Loading...
HomeMy WebLinkAboutMinutes 2003DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY JANUARY 22, 2003 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Newman, Aid. Wynne, Martin Norkett, Barbara Putta, Alice Rebichini MEMBERS ABSENT: Aid. Engelman, Marvin Juliar PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Anne Rainey STAFF PRESENT: Judith Aiello, Susan Gudderly, Dennis Marino, Moms Robinson, James Wolinski OTHERS PRESENT: Doraine Anderson, Ann Dienner, Jonathan Leineweber, Edward Noonan, Mark Sussman Summary of Actions: 1. Aid. Feldman welcomed all attendees and called the EDC Meeting to order at 8:05 P.M. 11. The previous minutes of December 11, 2002 were unanimously approved. III. Aid. Feldman acknowledged receipt of correspondence from Aid. Rainey. The memorandum was included in the EDC packets. The content of the memorandum outlined the past and current attempts devoted to unsuccessful Howard Street development efforts. As a remedy, a specific request for EDC support for the City to authorize a study of a portion of the Howard Street corridor to determine the feasibility of creating a Tax Increment Financing (TIF) District intended to finally reverse the declining condition. Aid. Feldman asked Aid. Rainey if she wished to further explain her position. Aid. Rainey advised the EDC of the improvements that have been made on Howard Street over the past few years, and yet the area continues to decline. North of Howard, many wonderful improvements have occurred. For instance, six derelict apartment buildings, consisting of ninety-eight units, located near Howard, on Callan and Custer Avenues have been completely rehabilitated. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARV 22, 2003 PAGE 2 The apartments, originally un-inhabitable are now fully occupied with wonderful tenants. West on Howard Street, the Howard Hartrey shopping center is thriving, contributing 25% of the total sales tax revenue collected by the city. Nevertheless, no positive improvements have occurred east on Howard Street in the past five years and that portion of the street continues to decline. Ald. Rainey stated that the only recourse for Howard Street is to create a Tax Increment Financing District. The parameters for the proposed TIF District would be Howard Street only, with Ridge Ave serving as the West boundary and the CTA station serving as the east boundary, while extending north to the alley. A request was made to the EDC for their support in receiving authorization for a TIF feasibility study for this target area. Mr. Edward Noonan and Mr. Jonathan Leinewebber both related their less than successful attempts and experiences with redevelopment efforts in the targeted area and voiced their support for the feasibility study. Ms. Judith Aiello also distributed a letter from Mr. Larry Sufferdin, Commissioner- 13d' District, which expressed his support for the establishment of a TIF District on the Howard street targeted area. Ms. Aiello provided summation remarks. After a brief discussion among the EDC members, Ald. Newman moved to recommend approval for the firm of Kane Mckenna to perform a feasibility study for the creation of a Tax Increment Financing District for the targeted area on Howard Street. Ald. Wynne provided a second to the motion. Additionally, the city should approve a non -binding resolution indicating its intent to study the area to determine the suitability of creating a TIF district if all qualifying factors are met. AId. Feldman called for the question, at which time Ald. Moran asked if any other incentives for development of the targeted area had been explored. Ms. Aiello explained the various attempts to improve the street, to include General Obligation Bonds and State and Federal Programs have been explored without success. Eminent domain is another tool that is available, but the City would be reluctant to pursue that route. Mr. Noonan also commented on the lack of interest or uncooperative attitudes on the part of property owners in the area. After a few minutes of continued discussion, the motion passed unanimously. IV. Although the agenda indicated that representatives from Optima, Inc. were scheduled to make a presentation on a proposal to erect a thirty-six story residential tower on the parking lot of 1800 Sherman, their appearance was canceled and no future date has been arranged as yet to appear before the EDC. Several citizens from the adjacent community arrived for the EDC Meeting, anticipating the Optima presentation. Mr. Marino provided additional information on the proposal, indicating that aside from the 248 condominium units, the development as proposed, will also have 5,000 square feet of grade level retail, a large landscaped park and parking for 573 cars. DRAFT-.,VOT-APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 22, 2003 PAGE 3 The project has received concept approval from the Site Plan And Appearance Review committee (SPAARC). The developer representatives are scheduled to appear before the next Plan Commission Meeting and there is no request for financial assistance from the City. A citizen asked for and received a clarification of the approval process for development projects within the City. After explaining the process, Mr. Marino assured the citizen that no project could go forward without receiving the appropriate City approvals. V. Ms. Aiello briefly informed the EDC of the current status of the Sherman Plaza development project. The developers are in the final reviewing of the terms associated with securing the required financing for the development. Although the project is not proceeding on the original schedule, it is on target and the developers remain confident of commencing in earnest, in April or May 2003 when the garage is scheduled to be razed. The value engineering on behalf of the City is in effect with regard to the cost of the new garage and a line by line review is being conducted to bring down the construction cost of the S35 million facility. VI. Dennis Marino provided a brief update on the recent development proposal for the bank building shell at Main and Chicago. The proposal calls for razing the structure to make way for a seven story; mixed -use 77 unit condominium building with 142 enclosed parking spaces. The foot print of the proposed building will extend north from Main Street, and incorporate not only the bank building, but another two story retail structure and an existing parking lot as well. Mr. Marino also shared limited details concerning the acquisition of the Main Street Commons properties, identifiable by the closed Builders Square building, and the purchaser's redevelopment rehabilitation schemes. VII. There were no other project updates. Citing a recent newspaper article, a question from a citizen regarding the alleged non- payment of property taxes by the Hilton Garden Hotel was addressed. Ms. Aiello assured the citizen that the Hotel has paid all applicable property taxes and that the erroneous allegation arose from the confusion that occurred as the various properties It changed hands during the early stages of the Church Street Plaza Development Project. The property responsibility problem has been corrected and the public records should start to reflect the clarification. VIII. The EDC members acknowledged the communication items included in the packets. The December 12, 2002 minutes from the TIF Joint Review Boards Meetings were among the items. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JANUARY 22, 2003 PAGE 4 IX. There being no further business, the meeting was adjourned at approximately 9:07 P.M. The next EDC meeting is scheduled for Wednesday, February 26.2003 at 8:00 P.M. in room 2404. Civic Center. Respectfully submitted, Nofris E. Robinson ' Economic Development Planner DRAFT — NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES Wednesday, March 26, 2003 ROOM 2404 - 8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Newman, Aid. Rainey, Ald. Moran, Barbara Puta, Marty Norkett, Alice Rebechini, Marvin Juliar PRESIDING OFFICIAL: Aid. Feldman MEMBERS ABSENT: Aid. Wynne GUESTS: Robert Bond, Jim Klutznik, John Tamil, Marty Stem STAFF PRESENT: Judith Aiello, Dennis Marino Summary of Actions: The Meeting was convened at 8:05 p.m. The draft minutes of the meeting of January 22, 2003 were approved unanimously. Proposed Sherman Plaza Project Alderman Feldman welcomed James Klutznik, John Terrell and Maury Fisher to the Committee to report about progress concerning this proposed mixed use development which includes a proposed new City parking garage. Mr. Klutznik thanked the EDC for the opportunity to speak. He reported that the development team was close to securing financing and has made substantial progress in residential pre sales and retail leasing. The market for residential sales was described as strong, especially the demand for larger condo units in the project which necessitated combining some smaller units. Mr. Terrell added that he anticipated securing financing in May 2003 and hoped to be ready to move forward with garage demolition in June or July. He introduced a representative of Cohen Financial which was serving as the mortgage banking entity for the project. The representative described the financing negotiation, documentation and closing process. Members discussed the project timeline and the desire to not experience two holiday seasons without a public garage at this location. Ald. Newman asked the developers to comment on the potential impact of the new retail tenants on Sherman Avenue on other retail uses. Mr. Klutznik stated that the completion of Sherman Plaza will have a positive impact on all of downtown and will attract new uses to existing spaces along Sherman Economic Development Committee Minutes - March 26.2003 Pa eg Two Avenue, including soft goods and comparison retail uses. He added that existing building owners might want to consider this future when considering lease proposals. Aid. Feldman asked Martin Stem if he had anything to add about the financing progress. Mr. Stem responded that solid progress is being made and he will report to the EDC once the City requirements have been met for transfer of the existing City garage for demolition purposes. Aid. Feldman thanked the development team for the in person update. Proposed Main Street Commons Redevelopment Aid. Feldman introduced Robert Bond of Bond Capital who presented his redevelopment plan for the Main Street Commons Shopping Center. Mr. Bond described a plan which includes rehabilitating the former Builders Square facility for use by a large grocery store user. The grocery user is new to the Evanston marketplace, but is active in other parts of the Chicago region. Mr. Bond also proposes to construct two outlot buildings, one for a banking use and a second for a restaurant. He plans to add 12,000 s.f. of new space on the east side of the former Builders Square site. This space will be available to smaller retailers. Marshalls will be retained in its current space as part of the redevelopment project. The southerly most retail space which was previously occupied by Trak Auto, Radio Shack and other retailers will be reconfigured into a retail box of approximately 20,000 s.f, Mr. Bond reported that he has had site control for a few months and is able to renew his option if necessary. He indicated that his company has done redevelopment and new construction projects in California and Illinois, including residential and retail projects. A rendering of the proposed facade was presented. Mr. Bond stressed the importance of making the facade more prominent and visible from McCormick, which would involve new signage. He commented that the facade would include substantial brick as the building material and would feature clearer demarcation and unity of individual store pads and facades. Aid. Feldman thanked Mr. Bond for his presentation. EDC membersdiscussed the importance of redeveloping the Main Street Commons Shopping Center. All agreed that it was important, but there was a discussion about the potential impact of a new grocery store, in a potentially City assisted development, on the Dominick's in the Dempster Dodge Shopping Center which has already received City assistance. Alderman Feldman stated that the community has historically supported numerous grocery stores successfully. Aid. Newman commented that he was concerned about the impact on Dempster Dodge, especially Dominick's, in which the City has already invested time and resources and a major commitment. Aid. Newman requested that this potential impact be analyzed. Aid. Rainey stated that she was very interested in the proposed redevelopment and wanted both centers to be successful. Economic Development Committee Minutes - March 26, 2003 Page Three Martin Stern added that the success of either or both grocery stores under discussion will be determined by outside forces beyond the City's role or control. He added that competition may make both entities stronger. Members encouraged the developer to meet with staff and Martin Stem, the City's real estate consultant, to further develop the proposal and to address Committee concerns. Martin Norkett stated that he liked the project and requested that he be included in the next meeting with the developer to review appropriate financial pro formers. Aid. Rainey moved to enter Executive Session at 8:56 p.m. for the purposes of real estate. Martin Norkett provided a second. On a roll call vote, members agreed unanimously to enter Executive Session. Members returned to open session at 9:40 p.m. Proposed Howard Street TIF Dennis Marino reported that Kane McKenna Associates had been retained to conduct an eligibility study for the proposed Howard Street Tax Increment Financing District. He added that a draft report should be available for the EDC's April Meeting. Mr. Marino referred to the Resolution of Intent adopted by City Council concerning this proposed TIF, which was included as a communication item in the packet. Church Street Plaza: Public Plaza (Maple and Church) Judith Aiello reported on the design for this public plaza in front of the new Borders Store. She reviewed the site plan and the proposed amenities, including landscaping. Members thanked her for the presentation and encouraged the project to move forward. Recent Development Projects Dennis Marino reported on two planned developments that will be the subject of public hearings in April. These include (I) the redevelopment of the former Great Banc site on the southwest corner of Main and Chicago (80 condo units and retail) by Matthews Development Company and (2) the proposed development by Thomas Rozak of 348 condos in six buildings on the former site of the Wieboldt's parking lot. Dennis Marino stated that the remnants of the old bank would be demolished and the mixed -use development will be entirely new construction. Aid. Newman raised concerns about the appearance of Rozak Development Company's project on Chicago Avenue and hoped that the proposed project would be a major improvement over the appearance over the Chicago Avenue Project. The Meeting was adjoumed at 10:10 p.m. Prepared By: Dennis Marino Assistant Director for Planning ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY APRIL 23, 2003 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid, Feldman, Aid. Moran, Aid. Rainey, Aid. Wynne, Marvin Juliar, Martin Norkett, Barbara Putta, Alice Rebichini MEMBERS ABSENT: Aid. Newman PRESIDING OFFICIAL: Ald. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Bernstein, Aid. Jean -Baptiste STAFF PRESENT: Judith Aiello, Dennis Marino, Moms Robinson, William Stafford OTHERS PRESENT: Robert Bond, Ann Dienner, Dickelle Fonda, Richard Peach, Jonathan Perman, Jerry L. Rosemond, Martin Stem "T Summary of Actions: I. Ald. Feldman welcomed all attendees and called the EDC Meeting to order at 8:10 P.M. II. The previous minutes of March 26, 2003 were unanimously approved. III. Aid. Feldman informed the attendees that for the sake of time, the agenda would not be followed as printed and asked Ms. Dekelle Fonda, Representing the Dewey/Darrow Neighborhood Organization to begin her presentation. Ms. Fonda advised the EDC that her organization was formed in the seventies and that the neighborhood is one of the most diverse in the City. The Dewey/Darrow organization is now seeking funding from the City for a lamp post banner program, similar to those previously approved for other neighborhood business district organizations. Color copies of two banner designs, one large (X X6W) and one small, (1 T'X35') were previously distributed to the EDC members for review. The proposal calls for the larger banners to be installed on lampposts along the Dodge Avenue corridor extending from Main Street to the south to Lake Street as the north boundary. The smaller banners will be installed for a one -block distance on lampposts along neighborhood side streets, . perpendicular to Dodge, between the north/south boundaries. Ms. Fonda explained to the EDC that the banner proposal has been an open issue for some time. DRAFTWOTAPPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23. 2003 PAGE 2, The Dewey /Dan ow Organization had originally planned for the banner project to be expensed from an impact mitigation fund account, which came into being as a result of requirements contained in the Dempster Plaza Redevelopment Agreement. However, based on the sales tax revenue sharing formula which stipulates just how the account is to be funded, the shopping center has yet to perform at an high enough sales tax generating level to fund the account in the two plus years history. Ms. Fonda continued by describing the banner details and colors. Temple Display provided the design work, as they have done so for other approved banner projects for Evanston neighborhood business district associations. The financial request in the amount of $9,777.32 will cover the cost for the graphics design and the creation of the banners, but not for the installation. The plan is for the City Public Works Department to provide the installation service, as it has done so for other organizations. Ms. Fonda than asked for questions. Ald. Feldman asked for the estimated cost for installing the banners. Dennis Marino advised the EDC that because the City will perform the installation there will be no extra cost. Ald. Feldman . then asked how long the banners would remain on the lampposts. Mr. Marino stated that the banners are made of durable material and the policy allows for the banners to remain, as long as they are in good condition. Because the City controls the street right of way, if the banners are damaged, the city has the authority to remove them. Ald. Feldman asked Ms. Fonda why her organization chose to have the banners read "Welcome To Our Neighborhood" as opposed to welcome to some specific entity in the target area. Ms. Fonda explained that the intent was to demonstrate the unique co -existence of business and residential components of the neighborhood. Specifically referencing the Dempster Plaza was considered, especially since the organization has cooperatively worked with the developer (Freed & Associates) from the beginning, but the consensus spirit of the organization was that the shopping center was simply a part of the neighborhood. Temple Design was also asked to design a coordinating banner for Dempster Plaza shopping center lampposts. The rational being in the event that Freed & Associates and or the merchants doing . business within the shopping center were impressed enough with the street banner program that they would choose to follow suit and fund an internal banner program, with a consistent format. Additionally, Ms. Fonda explained that proposal is really supported by three different community organizations of which Dewey/Darrow is the largest and it is the group that spearheaded the effort. As such, it would not be fair to just have only the Dewey /Darrow name on the banners and. confusing if each of the group names were displayed. Ald. Feldman asked if there was a reason why the southern boundary didn't extend to Oakton Street. Ms. Fonda stated that Oakton Street seemed a bit too far from the shopping center. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23.2003 PAGE 3 The intent was to address the interface of the shopping center and the immediate community. Main Street was a belated extension as the southern boundary. Ald. Rainey asked what contribution has been made to the project by the commercial neighbors. Ms. Fonda's reply was none at this point. Aid. Rainey asked why there was no attempt to bring the commercial entities into the project, in particular the auto service garage and other smaller concerns in the area. Ms. Fonda explained that this banner effort will be a catalyst in spurring a collaborative relationship with the many small businesses in the community. In fact, The strategy is for a unified business association to arise from the current activities. Mr. Richard Peach, owner of a neighborhood business and the president of the Evanston chamber of Commerce is pursuing that goal and he was present at the EDC Meeting to provide insight if needed. Aid. Jean -Baptiste next addressed the EDC. He again explained why the community mitigation account was not funded at this point and why the project could not expect support from that source at this time. Aid. Jean -Baptiste stated that he, together with the neighborhood associations in his ward are attempting to address the business inclusion issue as well as several others. The banner project is just the first of several neighborhood/businesses initiatives that will be forthcoming and the alderman expressed his complete support for this important, first step. Aid. Feldman also advised the EDC that over a long period of time, this Committee has urged this particular community to submit proposals such as the one before them for the improvement of economic development opportunities. Although this proposal is the first to be presented from this community, Aid. Feldman acknowledged the unique difficulties in organizing a residentiallcommercial association and expressed his appreciation for the proposal. Aid. Feldman also would like to see the area around Main and Dodge, which is under served, be included in the evolution of the association. Alice Rebichini stated that the message on the banners is unclear and had questions concerning who: is the intended audience for the banners, adding that most banners have a marketing or commercial message. Ms Fonda's response was that the message is that of welcoming visitors to the' - neighborhood in a warm and friendly manner. Given time commercial and other neighborhood entities could personalize the banners with their names. Aid. Rainey stated that the Walgreen's drug store at Main and Dodge had an established mitigation account, which has been funded. Aid. Rainey suggested that these funds would be a perfect source for extending the banner project south to Oakton Street. There have been previous discussions to use the funds for mounted cameras but it's doubtful that the funds will be used for that purpose. However the Main and Dodge neighbors are still seeking ways to improve the community with the funds. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23, 2003 PAGE 4 Aid. Moran expressed his appreciation to Ms. Fonda for her long-term dedication to the betterment of her community. However, after reviewing the proposal and the community map, Ald. Moran's opinion is that the project would not achieve the objective of creating a critical mass of commercial entities as part of the project. Ald. Moran related his pro voting record supporting all phases of the redevelopment of the Dempster Plaza shopping center but the proposal does not promote the shopping center as much as it does the residential components of the neighborhood. Ms. Fonda clarified the manner in which the banners will be displayed, only a few each, for perpendicular residential streets, while the Dodge commercial corridor will receive the majority of the installations. Aid. Moran stated that funding for the project should be obtained from the Walgreen's mitigation account, but more to the point Freed & Associates should contribute funds for the entire project. Ald. Moran suggested that the EDC, staff and representatives of the neighborhood association should participate in malting the arrangement with Freed & Associates to comply. Having voiced the opinion, Ald. Moran also stated that he did not see this proposal as an EDC task and the Evanston taxpayers should not be asked to pay for the program. Marvin Julian asked if there were any alternative concepts for neighborhood improvement projects. Ms. Fonda advised the EDC of some of the many ideas for neighborhood improvement, which are being considered at their association meetings. The banner project is only the beginning of more projects to come when the mitigation account is eventually funded and those revenues are made available. Aid. Jean -Baptiste advised Aid. Moran that Freed & Associates representatives were the first to be approached for neighborhood improvement support and a meeting was held in a neighbor's home. The issues were discussed but per the redevelopment agreement the funds are not available at this time. Yet the community's desire is to proceed with its improvement initiatives. The consensus is to reimburse the EDC approved grant when funding is made available from the mitigation account. A move to obtain funds from the Walgreen's mitigation account will also be attempted. Aid. Feldman voiced his opinion that the proposal was within the purview of the EDC and reminded the Committee that historically the EDC has approved fending for neighborhood business district projects such as the one currently under consideration. Projects have been supported on Chicago Avenue, Dempster Street, Central Street, Main Street, Noyes Street and others and the businesses did not contribute. Aid. Feldman stated that revenues derived from Freed & Associates for funding the mitigation account should not be used for the proposed banner project or to reimburse the EDC, but rather for the general community for other concerns. Neighborhood improvement support has been provided to the Dr. Hill neighborhood, the ChurchfDodge neighborhood and there is no difference in the Dewey/Darrow neighborhood. Asking The businesses to fund this current project would unfairly make this neighborhood association the exception. - DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23, 2003 PAGE 5 Aid. Moran expressed his displeasure with certain issues, which he would not elaborate, related to the agreement the City arranged with Freed & associates for the redevelopment of the Dempster/Dodge shopping center. Aid. Moran stated that Freed was the recipient of major benefits as a result of the agreement, that in his opinion were not deserved. Nevertheless, Aid. Moran voted in favor of the agreement because of the importance of that project. If Freed & Associates can't provide approximately S9,700 to fund this banner project, Aid. Moran will revisit his files and begin discussing specific issues pertaining to that firm. Aid. Jean -Baptiste appealed to those EDC members who have concerns that in their zeal to pursue issues with Freed & Associates to not prevent the immediate neighborhood from progressing in their improvement initiatives. Aid. Feldman and Aid. Moran expressed opposing views concerning previous granting of EDC administered neighborhood funds and other related issues. The EDC continued with a spirited discussion of the aspects of the Dewy/Darrow banner proposal, offering suggestions such as maybe having businesses and particularly the neighborhood groups names added to the banner graphics. The EDC also wishes to review the sections of the Freed redevelopment agreement pertaining to the revenue sharing formula, to better understand why the mitigating account has yet to be funded or if some remedial action is required. Aid. Rainey ultimately made a motion to have the neighborhood association names added to the banner design; petition the various neighborhood groups for their agreement to obtain a portion of the banner program funding from the Walgreen's mitigation account and; for the EDC to provide funding for the difference. The motion received a second and carried with one opposition vote cast by Ald. Moran. IV. Aid. Feldman announced that the next agenda item was an update on the proposed Howard Street Tax Increment Financing District (TIF). Judith Aiello referred the EDC to the TIF District Preliminary Qualification Report developed by Kane -McKenna, and distributed with EDC packets. Ms. Aiello advised the Committee that the purpose for the update was informational and to solicit input from the members on issues contained in the document. After clarifying a few discussion points and agreeing to a request for more details on some specific points, the EDC advised Staff and the consultants to the City to proceed in developing the final document. Aid. Feldman asked Ms. Aiello when the EDC could expect to receive the report. Ms. Aiello anticipates presenting the report for consideration at the May 2003 EDC Meeting. V. Aid. Feldman aroiounced that the next agenda item was the proposed Main Street Commons' Redevelopment Project. Aid. Feldman recognized Mr. Jerry Rosamond, a citizen who identified himself as the Treasurer for the Canal Park Neighbors Association. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23, 2003 PAGE 6 Mr. Rosemond rose to speak of his organization's full support for this project. The redevelopment of the deteriorating shopping center would not only be especially beneficial for the neighborhood but for the entire City. Mr. Rosemond's desire is for his endorsement for the redevelopment proposal will assist in achieving a positive consideration by the EDC for the project. Ald. Feldman asked staff and Mr. Robert Bond, President of Bond Capital, Ltd. to address the EDC. Ms. Aiello began by advising the EDC that the developer has requested financial assistance in the amount of $3. million from the City, for extraordinary land acquisition and development costs. Staff and US Equities, the City's consultant, have developed preliminary projected sales tax pro -formes based on a fully leased project and anticipate an amount of S 1.5 million financial assistance can be provided in the form of a sales tax revenue sharing program similar to agreements the City has successfully entered into with other development projects. Staff would like for the EDC to approve the proposal in concept and authorize staff to proceed in the development of a redevelopment agreement with Bond Capital, Ltd. At his urging, EDC member Marty Norkett has participated in meetings with staff and the developer as efforts have been made to refine the financial assistance request. Mr. Norkett has provided input on other development opportunities related to the proposed project and those suggestions are under consideration. Ms. Aiello provided the EDC with a brief history of the Main Street Commons shopping center and in particular the vacant Builders Square structure and its lease record and ownership. The boundaries of the center were reviewed to differentiate the site from the Southwest TIF District, which is the site of Sam's club. Redevelopment of the deteriorating center will have multiple benefits such as significantly increasing sales tax revenues, creating job opportunities and improving the community. The Site Plan and Appearance Review Committee (SPAARC) has given preliminary approval for the design concept and once the process is completed, a final approval will be obtained before construction permits are issued. The developer has incorporated some suggested design modifications from SPAARC and staff has confidence that the proposed design is good. The proposed concept is the most viable project presented to the City in the past several years. Inasmuch as the developer asked for a subsidy, the options available to the City for accommodating the request would be to expand the existing Southwest TIF District, or; spend TIF District revenues adjacent to the TIF district, or sales tax revenue sharing. At the Last EDC meeting it was decided that the sales tax sharing was the most prudent option for the City since it's less risk and the developer will receive rebates only if projections are met. Ms. Aiello stated that the program wonted well with Home Depot and is currently in force with the Dempster Plaza shopping center. Ms. Aiello asked. Mr. Bond to briefly review the proposed project. DRAFT -NUT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23, 2003 PAGE 7 Using architectural renderings as visual aids, Mr. Bond provided an update on the latest iteration of each component of the redevelopment project and described the various risks and concerns associated with the project. Mr. Bond stated that it is his firm's goal to be a long-term proprietor of the property and to be a good and contributing member of the community. The project has its challenges and the developer only anticipates a return on investment of approximately 7.5%. which is 1.5% less than its usual 9% return per project. Lease negotiations are currently underway with a major prospective anchor tenant. Aid. Feldman asked Mr. Bond if he could describe the type of anchor tenant he is negotiating a lease with, even if he can't divulge the name. Mr. Bond advised the EEDC that the prospective tenet is a value oriented food store shopping alternative to other options available in Evanston. The product array offered by the entity cost on average, ten to twenty percent less than the current shopping experience. Business Ethics magazine rates the company among the one hundred best in the country and it is the only company listed in its category. The parent company has approximately 2,400 stores and has a presence in thirty-two states and they have a foundation that gives back to the community. Their preference is to hire from within the neighborhood and they are very strong with WBE/MBE initiatives. It is anticipated that approximately 150 employment positions will be created and all employees, full as well as part-time will receive medical, dental and 401K plans and the store is not an Aldis. Aid. Jean -Baptiste expressed his pleasure with the project and endorsed the proposal. Mr. Martin Stern (US Equities) provided highlights of staff recommendations. After conducting preliminary revenue proformas staff is prepared to offer assistance level of $1.5 million to be paid out of sales tax revenues generated from the redeveloped shopping center. The tax generation capability of the shopping center over a period of twenty years is projected to be $7.5 million as computed in present dollar value and $5 million in real estate taxes in the present dollar value. The total yield is $12.million of which $1.5 million is recommended for rebate to the developer. Many of those sales tax dollars will come from communities outside of Evanston. Spurred by comments from Aid. Rainey, a general discussion ensued regarding the significance of the tax generation capabilities of the proposal as opposed to what the City is currently receiving. Mr. William Stafford also described for the EDC how the sales tax revenue sharing program has worked with previous developers and explained the formula that governs the distribution of the split funds. The provisions in the formula will require the performance of the shopping center to exceed an agreed upon thresh -hold sales tax level, all of which goes to the City. Of the amount over the thresh - hold, an agreed upon sum will be directed to a neighborhood impact mitigation account on an annual basis during the life of the sharing program. Any amount remaining will be split between the developer who will receive 75% and the City, which will receive 25%. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 23. 2003 PAGE 8 Aid. Feldman asked for a motion to endorse the proposal and to direct staff to proceed in the negotiation of a redevelopment agreement generally in the manner as presented. Aid. Moran moved to do so and the motion passed unanimously. VI. Dennis Marino provided the EDC with a brief update on two recent development proposals The first is a proposed eighty -unit condominium/retail project at Chicago and Main with indoor parking. The second is a planned development for a six building, three hundred -unit condominium project on Clark Street that will include 10 % developer funded of affordable units. Upon concluding the update, and at the behest of the EDC Chair, Morris Robinson conducted a roll call vote enabling the EDC to enter into executive session. VII. The Economic Development Committee entered into Executive Session at 9:40 P.M. The purpose for the executive session was to discuss proprietary real estate issues. The Executive Session ended at 10:09 P.M. VIII. The EDC members acknowledged the communication items included in the packets. IX. There being no further business, the meeting was adjourned at approximately 10:10 P.M. The next EDC meeting is scheduled for Wednesday. Mav 28. 2003 at 8:00 P.M. in room 2404. Civic Center. submitted, w E. Robinson mic Development Planner IMMMEJ ECONOMIC DEVELOPMENT CON MITTEE MEETING MINUTES WEDNESDAY JULY 23, 2003 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Moran, Aid. Newman, Aid. Rainey, A1d. Wynne, Marvin Juliar, Martin Norkett, Alice Rebechini MEMBERS ABSENT: Barbara Putta PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson OTHERS PRESENT: Ann Dienner, Cease Giddings, Paul Giddings, Bruce P. Hutcheon, Richard Peach, Jonathan Perman, Kimberly Wright Summairy of Actions: 1. Aid. Feldman welcomed all attendees and called the EDC Meeting to order at 8:05 P.M. 11. The previous minutes of April 23, 2003 were unanimously approved. III. Aid. Feldman asked representatives of the Chicago's North shore Convention & Visitors Bureau (CNSC&VB) to begin their presentation. The organization is seeking re -funding in the amount of $60, 000 for their fiscal year 2003-4. Mr. Paul Giddings, CNSC&VB chairman and board member began the presentation. Mr. Giddings reminded the EDC of the previous funding provided by the City and briefly informed the EDC of the many accomplishments the organization has achieved since its establishment one year ago. The CNSC&VB was initially formed with the Evanston, Skolde and Wilmette municipalities. The new office was opened in the Old Orchard Shopping Center last September and some members of the EDC attended a reception to mark the event. The Village of Northbrook joined the CNSC&VB in July of 2003. Last year's operating budget for the organization has grown to approximately $700,000 primarily due to the tremendously successful programs. The CNSC&VB has attracted 70 fee paying preferred partners. Fee paying partners receive priority listings in all CNSC&VB collateral material and are allowed to advertise in various CNSC&VB publications such as the visitor's guide. Mr. Giddings briefly discussed the merits of advertising in the Visitor's Guide. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -DULY 23, 2003 PAGE 2 The guide is circulated in the participating hotels and throughout the country. All non -preferred partners are listed and represented by the CNSC&VB, but only fee paying preferred partners have the opportunity to advertise in the visitor's guide. Mr. Giddings also explained that all collateral material %ill list Evanston, Skokie and Wilmette first and in that order since these municipalities were the original members. Any other j oining m unicipalities w ill b e 1 isted a fter t he o riginal three. M r. Giddings continued by briefly describing other collateral material produced by the Bureau as well as how the material is distributed, primarily within a filly mile radius. There will be another open house at the CNSC&VB in late August or early September and the EDC and staff will be invited. Mr. Giddings expressed regrets on behalf of Ms. Maria Berg -Stark, the Director of the CNSC&VB, for her not being able to appear before the EDC. Ms. Berg-Stark's inability to be present was due to the unforeseen changes made for the EDC meeting date and a previous commitment. Mr. Giddings complimented the entire CNSC&VB team on its fine job performance for the past year. Continuing with the presentation, Mr. Giddings advised the EDC that a great deal of cf ort has been made in the public relations activities. A video recording of a CNSC&VB promotional television piece was shown to the EDC as an example of these efforts. Radio interviews on WBBM were also conducted and these activities play a part in generating sales. At this point Mr. Giddings introduced Ms. Kimberly Wright, Senior Sales Manager to continue the presentation. Ms. Wright began by explaining the various ways in which she and her staff solicit business and generate referrals. Prospect lists arc purchased for telephone solicitations, attendance at trade shows and p ersonal b usiness c alls a re examples o f some of the methods used. When sales leads are confirmed, the information is transferred to a "Lead Form" and this information is issued to the participating hotels and partners. At this point, it is the partner's responsibility to follow up and close the business opportunity. In turn, Bureau staff will then follow up on each referral to the partners, to ensure that there were no missed opportunities to land the business. This process allows all booked business to be tracked. To date there is approximately two million dollars in pending business and approximately four hundred thousand dollars in booked business. Experience has shown that potential clients and trade show participants are pleased with the CNSC&VB and are eager to obtain as much information about the North Shore area as possible. Ald. Feldman asked if data was available on the percentage of closed leads from the gross number of leads provided to the hotels. Ms. Wright stated that the Bureau was in the process of obtaining software that will help capture data such as booked leads. The best guess is that approximately25% of the leads are booked, 50% are pending and the remainder unsuccessful. Ald. Feldman was impressed with the percentage of booked business. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULY 23, 2003 PAGE 3 Ms. Wright explained the high demand for and the desire of organizations who want to do business in the North Shore area. Ald. Feldman asked if there is follow-up with the various hotels to determine how the hotels disposed of the leads. Ms. Wright acknowledged the need to better capture data and stated that currently, the follow up to determine the disposition of a lead is with the client rather than the hotel. Ald. Rainey asked how well Evanston succeeds in the competition for business. Ms. Wright stated that the City does very well. AId. Rainey asked how does the City knows just how well it is doing and asked if specific data was available, particularly for the hotels. Ms. Wright stated that the hotels should be responsible for tracking their lead business to determine effectiveness. When the new software is installed, the ability to collect pertinent data and providing specific reports arc of top priority. Ald. Newman expressed his pleasure with the professional visitors guide and that he has a high confidence level in the marketing activities especially with every Evanston restaurant and hotel listed. F urther, t he C NSC&VB h as a ccomplished t he o bjectives it set for itself particularly in forming the area wide bureau and attracting more state dollars. Mr. Hutcheon commented that his hotel, (the Omni Orrington) pays S 18 a room or $7,200 a year and considers it a bargain and money well spent. A general discussion ensued regarding how well the marketing efforts have worked for Evanston, ending with the assurance that specific hotel data will be provided in the future. At this point, Mr. Giddings introduced Mr. Bruce Hutcheon, General Manager, Omni Orrington Hotel as well as the CNSC&VB Hotel Committee Chair. Mr. Hutcheon thanked the EDC for the opportunity to speak and began by describing his function as chair person is primarily reminding his nine hotel counterparts that the ten of them are competitors vying for clients needing the same products/services. Participation in the bureau allows them the opportunity to compete on a level that would not be possible on an independent basis. By cooperating and working together, the ten hotels are n ow a ble t o c ompete i n s uch m arkets a s S chaumberg, O akbrook a nd d owntown C hicago. Additionally, when member hotels arc fully booked, it creates business opportunities for other participants who may have available rooms. Mr. Hutcheon informed the EDC that because of all the amenities that Evanston has to offer, such as restaurants, shopping, public transportation and attractive location, the Omni Onington is a bigger beneficiary than a municipality like Northbrook. The CNSC&VB represents an active, results driven sales force for the hotels, which if acting independently, the cost for the marketing initiatives would be prohibitive and the expenditure of resources could not be justified. As an example, Mr. Hutcheon described a recent "FAMTRIP", familiarization tour where Ms. Wright visited with contacts and tour operators and others who bring visitors that stay in the Omni Hotel and use other services in Evanston. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULY 23, 2003 PAGE 4 Aid. Feldman commented on his experience where similar marketing methods were employed. Businesses pro,, iding the same products or services, although in competition with each other, cluster together and market their area or building as a destination, such as the Mallards Jewelry Building in downtown Chicago which houses floors of individual competitive jewelers. Mr. Hutcheon refocused his comments on the value of the CNSC&VB leads generation program. Pursuing leads is the responsibility of the hotels. Ordinarily, for every qualified lead generated there have been many more that are just vague inquiries. V1'hen the Omni Orrington receives a qualified lead from the bureau, the hotel sales staff is confident that the time saving validation process has been completed. Mr. Marvin Juliar asked if there were comparison data for booked rooms available. Mr. Giddings stated that the information was in the booklet contained in the EDC packets and Jonathan Perman quickly referred to the information. Last year 848 rooms were booked, this year there were 1,458. Last year booked attendance was 2,400 while this year it was over 4,000. Room nights pending for last year was 700, this year it is approximately 18,000, Mr. Hutcheon added that this was actual business generated by the activities of the CNSC&VB. Ms. Wright concluded the presentation by providing the EDC with a brief synopsis of what the "FAMTAIP' was and explained the success of the activity. The occasion allowed for several event planners to come and visit the participating hotels and to learn of the other amenities in the area. A brief discussion ensued concerning the value of activities designed to attract business to the North Shore and Evanston in particular. Aid. Feldman advised M r. G iddings that t here remained a m ater o f serious concern with the CNSC&VB that must be resolved. The original organization concept included the establishment of a CNSC&VB retail presence in Evanston. Aid. Feldman reminded those present that the City Council indicated its disappointment when the office was moved out of Evanston to Skokie. Ongoing efforts have been made to have a presence in Evanston and thus far the council has hesitated in making it a condition for future funding. Aid. Feldman asked for Mr. Giddings response. Mr. Giddings began by reviewing the decision to move the CNSC&VB office to Old Orchard. The Old Orchard group offered the bureau eighteen months of free rent and leasehold improvements, a gift worth approximately $50,000. As a fledgling organization, this generous gesture was very important especially since it allowed for the S50,000 to be used for other needs such as collateral material and advertising. A condition for accepting the offer calls for the CNSC&VB agreeingto stay after the eighteen month period ends. Mr. Giddings stated that the CNSC&VB has always envisioned aretail presence in Evanston. Efforts were made by the bureau, the Chamber of Commerce and Evmark early on to obtain the space in the new Maple Avenue municipal garage. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULY 23.2003 PAGE 5 Unfortunately, the space did not prove to be viable for the Chamber or Evmark and alone, the CNSC&VB could not afford the site. Currently the bureau cannot afford to independently open an office with the cost of rent and staffing and other ancillary expenses. From a conceptual basis, the bureau has agreed to open an office with Evmark and the Chamber when a suitable space located. It is the full intention of the bureau to have a presence in Evanston, as soon as financially possible, not only because the bureau wants the City to know that it is a very important part of the organization but also because it makes economic sense for the CNSC&VB. Additionally, Northwestern University is a huge economic engine for the region and is a natural draw. Ms. Ann Dienner asked how NU's hotel was faring. Mr. Giddings response was that Northwestern works with the Bureau when they have availability for the Allan Center. To date the university does not book to the general public but a plan is in place to reach that objective. The EDC appeared to be satisfied with the explanations and there were no further questions. Aid. Wynne moved to recommend approval for providing funding in the amount of $60.000 and the measure was seconded by Marvin Jul iar. The motion was passed with a unanimous vote by the EDC members. IV. The next agenda item was status update of the proposed Howard Street Tax Increment Financing District (TIF) and review of the Eligibility Study and draft Redevelopment Plan & Project. Ms. Aiello began the update by focusing on the preliminary qualifications in the draft report. The report outlines the methodology and factors that must be met for an area to be designated as a conservation district. As indicated in the study, the proposed area does meet the qualifications as a conservation area and as such, if so desired can be designated as a TIF district. Ms. Alice Rebechini asked ifthere were any known hazardous environmental issues in the area Dennis Marino stated that there is at least one site where a gas station once operated and the under ground tanks were never removed. Aid. Rainey commented that there was at least one long term dry cleaning establishment on the street which would probably be an environmental issue. Ms. Aiello referred the EDC to the boundary map of the proposed d istrict and explained the dimensions of the proposed TIF district and commented on the various types of businesses along Howard Street. Aid. Newman asked what the area was zoned as. Ms. Aiello said although there is a variety of zoning designations, the majority is zoned "B2&3". Aid. Newman asked what type of housing is permitted in B2&3. Sixty-five feet was Aid. Rainey response and Mr. Marino stated second story residential and ground level commercial was also permissible. Ms, Aiello advised that the current zoning will allow for residential development. If the process goes forward, certain areas east of Chicago would be earmarked for rezoning to allow for greater flexibility for height and density. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULY 23, 2003 PAGE 6 Aid. Feldman asked if the zoning change would occur before or after the establishment of the TIF district. Ms. Aiello's response was that the change would be effected after the area is designated as a TIF district. Aid. Rainey informed the EDC that in the area immediately west of the CTA tracks, there is a large vacant lot on the Evanston side, which used to serve as the parking lot for Benefit Trust Life Insurance Company which was situated on the Chicago side of Howard Street. A developer has exhibited a serious intent to develop housing on that lot site. That site is especially attractive since the Chicago side has completed all of the work at the Gateway Shopping Center and a $50 million reconstruction of the Howard El Station is slated for completion and it will have entrances on the Evanston side as well. Aid. Feldman asked if the old Pivot Point building is slated for demolition. Ald. Rainey explained that the Pivot Point has relocated to Evanston and that a developer has acquired the vacated structure and is currently renovating the building. The building is being converting to market rate residential with ground floor retail. The units will probably be condominium, but rental has not been completely ruled out. Aid. Feldman asked that the EDC be kept informed of the progress. Ms. Aiello informed the EDC that if the residential proposal for the lot goes forward, staff should know within 45 days how the planning and budget process can be advanced. AId. Newman commented that unlike the experience with the other TIF District, this one does not have an economic engine as an impetus and wondered where the funds will come from for land acquisition and other expenses. Ms. Aiello stated that if the Howard Street TIF District was enacted with no major project, the only increment the City would receive is what would naturally occur through reassessment. That may not be a scenario that staff would recommend because of the minimal increment. If the residential project that Aid. Rainey mentioned goes forward, that project would be the %xonomic engine for the TIF district. At this time the increment is unknown because pro -forma projections for the exact number of units have not been completed by the development group. Aid. Rainey stated that perhaps it is too soon to for discussion but the developers may be considering perhaps two hundred luxury units. Ms. Aiello added that it could be a phased development and that some public improvements will probably be required. Ms. Aiello stated that if the residential development goes forward as planned, staff would then be in the position to make a strong recommendation for immediate adoption of the new TIF district. Without the development, the TIF district could be adopted with the expectation that once established, developers may emerge who would be willing to view the area differently as was indicated by their comments during the various focus group sessions hosted by the City over the past two years. A brief discussion ensued concerning the types of residential construction the TIF district might accommodate. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COiiMITTEE MINUTES-3ULY 23.2043 PAGE 7 Aid. Feldman asked how long it would take the proposed TIF district to be adopted ifthe residential development goes forward and the pro -forma projections are presented to the City. Ms. Aiello said that if the developer is able to get a contract within the next thirty days, a preliminary budget could possibly be presented at the September EDC Meeting. V. & VI. Aid. Feldman announced that project updates was the next agenda item. The discussion also blended into recent development proposals. Dennis Marino provided the EDC with a brief update on a recent development proposal. The project is a Tom Roszak planned development for a six building, 348-unit condominium project on Clark Street ( the Shand Morahan Plaza parking lot) that will include 10 %, developer funded, affordable units. This proposed project is now under review by the Planning & Development Committee and has been the subject of much discussion. Aid. Newman commented that it is his belief that the Planning Department has to be more active with large projects such as the Roszak proposal. The issue, as exemplified by the proposed Roszak project, is that the community is concerned about the amount of growth the City is experiencing and the City's ability to accommodate the density as well as request from the developer for zoning concessions. Aid. Feldman stated that more data is needed besides that provided by the developer(s). Citizens are asking questions about traffic, and other issues brought on by increased density and the City is not providing answers. In this growth environment, staff is not providing sufficie„1 enough information which enables City officials to properly respond to citizen concerns. Ms. Rebechini, who is also a member of the Plan Commission stated that she voted against the Roszak proposal for similar reasons. Ms. Rebechini's coneems include design merit for such a prominent corner and the impact of cumulative density. In Ms. Rebechini's estimation the project should not go forward under the unlikely option of exceptional merit based on the developer's previous projects. Ms. Rebechini stated that she would be surprised if a quality design project will emerge at this very prominent site and that she is very interested in the cumulative density issue. Aid. Newman stated that he is also concerned about the merits ofthis particular proposed project, but his basic point is to have overall information developed by staff, regarding cumulative densitywhich will enable proper responses to the community. The Planning Department should conduct an overall review of construction in the downtown area and develop data other than that which is provided by the developers. Mr. Marino stated that many of these issues were discussed at each of the three public hearings conducted by the Plan commission. Often they were discussed in terms of questions from the Plan commission members with responses from the various experts invited by the developer. The Plan Commission has discussed working on the Downtown Plan that was adopted in 1989 and using that document to address some of the issues being raised tonight. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULY 23, 2003 PAGE 8 Aid. Newman stated that his interest wasn't about the future plan for completing five projects, but rather the interest is directed at a project which is coming now and a major decision has to be made. In order for Council members to vote, information is required other than that provided by the developer. Aid. Feldman stated that one of the things that helped facilitate the Hill project was the large amount of information generated by staff and consultants. The information enhanced the Council member's ability to respond to the many claims made by members of the community. The Aldermen were responding rather than the consultants or the developer. Ms. Aiello stated that after this particular developer's presentation and after the Plan Commission meeting minutes are available, if the EDC wanted to list the issues which require more data, staff or consultants can review the issues and traffic studies and then provide sufficient information. Aid. Newman stated that when projects of the magnitude as the Rosazck proposal are being considered before the Planning & Development Committee, it is not enough to just count on Arthur Alterson, Assistant Director of Zoning and James Wolinski, Director, Community Development Department to provide answers. All individuals participating in the planning process should be at the P& D Meeting and the appropriate Council Meeting so that the community can be reassured that every measure was taken to address issues. Aid. Wynne stated that she would like to know what staff is telling any developers and what the responses are and expressed her concern for cumulative density. Aid. Wynne commented on the Chicago Avenue study prepared by staff, which addressed density and traffic issues among other concerns. Aid. Wynne commented on the need for overall review of the density issue rather than the impact on each individual project as they occur. The EDC members continued with a discussion on the importance of the impact of rirmulative density, local and City wide, as well as the inadequacies of the zoning ordinance in some instances. Discussion points were raised concerning density impact on public services, police, fire and the schools. Ms. Aiello stated that recent studies indicate that the most attractive market for residential projects is the market the City is actually attracting, and the buyers do not have school age children and in general, are not a drain on public services. The discussion ultimately culminated with staff acknowledging the desires of the EDC and to increase efforts to gather specific information on density and public service impact, which may be caused by residential developments planned in the City. V11. The EDC members acknowledged the communication items included in the packets. VIII. Ms. Aiello advised the EDC that there was no need for an executive session because negotiations have not been completed with the development company. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JULY 23, 2003 PACE 9 Ms. Aiello requested that the EDC change the next EDC meeting date from the scheduled August 20 to Tuesday August 11, 2003 and convene the meeting at an earlier time. IX. There being no further business, the meeting was adjourned at approximately 10:10 P.M. * NOTE: The next EDC meeting will be rescheduled for an earlier August date. The date is tentatively set for Monday August, ] 1 at 6:00 P.M. Respectfully submitted, t Economic Development Planner ECONOMIC DEVELOPMENT COMMITTEE SPECIAL MEETING MINUTES MONDAY AUGUST I I, 2003-ROOM 2404-6:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Moran, Aid. Newman, Ald. Rainey, Martin Norkcn, Barbara Putta, Alice Rebechini MEMBERS ABSENT: Aid. Wynne, Marvin Juliar PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Jean -Baptiste STAFF PRESENT: Roger Crum, Judith Aiello, Moms Robinson, Maureen Barry, Mark Franz, Lloyd Shepard, Melissa Hall OTHERS PRESENT: Lawrence Eppley, Attu- Bell. Bovd. Llovd LLC, James Harrington, CFO -Bond Companies, Martin Stem, US Eouities Summary of Actions: I. Aid. Feldman welcomed all attendees and called the EDC Meeting to order at 6:14 P.M. II. Aid. Feldman announced that there was only one action item on the agenda. Staff is presenting for consideration and approval, the proposed Redevelopment Agreement between the City of Evanston and Bond Capital, Ltd., for the redevelopment of the Main Street Commons Shopping Center. Ms. Judith Aiello began by advising the EDC that all of the pertinent details of the agreement were conveniently summarized in the memorandum contained in the EDC packets, a measure taken to reserve more time for answering questions during the meeting. Ms. Aiello also reissued two copies of the agreement to each EDC member which contained the latest minor changes. Ms. Aiello also informed the EDC that Mr. Bond was on vacation, but his attorney, Mr. Lawrence Eppley and his company CFO, Mr. James Harrington was present to assist in answering questions. Ms. Aiello then asked Mr. Martin Stem to proceed with the presentation. Mr. Stem briefly reminded the EDC of the dilapidated and continuous deteriorating condition of the shopping center and its less than significant contribution to real estate taxes. Bond Capital has purchased Main Street Commons and has presented plans to the City to completely rehabilitate the shopping center. 8/14/2003 DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE ;MINUTES -AUGUST 11, 2003 PAGE 2 Mr. Stem explained that the parking lot will be repaved, new retail spaces will be created, improvements to the fagade will occur, visibility from the street will be increased and the developer will accomplish all that is needed to re -tenant the center. Originally the developer requested a $3 million subsidy for the project, however a negotiated amount of $1.5 million maximum has been agreed upon, to be paid out over a period of 4 % years. The subsidy amount will be paid annually, from the incremental retail sales tastes that are generated from the shopping center. The fonnula for the annual sales tax payouts allows for the City to receive the first $175,000, the amount it currently receives; annually, $20,000 will go a neighborhood development mitigation fund account, until a maximum of $200,000 is reached. The remainder of the incremental sales tax will then be divided, with the developer receiving 75% and the City receiving 25%. The developer's portion will not exceed $1.5 million and if the developer's pro- formas are met, it should take approximately 4 %: years to reach the maximum. Mr. Stern emphasized that in every phase of the agreement, the City is protected and that no sales taxes currently received by the City will be used. The City is protected even if the developer sells the property, or fails to complete the redevelopment, or fails to meet pro -forma projections. Mr. Stem also advised the EDC that the developer has a good track record of not selling its properties, Ms. Alice Rebechini asked how long the term for the anchor grocery store lease will be. Mr. Stern stated the initial term will be for 15 years with five year options. Ms. Barbara Putta asked if the developer does not meet its obligations over the 20 year period, does the City have security for a refund from the developer. Mr. Stem said the City was successful in negotiating a pledge from the developer to keep the property on the tax roll for 20 years and that a maximum of only 10% of the space can be ]eased to non -tax generating tenants. If the developer defaults on these provisions, he must refund all of the funds the City has given and the developer will still be liable for any damage claims by the City. The property itself also serves as an asset, ifneeded, should the City be required to take legal action to recoup a loss. Ms. Rebechini asked if the anchor lease has a provision which would allow for sub -leasing and ifso, what type of entity would be allowed. Mr. James Harrington stated that the lease provides for a 15 year commitment, with obligations to pay the rent, but he would have to determine what the sub- leasing provisions, if any, are. The answer will be provided. Ald. Rainey asked if there was an executed lease with the anchor tenant. Mr. Harrington's response was that considerable discussion has taken place and that consummation of the lease agreement was very close and an executed lease is expected by the end of August. The EDC members briefly - discussed the possibility of considering, in theory, other types of binding provisions to the lease that would restrict the property owner from engaging in actions deemed not to be advantageous to the City's position. 8/14/2003 DRAFT' -NOT -APPROVED ECONOMIC DEVELOPMENT COINIMI'ITEE MINUTES -AUGUST 11, 2003 PAGE Mr. Stem summed up the presentation by stating that staff has taken every precaution in negotiating the agreement. The project is good for the City and staff strongly recommends an EDC vote to recommend approval by the City Council at the next Council Meeting on August 18, 2003. The developer has expressed his desire to proceed with the project as soon as possible. Aid. Jean -Baptiste commented that he has had frequent discussions with his constituents and they are eager to see the project go forward. The terms of the proposed agreement are good for the City and the community and the project has his support. A brief discussion ensued with regard to the anchor tenant and the need to have an executed lease, the developer's ability to obtain financing for the project, which is contingent on signing the anchor to the project, and the superlative qualities of the anchor grocery store. Upon completion of the discussion, Ms. Rebechini proposed a motion for the EDC to recommend City Council approval for the adoption of the proposed Redevelopment Agreement between the City and Bond Capital, subject to obtaining information on the sub -leasing terms of the anchor lease and contingent on a six month sunset provision i f the anchor lease is not executed at the time of adoption. Aid. Moran seconded the motion and the measure passed with six votes in favor of the recommendation and one vote against, cast by Mr. Norkett. III. There being no further business, the meeting was adjourned at approximately 6:45 P.M. The next EDC meeting is scheduled for Wednesday. September 24.2003 at 8:00 P.M. In Room 2404. Civic Center. submitted, Morri{ E. Robinson Economic Development r DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY SEPTEMBER 24, 2003 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Rainey, Aid. Wynne, Marvin Juliar, Barbara Puts, Alice Rebichini MEMBERS ABSENT: Aid. Moran, Aid. Newman, Martin Norkett 4 �„ PRESIDING OMCIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Bernstein STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson OTHERS PRESENT: Ann Diener, William J. Walsh, William Patrun, Mark Tennison, et . . i al, Bristol Chicago LLCDevelooment team; Robert Richlicki, &grme. McKenna; Martin Stern, USEauities Summary of Aedons: I. Aid. Feldman called the meeting to order at 8:13 P.M. II. & III. 'me previous minutes of July 23rd and the August 11, 2003 "Special Meetitrg", .'were unanimously approved after Moms Robinson advised the EDC that Aid. Newman was erroneously indicated as present at the August special meeting. f IV. Aid. Feldman welcomed the representatives from Bristol Chicago Development LLC, and ... , invited them to begin their informational presentation for a residential development proposal on the former Shure Brothers commercial property located in southwest Evanston. Mr. Mark Tennison began the briefing. With the aid of architectural illustrations of the proposed residential development, Mr. Tennison demonstrated, for the benefit of the EDC, two iterations of the project. Mr. Tennison advised the EDC that his firm has been actively attempting to accomplish two objectives essential to the success of the project. The first objective is to create access routes for both the west and east sides, of the residential. complex which will meet the needs of both the community and the developer. Currently the developer is negotiating with Target to obtain an access route on the east side ofthe shopping center. - DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-SEPREMBER 24, 2003 PAGE 2 The developer also wishes to improve the project's %isibility window from Howard Street. In order to meet this objective, something indicating its presence has to be established in the front of the shopping center. As such, discussions have been initiated with the owner of the shopping center with regard to leasing space on the front for permanent signage, marketing and leasing activities. By adopting these measures, people driving by the center will know that the development is there. Mr. William Patrun continued the presentation by providing the EDC with a brief update on the development company's issues with the Metropolitan Water Reclamation District (MWRD). Property leased from the MWRD is associated with the sale of the Shure Brothers property. Briisw . would like to obtain the MWRD tract to enhance the access to the residential project and possibly further develop the site. The west side access is considered by the developer as the primary firant door of the proposed development. Thus far, officials of the MWRD appear to be reluctant to meet with the developer. Continued efforts will be made by the developer to pursue an agreement With the MWRD. . Aid. Feldman asked for the number of units planned for the development. Mr. Patrun stated that the original proposal allowed for mixed use residential to attract a variety of diversified housing. On the cast side of the development, two and a half story townhouses, designed to be sensitive to the existing single family residences in the community are proposed. Proceeding west, two options are being considered, a four story rental or a six story condominium product would constitute the middle and third section of the project. This configuration is subject to negotiation. 'There is flexibility on the developer's part and this has been exhibited by their dialogue with City staff, neighborhood meetings and the alderman. Aid. Wynne asked for and received a clarification of the proposed east access for the development. Aid. Wynne asked for the number of units planned for the development. Mr. Patron stated that a total approximating 335 units were proposed for the plan being presented. There will be approximately 32 townhouse units, 100 rental condominiums and approximately 208 rental apartment units. Aid. Feldman asked for the property control status. Mr. Patrun stated that they are in the final , agreement stage with Center Point. There being no further questions, Aid. Feldman thanked Mr. William Walsh, the president of Bristol for appearing before the EDC. Mr. Walsh took the opportunity to expand briefly on the negotiations with Center Point and the property acquisition issues. Mr. Patrun shared the elevation design concepts with the EDC. Mr. Walsh informed the EDC ofthe unit sizes and the anticipated price points for the townhouse residences. They will market the homes in the $350,000 range and the will be approximately 2,200 square feet with two car, rear loadin& attached garage and two car tandem parking spaces. Mr. Walsh explained to the EDC the meaning of the term, "rental condominium". DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-SEPREMBER 24, 2003 PAGE 3 Since the intent is to rent the units initially, the units are purposely built as either condo or rental to facilitate conversions to condo ownership in the future and after the development has been stabilized. With the apartment building component, the average size for a unit will be 1 and 2 bedrooms. The market focus will not be on families. The primary marketing will be geared toward young adults entering the labor force, divorcees who wish to stay in the vicinity of the family and children and empty nesters. The average rental price point will be approximately $1,100 per month and the average size of the units will be 850 square feet. After some further discussion amongst the EDC members and staff, Ald. Feldman thanked Mr. Walsh and proceeded to the next agenda item. V. The next agenda item was the Proposed Howard Street Tax Increment Financing District for Howard Street. Draft copies of the "City of Evanston and Ridge TIF District Redevelopment Plan and Plan Project NO.5" and the "City Of Evanston Preliminary Qualification/Designation Report Proposed Howard And Ridge TIF District (TIF NO.5) were included in the packets for review. Mr. Robert Richlicki, Associate with Kane —McKenna and Associates began the summary. Mr. Richlicki explained that there are four basic steps in the process for establishing a TIF District. The City has already completed the first step by determining if the area of Howard and Ridge meet the qualification factors. With the assistance of City staff, sufficient data based on site surveys and other information from other City departments has been assembled by the consultants into an eligibility report. The eligibility Report indicates that the proposed area will qualify as a conservation area under the TIF Act. The stipulations for qualification under the act require at least 50% of the buildings have to be 35 years old or greater and the data indicates that the proposed area is 800/0 or greater. Three other factors out of thirteen must be met, and the consultants have determined eight with a presence of either minor or major degrees. The percentages are documented in the Eligibility Report. The bottom line is if the City decides to proceed in stabling the TIF District, the area would qualify as a conservation area. . The second step in the process is to begin the public hearings and the public notices. To accomplish this phase of the process the City must have a redevelopment plan, which has been provided in the packet in draft form. The plan is basically a "policy umbrella" in that it does not subvert any other City approval permit planning or zoning processes, community meetings or other procedural requirements. The plan also sets forth for the other taxing districts, the boundaries of the proposed TIF, the initial equalized assessed valuation is and, generically, what may be some other proposed land use for the area might be. A budget is also included in the plan, but it doesn't mean that the City has to spend or will spend the funds. But it does set an outside limit for the other taxing districts as they review the plan. The budget as present is approximately $8 million. The plan also has to provide for other proposed usage. T11e proposed usage is primarily what exists in the area now, which is mainly residential with some street level commercial mixed use. The ' remainder of the plan identifies some of the other TIF Act requirements. For instance, thesis a mandatory affirmative action component. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-SEPREMBER 24.2003 PAGE 4 A legal description of the area and a description of some of the redevelopment activities occurring in the area are also required. The overall theme of the plan is "permissive". Since the life of the TIF District can be up to 23 years, it requires a high level of scrutiny on the part ofthe City. Yet, as with the other TIF Districts the plan is general enough to allow the City to make decisions on a case by case basis as proposed projects are presented. Once the plan is reviewed, it will stay in draft form for a period up to 100 day period. If the EDC recommends the City Council take action on the plan at the October Council Meeting, The Council would pass a Public Hearing Ordinance. The ordinance would establish two dates; the first date will be for a Joint Review Board Meeting and each of the taxing districts would be invited to attend to review the plan and eligibility study. The second date is established thirty days later for a public hearing. Two newspaper notices in the general publications announcing the date and purpose for the public hearing are released as well as a certified mailing to all ofthe tax payers ofrecord residing in the proposed TIF District area A new requirement has also been added in addition to these notices. Now the City must notify all residential addresses within 750 feet of the proposed TIF District boundary, to include Chicago addresses, must also be notified that the City is considering the area for a TIF District and that the plans are on file at the City Clerk's Office. At the end of the public hearing process, tentatively scheduled for the end of December 2003, if the City decides to entertain comments from the different taxing districts, a minimum two week waiting period is required before action can be taken to finalize the establishment of the new TIF District. . After the waiting period has elapsed, the City would be able to adopt the ordinance designating the area as a TIF District and perform the proper filing with the Cook County Clerk's Office. The longest term allowed for the new TIF District is twenty-three years but it can be terminated at any time by the City Council if in the event no projects are undertaken or projects described in the plan have been completed. Ald. Feldman thanked Mr. Richlicki for the summarization and asked for questions from the EDC members. Aid. Feldman asked if the potential expenditures of up to $8 million would be onset by &.t revenues , generated from new developments. Mr. Richlicki indicated that the supposition was correct, stating that new developments, reassessments, infill developments and rehabilitation and permits for improvement to properties and any activities within the boundaries which will cause evaluation to rise over the base will contribute to offsetting City expenditures. Preliminary and conservative revenue projection assumptions, developed with the aid of staff, indicate that projected revenues foot to the budget. Aid. Wynne ask under ex ' ynn asked, expenses, the meaning of tuition cost". Mr. Richlicki explain , that this cost is anew feature in the TIF Act. The feature provides for the school districts to have the first lien, up to 40%, on the increments generated from residential projects in the new TIF District. "sus • . — . V..`E ".ea, DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-SEPREMBER 24, 2003 PAGE 5 Specifically, if there are school age children residing in a project area funded by the City, up to 40% of the increment generated by that project must be made available for the education of those children based upon a per child formula set forth in the TIF Act. The act also allows for the school districts to waive the requirement if they so choose. Aid. Rainey raised the question of a child who moves from existing housing in one area of the TIF into a new City funded/assisted project. Mr. Richlicki said that a literal reading of the act indicates that that child would be counted. A general discussion ensued as to the methodology used to determine the budget to accommodate revenues for the school district as it pertains to the number of children eligible for allotments. Ms. Aiello and Mr. Richlicki stressed the flexibility of the projected budget as well as the documented evidence indicating the relatively small number of school age children living in new condominium developments. The general discussion ended with no further questions from the Committee. Aid. Feldman stated at this time that an Executive Session regarding land acquisition related to the proposed Howard Street TIF District was required. The meeting room was emptied of spectators and Morris Robinson conducted a roll -call vote of the EDC members to enter into Executive session. VI. The Economic Development Committee voted unanimousiv to enter into Executive Session at 8:55 P.M. The purpose for the executive session was to discuss proprietary real estate issues. The Executive session ended at 10:05 F.M. VIL The EDC voted unanimously to recommend to the City Council to establish dates for the Joint Review Board Meeting and Public Hearing for the purpose of establishing a Tax Increment Financing District for Howard Street. VI11. Staff briefly reviewed other business activities. IX. Aid. Feldman acknowledged the communication items included in the packet. Moms Robinson advised the EDC that the retail space inventory had not changed significantly from the last compilation. X. There being no further business, the meeting was adjourned at approximately 10:08 P.M. The next EDC meeting is scheduled for Wednesday. November 12.2003 at 8:00 P.M. in room 2404, Civic Center. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-SEPREMBER 24.2003 PAGE 6 Respectfully submitted, r Mortis E. Robinson Economic Development Planner . ,€;.. DRAFT -NOT APPROVED MEETING OF THE JOINT REVIEW BOARD PROPOSED HOWARD AND RIDGE TIF DISTRICT NO.5 MEETING MINUTES THURSDAY, OCTOBER 30, 2003 ROOM 2404-8:30 A.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Janis Fmnchak- Cook County, Anne Laurence-Oakton Community CollePe. Barbara Carlson. Public Member, Lutaf Dhanidina -District 65, Brian Rosinski- Rideeville Park District, Jeffrey Taggart & Margaret Lurie -District 202, Patricia Vance- Township Supervisor PRESIDING OFFICIAL: Aid. Gene Feldman STAFF PRESENT: Dennis Marino, Moms Robinson, Susan Gudderly, Lloyd Shepherd, William Stafford OTHERS PRESENT: Aid. Rainey, Sylvester Hilliard, Robert Rychlicki Sammary of Actions - I. Aid. Feldman convened the Joint Review Board meeting at 8:39 A.M. and explained the purpose for the meeting. The JRB will examine the merits and potential of creating the new TIF district and will determine the vote to recommend to the Evanston City Council, to adopt a resolution to establish the Howard Street TIF District No. S. II. Aid. Feldman asked each seated member of the JRB to introduce him/herself. Ill. Once the introductions were completed, the first order of business was to nominate and confirm the Public Member of the JRB. Aid. Feldman nominated Ms. Barbara Carlson for the position and the nomination received a second from Mr. Patricia Vance. The JRB members confirmed the nomination with a unanimous voice vote. IV. The next order of business was the selection of a Chairperson for the Howard Street TIF District JRB. Aid. Feldman explained how the Chair selection process has traditionally been accomplished. 11J DRAFT -NOT APPROVED MEETING OF THE JOINT REVIEW BOARD-HO'WARD STREET PROPOSAL AIINUTES-OCTOBER 30. 2003 PAGE 2 Mr. Dhanidina nominated Ald. Feldman for the Chairmanship and Ms. Margaret Lurie provided a second. The JRB confirmed the nomination with a unanimous voice vote. V. Ald. Feldman introduced Mr. Robert Rychlicki, an associate with Kane Mckenna, a TIF consulting firm employed by the by the City of Evanston to assist in the analysis and preparation of the Preliminary Qualification/ Designation and the Redevelopment Plan and Project Reports for the proposed Howard street TIF District. Mr. Rychlicki began by briefly informing the JRB members of their responsibilities as required by the TIF Act. Mr. Rychlicki explained that the TIF ACT has had significant changes since the last time he appeared before the City's JRB. The Act now allows for an expanded Board but the function of the JRB remains one of advisory. However, a negative recommendation by the Board to the City Council will require a majority vote of at least three fifths of the Council members. There is also a required thirty day waiting period which provides the City with the opportunity to respond to objections. One of three actions can occur at the end of the JRB review. The options are: 1.) the JRB can agree with the City's finding that the area not only qualifies under the TIF statutes but the area is in need of redevelopment also; 2.) the JRB could disagree with the City that the area meets qualifications for a TIF district, but the disagreement has to be specific and in writing and 3.) the JRB could elect to take no action. If the decision is too do nothing, after a thirty day waiting period, the presumption under the state statutes is that the JRB is in agreement with the City and the JRB Chair will report such to the City Council. VI. Mr. Dennis Marino advised the JRB that Mr. Rychlicki would also provide the JRB with the TIF District eligibility criteria review. Mr. Rychlicki described the exact boundary of the proposed TIF District and a map of the proposed area was also enclosed in the packets. Mr. Rychlicki then reviewed the qualifications for the proposed area, advising the JRB that qualifications met or exceeded the requirements of six factors needed to meet the TIF definitions for a conservation area. The factors which must be present are: lagging equalized assessed valuations, inadequate utilities, deleterious layout/lack of community planning, structural deterioration and obsolescence. Although relatively minor per state statutes, two other factors were noted, which are code violations and excessive vacancies, Complete requirement details are contained in the 1.) City Of Evanston Howard And Ridge TIF District Redevelopment Plan And Project NO.5 Report and 2.) the City Of Evanston Preliminary Quslification/Designation Report Proposed Howard And Ridge TIF District {TIF NO.5). Both of these documents are on file in the Office of the City Clerk and are also available in the Community Development Department's Planning Division. �I DRAFT -NOT APPROVED MEETING OF THE JOINT REVIEW BOARD-HOWARD STREET PROPOSAL MINUTES-OCTOBER 30. 2003 PAGE 3 VII. After Mr. Rychlicki completed the eligibility review, Aid. F c?dman opened the floor to questions and comments. Mr. Dennis Marino advised the JRB of redevelopment activities on both side of Howard Street. Aid. Feldman remarked on the mutual objective of both Cities to improve Howard as a corridor sening both municipalities and the efforts put forth to achieve the objective. Until now, the efforts on the Evanston's side have proved to be futile. Now, with a government effort to create a TIF district, the redevelopment objective will aid in creating a revival of Howard Street. A general discussion ensued concerning the perceived benefits of the proposed TIF and how the Chicago side currently is participating in the revival. Ms. Patricia Vance expressed her appreciation for the proposal and questioned how the S200,000 earmarked for job training will be administered and monitored to insure Evanston residents, specifically welfare to work residents, will benefit. Mr. Marino explained that currently there is not a set program, but explained how job training has occurred in the past. Reports will be generated and distributed concerning the progress of the program. Mr. Jeffrey Taggart asked for and received a clarification from Mr. Rychlicki on the new rules requiring school tuition reimbursements from the City for school age children residing in or moving in to the boundaries of the new TIF district. Mr. Rychlicki responded with a description of how school districts are reimbursed for expenses per pupil. VIII. When the discussions ended, Aid. Feldman advised the JRB that a motion to recommend approval was in order. Mr. Lutaf Dhanidina made a motion for adopting the draft resolution addressed to the Mayor and the Evanston City Council, recommending approval to create the Howard Street TIF District NO. 5. Ms. Vance provided a second to the motion. Mr. Morris Robinson conducted a roll -call vote of the JRB and the measure was passed unanimously. IX. Dennis Marina advised the JRB of the next formal steps required to complete the TIF establishment process. There will be a Public Hearing and presentation to the City Council for action. In addition, December 11, 2003 was the date selected for the convening of the Joint review Boards for the other four TIF districts. X. There being no further business, Aid. Feldman officially adjourned the meeting of the Howard Street TIF District Joint Review Board at 9:40 A.M. Jo lly itted, E. Robinson, Economic Development Planner ' DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY NOVEMBER 19, 2003 ROOM 2403-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Ald. Newman, Ald. Wynne, Aid. Rainey, Martin Norkett, Alice Rebechini MEMBERS ABSENT: Aid. Moran, Marvin Juliar, Barbara Puta PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Jean -Baptiste STAFF PRESENT: Judith Aiello, Dennis Marino, Moms Robinson OTHERS PRESENT: Dan Aboutar-Mesirow Finance, Ann Dienner, James Hanson ones Lang LaSalle, Richard Peach-ECOC, Jonathan Perman-ECOC, Dianne Williams-E'VMARK Summary of Actions: I. Aid. Feldman called the meeting to order at 8:08 P.M. II. The previous minutes of September 24, 2003 were unanimously approved. III. Aid. Feldman briefly acknowledged the inclusion of the minutes of the October 30, 2003 Meeting of the Joint Review Board for the proposed Howard Street Tax increment Financing District (TIF) No. 5. IV. Aid. Feldman advised the EDC members of the requirement for the Committee to make a recommendation for the approval of the proposed Howard Street TIF District. The EDC members had previously been supplied with all of the pertinent documents and they were once again included in the packets. Aid. Newman requested a clarification on land acquisition in the area. Ms. Aiello informed Aid. Newman that the City would not be involved in the land acquisition process. It will be the responsibility of the private developer(s) to acquire land for any proposed projects. Aid. Rainey also reminded the EDC members that preliminary arrangements for a major residential development project, to include land acquisition for the site was nearly completed by the developer. DJU FT-i VOT-APPRO s ED ECONOMIC DEVELOP.►IENT COXIIIITTEE IMINUTES-NOVEMBER 20. 2003 PAGE 2 After a b ricf discussion, Aid. Rainey made a motion to recommend approval of the proposed Howard Street TIF District to the City Council. Mr. Norkett provided a second and the motion received a unanimous approval vote. V. Aid. Feldman announced that the next agenda item concerned "downtown visioning". Aid. Feldman stated that during a recent city council debate, certain issues arose regarding the numberof Type 2 restaurants that are opening in downtown Evanston. Questions were raised about Sherman Avenue in particular and the downtown district in general as to what kinds of retail establishments would be more preferable. Additionally, the Council would like to explore ways in which more pro- active control efforts can be exerted rather than just allowing anyone who applies, the opportunity to open a retail establishment in the downtown area. Specific questions were aired about whether or not the City wants Sherman Avenue between Church Street and Clark Street to become a "fast food court". The result of the debate led to the realization that there is a need to formulate a vision as to how the downtown area should evolve. In addition to the developments that have already been completed, answers to questions such as how- much more residential should be allowed, or ifadditional fast food restaurants are appropriate and if so where? Just how should Orrington Avenue, or Davis Street, or Church Street be envisioned? These kinds of questions led to the formation of a small, core group of people who met to begin a process to consider the questions raised and to determine what downtown development direction is most desirable for the City. Expanding the core group base of people is now being considered to include members of the business community, the not for profit sector, residents of the First Ward and City representatives from the EDC, P&DC, Plan Commission and Parking Committee, etc. This group will begin meeting, with a paid consultant at times, for the purpose of determining the City's aspirations with regard to planning the downtown. Aid. Newman commented that one of the existing disadvantages is that the downtown area is comprised of multiple property owners. Some landlords are committed to leasing to quality retail concerns while others are not connected or committed to leasing to quality retail establishments. Aid. Newman stated that City officials should be communicating to the landlords that raw after row of fast food restaurants is undesirable. Examples of undesirable leases were provided. The same message should be made in unison with the Chamber and Evmark as well as the City. Ms. Ann Dienner commented on the positive impact from the revitalization plans far the Arrington Hotel and the resultant elimination of the fast food burger chain which occupies a prominent corner, adding that perhaps other property owners might follow suit. Aid. Feldman stated that upon completion of the Sherman Plaza project, the properties on the opposite side of the street will experience a rise in property values. — DRAFT-1\OT-APPROVED ECO1'0511IC DEVELOPMENT COMMMEE MINUTES-ti0VEIIBER 20. ?003 PAGE 3 This in turn can then create opportunities for higher rents provided the landlords offer proper spaces for prospective tenants. Aid. Feldman agreed with Aid. Ne%% nan on the need fora unified agreement and approach for attracting desirable downtown retail space usage. Aid. Rainey suggested that some of the problems with the retail spaces on Sherman Ave. are related to the fact that they are obsolete with aging plumbing and electricity. Ms. Rebechini expressed her satisfaction with the decision to take action on this important issue. Ms. Rebechini stated that while growing up in nearby Rogers Park, she use to shop in the various retail establishments in Evanston but cannot do so to day because of the limited options. Ms. Rebechini also commented on how many major retailers have opened in older spaces in trendy neighborhoods in Chicago because the market is there. Mr. Norkett suggested that the only way to successfully achieve the visioning goal is for the City Council to control the types of business which are allowed to open. Aid. Newman commented on the difficulty involved with attempting to exert c ontrol o ver m ultiple p roperty o wners w hile A Id. Feldman questioned the legality of such actions. After a short discussion period, Ms. Aiello stated that with regard to the time table, the group meetings will start some time during the first quarter of 2004 with time allotted for a paid facilitator and community input. The process will be a collaborative effort which will include Evmark, the Plan Commission, EDC and others. Aid. Newman stated that the next step in the process is for the initial core group to appear before the EDC with a proposed agenda format, subjects for discussion and a list of the individuals slated to be involved with the process. Ms. Aiello concurred. Aid. Rainey also suggested that ordinary people should also be involved in the process, not just solely V.I.P.s. Ms. Aiello concurred. Ms. Ann Dienner asked i f the City has received feedback from new do►vnto►%m residents with regard to the type of retail services desired. Ms. Aiello stated that Evmark has initiated a practice of providing new residents with welcome gift bags. Ms. Dianne Williams of Evmark stated that the recipients of the gift bags have been surveyed and it was determined that the residents do patronize the existing retailers. At some point a broader survey which includes retail preference concerts would be in order. Aid. Feldman stated another topic to be addressed is the issue of density resulting from all of the development projects as well as the cumulative effect it has on the downtown area. Aid. Feldman concluded the discussion by stressing the importance of starting the vision process now, projecting the conclusion of the process to be in approximately six months or less. The vision group will DRAFT -NOT -APPROVED ECONOMIC DEVELOP..ME`T COMMITTEE MINUTES-NOVEMBER 20. 200Z PAGE 4 comply with Ald. Newman's suggestion to appear before the EDC with particulars. As an aside issue, Aid. Newman stated that in the future any CDBG request for economic development programs should be presented to the EDC for review before a decision is made. He addressed some specific concerns with the second grant made to the "Ben & Jerry's Partnershop". Aid. Rainey advised the EDC that without the grant the concern would have failed and assured Aid. Newman that it is the final assistance The Youth Job center will receive for this program from the City. VI. Next, Ms. Aiello asked the EDC members to refer to a memorandum from Mr. Martin Stern, US Equities, concerning a proposal from Davis Church Office Development L.L.C. (art affiliate of Mesirow Financial) to sell the 909 Davis Building to the German firm, OvDenheim Immobilien- Kaoitalanlagesellschaft as Nominee for American Fund-01K ("OIKA"J. Mr. Dan Aboutar, Senior Manager ofMesirow• Financial and Mr. John Hanson, the broker handling the sale were also present. Although Mr. Stern was not present, Ms. Aiello indicated that the memorandum adequately explained why there was no reason for the City to object to the sale of the property. Ms. Aiello assured the EDC that the City's interest would still be protected under the guidelines of the original agreement. After a brief discussion, Aid. Newman moved to recommend approval of the sales transaction of 909 Davis Street without objection from the City and Mr. Norkett provided a second to the motion. The measure was then passed unanimously. VII. Mr. Dennis Marino next informed the EDC of recent development projects. Rehabilitation of the Main Street Commons Shopping Center is underway and a branch of Washington Mutual has opened in the Dempstcr/Dodge (Evanston Plaza) shopping center. Mr. Marino also informed the EDC of the revised development project proposed by Tom Rosczak. The development proposal allows for four buildings surrounding a courtyard, with a total of 220 residential units, with underground parking to be constructed on the site of the old Weibolt's parking lot. Mr. Marino shared color renderings of the proposed project with the EDC members. VIII. The communication item included in the EDC packet was acknowledged. IX. The EDC unanimously approved the EDC Meeting dates for 2004 after accepting Aid. Newman's request to change the February date from the 25 to the 18'h. Mr. Richard Peach asked about the status of the Sherman Plaza Project. Aid. Newman advised Mr. Peach that there will be a change in the original plan since the health club has been unable to obtain financing. It is anticipated that the project will commence in the spring of 2004. DRAFT-VOT-APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-NOVEMBER 20, 2003 PAGE 5 X. There being no further business, the meeting was adjourned at approximately 9.05 P.M. The next EDC meeting is scheduled for Wednesdav, December 11.2003 at 8:00 P.M. in room 2404. Civic Center. Respect}f'cllly submitted, s E. Robinson I amic Development Planner ..4 'T!I. _ -s . ' ay,, DRAFT-NOTAPPROVED MEETING OF THE JOINT REVIEW BOARDS MEETING MINUTES THURSDAY, DECEMBER 11, 2003 ROOM 2404-8:30 A.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Lutaf Dhanadina District 65, Jackie Harder - Cook Countv Board, Anne Laurence-Oaldon Community, Colleve, Valerie Kretchmer, Martin Norkett, Bryan Rosinsky-Ridgeville Park District, Jeffery Taggart -District 102, Patricia Vance -Evanston Township (RESIDING OFFICIAL: Aid. Gene Feldman STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, William Stafford OTHERS PRESENT: Mayor Lorraine Morton, Dianne Williams Summary of Actions: I. Because Aid. Feldman was briefly delayed, Dennis Marino convened the Joint Review Boards meeting at 8.45 A.M. II. Dennis Marino began by advising the Joint Review Boards (JRB's) that the purpose for the JRB meetings is to comply with TIF statutes requiring all TIF District Boards to convene annually to review each TIF district's financial performance and to insure compliance with state regulations. Evanston currently has four TIF Districts: The Downtown II/Research Park TIF District; The Washington National TIF District As Amended; the Howard/Hartrey TIF District and the Southwest TIF District. Mr. Marino stated that all four meetings were combined in this one session and each TIF District wiGuld be independently discussed in the order listed on the agenda. Each member of the JRB received by messenger, a financial performance audit report for each TIF District prior to the date of the JRB meetings. The JRB meetings also provide the City with an opportunity to share information with all of the taxing districts affected by the TIF Districts in Evanston. III. The Howard/Hartrev TIF District #3 was scheduled first for review. With the use of a visual aid map, Dennis Marino continued the presentation to the Joint Review Board by describing the boundaries and prior land use of the Howard/Hartrey TIF District. Mj DRAFT NOTAPPROV E'D MEETING OF THE JOIN RMEW BOARDS MINUTES-DECUMBER 11.2003 PAGE 2 Mr. Marino informed the JRB that the site was formerly the Bell & Howell warehouse. (Shortly after Mr. Marino began, Ald. Feldman arrived and assumed the Chair's seat). Ms. Judith Aiello provided an overview of the development. This development project provided the City with an opportunity to concentrate retail concerns on the southwest side and this TIF District has been very successful in generating sales taxes. The initial retail establishments in the Howard/Hartrey shopping center were Target (Dayton Hudson), Best Buy Jewet Osco, Office Depot and a World Bank branch. Next, Mr. Stafford provided a brief recap of the financial performance for the Howard/Hartrey TIF District. TIF regulations require the City to provide an annual audit opinion as part o f the annual report. Mr. Stafford d irected the attention o f the JRB to pages eighteen and twenty-five of the annual report, which summarizes the district's financial performance. If specifics are required, this document is available to the public in the City Clerk's Office and in the Planning Division at the Civic Center. The Howard/Hartrey TIF District is the best financially performing TIF District and it generates approximately 25% of the total sales tax for the City, even outperforming the downtown. The City has an inter -governmental agreement with the two school districts in which S600,000 is provided to be split evenly. The funds are generated from the real estate taxes generated from the Howard/Hartrey TIF District. IV. The Southwest TIF District 42 was next on the review agenda. Mr. Marino explained that this TIF was established in 1990 and with the use of a map, described the boundaries of the TIF. The previous land use was an old railroad right of way, and various types of storage facilities. The TIF District has a Sam's Club and Ward Manufacturing Co. located within the boundaries. Ms. Aiello continued by advising the JRB that the original concept for the Southwest TIF District was to create a small industrial area. Ms. Aiello advised the JRB that the front of the Center where the closed Builders Square is located and the strip of retail extending to the Sam's Warehouse border are not within the boundaries of the this TIF District. However, Ms. Aiello informed the JRB of the recently approved redevelopment project that is underway on the site. Mr. Stafford again directed the attention of the JRB to pages eighteen and twenty-five of the Southwest TIF District annual report, and briefly described the past year performance of the district. This document is also available at the offices of the City Clerk and the Planning Division located in the Civic Center. V. The Downtown II TIF District #f was next on the agenda. Mr. Marino informed the JRB that this area was formally known as the Evanston/Northwestern Research Park:, Mr. Marino briefly described the boundaries of this district and displayed and old aerial photograph, which displayed the locations of the original buildings within the boundaries. DRdFT-NO TAPPROVED MEETING OF THE JOINT REVIEW BOARDS MINt?TES-DECEtiIBER It. 2003 PAGE 3 Ms. Aiello provided the JRB with a brief history of the formation of the Downtown II/Research Park TIF District and early development p rojects o n the twenty-three acre site. Ms. Aiello explained the ownership of the various properties within the district and how the Arthur Hill Development Co, was subsequently chosen by the City to redevelop the southern portion. Recently, Borders book Store relocated to the mini -anchor site located at the corner of Church and Maple, across from the Main Pavilion. The Century multi -screen cinema is slated for remodeling, even though it is only a few years old. This is keeping with the owners desire to remain competitive. A Chili's restaurant also opened in 2003, on the north-east end of the pavilion block. Mr. Stafford referred the JRB to pages eighteen and twenty-five of the Downtown Il Annual Report and briefly discussed the performance of the TIF District. The public may access this report in the City clerk and Planning Division offices located in the Civic Center. Yl. The Washington National TIF District As Amended #4 was the last on the agenda for review. With the use of maps, Mr. Marino explained the original border of the district as well as the new borders after the district was amended in 1999. The original area designated as the Washington National TIF District was primarily occupied by the Washington National Insurance Company's headquarters building. The amendment to expand the TIF district was crucial for the purpose of including the deteriorating Sherman Avenue garage within the borders of the district, as well as a few smaller but important locations (such as Fountain square) with potential or need for future redevelopment. Ms. Aiello described the Buck residential tower development and those businesses which have been attracted to the area within the original TIF District footprint. Ms. Aiello then proceeded to explain why the City needed to replace the existing garage and why the City chose the route taken. She further explained how the Klutznick development team approached the city with a viable project, which initially included a Sears retail store. Ultimately, the developer proceeded without Scars and was successful with winning approval from the City for the revised project as well as acquiring the properties requited for the development. Ms. Aiello then presented and commented on artist renderings of the Klutznick redevelopment project destined for this district. Although some demolition has occurred, the development project has been delayed, primarily due to financing issues but it is again expected to commence during the fiat quarter of 2004. The M's were also advised of the tremendous financial stake which has already been committed by the developer. DRIFT -NOT APPRO 1'ED MEETING OF THE JOINT REVIEW BOARDS AIINUTES-DECENIBER 11.2003 PAGE 4 Once again, Mr. Stafford commented on the performance of the Washington national TIF District and referred to pages eighteen and twenty-five of the JRB report. This report is also available for review in the City Clerk and Planning Division offices. VII. There were no other business issues or questions regarding the TIF districts after the presentations were concluded. Aid. Feldman briefly informed the panel of the recently conceived Downtown Visioning initiative, which entails the formation of a broad based group of citizens, City staff' and elected officials who will begin meeting to better plan for and manage the commercial and residential direction of the downtown area. A question was entertained from the audience concerning the proposed Howard Street TIF District #5. Mr. Marino briefly explained the current status of the proposal, stating that both the Joint Review Board and the Economic Development Committee have recommended City Council approval to adopt the area as the new TIF district. Mr. Marino further advised the audience of the public hearing date which will occur during the upcoming City council Meeting on Monday, December 15, 2003. The'City.Council will take action on the proposal on the same date. VIII. There being no further business, Aid. Feldman officially adjourned the meetings of the Joint Review Boards at 9:14 A.M. submitted, Robinson Development