OTHER COUNCIL
MEMBERS PRESENT: None
STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson
OTHERS PRESENT: Cheryl S. Levin -Borders Group. Inc.. Jonathan Perman-Chamber of
Commerce, Ted Notos-Mesrrow Stein, Martin Stem -US Equities,
Tom white -Arthur Hill & Assoc.
Summary of Actions:
I. Aid. Feldman called the meeting to order at 8:05 P.M.
II. The previous minutes of November 13, 2002 were unanimously approved.
III. Mr. Martin Stern/US Equities and Ms. Cheryl Levin/ Borders Group, Inc. next addressed
the EDC. Mr. Stern began by advising the EDC that a unique situation has developed regarding the
Borders Books planned relocation from it's current location at Orrington Avenue to its new mini
anchor location on the comer of Church and Maple as part of the Church Street Plaza development.
Mr. Stern asked Ms. Levine to continue with background information leading up to the current
situation, before a presenting a formal recommendation to the EDC. Ms. Levine informed the EDC
that she was the Director of Real estate for Borders Group, Inc. Ms. Levine handles real-estate issues
for the company within a thirty state region which include all Borders and Walden Books stores
within the defined region.
Ms. Levine continued by informing the EDC that she contacted City staff approximately eighteen
months ago when she first began to evaluate the existing trrington location of the struggling
Evanston store. At the time of the contact, Ms. Levine attempted to determine from the City, what
type of tenant would be acceptable if Borders were to vacate the site.
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ECONUMIC DEVELOPIMENT COMMITTEE
MINUTES-DECEMBER 112, 2002
PAGE 2
A brainstorming session ensued and the possibility of relocating in the Hill Development project was
revisited. After reviewing the retail synergies of Church Street Plaza, Ms. Levine determined that
Borders could become a vital component to the development project. A meeting was scheduled with
Arthur Hill and ultimately a deal was formulated.
The deal was predicated on the scenario requiring Borders to form an agreement with the Hill
property, sell the current Orrington property and relocate all within the tight time period. During the
next six months, while working closely with the city and Arthur Hill, Borders was able to identify
the logical potential purchaser of the site. A development firm, who is a 95% partner with Golub &
Co., owned the neighboring property. An agreement was negotiated with the existing landlord to
purchase the Borders site. The simultaneous closing date for all of the associated transactions for
selling and purchasing was set for November 5, 2001.
However, on November 3, 2001, prospective buyer unexpectedly changed the financial arrangements .
of the deal by taking back a S300,000 concession amount and gave Borders the opportunity to bow
out of the deal if the action did not meet with their acceptance. Borders had originally purchased the
property above market value and had agreed to sell at a "severe" loss, the company also had
depreciation cost which had to be addressed and the loss of the S300,000 concession was formidable.
Borders convened separate meetings with Martin Stem and Judith Aiello and Roger Crum, seeking
input on how to proceed with possible financial assistance from the City. With the understanding that
there were no guarantees, but based on the apparent willingness to help, Borders decided to take the
risk to proceed with the transactions and the relocation. The closing took place on November 5, 2001
and Ms. Levine's presence before the EDC seeking an approval recommendation for sales tax
revenue sharing plan in the amount of $150,000 for a five-year period. This amount represents half
of the S300,000 shortfall, which resulted from the last minute concession take -back.
Mr. Stern Advised the EDC of his positive review of the request, underscoring how Borders has
always acted in good faith and presenting the various benefits to the City. In addition, Borders as a
mini anchor component, enhances what will be an excellent mix of the retail diversity of Church
Street Plaza. Mr. Stem supported the request and asked for EDC support for the measure. Ald.
Newman noted that there weren't sufficient documents available to make a considered judgement
and the comments sparked considerable debate. Ald. Feldman emphasized the point that each time
the City has entered into revenue sharing agreements, the decision to do so was based on the merits
and circumstances of each case, not on a perceived, established precedent and this request should
be considered no differently.
After extended discussion, Alice Rebichini moved to recommend approval for the assistance request,
allowing the matter to be presented to the City Council at the next Council Meeting. The motion was
seconded by Ald. Wynne and was passed with 3 ayes, 1, Martin Norkett opposed and 1, Ald.
Newman abstaining.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-DECEMBER 12. 2002 PAGE 3
IV. Judith Aiello next advised the EDC that the Redevelopment Agreement with Mesirow Stein
allows them to sell the 909 Davis Street property. However if they wish to sell before the term years
of the TIF are completed, Mesirow Stein must receive approval from the City.
Having received approval from the City, to facilitate the sale, three documents must now be
presented to the City Council for approval. The first is the Assignment of the Assumption of the
Redevelopment Agreement and the accompanying note. The second is the Assignment and
Assumption of the Parking Lease and the third is a Clarification of the note, which was requested
by the buyer. Staff considers the new owners to be a welcome addition to Evanston. No adverse
economic impact is expected.
Martin Stern added that the Agreement stipulates that the buyer positively agrees to assume all
obligations from the original developer and that the financial resources to meet the terms. The review
by US Equities has confirmed that the Buyer, which has properties in several states meet the
requirements.
The office space in 909 Davis is currently 85% leased, while the retail space is 100% leased.
Ald. Newman moved to recommend approval and Aid. Wynne provided a second. The motion
passed unanimously.
V. Ms. Aiello briefly mentioned that a Architecture and Structural Engineer have been selected
for the Sherman plaza Development Project. U.S. Equities is still under consideration for on site
Construction Manager.
VI. Ms. Aiello briefly informed the EDC of the four Tax Increment Financing Districts Annual
Reports, which were included in the EDC packets. Dennis Marino advised the EDC as to who
would be attending the Annual Joint review Boards Meetings, scheduled for the following morning.
VII. Dennis Marino provided a brief update on a recent development proposal. Optima Inc. has
presented a proposal to the Site Plan And Appearance Review Committee (SPAARC) for a uniquely
designed residential condominium tower development on the parking lot behind 1800 Sherman. If
approved it will prove to be the tallest building in the City. Mr. Marino advised the EDC that he
would arrange for Optima representatives to attend the next EDC meeting in January 2003.
Aid. Newman asked for and received an update on the Builders Square property.
VIII. Morris Robinson presented the EDC Meeting dates for 2003. The document was included
in the packet. Action was required and the EDC Unanimously approved the dates.
IX. There was no other agenda business items.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-DECEMBER ] 2, 2002 PAGE 4
• X. The Communication items were acknowledged by the EDC members.
XI. 'There being no further business, the meeting was adjourned at approximately 9:20 P.M.
The next EDC meeting is scheduled for WednesdaV. January 22. 2003 at 8:00
P.M. in room 2404, Civic Center.
Respectfidlly submitted,
� J
MI's E. Robinson
Economic Development PIanner