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HomeMy WebLinkAboutMinutes 2005DRAFT-,VOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE, PLAN COMMISSION AND PARKING COMMITTEE JOINT MEETING PRESENTATION SUMMARY OF JANUARY 26, 2005 PARASOL ROOM-7:00 P.M. CITY OF EVANSTON CIVIC CENTER 2100 RIDGE AVENUE EDC MEMBERS PRESENT: Aid. Feldman- hair Aid. Mayan, Aid. Newman, Aid. Rainey Aid. Wynne, Marvin Juliar, Marty Norkette, Alice Rebechini, Barbara Putta PLAN COMMISSION MEMBERS PRESENT: Albert Hunter -Vice Chair, Sharon Bowie, Steve Knutson, James Woods, Alice Rebechini, Kenneth Rodgers PARKING COMMITTEE MEMBERS PRESENT: Aid. Newman -Chair, Aid. Bernstein, Aid. Wynne, Jonathan Perman PRESIDING STAFF: Judith Aiello -Assistant Citv Manager, Dianne Williams - Executive Director. Evmark STAFF PRESENT: Julia Carroll -City Manager, Judith Aiello, James Wolinski, William Stafford, David Jennings, Arthur Alterson, Dennis Marino, Morris Robinson, Jean Baucom, Arlova Jackson, Vince Jones, Gavin Morgan, Tracy Norfleet, Barbara Zdanowicz PRESENTERS: Michael George -President, Peggy Blanchard, et -al of Mid -America Real Estate Corp., Timothy Doron-Principal, Neil Kenig, Javier Milian of &Mik Linderen. O'Hara, Aboona, Inc. (KLOA), John LaMone, et -al of the Lakota Group, Linda Goodman of Goodman Williams Group and various Downtown stakeholder/visioning process participants. Presentation Summaries: On Wednesday, January 26, 2005, the Economic Development Committee, Plan Commission and the Parking Committee jointly hosted a Downtown Visioning Findings and Recommendations meeting. The session convened at approximately 7:15 P.M. DRAFT -NOT APPROVED EDC, PLAN COM., & PARKING COM. JOINT MEETING PRESENTATION SUMMARY-JANUARY 26, 2005 PAGE 2 The Power Point and slide presentations were delivered by representatives of City and Evmark staff, key principals of the consulting firms of Mid -America Real Estate Corp., KLOA, the Lakota Group and the Goodman Williams Group. The audience was provided with companion studies, detailing the findings, analyses and recommendations from each of the consulting firms. Prominent downtown stakeholders were well represented in the audience. It is estimated that 75 to 100 people were in attendance. The meeting lasted for approximately three hours. The topics discussed at were: Downtown Visioning Report Findings and recommendations of the Downtown Retail Study Findings and recommendations of the Traffic and Parking Study There were no Committee or Commission actions taken with regard to the presentations. The Visioning Steering Committee will next develop the strategic direction for the next phase of the visioning process. This joint meeting was captured on audio tape and is available to the public, by appointment. Interested parties may hear the tape in its entirety at the Civic Center, in the Planning Division, third floor, Room 3900. Copies of the studies are also available for citizen review at the same location. Interested parties may contact Morris Robinson, Economic Development Planner or Tracy Norfleet, General Planner at (847) 866-2928. There being no further business, the joint presentation meeting ended at approximately 10:00 P.M. The next EDC meeting is scheduled for Wednesdav February 23 at 8:00 P.M. in Room 2404, Civic Center. A special meeting of the Plan Commission is also scheduled Wednesdav February 23, 2005 at 7pm in Council Chambers. Respectfully submitted, a Economic Development Planner ,, - ,••5eq; _.,Nay., �f�; ECONOMIC DEVELOPMENT CON M WEE MEETING MINUTES OF WEDNESDAY FEBRUARY 23, 2005 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Ald. Moran, Ald. Rainey, Aid. Wynne, MEMBERS ABSENT: Ald. Newman, Marvin Juliar, Marty Norkett, Barbara Putta, Alice Rebichini PRESIDING OFFICIAL: Ald. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: STAFF PRESENT: Ald. Jean -Baptiste Judith Aiello, Dennis Marino, William Stafford, Morris Robinson OTHERS PRESENT: Paul Giddings-CNSCVB, Delores Holmes-ECDC. Ron Kesi.ak- ECDC, Ken Kominski-Hotel Orrington, Cathy K esserling-ffgtel Orrinwon, Gina Speckman-CNSCVB Summary of Actions: I. Aid. Feldman called the EDC Meeting to order at 8:08 P.M. U. The November 17, 2004 EDC Meeting minutes were not considered for approval for lack of a quorum. Dennis Marino advised the EDC that since a quorum was not achieved, no actions could be taken on any of the agenda items. III. CNSVB Update: Ald. Feldman asked Mr. Paul Giddings to provide the EDC with a brief overview on the Chicago's North Shore Convention and Visitors Bureau and to introduce Ms. Gina Speckman. Mr. Giddings, the Evanston member of the CNSCVB Board, introduced Ms. Speckman as the new Executive Director of the CNSCVB. Ms. Speckman previously worked with the Chicago Convention and Tourism Bureau. Ms. Speckman provided the EDC with Bureau packets containing various advertising collateral material and proceeded with a detailed description of the past year marketing activities. Ms. Speckman described the CNSCVB efforts in generating over 600 room nights for Evanston hotels in calendar year 2004 and discussed the marketing and advertising plan for 2005. Ms. Speckman also explained the collaborative marketing initiatives undertaken with Evmark, the Evanston Chamber of Commerce and the Evanston Arts Council. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT CO.N AfITTEE MINUTES-FEBRUARY 23, 2005 PAGE 2 Mr. Ken Kominski, Orrington Hotel Vice President of Human Resources and Ms. Cathy Kesserling, the Orrington Hotel Marketing Executive provided the EDC with an overview of the success the hotel has enjoyed while working with the CNCVB and spoke highly of the overall positive impact the bureau has had in the City. The hotel will have approximately 250 employees once the restaurant opens and Mr. Kominsky estimates annual tax revenues generated by the hotel to be $1 million. EDC members complemented the representatives of the Orrington on its inclusion in the prestigious "Preferred Hotel System". The Orrington is one of only two hotels in the Chicago Metropolitan area to achieve this distinction. The other hotel is the Peninsula Hotel located at 109 E. Superior Street in Chicago. Aid. Feldman asked Mr. Kominsky to provide the EDC with documents listing the rigid standards required for inclusion on the Preferred Hotel S) stem roster as well as a list of other hotels that have been selected. Mr. Kominsky agreed to do so. Aid. Feldman thanked the presenters and proceeded to the next agenda item. IV. Evanston Plaza Uvdate: Aid. Feldman asked Mr. Chuck Fiorito, Principal ofJoseph Freed & Associates to provide the EDC with an update on the leasing strategies for the Evanston Plana Shopping Center which is owned by his firm. The EDC members requested the audience, stemming from growing concerns about the types of businesses which have leased space in the past, as well as with the level of store vacancies in the center. Mr. Fiorito presented the leasing strategy for this shopping center which is anchored by a Dominick's grocery store. Prior to 1999, the shopping center had an extremely high vacancy rate and the primary retail concern was a Frank's Nursery & Craft store. DomWck's established an anchor store in the center as part o f a redevelopment proj ect in 1999. The project was partially supported by a sales tax reimbursement agreement with the City and the center was significantly improved.An additional 30,000 square feet of new retail space has been created as well. However, chronic vacancies have continued. Mr. Fiorito reported on the recent success of adding Dance Center of Evanston as a desirable tenant. As a result, over 700 upscale families visit the shopping center weekly with many visiting twice weekly. The acquisition of this tenant is part of the overall strategy to provide more upscale tenancy for the center to provide shopping opportunities for the new market opportunity as well as to discourage deep discount retailers which tend to be poorly operated. Aid. Rainey expressed her disappointment with some of the previous tenants but also complimented Freed Associates on the beauty of the landscaping and the on -going maintenance of the plantings at the shopping center. Other EDC members voiced their concerns about the level of vacancies but also expressed pleasure in the accessibility of management and ownership team. Mr. Fiorito indicated that his firm has a strategic commitment to the success of the shopping center. DRAFT -NOT -APPROVED ECONOTNQC DEVELOPMENT COM'iITTEE MINUTES-FEBRUARY 23.2005 PAGE 3 Dennis Marino advised the EDC that although a higher than desired vacancy rate exists, the center has been able to meet sales tax projections. The EDC members, particularly AhL Moran and Rainey, emphasized the need for Freed & Associates to recruit stronger retailers and to engage in more marketing to consumers initiatives. Particular attention should be directed at improving efforts to screen out poorly run tenants and weak seasonal Ieases. Mr. Marino stated that in addition to substantially increased sales tax revenue generated at the shopping center, the amount has been sufficient enough for the past two years to enable Freed & Associates to contribute $20,000 to a mitigating account. This funding is earmarked to be used for neighborhood improvements as required by the redevelopment agreement. { ' Mr. Fiorito once again reassured the EDC of his firms long term commitment to the shopping center and to Evanston The EDC members had no further questions and Ald. Feldman continued with the next agenda item. V. PROPOSED WEST EVANSTON TIF DISTRICT: AId. Feldman asked Mr. Robert Rychlicki of Kane Mckenna to present his findings with regard to the eligibility of a proposed TIF District in west Evanston. A draft Eligibility Study was included in each EDC packet. Using large visual aids, Mr. Rychlicki reported that the study locale qualified as a "Conservation Area" under the state of Illinois TIF statutes. Mr. Rychlicki also presented a preliminary financial pro -forma analysis for the proposed TIF district based on four potential development projects (two residential, one retail and one industrial expansion) which illustrated the possible projected incremental revenues for these types of developments. It should be noted that potential residential projects are active possibilities at this time. Copies of the pro -forma analysis were distributed during the meeting. Pursuant to a previous EDC request, Mr. Marino also reported on preliminary contacts with developers concerning the potentially beneficial impact of causing projects to happen that might not occur as a result of the area being designated as a TIF District. EDC inquiries included eligibility requirements, clarifications of details pertinent to the preliminary financial pro -forma analysis and mandated school tuition reimbursements for school age children who move into new dwellings partially supported by TIF revenues. Aid. Feldman especially stressed the need for both school districts to remain involved in the entire process. Staff and Mr. Rychlicki informed the EDC that the next step in the process is to prepare a draft revitalization/redevelopment plan. The draft plan will then be presented to the EDC in the near future for review and, combined with the already completed draft eligibility study, the documents will serve as the focus of EDC deliberation to determine whether a formal process of considering the establishment of a new TIF district should be recommended to the city Council. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-FEBRUARY 23, 2005 PAGE 4 The EDC consensus was to have staff proceed in that manner. Aid. Feldman stressed the need for the success of the proposed TIF District for the good of the community as well as for the City. Aid. Feldman added that what is unique about this particular proposed T1F District as opposed to the other five is that it is proposed not for the purpose of enhanced revenues to the City but rather it is focused on the benefits to the people in the community. VI. DOWNTOWN VISIONING: Ms. Judith Aiello provided the EDC with a brief update concerning the next phase of the steering committee's "downtown visioning process". VII. PROJECT UPDATES: Mr. Marino provided the EDC with a briefupdate on the proposed Kendall College site redevelopment plan. The developers were appearing before a special public hearing meeting of the Plan Commission during the same period as the EDC Meeting was occurring that night. The prospect of the Plan Commission meeting extending well into the evening was evident. VI1L COMMUNICATIONS: The EDC members had no comments or questions regarding the communication items included in their packets. Among the items was the unapproved draft of the minutes for the December 2004 Joint Review Boards Meetings. IIX. There being no further business, the meeting was adjoumed at approximately 9:30 P.M. The next scheduled EDC Meeting is for Wednesday. March 23. 2005 at 8:00 P.M. in Room 2404. Civic Center. ly submitted, 1 E. Robinson I mic Development Planner ECONOMIC DEVELOPMENT COMMYTTEE MEETING MINUTES OF WEDNESDAY, APRYL 27, 2005 ROOM 2404-5:00 P.M. MEMBERS PRESENT: Ald. Feldman, Ald. Moran, Ald. Rainey, Aid. Wynne, Marvin Juliar, Marty Norkett, Barbara Putta, Alice Rebechini MEMBERS ABSENT: Aid. Newman ! PRESIDING OFFICIAL: Ald. Feldman, Chair i�•�rsrn.r� OTHER COUNCIL + MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, William Stafford, Dennis Marino, Morris Robisisan' " =-awl' OTHERS PRESENT: Ann Diener, Betty -Sue Ester (Dennis Marino provided the EDC members with a revised agenda and wrinert comments regarding Bond Volume Cap Allocations. 71e issue is listed as Roman numeral V on the revised agenda). I. Ald. Feldman called the EDC Meeting to order at 8:03 P.M II. After member Rebechini noted the misspelling of her name, the Meeting Minutes of November 17, 2004 and February 17, 2005 were unanimously approved. III. DOWNTOWN VISIONING IMPLEMENTATION Judith Aiello proceeded to provide the EDC with a review of the activities designed to implement the Downtown Visioning Process. The presentation included concepts for improved identification measures for the downtown, way finding signs and availability of new technology pertaining to interactive information kiosks. Ms. Aiello advised the EDC members of the need to rye -examine, by EvMark and City staff; of the boundaries of the downtown area, particularly the west boundary, with a goal of reaching a determination of boundaries recognized by all concerned parties. Judith Aiello also informed the EDC of the potential benefit(s) for architectural markers which could be utilized to indicate entry into the downtown area. Considerable discussion arose from the recent Chicago Transit Authority's announcement that the CTA will, this year, begin to completely rehab three of the City El train viaducts, Main, Church and Grove Streets. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-APRIL 27, 2005 PAGE 2 This announcement is a culmination of extensive lobbying on the part of City staff and EvMark. The EDC members were pleased to bear of the planned improvements however, the EDC members still expressed concern about the lack of attention to the Dempster Street viaduct, as well as for METRA's lack of maintenance on their bridges. Apparently, this year the CTA has appropriations to rehab the three viaducts or to rehab only the Dempster Street viaduct which needs much more attention. The decision was made to rehab the three viaducts rather than only one this year. Hopefully, more funds will be appropriated next year to address the Dempster street' viaduct. Chair Feldman suggested that the City begin using what means that are available to induce NMTRA to comply with maintaining their bridges since the City is being, harmed by METRA's inaction. Ald. Rainey also added that safety issues exist, particularly at the Howard Street underpass. Other visioning updates included plans for evening cultural events; arts initiatives working in conjunction with a proposed arts sub -committee representing EvMark; ,the Chamber, Arts Council and the Public Arts Committee, with the goal of establishing a coordinated arts promotion rationale. Also downtown marketing initiatives were discussed. A discussion evolved concerning the right mix of retail in the downtown area. Special attention was given to the increasing number of fast food establishments proliferating on Sherman Avenue, north of Church Street. Chair Feldman reminded the EDC that his primary reason for establishing the Visioning project was because of the concentration of Type 2 restaurants on Sherman Avenue and to determine ways to limit the proliferation. i In the Chair`s opinion, it appears that the Visioning team has not addressed this important issue sufficiently. - Several members voiced opinions that the City Council needs to codify clearly understood regulations concerning the n3ic of retail in the downtown area Members i expressed the need for a sub -committee for this issue, adding that much more discussion is needed. This issue will be on the EDC May 25 meeting agenda. No formal action was required or taken at the end of the presentation. IV. SHERMAN PLAZA UPDATE Judith Aiello next provided the EDC with a progress update on the Sherman Plaza" development project. Seventy-three percent of the residential units have been sold.,: Seven"even percent of the retail space is in negotiation and a signed agreement for the 60,000 square feet health club facility will be concluded within sixty days. No formal action was required or taken at the end of this update. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT ComnTTEE MINUTES-APRIL 27, 2005 PAGE 3 V. BOND VOLUME CAP ALLOCATION FOR 2005 Denis Marino provided the EDC with an informational update on the bond volume cap allocations for year 2005 and how the bonds in the planned development stage can be used to the City's advantage if there is market demand. No formal action was required. VI. PROJECT UPDATES Dennis Marino informed the EDC on the status of two new projects. 1.) A proposed new nineteen unit residential project is planned at 645 Custer which is a former industrial site. 2.) Redevelopment is planned for 1605-1629 Orrington on the site of the plaza, which will add 13,600 square feet of retail space. The parking garage ramp will also be removed. No action was required. VII. REQUEST FOR 68 ASSESSMENT REDUCTION Dennis Marino next advised the EDC of a request from a Chicago based cabinet maker for support for a 613 Cook County assessment reduction for an industrial property located'� at 2100-12 Greenwood, Evanston. The distressed property to be purchased has been vacant for more than two years. The prospective buyer, The Space Organization, will also invest S500,000 to rehab the property. Currently the concern employs 30 people and provides livable wages. In turn, for City support for the 613 program, the employer will agree to work with the high school and train and hire ETHS students as well as Evanston residents. At a minimum the payroll is projected to exceed more than one million dollars per year. After providing an analysis of the benefits, staff recommended support for the 613 program as a means to reactivate this distressed property as an employment generating enterprise as well as increase annual real estate revenues even with an assessment reduction. In addition, the enterprise would help to strengthen the Greenwood industrial corridor and enhance the neighborhood. Action was required. The EDC members expressed their enthusiasm for the recommendation but requested staff review the strength of the business applicant as well as develop an agreement for the ETHS relationship and local hiring. Aid. Wynne moved to recommend support for the 613 program with the conditions expressed and Aid. Moran provided a second. The measure was passed with a unanimous vote. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE AHNUTES-APRIL 27, 2005 PAGE 4 V M. Although an Executive S ession was scheduled o n the agenda, stag' advised the EDC that it no longer was required. EL COMMUNICATIONS The articles and materials contained in the EDC packets were acknowledged without discussion. X There being no further business, the . EDC Meeting was! adjoumed:rrat! approximately 9:50 P.M. The next EDC. Meeting is scheduled far wcdnesday,,May 25;:2005, at 8:00.P:M:' at the, Civic Center, in Room 2404, second floor. Respectfully submitted, _; ' " `�' '_:j .1 1 1 Mo 's E. Robinson Eco omic Development Planner •' • .r . ru�F•r.,t r[ .iv ECONOMIC DEVELOPMENT COMMITEE MEETING N[INUTES OF WEDNESDAY, MAY 259,2005 ROOM 2404-5:00 P.M. MEMBERS PRESENT: Ald. Moran, Aid. Rainey, Ald. Tisdahl, Ald. Wynne; Marvin Juliar, Marty Norkett, Steven Samson MEMBERS ABSENT: Ald. Jean -Baptiste, Alice Rebechini PRESIDING OMCUL: Ald. Moran, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Holmes STAFF PRESENT: Judith Aiello, William Stafford, Dennis Marino, Morris Robinson OTHERS PRESENT: Ann Dienner, Betty -Sue Ester, Paul Giddings,' Ken Kaminski, Ronald Kesiak, Jonathan Perman, Robert Ryachlicki, Gina Speckman, Judith Treadway I. Ald. Moran called the EDC Meeting to order at S:04 P.M EL Ald. Morava h&oduced and welcomed the new members of the Economic Development Committee. The new members are Ald. Tisdahl, Ald. Jean -Baptiste (absent due to schedule conflict) and Mr. Steven Samson who is serving as the Zoning Board of Appeals liaison member. ill. The Meeting Minutes of April 27, 2005 were unanimously approved. IV. Chita o's North Shore Convention & Vhftore Bureau Funding Rearrest Aid. Moran advised the EDC that the first business item an the agenda was for consideration of the annual fimding request from the Chicago's North Shore Convention & Visitors Bureau (CNSC&VB). Mr. Paul Giddings, CNSC&VB board member rose and provided the EDC with an historical overview and of the CNSC&VB as well as previous years funding requests. After completing the preliminary remarks, Mr. Giddings introduced City hotel and restaurant representatives and the relatively new CNSC&VB Director Ms. Gina Speckman to the EDC. Mr. Ken Kaminski, representing the Orrington Hotel, took the opportunity to advise the EDC with a positive overview of the CNSC&VB. DRAFT -NOT APPRO VED ECONOMIC DEVELOPMENT CONBE TTEE MINUTES -MAY 25, 2005 PAGE 2 Ms. Speckman began her presentation by referencing the extensive budget and collateral material previously provided in the EDC Meeting packets and began an in depth report on the previous year activities and the proposed activities for the upcoming fiscal year. Ms. Speckman explained to the EDC that because the CNSC&VB is certified by the state of Illinois, the CNSC&VB receives matching state funding, on a dollar for dollar basis, for all funds provided by Evanston and the other North Shore member municipalities. The advantage in the evolution of the original Evanston Convention and Visitors Bureau, which was funded at $250,000 annual budget, to the regionalized CNSC&VB, is that the . expanded bureau has grown to a $750,000 budget because of the matching funds. As such, much more can be accomplished in the marketing efforts for Evanston. There,iai now a four person staff as opposed to the original two person staff and the CNSC&VB is' significantly more competitive. The fourteen other metropolitan bureaus are and have been regionalized and have had the competitive advantage with groups seeking accommodations without having to call or contact several cities to obtain a list of their hotels. One stop shopping is what the market demands. Now that the CNSC&VB is also regionalized, its competitiveness has improved. In the past year, the CNSC&VB has exhibited in nine trade shows, 1,500 meeting planners have visited and has utilized a process to track successes. Capitalizing on close relations with the hotels, continuous efforts are made to attract individual tourist as well. Ms. Speckman distributed copies of the new, upgraded Visitor's Guide with user friendly detailed m aps and t hey were well r eceived b y t he E DC. T he d etailed maps a specially help the visitor to know where the hotels are located, where to find various attractions and shopping districts and how to use the convenient public transportation to get to Evanston. One hundred thousand of the guides have been printed and they are distributed to directly to people reacting to ads, to the hotels, taxi companies, Northwestern University, downtown visitor centers, to the fourteen other metropolitan bureaus and getups working directly with the CNSC&VB. Ads have been placed in all of the appropriate market segments and in different meeting publications. The CNSC&VB does not market the region nationally because that is not its market. The effort is focused on the Midwest. Because of the total number of hotel rooms, the CNSC&VB is best described as a small to midsize meeting venue and that is the size market that's targeted. Ms. Speckmaa included samples of the ads in the CNSC&VB collateral material contained in the EDC packet. Ms. Speckman also advised the EDC that a large ad highlighting all of the . festivals was placed in the weekend edition of the Chicago Tribune and the Milwaukee Journal. A copy of that ad was distributed under separate cover prior to convening the meeting. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MUNIMS-MAY 25, 2005 PAGE 3 Ms. Speckman stated that there will be some new initiatives undertaken for the upcoming year. There will be dedicated sections for meeting planners and tour group operators on the CNSCV&B web site. In addition there will be a press section designed to enable reporters who are preparing articles on Evanston to download pictures at any time. Another section entitled "Our Communities" which will specifically profile the communities in the marketing North Shore region. Evanston is the first City profiled on a dedicated page and detailed information will include a links to the Evanston Chamber of Commerce,, City government, lists of all the area restaurants and retailers. Also, just for the City of Evanston, the CNSC&VB will produce a "VIP CARD" which is. based on a concept used by the sopping malls in the North Shore Region. The card holder is entitled to special offers by the participating merchants. As an example, Ms. Speckman' stated that the Pass Port Card issued by the Old Orchard Shopping Center is distributed in all of the hotels in Evanston. The idea of sending Evanston visitors to retailers in Old . Orchard was odd when they should be tatting advantage of the shopping opportunities in Evanston. By working with Dianne Williams, Director of EVMARK and the various merchant associations, the intent is to provide special offers via the VIP Card just as the shopping malls have done. Thus far, the CNSC&VB has received approximately seventy responses from Evanston businesses. The card will be distributed via the hotels and the CNSC&VB. Completion of a form is all that is required for a visitor to obtain a card. Ald. Rainey requested an example of an advantage provided by the card. Ms. Speckman said the offer must be of uniform value to the customer. A restaurant may offer a free appetizer or dessert with an entree' or a store could give a free gift without requiring a_ purchase or perhaps 10% off on a purchase. Venue attractions may offer two for one admission. Ms. Speckman advised the EDC that there will be cooperative marketing programs with the City of Chicago, explaining that the slowest period of the year for the tourist industry is January and February. The City of Chicago conducts a program during the winter that receives S 1 million a year and the CNSC&VB will be included in the marketing plans. Ms. Speckman continued explaining other marketing initiatives and strategies and Mr. Giddings added insights on the benefits his merchants association has received from . participating in the CNSC&VB activities. Ms. Speckman advised the EDC that previous funding support from Evanston were in the antral amounts of $60,000. This year the CNSC&VB is requesting a 3% increase fofits ' programs which raises the request to S61,800 for the July 1, 2005-June 30, 2006 fiscal �i.: year. - f DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT MEETING MINUTES -MAY 25, 2005 PAGE 4 Action Taken After a brief discussion centering on the anticipated, user friendly improvements on the CNSC&VB web -site and other testimonials from local business people, Ald. Rainey moved to recommend approving the annual grant for the increased amount of $61,800 as requested. Ald. Wynne provided a second to the motion and the EDC passed the motion withh a unanimous vote. V. Proposed West Evanston Tax increment Financing District Chair Moran continued with the Meeting, advising the members that consideration fora proposed West Evanston TIP District was the next agenda item. Staff member Dennis Marino was called upon to begin the presentation. Dennis Marino stated that a four page memorandum was included in the meeting packets which summarized the Draft Redevelopment Plan and Project for the proposed West Evanston Tax Increment Financing District (TIF District), The document is one of two that are required by state statutes before a TIF District can be established. The other document, Draft Eligibility Study, was also included in the EDC packet as Exhibit B and that document was reviewed by the EDC in February 2005. At that time, the EDC authorized staff to work with the Kane, McKenna consulting firm for the purpose of developing the Draft Redevelopment Plan and Project which is now presented for consideration at this May 2005 meeting. Staff member Marino next directed the EDC to Exhibit C which depicts the revised study area boundaries and explained the two revisions. One parcel of land was added just north of Church Street at Dodge Avenue and some single family residential homes and two small townhouse buildings were removed from within the boundaries in keeping with the intent of focusing on under utilized commercial and industrial properties. Mr. Marino continued to illustrate the TIF boundaries with the aid of a large aerial map of the area As a recap of the Draft Eligibility Study, Mr. Marino reminded the EDC that it was,' determined without question that the area met the qualifications of a TIF District, specifically as a "Conservation Area" as defined under state statutes. Staff member Marino also addressed the purpose of the Draft. Redevelopment Plan and Project. Primarily the document indicates in general and flexible terms how the City intends to stimulate revitalization and redevelopment within the proposed TIF District boundaries, The goals are broad and are spread over the next twenty-three years and the' document also explains the various methods that will be used to achieve the goals. Mr. Marino next directed the EDC to the budget page of the document which is listed -as "Estimated Project Cost". The total estimated cost for the twenty-three year period is S25.5 million. . ,Tttiir DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT MEETING MINUTFS-MAY 25, 2005 PAGE 5 Mr. Marino explained how the costs were allocated to the various TIF eligible categories allowed under TIF statutes. The funds are derived solely from the incremental revenue generated by new development in the proposed Tff District. Both documents may be reviewed in the Planning Di%ision Office. Another essential part of the draft plan concerns minimizing the threat of residential displacement '%ithin the proposed TIF District this effort is certified within the document in that no more than ten (10) residential units can be displaced within the proposed TiF District and the goal is to have zero displacement. State statutory requirements dictate the inclusion of displacement certifications. Mr. Robert Rychiicld, Principal with Kane, McKenna, next provided the EDC with an historical overview of the equalized assessed valuation trends in the proposed TIF District area. Basically and enlightened the members on the tuition reimbursement provisions for the school districts. Basically, the EAY trend for the area has lagged behind the rest of the City for the last five years and the same assessment can be said for the CPL in both cases the target area exceeded the statue eligibility requirements. Final data will not be available till late August. W. Rychlicki advised the EDC that any school age children that move into a TIF assisted residential building, the schools are entitled to a per capita tuition charge that changes from year to year, unless otherwise waived by the school district(s). The amount of the reimbursement is capped at 27% of the total residential enrollment of the grade school and 13% of the total residential enrollment of the high school. Although it does not pertain to Evanston, there is also a library allocation for independent library districts. Aid. Rainey asked for further clarification of the school allocation requirements. Mr. Rychlicld response was that the schools must conduct an annual student census and only new students who move into T1F assisted residential units are eligible. Both Mr. Rychlicki and staff member Marino continued to field questions from the audience and EDC members and clarified various aspects of the proposed TIF District provisions until all questions were answered satisfactorily. Staff member Marino advised the EDC that the required action to move forward with the proposed TIF District was to accept the draft document and establish dates for a Joint Review Board Meeting (M) and a Public Hearing, both state statute requirements. Staff' recommended June 30, 2005 for the JRB Meeting and August 15, 2005 for the Public Hearing. In response to a concern raised by Ms. Betty Sue Ester, Ald Rainey suggested,a second Public Hearing meeting be scheduled within or near the proposed TIF District ks an added effort to inform the community, with an increased effort to include residents north of Church Street. Ald. Holmes agreed to the suggestion but added that many past efforts were made to reach the surrounding communities including the hosting of a TIF information session. i DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMINU EE MINUTES -MAY 25, 2005 PAGE 6 Action Taken Chair Moran moved to recommend acceptance of the Draft Redevelopment Plan and Project and to set the suggested dates for the Joint Review Board Meeting and two Public Hearings. Ald. Wynne provided a second and the motion carried with seven affirmative votes and one abstention by member Norkett. VI. Sherman Plaza Update Judith Aiello next provided the EDC with a brief update on the Sherman Plaza Development Project. Construction of the new municipal garage is on scheduled and significant gains have been attained in retail space leasing and condominium sales. VH. Protect Ut)dates Dennis Marino provided the EDC with a brief on the proposed redevelopment project at 1605-1629 Orrington Avenue. MIDI. Morris Robinson provided the EDC with an updated Member list which included addresses, phone and fax numbers. Ald. Rainey Requested that the list be revised to also reflect the e-mail addresses of members. The revised member list will be distributed in the June 22, 2005 EDC Meeting packet. DL Communications The articles and materials contained in the EDC packets were acknowledged without discussion. Ald. Rainey requested the montlily Tax Transfer Report be included in future packets. X- There being no further business, the EDC Meeting was adjourned at approximately 9:30 P.M. Afterwards, Ms. Judith Treadway asked when residents near the new District 65 Administration Building can expect promised sidewalks. Ald. Rainey asked for patience and assured Ms. Treadway that the City is addressing sidewalk issues. The next EDC Meeting is scheduled for Wednesday, June 22, 2005 at 8:00 P.M. at the Civic Center, in Room 2404, second floor. •+avaaw .r. �w v..wv.. Economic Development Planner ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES OF WEDNESDAY, JUNE 229 2005 ROOM 2404-8:00 P.M. MEMBERS PRESENT: Ald. Moran, Ald. Jean -Baptiste Aid. Rainey, Aid. Tisdahl, Ald. Wynne, Marvin Juliar, Marty Norkett MEMBERS ABSENT: Alice Rebechini, Steve Samson PRESIDING OFFICIAL: Aid. Moran, Chair OTHER COUNCIL MEMBERS PRESENT: STAFF PRESENT: Julia Carroll, Judith Aiello, Herbert Hill, William Stafford, Dennis Marino OTHERS PRESENT: Richard Fisher, et al-Autobarn Dealership I. Ald. Moran called the EDC Meeting to order at approximately 8:00 P,M Aid. Moran introduced and welcomed Aid. Lionel Jean -Baptiste as a new member of the Economic Development Committee. ' U. The Meeting Minutes of May 25, 2005 were unanimously approved. III. Consideration of Pronosed Redevelonment Agreement With Autobarn Aid. Moran advised the EDC that the first business item on the agenda was for consideration of a proposed sales tax sharing agreement with Autobarn, designed to retain this auto dealer in Evanston. The EDC members received documents in their packet pertaining to the proposal. Staff member Judith Aiello was called upon to begin the presentation. Ms. Aiello began by introducing Mr. Richard Fisher, the owner of the Autobarn, to the EDC, the architect commissioned by the owner and City staff attorney Herbert Hill. City Manager Julia Carroll and City Finance Director William Stafford were also acknowledged. Among the documents distributed to the EDC was a map intended to be used to minimize confusion, by depicting the different addresses referenced in the presentation. A revised draft of the agreement, containing minor changes, was also passed to the members. The EDC was also provided with the most current budget and a pro -forma projections indicating how funds would be used. These documents were provided by Mr. Fisher. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES -.TUNE 22, 2005 PAGE 2 Ms. Aiello advised the EDC that -the intent was to walk the committee through the proposal, design concept and the financial structure of the project. Staff will then request a recommendation from the EDC to move the proposal forward to the City Council for introduction at the Council meeting on Monday June 30, 2005 and for action at the July It, 2005 Council Meeting. The proposal is basically an attempt to retain the Autobarn dealership in Evanston. Currently, Autobarn is comprised of. Volkswagen located at 1012 Chicago Avenue;,, c , Mazda, located at 1001 Chicago Avenue and a previously owned vehicles open sales ,lot. , at 1034 Chicago Avenue. City staff and Mr. Fisher have been engaged in discussions regarding the potential to relocate from Evanston to Skokie. Initially staff sought to retain the business in Evanston by suggesting the vacant Belmont Steel property located on Oakton Street ,near. McCormick Boulevard. However, Mr. Fisher and the property owner were not able to arrive at acceptable terms and other considerations were called for. Coincidently, staff learned that during the same period, the owner of the Toyota dealership also located at 1015, 1033 Chicago Avenue and 515 Greenwood, was making plans to relocate from Evanston to Fox Lake, Illinois. It was suggested to Mr. Fisher to 1 investigate acquiring these parcels if combined, they would meet the space requirements. As a result of the discussions between the two auto dealership owners, it was determined that the price for the parcels was more expensive than what it would cost for Mr. Fisher to move the Autobarn dealership to Skokie where a parcel had already been purchased. Staff continued to negotiate with Mr. Fisher and as a solution proposed a sales tax revenue sharing program with a floor of S 1.35 Million, not to exceed a maximum of $1.5 million. The amount of the rebate represents approximately 15% of the total dollar expenditure required for Mr. Fisher to accomplish the business expansion project. The proposed agreement stipulates that once the move and the renovation is completed, the City would rebate 100% of the new sales tax revenues above the base year amount of approximately $300,000. The City will also share the tax revenue for the base year. Once the total amount is received by Autobarn, the proposed agreement stipulates that Mr. Fisher will be obligated to retain the auto dealerships in Evanston until subsequent sales tax revenue repays the $1.35-S1.5 million to the City. Based on projected sales, it is projected that it will take a minimum of four or more years to accomplish repayment to the City. For the sake of clarity, Aid. Moran asked for and received a repeat of the foregoing. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUNE 22, 2005 PAGE 3 Ald. Rainey added that it appears that the City will break even in ten years unless there is another document available indicating what the loss to the City would be should the dealership relocates. in addition, if there is such a document, another document would be required which indicate the revenues generated by the Toyota dealership. Staff did not have that information. Staff member Stafford stated that the City would also receive approximately $35,000 p er year in property taxes from Autobarn, and o ver a nd above that amount the City would receive approximately S350,000 for all of the districts. Committee member Juliar asked what influence Volkswagen and/or Mazda has over the length of time the dealership remains in Evanston. Mr. Fisher stated that Illinois statutes allows franchises to move up to two miles without complaints from other dealers, however the move must be approved by the manufacturer. Both of the Autobarn Volkswagen and Mazda dealerships are built to the manufacturers design specifications with their furniture other accoutrements. Once the manufacturers have made such investments there would be a strong reluctance to move and redo the costly build -outs again. Mr. Fisher anticipates a time period of four years to collect the sales tax reimbursement and at least another three years afterwards to repay the amount to the City. If the agreement is approved and the tax sharing plan is accomplished, Mr. Fisher stated it would be his intention to remain in Evanston until he retires. Committee member Norkett asked if the automobile manufacturers at times dictate when a dealer must move, such as when the local market is not large enough to sustain sales. Mr. Fisher acknowledged that some manufacturers have at times mandated moves but in: the case of the Volkswagen dealership in Evanston, over the last twelve years it has consistently been either first or second in Volkswagen sales in the Chicago metropolitan area. Mr. Fisher added that for Volkswagen, Evanston is a wonderful place to be even with the "parking problems and high real estate taxes". Committee member Norkett then wanted to know how much control the manufacturers have over when a dealer should move. Mr. Fisher stated that he has a Perpetual Dealer Agreement with his manufacturers and in order for them to force a move it would take considerable legal maneuvering on their part. Mr. Fisher explained that his company had already been approved for a move to Skokie, 1.9 miles from his present location. Mr. Fisher owned the land, was at the permit stage and all the architectural drawings had been completed when staff members from Evanston approached him with a proposal. Discussions with the Evanston City Manager and City staff proceeded for a few months in an effort to reach agreement. DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES•JUNE 22, 2005 PAGE 4, Mr. Fisher stated that when the possibility of obtaining the Toyota site arose, Officials from Volkswagen and Mazda were brought in to see first hand the number of condominium units being developed in Evanston. Mr. Fisher explained to the officials that he was confident that the people purchasing the units were the Volkswagen/Mazda market. The manufacturing officials also expressed their positive sentiment for Autobarn remaining in Evanston. Mr. Fisher together with his architect next presented the EDC with a detailed review of the Volkswagen and Mazda building exterior designs and internal floor plans for the proposed dealership renovation and expansion. Exterior restoration improvements to the elevations were illustrated at length. The Mazda building design concept is called "Retail Revolution" and the Volkswagen building design concept is called "Market Place". The names are provided by the manufacturers. A number of design questions from EDC members w ere a ddressed d uring t he p resentation. A Id. W ynne a xppessed c oncem w ith potential problems with lighting, outdoor speakers and streetscape issues. Mr. Fisher expressed his willingness to handle each issue to the satisfaction of the City. Aid. Rainey expressed concerns about the manufacturers required symbol on the exterior of the Volkswagen building. Aid. Wynne asked about the status of 1001 and 1012 Chicago Avenue in light of the proposed move. Mr. Fisher stated that he is compelled to sell the buildings. Cars will be stored on the recently purchased property in Skokie which has a 500 car capacity. Aid. Rainey asked for and received assurances that all purchase deals will originate in Evanston. Aid. Rainey also asked if Skokie had offered a deal to attract Autobam. Mr. Fisher acknowledged that he was engaged in discussions with Skokie when Evanston staff approached him with a proposal. However, Skokie has not been ruled out. Staff member William Stafford next provided the EDC with pertinent financial data with regards to the proposed sales tax rebate program. Mr. Stafford reviewed the Autobarn's sales tax base for 2003 and advised the EDC that the proposal calls for splitting the base, $2.6 million, on a 50-50 basis for the next four or five years. New 'higher sales tax revenue above the base would then be rebated to Autobarn to a maximum of $1.5 million. The proposed improvements to the dealership properties will ultimately generate an additional $155,000 in real estate taxes. The schools would be the primary beneficiary of the new revenue. Mr. Stafford estimates that the repayment to the City would be approximately 7.5 years. Aid. Rainey stated that the financial documents provided were inadequate for the thorough analysis needed and suggested more information should be forthcoming. Some discussion ensued regarding the redevelopment of the 1012 property, estimates for streetscape issues and the whereabouts of the lions which adomed the Toyota property. Ms. Aiello stated that an attempt would be made to gather the data prior to the July 1 la' Council Meeting. DRAFT -NOT -APPROVED ECONOMIC DEVELOPNIENT COMMITTEE MIKUTES-JUI E 22, 2005 PAGE 5 Action Taken Because the EDC was provided with additional documents at the Meeting which did not afford them with the time to review the material and because the proposal was for significant assistance to Autobarn, Aid. Moran and member Norkett were in favor of postponing a recommendation until the next EDC 14ieeting. Several EDC members expressed the importance of retaining the Autobarn dealership in Evanston and supported the concept of a sales tax sharing program to achieve the objective but agreed that more time and information was needed to consider, in depth, the proposal, additional information and the draft redevelopment agreement. The decision was made to consider the proposal for action at the July 27, 2005 EDC Meeting. IV. PROJECT UPDATES Ms. Aiello next provided the EDC with Sherman Plaza update. To date, approximately 80% of the residential units have been sold, all of the penthouse units have been purchased. Approximately 75% of the commercial space has been leased. Other positive announcements are expected in the near future. With regard to the public art issues, a meeting was held recently where seven artists made - slide show presentations to the Public Arts Committee. As a result of the meeting, five artist were selected to prepare mock-ups of their concepts. Public art will not be placed on the Maple Street Building as originally planned. A site has been designated at Davis and Sherman intersection for a sculpture. The original neon Evanston sign concept envisioned for the elevations at Davis and Benson has been dropped. The new concept will involve perforated metal panels which will serve as the palettes for displaying art works. Aid. Rainey asked if the City Council will have an opportunity to receive a preview of the public art works prior to their selection. Ms. Aiello assured the alderman that arrangements will be made for preview session(s). Staff member Marino advised the EDC that the proposed project at 1567 Maple was scheduled for its second hearing before the Plan Conunission that night. Mr. Marino shared an architectural rendering of the revised plan with the EDC. In brief, the revised plan reduces the height from twenty one stories to fifteen and the number of units has been reduced from 165 to 126 units. Also the proposed Mather project was introduced at__ the same meeting. DREAFT-NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-JUNE 22, 2005 PAGE 6 Aid. Wynne asked if staff knew what allowances the developer was seeking. Mr. Marino stated that he would obtain a list of the allowances and forward them to the EDC members. Ms. Aiello advised the EDC that the Joint Review Board for the proposed West Evanston Tax increment Financing District #6 was convening on Thursday, June 30, 2005 at 9:00 A.M. in Room 2404 at the Civic Center. Mr. Marino informed the EDC members that a public hearing on the matter %ill be held at ETHS at 7:30 P.M. on July 28, 2005 and another public hearing is scheduled for August 15, 2005 at the Civic Center. As a result of questions raised by Aid. Tisdahl, several EDC members suggested that a review of the public benefit language of the planned development section of the Zoning Ordinance needed to be reviewed. New examples should be added to this section such as "green buildings" to reflect emerging public benefits which were not considered in 1993 ; 1 when the Zoning Ordinance was adopted. VI. Communications Staff member Marino led the EDC through a discussion on the communication items contained in the packet. Of particular interest was a study entitled "Where Workers Work 2005" which document Evanston growth in employment (+4.6%) and businesses (24.3%) during the past twenty years. In 2004, there were 38,459 jobs in the City and 2,350 Evanston employers covered by the state unemployment insurance program, of which is the basis for the employment statistics. VI. Adjournment There being no further business, the EDC Meeting was adjourned at approximately 9:50 P.M. The next EDC Meeting is scheduled for Wednesday, July 27, 2005 at 8:00 P.M. at the Civic Center, in Room 2404, second floor. Respectfully submitted, Economic Development Planner DRAFT -NOT APPROVED MEETING OF THE JOINT REVIEW BOARD PROPOSED WEST EVANSTON TIF DISTRICT NO.6 MEETING MINUTES THURSDAY, JUNE 30, 2005 ,f ROOM 2404-8:30 A.M. CIVIC CENTER MEMBERS PRESENT: Ald. Moran, Jackie Harder- Cook Countv,' Anne Laurence-' Oakton Communitv College, Mary Erickson -District 65, Jeffrey Taggart -District 202, Patricia Vance- Township } Su ervisor tt FF lit MEMBERS ABSENT: Bennett Johnson, III -Public Member PRESIDING OFFICIAL: Ald. Moran STAFF PRESENT: Julia Carroll, Judith Aiello, Dennis Marino, Morris Robinson, William Stafford ' OTHERS PRESENT: Ald. Holmes, Ald. Rainey, Ald. Wollin, ,Robert Rychlicki-' City Consultant, Betty Sue Esther Summary of Actions: 1. Chair Moran convened the Joint Review Board meeting at 9:04 A.M. II. Chair Moran asked each seated member of the JRB to introduce him/herself IIL Once the introductions were completed, the first order of business was to nominate and confirm the Public Member of the JRB. Chair Moran nominated Mr. Bennett Johnson, III for the position and the nomination received a second from Ms. 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 Howatd' Street TIF District JRB. Mr. Jeffrey Taggart nominated Ald. Moran for the Chairmanship and Ms. Mary Erickson provided a second. The JRB confnmed nomination the nonation with a unanimous voice vote. DRAFT-NOTAPPROVED MEETING OF THE JOINT RENTER' BOARD WEST EVANSTON TIF DISTRICT PROPOSAL NIINUTE&JUVE 30.2005 PAGE 2 V. Chair M Oran a sked s taff in ember M arino t o p roceed. M r. M arino p rovided t he JRB with a brief review of the JRB procedures and duties and a detailed description of the boundaries of the proposed TIF District. Staff member Marino then introduced Mr. Robert Rychlicki, an associate with Kane Mckenna, a TIF consulting firm employed 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. VI. Mr. Rychlicki briefly explained to the JRB members how the proposed project area qualified as a TIF District. Mr. Rychlicki reviewed the qualifications for the proposed area, advising the JRB that qualifications met or exceeded the requirements of five 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.. These factors were distributed through out the proposed TIF District boundaries. Complete requirement details are contained in the City Of Evanston West Evanston TIF District Redevelopment Plan And Project NO.6. All pertinent documents are on file in the Office of the City Clerk and are also available in the Community Development. Department's Planning Division. One of three actions can occur at the end of the JRB review. The options are: 1.) the JRB can agree A ith 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. A negative recommendation by the Board to the City Council will require a• majority vote of at least three fifihs of the Council members. There is also a required thirty day waiting period which provides the City with the opportunity to respond to objections V1I. After Mr. Rychlicki completed the eligibility review, Chair Moran asked the members for questions and comments. Staff member Marino once again reviewed the : : boundary map of the proposed TIF District and explained how meticulous care was taken to exclude residential areas to avoid the possibility of dislocating residents. Mr. Marino also briefly reviewed the projected budget over the 23 year life of the proposed TIF `+ District, explaining the difficulty involved in developing long term projections. Member Mary Erickson noted that in the case of the Howard Street TIF District #5, the' I City proposed a scenario where the school districts could receive revenues in advance for , f. potential new students and wondered if this proposal would provide set aside funding in h similar fashion. The schools would rather have funding sooner than later. DRAFT -NOT APPROVED MEETING OF THE JOINT RE% IEW BOARD WEST EVANSTON TIF DISTRICT PROPOSAL MINUTESJUNE 30, 2005 PAGE 3 Staff member Marino explained that unfortunately, each T1F proposal is evaluated on a case by case basis and the proposed TEF District #b would not have initial funds to provide a set aside reserve for advancing revenues to the schools. Mr. Jeffrey Taggart asked for and received a clarification from staff member Marino 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 and how stag' arrived at the budget projection to cover new student contingencies. Ms. Betty Sue Esther asked to be recognized from the audience. Ms. Ester presented a single copy of recommendations which she stated were compiled from organizations and residential property owners whose properties were not included in the proposed TIF boundaries. Ms. Esther stated that the document had been distributed to members of the Economic Development Committee in July of 2004 but was not distributed to the JRB. Ms. Esther asked the JRB to consider expanding the borders of the Proposed TIF District to include residential areas that are within the boundaries of the West Evanston Neighborhood Planning study area north of Church Street. The study area process evolved independently of the proposed TIF District but the two projects are compatible. Ms. Esther presented her opinions on how best to use TEF funds to assist existing businesses and to help property owners improve their properties as well as assist them in paying property taxes. Ms. Esther ended her presentation by asking the JRB to favorably consider her request. Staff member Marino explained again why the proposed boundaries were developed to exclude all residential areas. designers purnesefi:lly to prevent the possible displacement of families, adding that there are CDBG programs and other funding resources in place that address many o f the important concerns raised by Ms. Esther. Aid. Holmes provided additional comments which again underscored the importance of not including residential properties within the proposed TEF boundaries and stressed the point that the ECDC organization of which she was an officer, maintained an out reach program t o a 11 a yeas o f west E vanston for i nclusion i n t he T EF p lanning p rocess. A Id. Holmes suggested that perhaps at some point in the future, consideration could be given to expanding the TEF boundary to include Emerson Street. Ald. Rainey added that it would not be possible to extend the boundaries to Emerson Street without including residential a reas, a greeing t hat r esidential a reas sh ould n of b e i ncluded within t he T IF Boundaries. Staff member Morris Robinson asked Ms. Esther if she were representing any particular organization to properly reflect the presentation in the JRB minutes but was unable to obtain clarification. VIII. When the discussions ended, Chair Moran made moved for and the JRB formally recommended the following unanimously: 1.) that the Dodge Avenue and Church Street Tax Increment Redevelopment Project area satisfies the eligibility criteria defined in the TIF Act and qualifies as a conservation area. DRAFT =NOT APPRO i'ED MEETING OF THE JOL%-r REVIEW BOARD REST EVANSTON TIF DISTRICT PROPOSAL MINUTF---JUKE 30, 2005 PAGE 4 2.) that the City Council approve the proposed Dodge Avenue and Church Street Redevelopment Plan and Redevelopment Project and the creation of a Tax Increment Financing D istrict a nd 3 .) t hat t he C hair o f t he JR B s ubmit t hese findings t o t he C ity Council. IX. Dennis Marino advised the JRB of the next formal steps required to complete the TIF establishment process and the time table. There will be a Public Hearing held at the high school on July 28, 2005 and a Public Hearing at the Civic Center on August 15, 2005. Staff anticipates Council action in late September or early October 2005. X. There being no further business, Chair Moran officially adjourned the meeting of the proposed Wcst Evanston TIF District #6 Joint Review Board at I0:05 A.M. Respectfully submittal, OF #Mo*s. Robinson, Economic Development Planner ,t' ECONOMIC DEVELOPMENT COMIMIITTEE MEETING MINUTES OF WEDNESDAY, JULY 279 2005 ROOM 2404-8:00 P.M. MEMBERS PRESENT: Ald. Moran, Aid. Jean -Baptiste Aid. Rainey, Aid. Tisdahl, Marvin Juliar, Marty Norkett, Alice Rebechini MEMBERS ABSENT: Ald. Wynne, Steve Samson PRESIDING OFFICIAL: Aid. Moran, Chair OTHER COUNCIL MEMBERS PRESENT: STAFF PRESENT: Judith Aiello, William Stafford, Dennis Marino, Morris Robinson, Elke Purze OTHERS PRESENT: Richard Fisher, Ann Diener 1. Ald. Moran called the EDC Meeting to order at approximately 8:02 P.M H. The Meeting Minutes of June 22, 2005 were unanimously approved. III. Aid. Moran advised the EDC that the first business item on the agenda was for' consideration of the Proposed Redevelopment Agreement with the Autobarn automobile dealership. This was their second appearance before the EDC. At the June EDC Meeting, the members requested additional information and want additional time to review all documents pertaining to the proposal. Assistant City Manager Judith Aiello advised the EDC that Mr. Fisher, the owner of the Autobarn was present. Mr. Fisher has one of only a few automobile dealerships remaining in Evanston. Currently the Autobarn is comprised of Volkswagen, located at 1012 Chicago Avenue; Mazda., located at 1001 Chicago Avenue and a previously owned cars -sales lot at 1034 Chicago Avenge. Ms. Aiello began the presentation with a review of the proposal, indicating that a few minor revisions had been made to the agreement. After concluding her remarks,'Ms. Aiello asked if there were any questions. Member Juliar was recognized by the Chair and advised Ms. Aiello that there were a few minor errors in the document and further advised stall' of the pertinent pages where they could be found. Staff pledged to make the corrections on the final document. V DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT CO.%L%HTTEE MINUTES-JULY 27, 2Dd5 PAGE 2 Ald. Moran called for a review of the financials concerning the proposed agreement. The EDC was provided with the dealership financials and pro-formas. The proposal stipulates that sales tax rebates above the base year level will go to Autobarn with a floor of 51.35 million, up to a maximum of 51.5 million. If the owner decides to relocate from Evanston during the term of the agreement, the owner is obligated to immediately repay the city in full. City Finance D irector William Stafford p rovided t he E DC w ith t he p ertinent financial details of the proposal and underscored the fact that the City would realize an additional 530,000 per year in property saxes once the redevelopment of the properties were complete. Mr. Stafford also provided other positive, mitigating comments with regard to the sales tax revenue sharing programs in which the city has participated. Mr. fisher wasi encouraged by the potential to increase car sales under the proposed agreement and both he and Mr. Stafford anticipate a relatively swift repayment to the city. Ms. Aiello expressed regret that staff was not able to obtain financial data on the soon to depart Toyota dealership as asked for at the June Meeting, stating that the data proved to be confidential and proprietary. After a brief discussion period between the EDC members, Ald. Moran called for a motion. Ald. Jean -Baptiste moved to recommend approval of the proposed agreement to , the City Council. Member Norkett provided a second. The EDC then voted unanimously to recommend approval to the City Council for the proposed redevelopment agreement! with Autobam. IV. PROJECT UPDATES Judith Aiello next provided the EDC with a brief update on the Sherman Plaza Development Project. Construction of the new municipal garage is on scheduled and significant gains have been attained in retail space leasiag and condominium sales. Ms. Aiello advised the EDC that 82% of the condominiums have been sold and 75% of the retail space have lease contracts. Mr. James Klutznick, the developer, will appear before the City Council at the August 15, 2005 Meeting to provide an update. Also, t he d eveloper o f Church S treet P laza w ill a ppear b efore t he C ity Council a t t he August Meeting. They are attempting to refinance the project and will require City approval to do so. 11ds. Aiello also provided a brief update on the public art initiatives. DRAFT -NOT -APPROVED ECONONUC DEVELOPNtENT COMMITTEE MINUTES-JULY 27, 2005 PACE 3 Staff member Marino advised the EDC a required Joint Review Board Meeting was held on June 30, 2005 for the Proposed West Evanston Tax Increment Financing District #6. The minutes of the meeting were included in the EDC packets. A neighborhood Public Hearing is scheduled for Thursday, July 28, 2005, commencing at 7:30 P.M. at Evanston Township High School. A second Public Hearing will take place at the August 15, 2005 City council Meeting. IX. COMMUNICATIONS The articles and materials contained in the EDC packets were acknowledged without discussion. X. There being no further business, Ald. Moran adjourned the EDC Meeting at approximately 9:00 P.M. The next EDC Meeting is scheduled for Wednesday, August 24, 2005 at 8:00 P.M. at the Civic Center, in Room 2404, second floor. Respectfully submitted, 4MonisRobinson Economic Development Planner F7 ECONOMIC DEVELOPMENT COMMITTEEMEETING MEETING MINUTES OF WEDNESDAY, SEPTEMBER 7, 2005 ROOM 2404-8:00 P.M. MEMBERS PRESENT: Aid. Moran, Aid. Jean -Baptiste, Aid. Rainey, Ald.Wynne, Marvin Juliar, Alice Rebechini, Steven Samson MEMBERS ABSENT: Aid. Tisdahl, Martin Norkett OTHERS PRESENT: Mayor Loraine Morton, Aid. Holmes STAFF PRESENT: Judith Aiello, Dennis Marino, Moms Robinson, William Stafford OTHERS PRESENT: Betty Sue Ester, Judith Treadway, Robert Rychlicki MEETING SUMMARY I. Chair Moran called the EDC Meeting to order at 8:13 P.M. 11. The Meeting Minutes of July 27, 2005 were unanimously approved. (The EDC did not convene in August). III. Consideration of the Proposed West Evanston TIF District # 6 Chair Moran stated that the first order of business was for EDC consideration of a recommendation to the City Council to approve the Proposed West Evanston TIF District #6. The process for establishing the new TIF District requires City Council adoption of three ordinances and copies of the ordinances were included in the EDC packets. Chair Moran suggested, and the members agreed, to consider each ordinance separately for a recommendation. Actions Taken: The EDC voted unanimously to recommend approval of Ordinance # 102-0-05 AN ORDINANCE APPROVING A TAX INCREMENT REDEVELOPMENT PROJECT FOR THE DODGE AVENUE AND CHURCH STREET (WEST EVANSTON) REDEVELOPMENT PROJECT AREA. The EDC next voted unanimously to recommend approval of Ordinance # 103-0-05: AN ORDINANCE DESIGNATING THE DODGE AVENUE AND CHURCH STREET. (WEST EVANSTON) REDEVELOPMENT PROJECT AREA OF THE CITY, OF- EVANSTON A REDEVELOPMENT PROJECT AREA PURSUANT TO THE TAX INCREMENT ALLOCATION REDEVELOPMENT ACT. DRAFT -NOT -APPROVED ECONOMIC DEN'ELOPMENT COMMITTEE MEETING MINUTES-SEPTEMBER 7, 2005 PAGE 2 The EDC next voted unanimously to recommend approval of Ordinance # 104-0-05: AN ORDINANCE ADOPTING TAX INCREMENT ALLOCATION FINANCING FOR THE DODGE AVENUE AND CHURCH STREET (WEST EVANSTON) REDEVELOPMENT PROJECT AREA. Ms. Betty Sue Ester signed up to speak AND asked to be recognized. She implored the EDC to post pone making a recommendation to approve the TIF for two years, during; which time the residents in the area would be able to determine the types of developments that are most desirable. ( t ? Ald. Rainey as well as Chair Moran explained that the community has had many opportunities for input, citing the west side Neighborhood Planning Report; two' years! in the making, as an example. The participants in that process represented neighborhood organizations, business owners as well as City staff and other stake, holders, iti the i community. Ald. Jean -Baptiste advised Ms. Ester that he could not entertain the erroneous issue that there has been a lack of neighborhood participation opportunities. Ald. Holmes advised the EDC and Ms. Ester that community residents are welcome to attend her on -going monthly neighborhood meetings. IV. Consideration And Review Of Southwest TIF District # 2 Staff presented the EDC with documentation strongly suggesting that the successful Southwest TIF District # 2, established in 1990, has historically performed so well that it could be terminated early, benefiting the school districts significantly and the City to a lesser degree. The schools could reap an additional $400,000 a year with the termination of this TIF District. i The businesses within the Southwest TIF Boundaries are Sam's Club, which is thriving; Ward Manufacturing, which was relocated from the Downtown TIF District and has since expanded; Easy Spuds which deals in frozen potatoes and onions and AWH Skate Boards and Accessories a thriving branch of Thumb Tom on Davis Street. United Automotive is also located at the southern end of the TIF District. This automotive enterprise appears to be a viable vehicle repair and junk vehicle storage business, but it is currently advertising space availability. There has been no redevelopment activity at this site. The neighbors appear to be well screened from the activities of the business. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES-SEPTEMBER 7, 2005 PAGE 3 The EDC members support the early TIF District termination concept, especially for the positive affect on the schools. Staff was advised to research the history of the site in an effort to determine the severity of ground contamination. The City will then be in a better position to determine financial needs or assistance in finding a more appropriate use for the site. Although Food 4 Less, Marshall's, and Annas Linen Company are not part of the T1F District, these stores contribute to the overall success of the shopping center abutting the TIF Boundary. EDC members expressed concern about the vacant retail spaces in the Main S treet M arket s hopping c enter a s w ell a s the E vanston P laza s hopping c enter it Dempster and Dodge. Ald. Rainey asked staff to pursue vacancy updates with the developers. V. Downtown Visioning Update Judith Aiello and Dianne Williams ofEVMARK provided the EDC with an update on the Downtown Visioning process. Although the EDC was provided with a list of issues, the questions and responses primarily centered on refurbishing deteriorating downtown streetscape issues; improved way finding signage; assessing the true downtown boundaries and the use of public art. A suggestion to host a joint meeting between City staff, the Plan CommisMon and, Evmark in mid October 2005 was proposed by Ms. Aiello. VI. Protect Updates Dennis Marino provided the EDC with a brief update on three new projects. The first concerned the proposed renovation of the Autobarn Automobile Dealership buildings. The owner has appeared before Site Plan And Appearance Review Committee twice and has received design concept approval from that Committee. Mr. Andy Spatz, an Evanston based developer has obtained site control of the commercial property located at 930 Pitner and intends to convert the property into commercial condominiums. The units will average 1,600 square feet and the price points will be approximately S150,000 to $160,000. Optima has obtained site control of the properties on the southeast corner of Davis Street and Chicago Avenue, the Heil and Heil insurance building just south of the corner building and the property just to the east of the corner. The developer intends to construct an eighteen story steel, glass and granite building. The proposed development will include 10,000 square feet of ground level retail space; 30,000 square feet of office space and 175 condominium units. The average size of the tutits will be 1,300 square feet Additionally two levels of underground parking are proposed. { 1 DRAFT -NOT -APPROVED ECONOlAIIC DEVELOPMENT COW IITTEE MEETING MINUTES-SEPTEMBER 7, 2005 PAGE 4 There will also be some above ground parking. Optima will probably make a request to the City for vacating the alley to accommodate the proposed development. Several EDC members commented on the heavy activity the alley receives from commercial establishments and local residents. VII. The other documents contained in the EDC packets were acknowledged. VE11. ADJOURNMENT There being no further business, Chair Moran adjourned the meeting at approximately 10:00 P.M. NEXT SCHEDULED EDC MEETING: OCTOBER 26, 2005 T �mi�obinsonevelopm t Plattner ECONOMIC DEVELOPMENT COMMITTEEMEETING MEETING SiINUTES OF WEDNESDAY, NOVEMBER 9, 2005 ROOM 2404-9:00 P.M. MEMBERS PRESENT: Aid. Rainey, Ald. Jean -Baptiste, Aid. Moran, Aid. Tisdahl Ald.Wynne, Marvin Juliar, Steven Samson MEMBERS ABSENT: Martin Norkett, Alice Rebechini PRESIDING OFFICIAL: Aid. Rainey, Chair OTHERS PRESENT: Ald. Holmes STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, OTHERS PRESENT: Ann Dienner MEETING SUMMARY L Chair Rainey called the EDC Meeting to order at 8:09 P.M. EL The M eeting M inutes o f S eptember 7. 2 005 w ere u nanimously approved. ( The EDC did not convene in October). M. Proposed EDC Meeting Dates for 2006 The EDC reviewed the proposed meeting dates for 2006 and approved them as presented by staff. The months of November and December meeting dates are changed from the regular schedule to accommodate the holidays and to avoid conflicts with the Plan Commission Meetings. A list of the dates is available in the Planning Division as well as the City Clerics Office. IV. Annual Joint Review Boards Meedue Date The EDC approved establishing Tuesday, December 13, 2005 as the date for the annual Joint Review Boards Meetings date. The meetings will commence at 9:00 P.M. at' the Civic Center. V. RFP for the Neighborhood Business District Imnrovement Program Staff presented a draft Request for Proposal packet designed to reintroduce the program in the various business districts. This popular program was first introduced in 1998. In the past grants have been made in amounts of S5,000-S 15,000. The Raiding for the program totaling $50,000 is provided from the Economic Development Fund's 2005-6 budget. The current proposal suggests a cap of $10,000 for each approved proposal. Approved projects will be implemented in 2006. a DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES-NOVEMBER 9.2005 PAGE 2 Aid. Wynne asked if it were possible to increase the size of the grants, citing the cost of most projects. Staff member Marino advised the EDC that when they next consider the budget it would be appropriate to consider increasing the EDC Fund to accommodate higher grants. Member Juliar stated that the cover memorandum in the packet indicated that $15,000 had been awarded in the past. Staff member Robinson advised Mr. Juliar that the award was a one time exception, approved by the EDC, which allowed the Dr. Hill Neighborhood Association extra funds to complete some exceptional projects occurring in the under served West Evanston area. At the end of the discussion, the EDC voted unanimously to recommend approval of the Request for Proposal document intended for the reintroduction of the Neighborhood Business District Improvement Program. 1 ! VI. Sherman Plaza Update Chair Rainey continued with the agenda items. Assistant City Manager Judith Aiello provided the EDC with a brief progress update on the Sherman Plaza redevelopment project. The municipal garage ant the residential high rise components are on schedule. It is anticipated that the developer will be applying for a certificate of occupancy for the garage in mid -May, 2006. Aid. Moran stated that he was pleased with how the project is starting to look. (Later, Ms Aiello stated that she meant to inform the EDC that because of the parking concerns the merchants have during the holidays a novel funding plan has been, offered by the developer to assist in people movement). During the holiday season, a free downtown trolley service operating between the existing garage and points downtown will be made available to visitors. City and the EVMARK Director will develop the trolley service program and the Klutznick-Fisher Development Company will provide the funding. If this program proves to be successful, expanding the service to other business districts wilt be considered for next year. Ms. Aiello also advised the EDC that a recent study has been completed regarding the economic trends occurring in Evanston. VU. Review of Southwest TIF District #2 During the EDC Meeting of September 7, 2005, staff presented to the EDC for consideration the early termination of the Southwest TIF district #2. The EDC instructed staff to determine ownership, assess the availability and potential future use of the United Automotive repair and car graveyard/storage parcel located at 640 Pitner. This facility is positioned in the southern portion of the Southwest TIF District and there haven't been any redevelopment activities, or the prospect of any since the establishment of the TIF District. DRAFT-NUT-APPRO VED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES-NOVEMBER 9, 2005 PAGE 3 Future use is likely to remain auto related and the site may serve as a relocation site for auto uses currently located in the newly established West Evanston TIF district 9 6. Staff member Morris Robinson submitted a report of findings in the EDC packet. Staff member Robinson advised the EDC that he had spoken at length to an individual. purporting to be one of the partners who owned the parcel. Staff determined that the ' United Automotive ownership is listed as MRA Corporation. The contact person stated ; that name indicating ownership is erroneous and that he and his partners have made " several failed attempts to correct the name. Based on staffs findings, Chair Rainey advised the EDC that she visited the Cook County Recorder of Deeds and discovered the property owner(s) have not paid their property taxes for the past year and as such is not contributing to the City. Chair Rainey questioned the desirability of the business for this reason. The EDC will maintain this i!em on its agenda and revisit the issue no later than spring 2006, in anticipation of a possible early termination in 2006. VHI. Main Street Market Place and Evanston Plaza Shonaing Center At the September 7, 2005 EDC Meeting Chair Rainey and Aid. Jean -Baptiste asked staff to pursue vacancy updates with the developers of the Main Street Market Place and Evanston P laza s hopping a enter, i ndicating a l etter w ould suffice i f i t was s ufiiciently informative. Staff contacted the Bond Development Company and Joseph Freed & Associates and representatives of both companies provided staff with correspondence relating to their lease marketing efforts. Copies of those letters were included in the EDC packets. After consideration of the correspondence by the EDC it was evident that the EDC members had additional questions of the developers. Staff was asked, if possible, to have developer representatives appear who can address specific questions, at the December 7 h, 2005 EDC Meeting if possible. I7L Prolect Uvdates Dennis Marino provided the EDC with a brief project updates. X. The other documents contained in the EDC packets were acknowledged, XI. ADJOURNMENT There being no further business, Chair Rainey adjourned the meeting at approximately 9:10 P.M. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COM HTTEE MEETING MINUTES-NOVEMBER 9.2005 PAGE 4 NEXT SCHEDULED EDC MEETING; Wednesday, Dectmber7, 2005, in Room 2404 at 8:00 PAL submitted, ECONOMIC DEVELOPMENT COMNu i i rz MEETING MINUTES OF WEDNESDAY, DECEMBER 712005 ROOM 2404-8:00 P.M. MEMBERS PRESENT: Aid. Rainey, Aid. Wynne, Marvin Juliar, Marty Norkett, Steve Samson MEMBERS ABSENT: Aid. Jean -Baptiste, Ald. Moran, Aid. Tisdahl, Alice Rebechini . ' PRESIDING OFFICIAL: Ald. Rainey, Chair OTHER COUNCIL MEMBERS PRESENT: STAFF PRESENT: Judith Aiello, William Stafford, Dennis Marino, 'Morris Robinson OTHERS PRESENT: Ann Diener, Betty Ester, Paul Giddings-CNSC&VB Board Member, Gina Speck man —Executive Director,' CNSC&VB SUMMARY OF THE MEETING L Aid. Rainey called the EDC Meeting to order at approximately 8:07 P.M II. The Meeting Minutes of June 22, 2005 were unanimously approved after Ald. Rainey indicated a need to correct the time for the upcoming Joint Review Boards Meeting. The minutes should have reflected a time of 9:00 A.M. rather than P.M. III. Aid. Rainey advised the EDC that the first business item on the agenda was a presentation by the executive director of the Chicago's North Shore Convention & Visitors Bureau (CNSC&VB) concerning the Shoppers Passport Discount Brochure program. Mr. Paul Giddings, CNSC&VB board member introduced Ms. Gina Speclunan, Executive Director,CNSC&VB to the EDC. While Ms. Speclonan distributed to the EDC additional documents containing data on various marketing initiatives designed for promoting the amenities of the City, Mr. Giddings explained that the hotels are primarily supplied with the Passport Discount Brochures. Northwestern University is also a distribution point for the brochures. An initial 20,000 were printed primarily for visitors. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-DECEMBER 7, 2005 PAGE 2 Particularly, the VIP Passport program permits hotels and Northwestern University to distribute brochures containing discounts offered by Evanston merchants to visitors in the city. The EDC members expressed favorable impressions for the program as well as for the design and way -finding information contained in the brochure. Ald. Rainey suggested that the VIP Passport program should be made available to the general population in Evanston, adding that the discounts would be appreciated. Ms. Speckman assured the, EDC that the program will be expanded in the future. Ms. Speclanan also briefed the EDC on how the North Shore hotels are performing,,,, compared to other competitive regions. The North Shorn tends to be performing better than other comparable markets. Other advertising campaigns were also mentioned. , :r IV. SUMMARY OF THE DOWNTOWN TRENDS REVIEW VISIONING MEETING , Staff provided the EDC with summary documents and hard copy slides of the economic trends presentation made at the Downtown Visioning Meeting of November 28, 2005, which was held at the Rotary International headquarters building in Evanston. Staff member Marino advised the EDC that the intent was not to review the material again, because most of the EDC members attended the presentation, but simply to provide the EDC with the material for update and referral purposes. The documents were i also provided in the event that some of the EDC members were not able to attend the presentation. V. PREVIEW OF THE ANNUAL JOINT REVIEW BOARDS ANNUAL TIF DISTRICTS PERFORMANCE REPORTS Included in the EDC packets were the annual TIF Performance Reports for each of the original four TIF Districts. The four districts are: Downtown II/Research Park TIF ; , District #1; Southwest TIF District #2; Howard/Hartrey TIF District #3 and The Washington National TIF District As Amended #A.The reports are scheduled for presentation at The Joint Review Board Meetings on December13, 2005. Staff member Stafford provided the EDC with creation and expiration dates and financial previews of the original four, successful TIF Districts, all of which have ' performed at or above expectations. In fact the Southwest TIF District 92 has performed so well that the EDC is currently considering the feasibility of terminating or partially ' tenntnating this TIF District earlier than the mandatory 2013 date. DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-DECE4I18ER 7, 2005 PAGE 3 The determination to terminate must be made early enough in 2006 to meet the required deadline of November 1, 2006. The issue is scheduled for a second consideration at the March, 2006 EDC Meeting. Mr. Stafford advised the EDC of the extremely slow pace in which the County Assessors Office adds new properties to the tax roll. By doing so, municipalities experience significant lags in receiving property tax revenues. Mr. Stafford suggested that if the county hired an additional staff of three for the sole purpose of expediting the process of including growth area new properties on the roll, the increased revenue collection would increase three fold as well as pay the salaries of the new staff. Ald. W ynne s tated t hat the s low r esponse also negatively a ffects t he o flice where t be property identification numbers are created, the treasurer's office, the assessor's office and so on. Aid. Rainey concurred and expressed her frustration with the process. When all affected communities are taken into consideration, the revenue loss is staggering. As an example, Mr. Stafford stated that he moved into his new residence in June, 2003 and he still has not received a complete property tax bill. Mr. Stafford does not expect a complete bill until 2006. Aid. Rainey stated that the issue is not just new construction but condo conversions also. Asst. City Manager Aiello advised the EDC that a good example of the success of the TIF Districts is The Downtown II TIF District #1. In 1985 the base EAV was S1.8 million and now the EAV is $82 Million. Mr. Stafford stated that as of 2004 the EAV has now exceeded $100 million. One can understand how the schools will benefit when the TIF Districts expire. Aid. Rainey interjected that it is crucial to disseminate this kind. of information to the general public. Ms. Aiello stated that after the Joint Review Board Meetings, The public relations staff member will submit an article with the successful TIF Districts particulars. Aid. Rainey asked staff when is the best time to discuss T1F funded expenditures. Ms. Aiello stated that the best time is probably during the budget process. Mr. Stafford concluded his presentation by stating The Howard/Ridge TIF District #S and the West Evanston TIF District # 6 are too new to have generated financial reports at this time. However, Mr. Stafford stated the Howard/Ridge TIF District has already experienced increased increment because of the reassessment. Ms. Aiello added that staff recently met with the developers of the proposed Howard Street residential p roject and t hey h ave i n their possession, s igned commitment 1 etters from lenders. qJ� DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT MEETING MINUTES-DECEMBER 7, 2005 PAGE 4 Another meeting has been scheduled to start the prep2ration of the redevelopment agreement. The goal is to have the draft agreement document presented to the EDC for consideration in February 2006 and presented to the City Council shortly thereafter so that the project can commence in the spring of 2006. Member Norkett asked Mr. Stafford if staff is communicating with the school districts. Mr. Stafford assured Mr. Norkett that the school district personnel are kept abreast of all TIF financial activities as they pertain to the school district concerns. The school districts have been receiving S600,000 per year from TIF revenues and that will be increased by S200,000 once the Howard Street project is completed. The TIF District Annual Performance Reports are available for review in the City Clerks.. Office located on the first floor of the Civic Center and in the Planning Division Office r. located on the south end of the third floor of the Civic Center. Ald. Rainey proceeded to the next agenda item. VI. PROJECT UPDATES Staff member Marino briefly advised the EDC of two recently proposed projects. The first is a proposal by Mr. Steven Yas to redevelop and convert an industrial property located at 2100 Greenwood into condominiums. The second project, proposed by the Lee Fry development firm, is a planned development shopping center on the site of the ' recently razed Belmont Steele Company, located at 2424 Oakton Street. VI. The articles and materials contained in the EDC packets were acknowledged. VIIL There being no further business, Ald. Rainey adjourned the EDC Meeting at approximately 9:00 P.M. The next EDC Meeting is scheduled for Wednesday, January 25, 2006 at 8:00 P.M. at the Civic Center, in Room 2404, second floor. Mora$ E. Kobt = Economic Development Planner MEETING OF THE JOINT REVIEW BOARDS MEETING MINUTES TUESDAY, DECEMBER I3, 2005 ROOM 2404-9:00 A.M. CIVIC CENTER MEMBERS PRESENT: Aid. Rainey, Dr. Hardy Ray Murphy -District 65 Superintendent, Jackie Harder -Cook County Dent. of Planning do Development, Anne Laurence-Oakton Community College. Valerie Kretchmer-Downtown II & Washington National Public Member, Martin Norkett- Howard/Hartrev Public Member, Bryan Rosinsky- Ridgeville Park District, Mary Wilkerson -School District 202 Board Member. Mary Erickson -School District 65 Board Member, Larry Kaufman-Howard/RidQe Public Member and Jerry Leibforth-School District 202 Interim Business Manaeer. PRESIDING OFFICIAL: Aid. Ann Rainey STAFF PRESENT: Julia Carroll -Gifu Manager, William Stafford -Director, Finance Department, Dennis Marino-Asst. Director of Planning, Morris Robinson -Economic Development Planner Summary of Actions: I. Aid. Rainey convened the Joint Review Boards meeting at 9:08 A.M. and asked each board member and staff to introduce him/her self. After the introductions, Aid. Rainey advised the JRB that the new board member representing the Howard/Ridge TIF District #6, Mr. Larry Kaufman, has owned and operated North Suburban Auto Parts at the intersection of Howard and Custer since 196I. Aid. Rainey stated that the next order of business was to officially elect Mr. Kaufman to the Joint Review Board. Ald. Rainey moved to accept the nomination and member Marty Norkett provided a second. The motion was then approved by acclamation. Aid. Rainey asked staff member Dennis Marino to proceed. III. The Howard/Hartrev TIF District #13: With the use of a visual aid map, Dennis Marino continued the Joint Review Board presentation with a description of the boundaries and prior land use of the Howard/Hartmy TIF District. f DRAFT -NOT APPROVED MEETING OF THE JOLNT REIV7EW BOARDS MINUTES-DECEMBER 13. 2005 PAGE 2 Mr. Marino informed the JRB that the initial, four retail establishments in the Howard/Hartrey shopping center were Target (Dayton Hudson), Best Buy Jewel/Osco, Office Depot and a World Bank branch and that they are still operating out of the shopping center. There have been no indications of any of the stores leaving. Next, Mr. Stafford provided a brief recap of the financial performance for the Howard/Hartrey TIF District. This district was established in 1992 and will expire in 2015 with taxes collectible in 2016 due to the one year lag time. TIF regulations require the C ity t o p rovide an annual a udit opinion a s p art o f t he annual report. M r. S tafford directed the attention of the JRB to page 18 of the annual report, which summarizes the district's revenue and expenditures financial performance and page 25 which provides an overall recap of the status of the TIF district. This TIF District is performing exceedingly well. If specifics are required, this document is available to the public in the City Clerk's Office and in the PIamning Division at the Civic Center. Also, pages 18, 25, 29 and 30 of each TIF Report are attached to this meeting summary. The Howard/Hartrey TIF District is the best retail sales performing TIF District and it generates approximately 19% of the total sales tax for the City. (See Attachment A) IV. The Southwest TIF District #2: Mr. Marino explained that this TIF District was established in 1990 and with the use of a map, described the boundaries of the TIF. The TIF District has a Sam's Club which is the most prominent use in the district and Ward Manufacturing Co., formerly located in the Research Park. Two auto junkyard parcels located in the southem portion of the district have not experienced any development. Adjoining the boundary of this TIF District to the north is what used to be the problematic and defunct Builders Square property. in the past two years, the City entered into a sales tax revenue sharing agreement with the Bond Capital, Ltd. a development firm and now the site includes of a new Food 4 Less grocery store as an anchor, and other retail establishments. New and smaller retail spaces are vacant and efforts are being made to lease the sites as fast as possible. As a result of the agreement, the City did not have to expand this TIF District to spur development. The Southwest TIF District #2 has performed so well that the EDC has met to consider the feasibility of terminating this TIF earlier than the mandatory date. The issue is scheduled for a second consideration at the March 2006 EDC Meeting. Mr. Stafford stated that this TIF District was established in 1990 and.will expire, in 2013 with taxable collections in 2014.Once again, Mr. Stafford directed the attention of the JRB to pages 18, 25, 29 and 30 of the Southwest TIF District annual report Mr. Stafford briefly described the past year performance of the district. The fund balance is such that the remaining debt balance can be retired. • F. DRAF r-NOT APPROVED MEETC`G OF THE JOLNT RENUW BOARDS MINUTES-DECEMBER I3. 2005 PACE 3 The entire document is also available at the offices of the City Clerk and the Planning Division located in the Civic Center, the financial pages are attached. At this point, Aid. Rainey asked Mr. Stafford to also include pages 29 and 30 in the presentations. These pages cover public and private investments and Equalized Assessed Valuation analyses respectively. A Sam's Club gasolinelservice station is scheduled for completion on the site in 2006, and increased revenues are expected to the benefit of the City. (See Attachment B) V. The Downtown If/Research Park TIF District #1: Mr. Marino informed the JRB that this area was formally known as the Evanston/Northwestern Research Paris. 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. Mr. Marino gave a brief history of the development project components and stated that the TIF District has been very successful and has as a multiplier effect on the rest of the downtown. Mr. Marino concluded his comments by advising the JRB that the City is cumently reviewing a proposed 16 story residential project for the lot with a poured foundation at the northern end of the TIF District. There is also a proposal to raze an existing office building at 1890 Maple and construct an extended stay hotel. This is a stable TIF District and although some smaller retail establishments have moved on the major components are stable. Mr. Stafford stated that this is the oldest TIF district, having been established in 1985 with an expiration date of 2008 with taxes collectable in 2009. As with all of the TIF Districts, Mr. Stafford referred the JRB to pages 18, 25, 29 and 30 of the Downtown II Annual Report and briefly discussed the performance of the TIF District. There has been approximately $ 90 million in private development i nvestment and approximately S23 million invested, primarily for the new municipal garage by the City. The base EAV for this TIF District was $1.8 million and as of this reporting year the EAV is S82 million. Recently the 2004 taxes were received by the Finance Department and the EAV has exceeded $100 million. When Optima's 1800 Elgin 221 unit residential, mixed use development is added to the roll, this district will benefit substantially. Conversely, Aid. Rainey reminded the JRB that the City will feel the impact of the loss of the 1800 Sherman office building. As stated previously, the public may access this report in the City Clerk and Planning Division offices located in the Civic Center. (See Attachment C') VI. The Washington National TIF District As Amended #4: This TiF district was established in the early 1994 with an expiration date of 2017, and was the last district on the agenda with reports for review. With the use of -- maps, Mr. Marino explained the original boundaries of the district as well as the new boundaries after the district was amended in 1999. DRAFT-NOT.lPPROVED MEETING OF THE JOINT REVIEW BOARDS MINUTES-D£CENIBER 13.2005 'PAGE 4 Mr. Marino also advised the JRB of the proposed John Buck development, the completed Dais Street Land Company development, the status of the Sherman Plaza development and the City's new garage, both of which are currently under construction by the Klutznick-Fisher and Focus Group development collaboration. The JRB was apprised of the various retail tenants slated to move into the development and the residential units are 90% sold. At this point Aid. Rainey and other board members again raised the issue of the extremely delayed process involved with including new residential units on the property tax roll. Residents observe the new developments being added and wonder why their tax bills continue to rise. A concerted effort should be made by all of the impacted municipalities to demand better efficiencies from Cook County. Mr. Marino continued with the presentation by advising the JRB of other projects tentatively proposed for sites located within the boundaries of this TIF District. Mr. Stafford commented on the performance of the Washington national TIF District and referred to pages 18, 25, 29 and 30 of the JRB report. At this juncture this TIF District has approximately S20 million in private development investments and approximately $15 million in public investments. However, it is anticipated that next year at this time there will be an additional S80 million in private investments and another $30 to 35 million in public investments when the new garage will have been completed. The base EAV was S25 million and currently it is over S45 mullion. This entire report is also available for review and the referenced pages are attached to this document. (See Attachment D) V1I. Howar&Rldge TIF District# S: Mr. Marino briefly described the boundaries and explained the current status of this new TIF district. Mr. Marino described the redevelopment project at 415 Howard Street proposed by the Bristol Chicago Development group. The project received plan development approval from the City approximately a year and a half ago. The firm has been active in their attempts to secure financing for the project and more information concerning their efforts will be available in the near future. This promising project will be a rental residential building containing 221 units with no ground level retail. The rental will be at market rate. In addition the Chicago Transit Authority is planning the construction of a new train station just east of the TIF district boundary within the next 2 years. The rental rate will be for muddle income range. Aid. R ainey a cknowledged t hat t here a re r estrictions o n w hat c an b e d iscussed publicly at this time about the project, but stated that from her understanding, the project was a t a d eMte s tage and t hat d iscussions h ave t aken p lace r egarding time -lines a nd redevelopment agreement preparations. As such, perhaps some aspects of the proposed project may be discussed. Mr. Marino's response was that staff has been very active in sessions with the developer during the last quarter as opposed to the low level of activities during the previous 9 months, but nothing definitive can be said at this point. It is anticipated that shortly after the end of the year more specifics can be presented. `n DRAFT —NOT APPROVED MEETING OF THE JOINT REVIEW BOARDS MIND ES-DECEMBER 13, 2005 PAGE 5 It is also anticipated to present the matter to the EDC for consideration within the first quarter of calendar year 2006 as well as communicating with the two school districts. Member Kretchmer asked if TIF funds are involved with the project. The response by Mr. Marino was yes. A formula has been developed and proposed whereby the property taxes generated by the project will be rebated to the developer for the first 5 years. Afterward the incremental revenues will be shared with the City on a sliding scale over a specified period of time. This rebate formula is essential if the developer is to have a reasonable chance to obtain financing for the proposed project. No front end bonds will be issued for the installation of a new water main down Chicago Avenue to Howard Street to assure the requisite water pressure for fire protection. Based on focus group analysis and historical commercial uses on Howard Street, the objective for this TIF district is to stimulate residential development with commercial/retail at critical intersections. Mr. Stafford stated that although there is a performance report with the base EAV for this new district indicating an amount of $5.9 million; there are no revenues or expenditures data for the reporting year. VIII. Weft Evanston TIF Distrfct 06: Mr. Marino provided the JR.B with detailed boundary descriptions and a brief history of this, the newest TIF districts, having been established in late September of 2005. There is no report for this year. There was no official report generated for this TIF district for the past year. Some redevelopment proposals have been presented to the City for this TIF District. One project is a proposal to construct a 40 unit townhouse development on the site the Hines Lumber facility. The proposed project would be developed jointly by Cyrus and Hines. Hines would use the land as its equity contribution. The price points for the units are expected to be in the $350,000 to $400,000 range. This project is up for Plan Development public hearing in January 2006. Additionally, a not for profit organization has proposed a project to construct a 27 unit rental residential development at the corner of Church and Darrow. The proposal will be an affordable, less than 80% of median income, lease to own development project. This proposal is also on the Plan Commission schedule for the first quarter of 2006. A brief discussion ensued regarding affordable housing definitions. Staff has also had several other sessions with other developers expressing interest in presenting development projects in this new TIF District. Member Wilkerson inquired about the percentage of Evanston residents, including women and minorities are hired by developers with development projects in the TIF Districts. Ald. Rainey advised the JR.B that enforceable 25% goals are included in all City agreements. There is also a voluntary initiative on the part of the developers to hire Evanston residents. Mr. Stafford and Mr. Marino expanded on the requirement and efforts by the City to meet both objectives. DRAFT -NOT APPROVED MEETING OF THE JOINT REVIEW BOARDS NITN TF.S-DECE.MBER 13. 2005 PAGE 6 AId. Rainey stated that staff needs to get better at disseminating information to the public. Mr. Marino also advised the JRB of a proposal by Mr. Steven Yas and a partner to redevelop a vacant industrial building at 2100 Greenwood which is within the industrial corridor of this TIF District The proposed project would create 27 livelwork loft condominiums in the facility. The developers appeared before the Plan Commission in the previous week. Mr. Marino also advised the JRB of the conclusion of the three year west Evanston Neighborhood Planning process and what it entailed. Comprehensive, detailed recommendations concerning housing, economic development job training and other issues resulting from the process were presented to and approved by the City Council in September. IX. Ald. Rainey asked for a motion to approve the December 13, 2005 JRB Meeting presentation. Member Wilkerson moved to approve the 2005 JRB Meeting presentation. The measure received a second and was passed with a unanimous vote. Ald. Rainey next asked for a motion to approve the December 8, 2004 JRB, Meeting minutes. Member Kretchmer moved to approve the minutes and a second was provided. This motion was also approved with a unanimous vote. X. Adioomment: There being no further business, Ald. Rainey officially adjourned the meetings of the Joint Review Boards at 10:30 A.M. Respectfully submitted, Moms E. Robinson Economic Development Planner Attachments