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HomeMy WebLinkAboutMinutes 1999DRAFT-NOTAPPROVED ED ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES WEDNESDAY, DECEMBER S, I999 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Ald. Engelman, Aid. Moran, Ald. Ne%n n, Aid. Wynne, Percy Berger, Sydney Grevas, Lucille Krwmow MEMBERS ABSENT: Greg Norwell PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson OTHERS PRESENT: Summary of Actions: A declaration of a quorum was announced and Ald. Feldman called the meeting to order at 8:15 P.M. The previous minutes of October 27,1999 were unanimously approved. The communications items contained in the agenda packets were briefly discussed. With regard to the enclosed Chicago Avenue Corridor Report, Aid. I'vloran asked if it was known at what point the EDC would be involved in the discussions. Aid. Feldman and Aid. Wynne advised that it would be soon, although a definite date has not been set. Ald_ Wynne continued with a brief update on the report review process and she and Dennis Marino advised the EDC of the participating entities and their role as well as that of the City departments, which contributed to the development of the proposed report. They further advised the EDC members of the next steps in the process leading towards approval by the City Council. A general discussion ensued with regard to development projects, parking impact and the proper administrative process for insuring full participation by all concerned parties. The EDC agreed that the Neighborhood Planning Committee has worked very hard on the report and has engaged in a substantial effort. The EDC was also provided with its traditional third Wednesday of each month schedule of meetings for the year 2000. There were no objections to the dates. DRAFT -NOT -APPROVED Economic Development Committee Minutes -December S. 1999 Page 2 Aid. Feldman next asked Judith Aiello to pro%ide an update cm the turnner Main and Chicago Newsstand. Ms. Aiello advised the EDC that shortly after it mvsc announztii that the City was proceeding with plans to demolish the structure, a renewed inu-=.At in the site .wcurrvd. Staff has received two proposals for consideration. The larger o the two is a Canadian firm called Gateway. Ms. Aiello stated that she had spoken with its representatives earlier in the day and they advised her that they had received the information packet from the City and after conducting due dilligence, their proposal for coffee shop/newsstand appears to 1x an economically feasible project. Both proposals will be reviewed by staff to formulate an apMpriate recommendation. A third proposal is anticipated in the near future. Ms. Aiello next provided the EDC with a progress update on the Church Street Plaza development project. She stated that the main pavilion construction activities are continuing, the caissons are completed and they are now pouring the foundation. Construction on the garage began approximately three weeks ago although the City staff is simultaneously working with the Hill representatives on the final budget as well as some change orders which must be presented to the City Council for approval. The garage cost is now estimated to be approximately- $22 million , which represents a $3 million difference over the original proposal of $19 million. Ms. Aiello advised the EDC that the City has contracted with Desman Associates, a parking consulting firm, to perform the on site construction observation functions and act as adviser to the City on construction matters. She also mentioned that there were some signage design issues yet to be worked out because Walker Parking Consultants, the firm who designed the garage and who works for Hill, proposed some routine signage which did not meet the City's expectations. Ms. Aiello informed the EDC that during the preliminary digging for the garage caissons, the crew struck the old incinerator dumping pit which had a concrete slab. approximately five feet thick making it extremely difficult to bore through, but all in all things are going well. With regard to the residential tower design component, Ms. Aiello stated that Hill is attempting to arrange for a co -developer and it is expected that Hill will have a proposal to the City soon. With regard to the hotel component. Ms. Aiello stated that agreement language is in the process of being drafted by Hill's attorneys and that the agreement is expected to be finalized in January 2000. DRAFT -NOT -APPROVED Economic Development Committee Minutes-DeceixIher R. 1999 Pale 3 Aid. Feldman asked if there w-as any new information on the rncritcch vault %%hich,-+3s unco4=rd while digging. Ms. Aiello stated that the vault has significant 4.Nimmunication lines bet%ven Evanston and Milwaukee, Wisconsin and as such it is more ceq efficient to work the construction around the vault. Aid. Feldman requested that Ms. Aiello provide a brief update on the proposed Sherman Plaza redevelopment project. Ms. Aiello stated the Klutznick organization continues to make progress with their site acquisition efforts. The issues the City is currently focused on are refining the component designs, internal garage circulation patterns and truck access cvncerns. The City consulting firm, Kenig, Lindgren, O'Hara, Aboona, Inc., (KLOA) is involved with this aspect of the design to ensrue the requirements of all concerned parties are met. Ms. Aiello stated that the Klutatick attomey was also asked to rewrite their redevelopment Agreement and to model it after the Hill and Scribcor agreements. The expectation is to have the agreement reviewed by staff and presented to the EDC at its February Meeting. Staff is also anticipating Klutznick providing the City with a finalized construction schedule in April, 2000 so that the proper determination can be made as to when to close the Sherman Ave. Garage. Ms. Sydney Grevas advised Ms Aiello that at a previous Plan Commission Meeting, the Klutznick team presented their proposal and the Commission members and people in the audience expressed their concern regarding the cut off of the walk through from the transportation center to Sherman Avenue. The design will compel people to walk all the way around the development to get to Sherman. Ms. Aiello explained that the KLOA consultants advised that because of the circulation issues it was best not to have the walk through, particularly with the entrance and egress requirements for residential garage on Davis and the bank on Church street. In addition, the desire is to have pedestrians walk to improve the exposure for sales opportunities for the street level retailers. Ms. Aiello next informed the EDC of a new proposed project just north of the new Maple Avenue garage site in the Research Park. A development proposal was presented to NLTERP from Mesirow Stein Development Services, Inc. to purchase and develop lot 6, which is two thirds jointly Owned by NU and one third by the City. The firm is proposing to construct a 90,000 square foot office building. Mesirow Stein has prospective tenant, the Evanston EH Research Laboratory, and this Laboratory would lease the entire space. Ms. Aiello presented the architectural elevations and explained the proposed staffing and functions to include a wet lab feature, key card security entry and the design features of the structure. There is a two year schedule anticipated for the completion of the project. Aid. Moran asked if the Levey Center can be spared, given the Ameritech vault situation. Ms Aiello explained that the residential component would still call for a portion of the Le« site. DRAFT -NOT -APPROVED Economic Development Committee Minutes -December 8. 19" PWV 4 Mr. Dennis Marino next gave a brief update on the DempsterlDodge (B anston P U") redevelopment project. He stated the Redevelopment Agreement was appro-md by the City Ca moil in November and that Freed has informed staff that the Dominicks may be completed as ear4y as April, 2000. The Office Depot space has already been reduced to accommodate the plan. Environmental remediation continues at the site and constructuon permits have been applied for. Aid. Feldman commented that it looks better already and the new signs and landscaping are attractive. Mr. Marino concurred and continued by stating that across Dodge Avenue. the new anwn house development is going very well with units priced in exess of $200,000. Aid. Newman asked how the town houses were selling in the Research Parr Ald. Engelman shed that all but one had been sold. There being no further business, the EDC elected to enter into an Ececutive Session. A roll call vote was conducted by Morris Robinson and the motion carried unanimously. The EDC entered into Executive Session at 9:00 P.M. Executive Session ended at 9:20 P.M. There being no further business, the meeting was adjourned at 9:21 P.M. The next EDC meeting is scheduled for January 26, 2000 at 8:00 P.M. Respectfully submitted, lT ormri114obinson Econ -mic Development Planner �a • DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COM MEE MEETING MINUTES WEDNESDAY, OCTOBER 27,19" ROOM 2444-7:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Ald. Engelman, Ald_ Moran, AU Newman, Percy Berger, Sydney Grevas, Lucille Krasnow MEMBERS ABSENT: Aid. Wynne, Greg Norwell PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Drummer STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Lloyd Shepard OTHERS PRESENT: Robert Rychlicki, Kane -McKenna, James Klutznick, John Terrell, 0 Maurice Fisher, Sherman Plaza Pentwe, Dennis Harder and Charles Fiorito, Evanston, LLC (Freed & Associates), Jonathan Perman Evanston Chamber of Commerce Summary of Actions: A declaration of a quorum was announced and Ald. Newman, acting Chair, convened the meeting at 7:15 P.M. The previous minutes of September 22, 1999 were unanimously approved. The communications items contained in the agenda packet included the minutes from the September 29. 1999 JRB meeting. Those documents were briefly discussed and there were no questions. Ald. Newman next called on Mr. James Klutznick and his Sherman Plaza Venture developmart team for an updated presentation on the proposed Sherman Plaza Redevelopment Project. Mr. Klutznick introduced John Terrell and Morris Fisher and advised the EDC that they would also take part in the presentation. Mr. Klutznick apologized for missing the last EDC meeting and gave a brief overview of the project. Key to the project is Sears' desire for establishing a presence on the north shore. By erecting a new Sears store in the proposed project, Sears will be able to strategically fill a void in their geographical market area. Mr. Terrell continued by presenting the latest site plan iterations for each component of the proposed project, to include the streetscape plans and he articulated the logic for each design isdecision. Mr. Terrell described the proposed project and location as being analogous to Randolph and State streets in Chicago. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MIMYTES-OCTOBER 27, 19" Psi Mr. Terrell indicated that the st ==ipe design will have attractive and varied tree cluster plantings in front of each project component and the pedestrian walkway will be much like a plaza in appearance, complete with inviting seating arrangements and an outside cafd. Mr. Terrell indicwed the type of retailers suitable for the development would be entities such as Old Navy, the Liniiwd, Abercrombie & Fitch, perhaps having the Gap represent their store concepts in one of the new retail spaces, Linen & Things and other types of popular container stores. There will ultimately be five or maybe six fairly sizable stores occupying the new retail spaces. Mr. Terrell continued with a brief description of the proposed senior citizen, upscale residentW building which will have approximately two hundred units with the three lower stories dedicated to assisted living units. The parking facility for the residential component and the new Benson Ave. Municipal Garage, as well as the following issues: entry and egress concept,; truck deliveries; trash removal and maintenance issues were discussed at length. Mr. Terrell advised the EDC of the anticipated time line to complete the proposed project. The phases of completion are derived from Sears requirement to open their retail store in October, 2001. Backing up from that date, the existing deteriorating municipal garage has to be demolished and the new facility started by March of 2000. Maurice Fisher gave a status update on land acquisition for the proposed project_ Negotiations and relocation efforts for both the property owners and the tenants are ongoing. The Champs store, Osco Drug Store and the Citibank relocation efforts are near completion and the remaining property acquisitions are at varying negotiation stages with no anticipated difficulties. There were no questions from the EDC at the conclusion of the presentation. Aid. Feldman arrived and assumed the Chair presiding duties. Dennis Marino suggested the EDC should next consider for action, three proposed ordinances concerning the Washington National T1F Boundary Expansion. Mr. Marino stated the three ordinances are: 1. An Ordinance Approving and Adopting The First Amended Washington National TIF Redevelopment Plan and Project, 2. An Ordinance Approving and Adopting the First Amended Washington National TIF Redevelopment Project Area, and 3. An Ordinance Confirming Taos Increment Financing. Aid. Engelman asked about the status of the efforts to provide the two school districts with TIF revenues. Mr. Marino advised Aid. Engelman of the previous meeting with the school boards and the agreed upon plan to identify revenues from the existing TIFs which could be provided to the school districts. Aid. Engelman continued with a discussion on future use of TIF revenues derived specifically from the Expanded Washington National TIF District. Aid. Engelman prefaced his statements with his understanding of the need and importance of the expanded TIF district, panicularly with the • imperative need to construct a new municipal garage. � 04 DRAFT-NOTAPPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OC'TOBFR. 27, 199 PXV 3 Aid. Engelman's concern is that the revenues generated from the expanded TIF will be used forcidw redevelopment projects beyond those proposed for the Sherman Plaza project. if the TEF is successful to the point that funds become available which could be used for other projects vvidbin the new boundaries, AK Engelman seeks assurances that sufficient public and City Coumcii deliberations will be made before those funds are used. In particular the school districts should be in agreement with any future decision(s). Aid- Newman and Aid. Feldman advised Aid. Engeir m that the financial pro forma projections prepared by Kane- McKenna do not indicate the levrJ of success currently realized by the other existing TIFs and that just to meet the financial requi,... • , for the new municipal garage in the proposed Sherman Ave. Project will be tight. Aid. Engelman was emphatic with his desire for assurances and the entire EDC agreed to his request. Ald. Neu =mn stated that all financial matters receive full Council deliberation as a matter of policy and that both school districts have been advised on all aspects of TIF revenues and are pleased with the Crty's revenue sharing proposal. Aid. Feldman commented on the agreement that the City has with the school districts to have periodic joint reviews on the performance of the TIFs. The general discussion continued, %kith EDC members clarifying their positions, culminating RTth Ald. Engelman moving to recommend approval to adopt the three ordinances as set forth, to the City Council and for staff to prepare a companion resolution for specifically addressing the regraest for public discussion on any future Washington National T]F revenue funds appropriations, other than those funds allocated for the proposed project within the borders of Sherman Avenue, Church Street, Benson Avenue and Davis Street. Sydney Grevas seconded the motion which was tbm passed unanimously. Dennis Marino next advised the EDC that Nissrs. Dennis Harder and Charles Fiorito of Freed & Associates ( Evanston Plaza LLC) will provide an update on the proposed Dempster /Dodge Shopping Center Redevelopment Project. In conjunction vith the presentation, the agenda packet's contained the draft Redevelopment Agreement which was negotiated by a team consisting of stall City consultants Kane McKenna and the firm of Ryan and Ryan serving as the City's le2zI advisers. In addition, staff included a two page synopsis of the major aspects of the proposed Redevelopment Agreement. The City sales tax portion to be shared with Freed and Associates, %-M not exceed the amount of S 1. 3 million over an eleven year period and the amount is designed to assist Freed in meeting specific extraordinary costs associated pith the redevelopment project. The extraordinary cost are defined and confined to three catagories: 1. Anchor Tenant Allowance; 2. Shell Demolition Preparation and 4. Parking lot improvement costs. Mr. Harder provided the EDC with a review of the redevelopment project and inforrned the members of the current status of the contamination remediation in the garbing lot, new roofing and other nxk pointing, painting and general maintenance activities occurring throughout the shopping center- 0 DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COSL1ltT'r'EE MINUTES-OCTOBER 27. 1999 PW-5 Ms. Aiello next provided a brief update on the Church Street Plaza Repeating previous information Provided to the EDC with regard to the pouring of caissons, time schedules, municipal garage design aspects and hotel negotiations. The residential component is temporarily on hold until all garage issues are resolved.,The Levey Center is scheduled for demolition in January, 2000. Aid. Feldman shared a letter he received from Mr. Charles Smith in which Mr. Smith suggeathat the new Senior Center be wired for computers while the Center is being constructed. Ms. Aiello advised the EDC that the staff and the City architect has already addressed this issue. his. Aiello then asked Morris Robinson to give a brief update on the relocation initiatives with Dave's Italian Kitchen restaurant. Morris Robinson complied. Aid. Feldman advised the EDC of a memo staff referred to him, suggesting a proposed use of House Depot Neighborhood Improvement Funds. The purpose for the funds is to provide a portion of the cost for erecting a security fence on a commercial establishment which will eliminate hazards affecting the business and the adjacent home owners. The suggested amount will not exceed $3,500. Aid. Feldman first consulted with Aid. Drummer since the request has an impact on both of their wards. Ald. Feldman and Aid. Drummer considered the request to be reasonable. After Aid_ •Feldman shared the information with the other EDC members and after a brief discussion by the members, Sydney Grevas moved to recommend approval to the City council for the funding with a cap of $3,500. The motion was seconded by Percy Berger and the measure carried with a unanimous vote. Sydney Grevas moved to enter into Executive Session . The motion was seconded by Lucille Krasnow. A roll call vote ensued and the motion carried unanimously. The EDC entered into Executive Session at 8:55 P.M. Executive Session ended at 9:10 P.M. Aid. Newman moved to recommend to the City Council that the Draft Redevelopment Agreement for the Dempster [Dodge Shopping Center, as presented by staff and consultants, be approved with the condition that Freed provides the good faith employment letter from Dominick's also recommended by staff. The motion was seconded by Percy Berger and the measure was unanimously approved. The EDC members congratulated staff, the Kane McKenna consultants and the City's legal council on a job well done with regard to the Dempster/Dodge Redevelopment Project - There being no further business, Ald. Moran moved adjourn and Percy Berger seconded the motion which was carried unanimously. 0 rAA DRAFT--NOTAPPROVED ECONOWC DEVELOPMENT COf*UMMEE MINUTFS-Or,' ffl FR 17, !" P" 3 Aid. Engelman's concern is that the revenues generated from the expanded TIF will be used for other redevelopment projects beyond those proposed for the Sherman Plaza project. If the TV is successful to the point that funds become available which could be used for other projects within the new boundaries, Ald, Engelman seeks assurances that sufficient public and City Council deliberations will be made before those funds are used. In particular the school districts should be in agreement with any future decision(s). Ald. Newman and Aid. Feldman advised Aid. Engelman that the financial pro forma projections prepared by Kane- McKenna do not indicate the level of success currently realized by the other existing TIFs and that just to meet the financial requirements for the new municipal garage in the proposed Sherman Ave. Project will be tight. Aid. Engelman was emphatic with his desire for assurances and the entire EDC agreed to his request. Ald. Newman stated that all financial masters receive full Council deliberation as a matter of policy and that both school districts have been advised on all aspects of TIF revenues and are pleased with the City's revenue sharing proposal. AId. Feldman commented on the agreement that the City has with the school districts to have periodic joint rerie%vs on the performance of the TIFs. The general discussion continued, with EDC members clarifying their positions, culminating with Aid. Engelman moving to recommend approval to adopt the three ordinances as set forth, to the City Council and for staff to prepare a companion resolution for specifically addressing the request for public discussion on any future Washington National TIF revenue funds appropriations, other than those funds allocated for the proposed project within the borders of Sherman Avenue, Church Street, Henson Avenue and Davis Street. Sydney Grevas seconded the motion which was then passed unanimously. Dennis Marino next advised the EDC that Mssrs. Dennis Harder and Charles Fiorito of Freed & Associates ( Evanston Plaza LLC) will provide an update on the proposed Dempster /Dodge Shopping Center Redevelopment Project. In conjunction with the presentation, the agenda packets contained the draft Redevelopment Agreement which was negotiated by a team consisting of staff, City consultants Kane McKenna and the firm of Ryan and Ryan serving as the City's legal advisers. In addition, staff included a two page synopsis of the major aspects of the proposed Redevelopment Agreement. The City sales tax portion to be shared with Freed and Associates, will not exceed the amount of S 1. 3 million over an eleven year period and the amount is designed to assist Freed in meeting specific extraordinary costs associated with the redevelopment project. The extraordinary, cost are defined and confined to there catagories: 1. Anchor Tenant Allowance, 2. Shell Demolition Preparation and 4. Parking lot improvement costs. Mr. Harder provided the EDC with a review of the redevelopment project and informed the members of the current status of the contamination remediation in the parking lot, new roofing and other tuck pointing, painting and general maintenance activities occurring throughout the shopping center. 0 DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES-OCTOBER 27. 19" Pale 4 The parking lot configuration and landscaping will be improved and in general the project is basically on schedule. Block Buster Video has opened and The Dominick's store is still slated for opening in the late spring of 2000. Freed has also enhanced security for the shopping center with their own security force and augments this force with off duty Evanston police officers. Aid. Drummer advised the EDC that the community is in full accord with the project and at this point has no outstanding issues. Aid. Feldman asked how the Developers' planned to prevent improper driving through the parking lot. W. Harder stated that the landscaping and dividers should minimize the problem but they would look into additional measures. There will be a new retail space resulting from the downsizing of Office Depot. which will be approximately 18,000 square feet and it is anticipated that a soft goods retailer will lease the space. Aid. Feldman asked about the landscaping along Dodge Ave. Mr. Harder stated that the existing landscaping will be enhanced and that the new retail space will have windows that wrap around to the Dodge Ave. side and open and lighten that edge of the shopping center. k It do Percy Berger asked about the status of the Pizza Hut. Mr. Harder said there was no change in the status although Freed has initiated recent discussions with the owners. 0 Aid. Engelman stated that the original request from Freed wras for assistance with the extraordinary contamination remediation costs. Mr. Harder explained that the original request was focused solely on contamination remediation but as the project negotiations progressed it was determined by City staff that the three other extraordinary cost items previously mentioned %would be more appropriate for City provided assistance. Dennis Marino advised the IEDC that if action is taken on the draft Agreement, any final decision and execution of the document should be based on Freed providing the City with a letter from Dominick's addressing the store's hiring intentions as they pertain to Evanston, indicating it's intent to market employment opportunities to Evanston residents. The discussion began to lead into specific financial proprietary issues and Dennis Marino suggested that perhaps an Executive Session was in order. The members decided to continue with the agenda items and enter into Executive session as the last item. Ms. Judith Aiello gave a brief update on the Main and Chicago News Stand. The C.T.A. Board has approved the sale of the land to the City. It is not known when the actual transfer of the land will tape place, but the prospects for completing the transaction in the near future is good. The City has a good bid for demolition and it has been proposed to the C.T.A. that the City place the purchase funds in escrow so that the demolition can proceed. 0 A • DRAFT -NOT APPROVED ECONO.MiC DEVELOPMENT COINUu 1 1 e:et M OBER 27 1999 Pam Ms. Aiello next provided a brief update on the Church Street Plaza Repeating previous information provided to the EDC with regard to the pouring of caissons, time schedules, municipal garage design aspects and hotel negotiations. The residential component is temporarily on hold until all garage issues are resolved..The Levey Center is scheduled for demolition in January, 2000. Aid. Feldman shared a letter he received from Mr. Charles Smith in which Mr. Smith suggest that the new Senior Center be wired for computers while the Center is being constructed. Ms. Aiello advised the EDC that the stab' and the City architect has already addressed this issue. his. Aiello then asked Morris Robinson to give a brief update on the relocation initiatives with Dave's Italian Kitchen restaurant. Moms Robinson complied. Aid. Feldman advised the EDC of a memo staff referred to him, suggesting a proposed use of Home Depot Neighborhood Improvement Funds. The purpose for the funds is to provide a portion of the cost for erecting a security fence on a commercial establishment which will eliminate hazards affecting the business and the adjacent home o«ners. The suggested amount will not exceed $3,500. AId. Feldman first consulted with Aid. Drummer since the request has an impact on both of their wards. Aid. Feldman and AId. Drummer considered the request to be reasonable. After Aid. •Feldman shared the information with the other EDC members and after a brief discussion by the members, Sydney Grevas moved to recommend approval to the City council for the funding with a cap of $3,500. The motion was seconded by Percy Berger and the measure carried with a unanimous vote. Sydney Grevas moved to enter into Executive Session . The motion was seconded by Lucille Krasnow. A roll call vote ensued and the motion carried unanimously. The EDC entered into Executive Session at 8:55 P.M. Executive Session ended at 9:10 P.M. Aid. Newman moved to recommend to the City Council that the Draft Redevelopment Agreement for the Dempster /Dodge Shopping Center. as presented by staff and consultants, be approved with the condition that Freed provides the good faith employment letter from Dominick's also recommended by staff. The motion was seconded by Percy Berger and the measure was unanimously approved. The EDC members congratulated staff; the Kane McKenna consultants and the City's Iegal council on a job well done with regard to the Dempster/Dodge Redevelopment Project. There being no further business, Ald. Moran moved to adjourn and Percy Berger seconded the motion which was carried unanimously. DRAFT -NOT APPROVED ECONOMICDEVEL.OPMENT COIi04MME M UTU ES-OCPOBER 27.1999 PaWe6 The meeting adjourned at 9:15 P.M. The next EDC meeting is scheduled for November 17, 1999 at 9:00 P.M. &ally submitted, :. Robmnsan rmic Develo ment Planner C7 DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES WEDLKESDAY, SEPTEMBER 22, 1999 ROOM 2444-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Aid. Engelman, Aid. Newman, Ald. %%'ymte, Sydney Grevas, Lucille Krasnow, Percy Berger .NEEMBERS ABSENT: Aid. Moran, Greg Norwell PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL yW—MBERS PRESENT: Aid. Bernstein STAFF PRESENT: Roger Crum, Judith Aiello, Dennis Marino, 1rtorris Robinson. William Stafford OTHERS PRESENT: Terry Jenkins- Evmark, Ronald Keysiak-NUERP umms of Actions: The meeting was convened at 8:08 P.M. by Aid. Feldman. The previous minutes of August 25, 1999 were unanimously approved. Since the Klutmick development team was scheduled to appear before the EDC and they were not presemt. Aid. Feldman asked Judith Aiello if there had been a mis-communication. Ms. Aiello advised the EDC that the Klutznick team would not be present for the meeting and that she would pro--ide an explanation when She gives her project updates. Aid_ Feldman next inuraduced for discussion the draft minutes from the Washington National TIF Joint Review Board meeting. The JRB minutes had been included in the EDC packets. Those minutes were briefly discussed and Aid. Feldman announced the date, time and location for the next and final Joint Review Board meeting, which is Wednesday. September 29. 1999 in room 2404 at the Civic Center. Aid. Feldman also advised the EDC that School Districts 202 and 65 has submitted a proposal to the Cin- to share in the T1F revenue stream from the outset and this proposal will be presented to the EDC as well as the City Council for consideration. Aid. Feldman then directed City staff to analyze all of the existing TIFs throughout the City to determine if revenues are sufficient enough in the existing TiFs to provide a source of revenue for both school districts. DRAFT -NOT -APPROVED Economic Development Committee Minutes-Sentemher 29. 1999 Pate 2 William Stafford. the City's Finmcr Director stated that he would pret;im at perfu niance analysis on the existing TIFs and that the 3nal►Nis could be completed by Monday, Ovlobrr 4.1999. Roger Crum asked Aid. Feldman if he would like the TIF analysis report to br added to the City Council agenda. Aid. Feldman answered affirmatively. Aid. Newman commented on the budget concerns of the school districts and the difficulty they experience in waiting years to benefit fi-om TIFs. He said that the he is hopeful that the TIF analysis will be positive and that the City will be able to provide some financial relief to the school districts. Terry Jenkins of Evmark made a general comment as to how the proposed revenue sharing approach is one more step in creating and building on a sense of mutual trust between the City and the Districts. Aid. Newman also cgxvssed his hope that the City will find the means to provide the school districts with early revenue disbursement relief. Aid. Feldman next asked Ms. Aiello to update the EDC on the various downtown development projects. Ms. Aiello began with the proposed Sherman Plaza project. Currently there are four priority areas of activities occurring: 1. Continuous re►iew of the entire development plan; 2. the financial analysis process; 3. Maneuvering through the plan development process and 4, the proposed Washington National TIF expansion. tits. Aiello then distributed to the EDC and staff. a time Iine schedule of all of the issues and activities (copy attached) still required for completing the project. Ms. Aiello stated that the Klutznick team is continuing with it's acquisition of the properties within the proposed development parameters and the developer is aiming to have all of the acquisition contracts completed by the end of calendar year 1999. The developer plans to take possession of the properties during the first quarter of 2000 and to start demolition of the Sherman A►enue Garage by March, 2000. and to start construction of the new garage immediately. This schedule would be consistent with the developer's desire to complete the Sears store in 2001. The location of the various components of the development have not changed and Ms. Aiello provided a brief description of the development site. Referencing a parking needs analysis prepared by KLOA. 'pis. Aiello advised the EDC that with the Church Street Plaza project and rue proposed Sherman Plaza project. the two planned municipal garages would have to meet a combined capacity of 2.700 parking spaces to accommodate projected demand. 4is. Aiello advised the EDC that the new Maple Avenue Garage. will have approximately 1.390 parking spaces and construction will begin in November 1999. The proposed neww Sherman Avenue Garage will have twelve levels %%hich will afford approximately 1.350 parking spaces. DRAFT -NOT -APPROVED Economic Development Committee Minutes -September 29. 19" Palle 3 Aid. Newman asked Ms. Aiello if she knew the cost per parking space for the proposed Sherman Avenue Garage. `7s Aiello stated that the cost per space is one of the priority issues that staff and the City consultants arc reviewing to determine how the costs can be reduced.. Currently, the Sherman Avenue Garage construction cost is projected to be approximately seventeen to eighteen thousand dollars per space. In comparison, the Maple Avenue garage will be six stories and the projected cost is ec imated at sixteen thousand dollars per space. She also stated that the Klutznick development team has received preliminary approval for the building component designs from the Site Plan And Appearance Re►iew Committee, with the exception of the residential tower. They are scheduled to return to the Site Plan towards the end of the month with revisions for that component. Ms. Aiello continued by stating that a primary concern now is to determine how the proposed garage will be paid for. Ald. Newman asked what the total cost Hill be. Ms. Aiello said the projected price for the garage will be $22 to $25 million, without interest. As staff and consultants continue to reline the proposed Washington National TIF analysis the exact cost will be determined as well as assuring that the incremental real estate and sales tax revenues generated will be sufficient to retire the debt as planned. Ms. Aiello advised the EDC of her intent to convene a special meeting on October 13. 1999 comprised of members of the EDC, the Parking Committee and the City Council. The purpose for the meeting will be to focus strictly on the issue of providing financing for both garages. It is apparent that the numbers are tight with regard to funding the construction of the garages. Ms. Aiello stated that the Washington National TIF analysis was proceeding. The Joint Review Board met on September 1, 1999 and a second meeting was scheduled for September 29. 1999. and the JRB deliberation phase will be concluded at that time. The Public Hearing for the proposed TIF expansion is scheduled for October 11, 1999, and the ordinance will be introduced to the City Council on October 25. 1999. Ms. Aiello then briefly read through the time line schedule which she had previously distributed. Aid. Feldman asked Ms. Aiello if she found the negotiations with Klutznick's Sherman Plaza proposal, proceeding comparatively more smoothly, based on her previous negotiating experiences with other developers. Ms. Aiello's response was that staff now has the redevelopment agreement prototype which will make the process more efficient. However. staff is still in the pro forma review phase and resolving issues stemming from this review process and as such, the negotiation process has not really begun with Klutznick. Roger Crum added that because the Proposed Sherman Plaza Development Project is not as complicated as the Church Street Plaza Project, indications are that negotiations will proceed more smoothly. DRAFT -NOT -APPROVED Economic Development Commi"ty IMinutes-September 29, 1999 pan 4 Add. Newman asked why the Klutznick team was not present Nis. AiclIo cxp�sincd that a mis- communication had occurred. Staff supposed to meet with ti- deweloper and his amhitects that afternoon but the meeting had been canceled and perhaps Mutzni_& interpretni that the appearance before the EDC had been canceled also. Aid. Feldman asked if thry were going to return at a future meeting. Ms. Aiello said they can return anytime at the behest of the EDC. Ald. Moran asked when Klutznick would be able to provide an tr}kiate on the sw.vcss of acquiring all of the required properties for the proposed project. Ms. Aiello stated that she expects a report about the property acquisition success or lack of success in October. Ald. Feldman asked if there were relocation issues to resolve. Ms. Aiello stated that the Klutznick organization is currently working with. and will continue working with all displaced businesses who wish to remain in Evanston in obtaining suitable new locations. Terry Jenkins is also providing assistance in the relocation efforts. Aid. Newman asked when the budget for the proposed TIF district will be available. Ms. Aiello stated that in addition to what she has previously provided the EDC. additional budget information dill be reviewed in the future. tics. Aiello next gave a brief update on Church Street Plaza. Significant points were the pouring of the caissons for the main pavilion and the acquisition from the CTA of an easement which ranges in width from five to eighteen feet at various points along Benson Avenue. Plans are proceeding with the construction of the garage. One major problem being addressed is the discovery of an Ameritech vault behind the Levy Center which supplies service north to Milwaukee. Although the manhole covers were depicted on the survey, the vault was not_ The only feasible solution is to construct the garage around the vault, which will result in the sacrificing of several parking spaces and the redesign of that elevation. The Century Cinema group was in town the previous week artd had a mini ground breaking ceremony of their own. The Century team is enthusiastic with the art house concept and although they are currently negotiating with the City of Chicago for two additional sites. their desire is to make the Evanston project their primary entry into the Midwest. O;ertures were made with regard to Century hosting the independent fiim festival in 2000. Design work and discussions continue with regard to the hotel and residential tower. It is anticipated that construction will commence on both components in the Spring of 2000. At fir. Crum's suggestion, Nis Aiello took the opportunity to squelch the rumor that the Citw was the guarantor for Hill on the main pavilion loan. This is certain[% not the case and the City has nothing to do with the developer's loans. DRAFT -NOT -APPROVED Economic Development Committee Minutes-Seatember 29.1999 Pate 5 However, even though Hill is responsible for obtaining the loan for the garages. the lender %%ill want assurances from the City that once the garage is completed that the facilit• will he purchased by the City. The members of the EDC thanked Ms. Aiello for her presentation and commended her on the efforts to date. Dennis Marina informed the EDC that the Chandler's Building Redevelopment Project is near completion and occupancy is expected in October. The appearance of the building is attractive as well as the newly created plaza. Pot Bellies sandwich restaurant will occupy one of the street level retail spaces while it is still unknown who will occupy the second retail space. Dennis Marino gave a brief update on the proposed Dempster Plaza Redevelopment Project. Negotiations are proceeding well and staff anticipates presenting a draft redevelopment agreement to the EDC at the October 27. 1999 meeting. Prior to discussing the next agenda item, Aid. Feldman asked Terry Jenkins to inform the EDC of recent information he has learned regarding the perception of Evanston held by members of the Midwestern branch of the International Conference of Shopping Centers. The organization has one major show each year in the fall and Evanston has a booth at the event. This year it was in Las Vegas and the event is attended by real-estate brokers, developers. and agents who represent regional and national retail chains. Seven cities including Evanston were represented. Terry has been attending the event for nine years and although Evanston has always been perceived by attendees in a positive light, this year was the most positive of all and the interest le -.-el in Evanston is very high. particularly with the momentum of the developments and the plans to add residential to the downtown mix of retail. Aid. Wvnne asked Dennis Marino if there -vas information a,. ailable regarding; the Chicago Avenue Dominicks store's circumstances. Dennis Marino stated that there was no new information. Aid. Wynne stated that rumors of the store closing were being circulated, purportedly by some of the Dominick's employees and suggested that Mr. Marino attempt to determine the validity of the rumors. Mr. ,titarino stated that he would make the contacts. Aid. Feldman asked Judith Aiello to provide an update on the Chicago and ;Main `e%%s Stand. Ms. Aiello advised the EDC that negotiation efforts were unden%a% with the CTA Corporation Counsel and City Attorneys to acquire an easement for the propert} and begin the demolition process. Bids have been received for the demolition work and next week staff should know. with more certainty as to when this issue can finally be resolved. Aid. Wynne advised 'vls. Aiello to keep the EDC informed in the event Aldermanic intervention is required. DRAFTWOT-APPROVED Economic Development Committee Minutes -September 29, 1999 PsLe 6 Aid. Feldman asked if the Planning Department is considering uses for the vactutt Builders Square building and the building's considerable parking lot. Aid. Feldman said he rrcallcd an instance %&ben several citizens were attempting to bring a bowling alley to the Cite and he believed that the Builders Square location is the best site in the City suited for such a venture. Aid. Feldman asked Dennis Marino if he still had the list of pixiple who had previously inquired about bowling alleys. Mr. Marino stated that he still had the list and that about one and a half %ears ago he received at least two inquiries from parties considering building a lx)wling alley and that those parties would be contacted. Mr. Marino continued by stating the building is entangled in bankruptcy proceedings and that K Mart is still the tenant of record on the lease agreement. The broker for the property has indicated that there has been several inquiries on the property but the bankruptcy litigation has been problematic. Mr Marino also mentioned that fly dumping was occurring on the property and that efforts were underway to have the property manager clean up the site. The cleanup should be completed b, the following Monday. Ald. Feldman stated that the site represents good potential for the City and that finding a good and profitable use for property is highly desirable. Next, Ms. Aiello advised the EDC that Scribcor has the option to purchase the lot immediateiy east of it's new building under construction and that the option expires in April 2000. Scribcor has approached the City to purchase the lot for parking purposes as soon as possible. Scribcor has the opportunity to lease 50% of the space in their new building to a significant tenant which will bring 150 new jobs to Evanston. One of the requirements to seal the agreement is the assurance from Scribcor that sufficient parking will be available. Aid. Newman expressed his concern about Scribeor's intent for the old Fresh Fields building on Ridge Avenue which is currently being used for parking, particularly if they should decide to sell to Northwestern University or the Evanston Hospital. The City is trying to add properties to the tax roll, not the reverse. Aid. Newman stated that as a member of the City Council he would not be in favor of future Scribcor requests if they chose to sell to a tax exempt entity. Aid. Wynne moved to adjourn and Aid. Feldman seconded the motion. There being no further business, the meeting was adjourned at approximately 9:00 P.M. Respectfully submitted. %4orris E. Robinson Economic Development Planner DRAFT -NOT -APPROVED MEETING OF THE JOINT REVIEW BOARD FOR THE WASHINGTON NATIONAL TIF DISTRICT MINUTES WEDNESDAY, September I, 1999 -ROOM 2404-7:00 P.M. EV ANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman. din-Lif Evanston, Jacquline Harder -Cook COAMY, David Hilquest-Oakton Communiti, College, Valerie Kretchr=- Puba Member. Don Tarkenton- District 6� Elizabeth Tisdahl- District 01 PRESIDING OFFICIAL: Aid. Feldman- Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Bernstein- Aid. Newman, Aid. Rainey STAFF PRESENT: City: Roger Court. Judith Aiello, William Stafford, Dennis Marino, Morris Robinson; Dist. 202: Jeff Taggart; Dist-65: Theresa O'Neil OTHERS PRESENT: Phil McKenna, Robert Rychlicki, Terry Jenkins, Jonathan Perman Anne Diener Summary of Actions: The meeting was convened by Aid. Feldman at 7:38 P.M. Ald. Feldman requested the members of the JRB to introduce themselves and their affiliations. Phil McKenna of Kane McKenna & Assoc. began the discussion with a description of the TIF Districts and the role of the JRB. Mr. McKenna continued by providing the background for the rationale and need for the proposed boundary expansion of the Washington National TIF District. The proposed expansion area is defined by the appropriate, contiguous boundaries of, two parcels north of Church St.- to the north, Benson Ave. to the west, Sherman Ave. to the east (excluding the First Chicago-NBD-BankOne building) and Grove St. to the south. Utilizing a large map depicting the proposed new boundary as a -.isual aide, Mr_ McKenna clarified the exact parameters of the proposal and other aspects of the existing boundary for the benefit of the JRB members. Mr. McKenna made the point that the area is stagnant and is in decline. Mr. McKenna went on to explain that the proposal will spur private investment and development, ultimately generating more revenues than «ould be realized if the area were to remain in it's current condition. Mr. Robert Rychlicki, also of Kane McKenna advised the members that the proposed expansion area comfortably meets the requirements for a "Conservation" designation, and that a complete explanation for this designation would be presented later in the presentation. DRAFT -NOT -APPROVED Joint Review Board Meeting M ' her 1. 1999 Pam Ms. Judith Aiello advised the JRB that initially the Economic Development Committee had considered a Iarger contiguous area extending further west on Davis St. to Oak Ave., but later deemed the boundaries to broad and unacceptable. The ultimate recommendation to the City Council %vas the scaled do%%m boundaries depicted on the map contained in the JRB packets and the subject of tonight's meeting. .old. Newman emphasized the point that the proposed expansion is needed to permit the construction of the municipal garage as well as for addressing the need to redevelop such deteriorated buildings as the Varsity Theater, the Ameritech Building and the the rehabilitation of the ailing Fountain Square. Next, Mr. William Stafford, City Finance Director, provided an update on the performance of the existing Washington National TIF. Last year, (1998) the City collected $1.3 million, of which the City received $165,000 in tax increment revenues. The 1998 figures will be received in the fall of 1999 and a significant increase is anticipated, since the Buck development has been completed. Property tax revenues from the Buck development are expected to double for 1999. ultimately peaking in three or four years at approximately $455,000. per year going for%%ard. These receipts will be used to retire the debt service on the tax increment bonds which started at the amount of $206,000 annually, in 1997 and will rise to $575,00 annually over the 17 year life of the bond_ The performance as well as projections validate the success of the project. Mr. Stafford stressed the point that the taxing districts continued to receive the same amount of monies from the base EAV they were receiving prior to the TIF. "is. Elizabeth Tisdahl asked if other Evanston TIF districts were currently being planned. Ms. Aiello and Ald. Feldman assured Ms. Tisdahl that there were no other TIFs currently under consideration. Mr. Marino informed the JRB of the four new retail business uses and the 98% residential occupancy level of the Buck development at I606 Chicago Ave., which was constructed in the existing Washington National TIF district. Mr. Rychlicki next provided a review of the Eligibility Report, which was prepared by his firm. To qualify for the TIF expansion, the area must meet the requirements to be granted with either a "Conservation" or "Blighted" designation. The Conservation designation proved to be the logical direction for the proposed expansion area. To obtain the designation. certain criteria has to be met, the first being 50° o or more of the structures had to 35 years old or greater. It was determined that 901/'a of the structures which are present and distributed throughout the proposed expansion area are older than the thirty-five year eligibility requirement, with the vast majority of the structures erected prior to 1940 or around the turn of the century. As such the area meets the first test for the Conservation designation eligibility. DRAFT -NOT -APPROVED Joint Review Board Meeting, Minutes -September 1. t999 Pagel In addition to the age test, three other factors, out of fourteen, had to be deemed present. Kane McKenna was able to determine that five factors were present, including: I . deleterious layout, 2. obsolescence, 3. depreciation of physical maintenance, 4. excessive vacancies and 5. deterioration. Field observations indicate that approximately 85% of the structures distributed throughout the area reflect depreciation of physical maintenance. Two other area wide factors are present. deleterious layout, indicated by poor parking opportunities and obsolescence, which is primarily reflected in functional and economic inadequacies exemplified by the municipal garage and the Ameritech building. Vacancies are exemplified by such structures as the Varsity Theater and the Ameritech building, both of which have been vacant for several years and deterioration is verified within the area by City Engineering reports. Mr. Hilquist asked what qualifications Kane McKenna possessed to make the determinations presented. Mr. McKenna assured Mr. Hilquist that all appropriate guidelines and TIF statutes were adhered to in developing the report and that his firm has been certified as expert witnesses with respect to TIF qualifications on no fewer than six different occasions. A general discussion ensued on the use of TIFs as a development generating tool and whether or not other areas are slated for TIF designation. Mr. Hilquist expressed his concern that the TIF expansion proposal would deprive the school districts of tax revenues and perhaps the redevelopment could best be accomplished by private enterprise or other means. Aid. Newman advised Mr. Hilquist that if the possibility for private development existed without a TIF district, the opportunity would have been perused, but the reality is that the proposal presented by the Kluzutick group is the best opportunity to surface in several years. Ald. Newman went on to explain that even this proposal hinges on the City constructing the municipal garage, «-hick is needed in any case. The resolution of the parking issue is essential and the TIF expansion presents the opportunity to construct a new garage without having to raise property takes to pay for the structure. Mr. Rychlicki then summarized the proposed amendments to the initial plan for the Washington National Boundary Extension which were included in the packets. The amendments are threefold, 1. to provide for the new, wider area boundary change, 2. to increase the budget to allow for the new municipal parking facility and 3. to allow for the mixed use redevelopment of the area_ Ms. Aiello briefly discussed the issues pertaining to the City's need to meet the demand for parking in light of the Church Street Plaza project and the proposed Sherman Plaza redevelopment project. It was determined that 2,400 spaces would be needed and that one massive garage in the downtown area was undesirable. The Sherman Plaza proposal provided the City with the opportunity to erect two garages, with approximately 1,400 spaces in the ShermatvBenson garage and approximately 1,200 in the Church Street Plaza. The garage is a requirement for Sears to participate in the project. DRAFT' -NOT -APPROVED Joint Review Board Meeting Mioutes-SeIltember i. !99R Page .} Utilizing visual aids, Ms. Aiello presented the elevations and design nendrrings of the prop2&�d new garage, the Sears retail store and the other structural components of the Sherman Plaza redevelopment project. The estimated cost for the garage is $28 million dollars. Nis. Aiello also commented on other redevelopment opportunities such as the rehabilitation of Fountain Square. Ms. Tisdahl commented that the presentations were informative and that she "w not ne>ressarily Opposed to this TIF proposal, however she needed more time to consider the proposal. The JRB decided not to make a recommendation at this meeting. Mr. Rychlicki reminded the members that a decision has to made within thirty days of the first meeting. An additional meeting was scheduled for Wednesday, September 29, 1999 at 7:00 P.M. at which time a recommendation would be made. There being no further business, the meeting was adjourned at approximately 9:15 P.M. Respe.c fully submitted, ' Tj Mortis E. Robinson Economic Development Tanner DRAFT=NOT APPROtED ECONOMIC DEVELOPMENT COMMITTEE MINUTES WEDNESDAY. AUGUST 2_3. 1999 ROOM 2404-8:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Engelman, id. Feldman. Ud. Newman, Aid. «'ynne, Percy Berger MEMBERS ABSENT: Aid. Moran, Sydney Gre%-as, Lucille Krasnow, Greg Norwell PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson . �. Summary of Actions: The meeting was convened at 8:15 P.M. by Aid. Feldman. The previous minutes of July 28, 1999 were unanimously approved. The positive Chicago Sun Times newspaper article which chronicled Evanston's development boom, which was contained in the EDC packet was briefly reviewed by Aid. Feldman. There were no other comments from the members. Aid. Feldman presented for discussion the proposed Washington National TIF Extension. Dennis Marino began with an overview of the next steps required in the TIF boundary extension process, particularly focusing on the dates of September 1, 1999 for a Joint Review Board Meeting and October 11, 1999 for a public hearing. A brief clarification discussion ensued with regard to the process with appropriate responses from staff. Aid. Newman asked if funding for the the renovation of the deteriorating Fountain Square was included in the Redevelopment Budget presented. Ms. Judith Aiello advised him that more than one option is provided in the financial projections which may make it possible for the needed renovation of Fountain Square. She further stated that a committee %%ill also be formed to determine a better design for the Square. Aid. New -man requested that staff prepare an explanation accounting for all the funds required for completing both proposed new garages. w DRAFT -NOT -APPROVED Economic Development Committee ,Minutes-luIv 28August 23, 1999 P1Ce 2 Ms. Aiello stated that accurate preliminary data is bcn vrning avaiIable wid stain should he able to comply with the request in a week or so. There were no further questions regarding the Washingtco National I1F expansion pnvess and Add. Newman moved onto the Downtow-n Development Props-zts update. Ms. Aiello provided the EDC with an update on the Hi_1 Church Street Plaza project. noting that ground has been broken and that permit for caissons had been approved. Sis. Aiello also mentioned that a buried tank was discovered which mquired removal. Also an under ground Ameritech vault has been discovered near the Levey Center and negotiations with Ameritech are under way to determine the best solution for this obstacGc. Ms. Aiello continued by informing the Committee that the Pine Yard Chinese Restaurant has accepted the buy out payment and once the vacate their premises the building will be raised and an under ground tank will be removed from the old Hertz property. Progress has been made with the relocation of Dave's Italian Kitchen and although there are still a few issues to resolve, it is anticipated that he will vacate the premises in sixty to ninety days. Issues regarding site acquisition for the proposed Sherman Plaza Development Project remain, but the developer has presented preliminary design plans to the Site Plan and Appearance Review Committee and the developer has been granted preiimin-Lry approval in turn. with the exception of the senior housing component. Ms. Aiello asked the ED-C to consider all issues concerning the proposed Klutznick development, the proposed TIF expansion budget and the garage at the September 22, 1999 meeting. There were no questions regarding the updates from the Committee members. Ms. Aiello was next asked to update the EDC on the stag of the former Main Street News Stand. Ms. Aiello informed the EDC that the C.T.A. has determi e:d that they must complete another survey of the site which they then must provide to the City so that a current appraisal can be completed. There should be some definitive headway accomplished by the September meeting. Inquiries for the site continue to be fielded by staff from interested parties. Aid. Newman asked if in the event the City had a definite lead from a businessman to lease the property would the C.T.A. honor such an arrangement . Ms. Aiello stated that the C.T.A. would. Aid. Wymne asked if there was a %vay to verify if the C.T.A_ acted on the list of issues the City gave them a year ago. Ms. Aiello indicated that staff determined some issues had been addressed but an update hasn't occurred in the past six months and that she would follow up on the list at her next meeting with the C.T.A. ti DRAFT -NOT -APPROVED Economic Development Committee Minutes,JuIv 28August 23, 1999 Pace 3 Ald. Newman next asked if there was any new information with regards to the Dempster Dodge redevelopment proposal. Ihir. Marino advised the EDC that the City attorneys are working on a drab development agreement and that the document will be presented to the EDC in September. In addition, remediation site work has begun on the impacted part of the parking lot.Mr. Marino stated that negotiations were on going. Ald. Newman asked when can the proposal be presented to the full Council. Mr. Marino said the anticipated time frame for the Dominick's opening is set for October. 1999. Ald. Feldman asked if there was a proposed opening date for the Dominick"s grocery store. Mr. Marino responded by stating that June, 2000 was the approximate time frame. Mr. Marino went on to state that Target was planning a small expansion of approximately 8,000 square feet to their store to increase their inventory space. There being no further business, Ald. Wynne made a motion to adjourn. The motion was seconded and unanimously approved by the members. The meeting ended at 8:55 P.M. The next scheduled EDC meeting is September 22, 1999 at 8:00 P.M. Respee lly submitted, Morn fERobirnson Economic Development Planner .vp DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES WEDNESDAY. JULY 28, 1999 ROOM 2404-7:00 P.M. CIVIC CENTER !MEMBERS PRESENT: Aid. Engelman. Aid. Feldman. Aid. Moran. Aid. Newman. Aid Wynne. Sydney Gravis, Greg Norwell MEMBERS ABSENT: PercyBerger. Lucille Krasnow• PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MENfBERS PRESENT: None STAFF PRESENT: Roger Crum. Judith Aiello. Dennis Marino. Morris Robinson OTHERS PRESENT: Robert Rvchlicki-Kane WcKenna & jssoC. Summary of Actions: The meeting was convened at 7:15 P.M. by Aid. Feldman. The previous minutes of June 3. 1999 were unanimously approved. The communication articles contained in the EDC packer were briefly reviewed by Aid. Feldman. Proposed Washinglon National TIF Extension Discussion Ald. Feldman presented for discussion. the proposed Washington National TIF Extension. Dennis Marino introduced Robert Rychlicki, Associate, Kane McKenna, who provided the EDC with a Draft Eligibility Study of the Washington National TIF extension boundaries previously suggested by the EDC at the June 23. 1999 meeting. Mr. Marino stated that the objectives for the EDC tonight was three fold: To consider acceptance of the Eligibility Study, and to consider making a recommendation to the City Council to set a date for a public hearing and a Joint Review Board meeting. %ir. Rvchlicki began b% stating that based on immediate project requirements and the size of the equalized assessed valuation of the suggested extended area it was necessar} to divide the area into two (2) parts labeled Area 1, initial area presented to the EDC in June and Area 2. the EDC suggested expansion. west of the viaduct on Davis Street to Oak Ave. The Area 1 portion. as defined in the Eligibility Draft, is primarily the area surrounding the Sherman Ave. Garage. the area south of the existing Buck TIF and North to include the Marshal Fields building and Varsity Theater. A detailed map is included in the Eligibility Repon V� DRAFT -NOT -APPROVED Economic Development Committee Minutes- Jtfty 29.1999 Paae_2_ In Area 1. there i. an equalized assessed valuation in excess of S:1 million and :his defined area provides a solid basis for a " Consenation" designation as described in the nca TIF legislation. Ntr. Rychlicki corL nued by stating that to meet conser%anon standards. a ni icipa.litn has to verifz that 50 % or mare of the structures contained -Nithin the proposed. contiguous TIF expansion boundary are 35 cr more years old. In addition. three other factors must be found to be reasonabtti distributed through the proposed expansion area. Area I has been dk-:ermined to fully meet all requirements. First, staff has provided documentation indicating that in this case, 90 % of the structures in Area I are older than 35 years Secondly; three other factors which meet the distribution reasonableness standards have been identified. The first factor concems Appreciation of "Physical Maintenance", which pertains to a broad range of maintenance le-. els relating to such conditions as peeling paint. tuck pointing. and pot holes in alleys. The second factor. which has two dimensions, is deleterious Layout and Obsolescence is present". This factor pertains to structure design and the -way an area was initially planned for its original functions and ho« it now addresses modem services and uses. The third factor. a:-;,o including two aspects is - Deterioration" and " Excessive Vacancies" exists in area 1. Althoug:, these elements are distributed throughout Area 1. the strongest factor is present in the Sherman Atie. Garage and the Varsity Theater properties which exhibit the greatest proportion of the d=.erioration. The Ameritech building and again, the Varsity Theater contributed most signitieantl-, to the excessive.aeancv element. From the standpoint of Area I exceeding the structural age threshold of 35 years or more and the documentation of the presence of three required factors within Area I, the justification for obtaining the Conservation designation is enhanced. The details of the foregoing are contained in the Eligibility Study included in the EDC packet. On the other hand_ .-area'_, which includes the area west of the viaduct on Davis St. to Oak Ave.. East on Davis and :,>uth of the Sherman Ave. Garage which picks up the BankOne structure. and a notch just north of Jai is St.. meets the threshold age factor but has less of a presence of the other three factors. Aid. Newman asked Mr. Rychlicki to illustrate the exact boundaries of both Area 1 and Area 2 on the attached map 4tr. Rychlicki complied, satisfying similar questions from other EDC members. Mr. Rychlicki continued by stating that Area 2 also has an equalized valuation assessment in excess of S27 million. 4w 4. DRAFT -NO? -APPROVED Economic Development Committee Minutes -July 28.1999 PAV3 His analysis indicates that by adding Area 2 onto the proposed TIF extension results in only brimog in more equalized assessed valuation while contributing nothing. to strengthen the qualification factors required. Aid. Feldman asked Nfr. Rychlicki. if in fact. the inclusion of Area 2 actually weakens the overall case for the TIF extension and woWd propose a threat for approval of the extension measure. 1%4r. RychIicki answered affirmatively. As :fir. Rychlicki understands the desire of the City. the reason for wanting the extension is for the proposed redevelopment project surrounding the garage. and the actual replacement of the Sherman Ave. Garage. Area 1 without the inclusion of Area 2 provides the best opportunity to achieve these objectives. Aid. Feldman asked if there was any portion in Area ?. if added to Area 1. that would not dirnirissh or weaken the proposal. Nir. Rychlicki responded that there were none. Sydney Grevas asked if west on Davis St. would contribute to the proposal. Vir. Rychlicki stated that as opposed to other portions of Area 2. more older structures are on Davis St.. more depreciation is on Davis St. but the basic issue here is the lack of contiguity. A 300 feet contiguity connection must exist and the older structures site fall short of the requirement. Mr. Rychlicki cited as an example. the city of Marion. IL which attempted to include farmland that did not meet the 300 feet or better contiguity standard. into their TIF. Subsequently it was ruled in the courts to be novemed by the annexation statutes. Aid. Moran asked Ndr. Rychlicki to make a recommendation to the EDC defining the best TIF boundary proposal which will minimize the opportunity for success and meet the Cit%'s objectives. Mr. Rychlicki said that the Area 1 proposal accomplishes both desires. in addition he stated that the Area I option should win support from tax levying entities for keeping S27 million on the tax roll. By limiting the TIF boundary to those proposed in Area 1 allows the City to achieve two objectives. First. it allows a connection to the Washington National longer term TIF district and it maintains contiguity. Aid. Moran moved to expand the boundaries of the Washington National TIF to include the entire area as defined in area I of the Eligibilit% Study. Aid. Wynne seconded the motion and the motion %%as unanimously approved. Aid. Moran moved to accept the draft Eligibility Report. Aid \%'}mete seconded the motion. During discussion. Aid. Engelman expressed his concern about the concept of conservation versus blight and that even though he has reservations about the conservation approach to expanding the TIF. he %%ill support the initiative. A general discussion ensued relating to development changes. the relevance the older structures have in modern times. their lack of competitive size, character and architectural assets worth presery ing v ersus new bland "boxes". and the need for the new parking 114 DRAFT -NOT -APPROVED Economic Development Committee Minutes- Jdly 28.1999 Par 44 facility to preserve and enhance the business district sales opportunities. The rote was taken and unanimously approved. Aid. Moran moved that the EDC recommend to the City Council to adopt a resolution to issue a notice of public hearing and a Joint Review Board meeting to discuss the TIF expansion proposal. The motion was seconded by Ald. Wynne. The motion was unanimously approved. The next agenda item was the Downtown Development Projects Update. M. s. Judith Aiello reviewed for the benefit of the EDC, the status of the Church Street Plaza to date, as well as the preliminary efforts and accomplishments associated with, the Klutznick "Sherman Plata" redevelopment project. She also apprised the EDC of the latest and complicated issues related to the fate of the long vacant Main and Chicago Ave. News Stand. Dennis Marino concluded the open session of the EDC meeting by updating the members on progress made to date with Commonwealth Edison concerning their Economic Development Programs in which the City, local businesses and housing developments Tray be eligible to participate and receive benefits. Aid. Newman moved to enter into Executive Session. The motion was seconded and approved unanimously by roll call vote. E=utive Session commenced at 8:15 P.M. Executive Session concluded at 9:44 P.M. There being no further business. Aid. Newman made a motion to adjourn. The motion was seconded by Sydney Grevas and unanimously approved by the members.The meeting ended at 9:45 P.M. The next scheduled EDC meeting is August 25. 1999 at 8:00 P.M. Respectfully submitted. ,.monA E. Robinson � Economic Development Planner 9 DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES THURSDAY, JUNE 23,19" ROOM 2404-8:15 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Engelman, Ald. Feldman, Ald. Moran, Aid_ Ne%man, P e r c y Berger, Sydney Gravis, Lucille Krasnow, Greg Norwell MEMBERS ABSENT: Ald. Wynne PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid Bernstein STAFF PRESENT: Roger Crum, Judith Aiello, Dennis Marino, Morris Robinson OTHERS PRESENT: Robert Rychlicki-Kane McKenna & Assoc.. Robert D. Perlmutter - Davis Street Land Co., Jonathan Perman- Chamber aCommerce, Ann Dienner Summary of ACtiOD3: The meeting was convened at 8:20 P.M. by Ald. Feldman. The previous minutes of June 3, 1999 were unanimously approved. The communication articles contained in the EDC packet were briefly discussed. Aid. Feldman welcomed Mr. Robert Perlmutter, Partner, Davis Street Land Co. and developer of the Chandler's Building project. Mr. Perlmutter was reappearing before the EDC to request Committee support for City financial assistance to complete the Plaza portion of the redevelopment project. Mr. Perlmutter briefly reviewed construction progress to date and the efforts put forth to obtain Class L landmark status for the Chandler's building. The City Council approved the proposal for the landmark designation and passed a Resolution recommending the Class L Designation by Cook County. He noted that Class L status designation was one of two incentives originally sought to make the project viable. The second incentive request was for the city to pro% ide $85,000 in funding towards the total cost of SI 15,00 for the new plaza which will be created on the comer. Mr. Perlmutter continued by informing the EDC that three of the four floors of office space are leased to I.D.O. who will move from their current quarters in the NU/EV Research Park. He mentioned that his company, Davis Street Land Co. will move from Chicago and occupy a major portion of the remaining floor of office space, which will leave approximately 1.700 square feet of office space available. DRAFT -NOT -APPROVED Economic Development Committee Minutes- June 23. 1999 P&M2 There are two retail spaces on the ground floor, one is 2,100 square feet for which they are perstung a lease with "Pot Belley's" restaurant. He then distributed literature on "Pot Belly's' restaurant whicb is scheduled to open on the street level of the building. He advised the EDC that the restaurant has achieved a cult like following in the downtown Chicago business district. Evanston will be the restaurant's first suburban location. The remaining retail space is approximately 1,500 square feet and it will be marketed for a more traditional retail use and not another restaurant. Mr. Perlmutter than referred the EDC to the revised development cost and income projections which staff provided in the EDC packet. Cost increases occurred in a number of areas and the targeted 11 % ROi will not be met even with the assistance. The revised proforma indicates that the ROI will actually be 10.2%. Aid. Newman suggested that Bob Rychlicki respond to the revised pro -forma. Mr. Rychlicki confirmed the projections, stating that an I 1 % ROI was well within the industry standards. Aid. Newman asked for a clarification of the exact amount requested. Dennis Marino confirmed the amount at S85,000 and stated that $50,000 would be generated from a sales taxi rebate formula and the remaining $35,000 would be from various internal account sources. Aid. Engelman asked who received the leasing fees. Mr. Perlmutter stated that I.D.O.'s broker received the fees. Percy Berger asked for a clarification for the unanticipated costs involved. Mr. Perlmutter stated the contractor underestimated the City of Evanston permit fees by $30,000. Aid. Moran moved approval for support of the proposal and recommendation to the City Council for approval of the financial assistance request to construct the plaza, with the source of funds derived as proposed by staff. The motion was seconded by Percy Berger and the measure was unanimously approved by the Committee. Aid. Feldman stated the next item on the agenda for discussion concerned TIF legislative changes. Dennis Marino referred to the document from Kane McKenna included in the packet concerning recent legislation and introduced Bob Rychlicki to review the changes. Mr. Rychlicki began by stating there are basically two sets of changes. The first set applies to all TIF districts regardless of when they were established. The changes relate to recording requirements and use of proceeds and a clarification of the receivables in a TIF funds. Recording requirements have been revised, requiring a nine page report which has to be filed within 180 days after the end of the City's fiscal year. 0 DRAFT--IVOT-APPROVED . Economic Development Committee Minutes- June 23. 1999 Pa; 3 The second set of changes relate to requirements for amending an existing TIF or creating a new TIF district_ It ftutlter defines what constitutes blighted and conservation areas. The legislation has also deleted some eligibility factors such as depreciation of physical maintenance and age vktkh have been replaced by factors dealing with environmental remediation problems and declining EAV's. These factors have to be dispersed throughout the TIF area. The new legislation will be in effect the third month after the Governor signs the Act which is estimated to be Oct. I or Nov. I, 1999. At that time, a municipality is compelled to abide by the changes. However, if the City Council passes an Inducement Resolution to Study an area before July 1. 1999, any decision(s) to amend a TIF would be governed by the pro,.isions of the original act. Two other changes related to increasing the membership of the Joint Review Board and the ability for school districts to obtain funds from a residential TIF district before the TIF expires. Dennis Marino referred the members to the memo and the draft Inducement Resolution prepared by Judith Aiello which was included in the EDC packet. Aid. Feldman asked Ms. Aiello if the Resolution was recommended to the City Council. Ms. Aiello responded that if the Resolution is approved by the EDC, that it would be on the agenda for action at the next Council meeting. • Aid. Ne%& ran asked Ms. Aiello for her reasons for selecting the Washington National TIF rather than the Research Park TIF as the TIF from which to expand.. Ms. AieIlo's response was that the area would allow for a more broad expansion and the school districts would ultimately reap a greater financial benefit from the Washington National TIF boundary expansion. It was moved and seconded to approve the Washington National Inducement Resolution. A general discussion ensued regarding the proposed new boundary. the reasons for certain inclusions and exclusions of buildings and other clarifications. Suggestions were made to enlarge the boundary even more, to include the Varsity Theater to the north and beyond the viaduct along Davis St. to Oak St. to the west. Expanding the study 'boundary provides the City with more options tender the existing TIF regulations while not committing to specific TIF developments. Mr. Rychlicki advised the EDC that the approved Inducement Resolution with the expanded boundary footprint must be sent by certified mail to all taxing districts. Ms. Krasnow asked if taking such a broad boundary sweep was politically wise at this tune, considering the school board concems. Aid. Newman explained that not only would the school districts continue to receive the same amount of taxes, but with the Klutznick project, they will ultimately receive substantially more. All agreed that proper information to the community is essential. Aid. Neuman made a substitute amendment to expand the study boundary of the TIF to include all 4Dof the suggested added parcels as part of the Inducement Resolution. DRAFT -NOT -APPROVED Economic Development Committee Minutes. & n;e 71.1999 Par The amendment motion was seconded by Aid. Moran and approved unanimously. Aid. Newman commented on the need for Ms. Aiello, Mr. Crum and Mr. Pcmian to provide thorough informative sessions with both school boards on just what the financial implications are for them. Aid. Feldman concurred. Aid. Feldman then asked for a vote of the amended main Inducement Resolution motion which was carried unanimously. Aid. Newman next asked Ms. Aiello to provide a do%%mtown redevelopment update. Ms. AieNo reported that another retail lease had been signed for Church Street Plaza and an announcement would soon be made. Focus has been directed on the design of the garage which will have 1.597 spaces. It is anticipated that construction of the garage will begin no later than October, 1999 to coincide with the completion of the cinemas. Aid. Engelman asked Ms. Aiello if the garage was going to be increased by another floor. Ms. Aiello responded that with the Mutznick project more spaces would be needed but an additional floor aas ruled out, instead, expansion opportunities to the west were considered in the redesign and approved by the Parking Committee. Aid. Feldman asked if there was new information on the Klutznick project. Ms. Aiello said a presentation was given to the City Council, EDC, Plan Commission and Parking Committee by the Klutnick group, which outlined the particulars of each component of the redevelopment project, Ms. Aiello breifly reviewed the project once more. She stated that the proposal requires the approval process to be completed by November and demolition and costruction begin in April 2000. Dennis Marino suggested that project updates be discussed before the Committee entered irtto Executive Session.There were two items for discussion_ The first was Great Bank's appearence before the Site Plan and Review Committee (SPAARC) with their revised proposal for a nine story mixed use building development on the comer of Main and Chicago Avenue. The project will have 63 condominium units, one floor of parking and ground floor space for the Bank. SPAARC encouraged the developers to proceed with the development by prodding concept approval. In addition the developer has indicated that parking %trill be made available to the public when the Bank is closed. Secondly, the final phase of the Neighborhood Improvement Program for Dempster/Chicago Business District was approved. Sixteen planters will be installed during the month of July which will significantly enhance the appearance of that district. The business association Aill maintain the planters. 0 DRAFT -NOT -APPROVED Economic Development Committee Minutes- June 2.3. 1999 paw Sydney Grevis asked what will become of the old Evanston Bank building once the new development is complete. Mr. Marino stated that the President of the Bank has indicated that it will also be redeveloped. Mr. Marino advised the EDC that the need to discuss the negotiating strategy for the Dempster Piaza development was next and that Executive Session was required. Aid. Newman moved to enter into Executive session and Aid. Engelman seconded the motion. Morris Robinson conducted a roll -call vote and the motion was unanimously approved. EICcutive Session concluded with a rallwcall vote at ag1proximattly 9:55 P.M. There being no further business, Ms. Krasnow made a motion to adjourn which was seconded by is Aid. Newman and unanimously approved by the members. The meeting ended at 10:05 P.M. The next EDC meeting will be July 28, 1999 at 8:00 P.M. Respec fully submitted, M6 's E. Ro inson Eco omic Development Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMTCTEE MINUTES THURSDAY, JUNE 3, 1999 ROOM 2404-7:00 P.;*vi. CIVIC CENTER MEMBERS PRESENT: Aid. Engelman. Aid. Feldman, Aid_ kloran, Aid. Ne%man, Ald. Wynne. Percy Berger. Sydney Gravis, Lucille Krasnow, Greg Norv4,ei1 MEMBERS ABSENT: None PRESIDING OFFICIAL: Aid. Feldman. Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Bernstein, Aid. Drummer STAFF PRESENT: Roder Crum. Judith :Mello, Dennis Marino. Morris Robinson OTHERS PRESENT: Robert Rychlicki-Kane UcKenaa & .-tssoc.. Tensley Gams and Cathy !•icKenna- FCt B. Terry Jenkins- Eymar , Dennis A. Harder and Chuck Fiorito -Joseph Freed & Assoc.. Alec Sproul- .Vain Street Merchants, Robert Seidenberg- Evanston Rgvieu, Mary Gavin - Evanston Round_Tabfe, Rick Steinberg -Citizen Summary of Actions: The meeting was convened at 7:18 PAI. by Ald. Feldman. The previous minutes of March 30, 1999 .were unanimously approved after Alderman Eneelman noted that although he was listed as present at the last meeting he actual]} was present for only a brief period. He suggested that the minutes should be amended to reflect this circumstance. The communication articles contained in the EDC packet were briefly discussed. Because of a scheduling conflict, the agenda was altered to allow 'v1s. Judith Aiello to speak first. Nis. Aiello provided the EDC members with a brief update on the status of the Church Street Plaza downtown development project. She mentioned that negotiations were nearing the final stages of document preparation for the transferral of Cite owned land into escrow. and only the parcel required for the cinema .will be transferred to Hill This ..ill allo%% the Hill Company to begin phase one. the construction of the main pavilion. She mentioned that the City Council recentl% approved the second amendment of the redevelopment agreement «hick allo%%s for the phased development of the entire project in this manner. Nis. Aiello also stated that Hill has an executed lease for the cinema and the time frame for completion set. but the residential and hotel components are approximately 60-90 days behind schedule because of the clue- diliuence efforts of the City t DRAFT -NOT -APPROVED Economic Development Committee Minutes- June 3, 1999 Pale 2 Hill would like to have the cinema opened in October 2000 and in order to meet that deadline they requested that re -negotiation of the Agreement to allow the development to be phased. To protect the City, part of the negotiation included new fees and guarantees. Ms. Aiello informed the Committee that the latest revisions to the Church Street Plaza buildings will be presented by Hill and the architects at a Special Council meeting on June 7, 1999 at 5:30 PM and that all members were invited to attend. There will be another Ciro• Council Special 14teeting on June 21, 1999 to present the Klutznick Company proposal, which includes the blocks bounded by Sherman, Davis, Benson and Church Street. The Klurtnick Company has had discussions with Sears and Sears has indicated an interest in developing a new retail store on Sherman Ave. The Chairmen and Members of the EDC, Plan Commission and Parking Committee are encouraged to attend. ,Lis. Aiello concluded by stating the Parking Committee will meet on June 9, 1999 to finalize the design for the proposed Maple Avenue Garage. A number of design iterations have been reviewed by the Committee. The garage is timed to open at the same time as the cinema. Aid. Feldman thanked Ms. Aiello for her update. There were no questions from the EDC members. Aid. Feldman continued the proceedings by introducing Ms. Tensley Gams, Director of the Evanston Convention and Visitors Bureau, to the EDC. NIs. Gams appeared before the EDC to request continued City funding support in the amount of $3.1.000 for fiscal year 1999-2000. Ms. Garris distributed the most recent ECVB media kit and other advertisements material while she provided a brief update on recent promotional plans and developments. Ms. Gams stated that among other initiatives planned for this summer will be a visual display at the Sherman Ave. Garage and a "drivingJwalIcing tour of Evanston- to be developed with the participation of Joan Costello, the Tour Director for the Evanston Historical Society. An enhancement of the ECVB web site is also planned. GIs. Garris stated that the ECVB will again receive a grant from the Illinois Bureau of Tourism in the amount of S 108,000. Northwestern University and private sector hotels and business have pledged financial support. She asked the EDC to continue its pledged support in the amount of $50.000, which is comprised of a grant of 534,000, and additional contributions based on the previously approved incremental occupancy improvement formula. Dennis Niarino focused the EDC members attention to the memorandum in the packets concerning the ECVB request. Aid. Feldman opened the floor to questions. Aid. Moran asked if the ECVB had any plans to advocate. support and develop a conference X DRAFT -NOT -APPROVED Economic Development Committec Minutes- June 3, 1999 Page_ 3 center in Evanston. Ms. Gams stated support would be a certainty and mentioned the Hill project cal led for a conference center of approximately 5.000 square feet, which is less than that offered by the Holiday inn. r' Ald. Moran stated that when the components of the Hill development project were contemplated be suggested that it would be good for the City to have a conference center and he didn't recall arty group advocating or promoting the component. He went on to say that if the City had a true conference center, the ECVB would have plenty to do, but since a center does not exist be questioned how much the ECVB actually had to do in attracting conferences. Ms. Gams response was that the tourist market is divided into two markets, the business market which covers the conference piece and the lucrative leisure section which Evanston is in an excellent position to capitalize on. The leisure market spends money in restaurants and retail establishments and the ECVB promotional efforts are designed to increase day tripper and overnight tourist to Evanston. She continued by saving Evanston is not well known in Illinois and that continued promotional efforts to attract the highly competiti,,a leisure market is imperative. Aid. Moran commented that perhaps the reason the City is not well known is the absence of a conference facility. Ms. Gams responded by saying that there are many conferences that do not exceed fifty people and this market niche is where the effort should be focused using existing conferencing facilities. Mr. Terry Jenkins expanded on that concept of persuing the small to medium size niche market Aid. Feldman made a general statement. regarding the issues of who would pay for a large conference center and what would be the rate of return from the leisure tourism market on the City's S50,000 investment. Mr. Jenkins stated that it is not just the leisure market but also the small meeting market. Ms. McKenna interjected that since we are so new in this market that the significance of ECVB efforts are just beginning to have greater impact. Aid. Engleman asked for a clarification of funds already distributed. Mr. Marino provided the appropriate information. He also assured the EDC that the maximum amount available in 1999-2000 will not exceed $50.000. Ms. Gams commented that it is money well spent especially since the City should be promoting Evanston and this is the most economical way to do so when you consider that for c-, ery dollar the Civy provides, three more dollars are matched from the other sources. Ms. Krasnow requested that Ms_ Garris devise a way to start tracking the ECVB results and to provide the EDC with periodic measurable progress reports. id. Feldman advised that there are formulas that tourism bureaus use all over the country to determine effectiveness and that Ms. Garris should investigate the methods. Ms Garris agreed. r x DR-IFT-NOT-APPROVED Economic Development Committee Minutes- 111ne 3, 1999 PaVi Aid. Engelman moved approval of staffs recommendation for the EDC to reconunend to the City Council to approve funding the ECVB in the amount up toS50,000 fur the fiscal year 1999-2000, S34.000 in a base grant and S16,000 in potential additional funds based on increases in the hotel tax revenue. The motion was carried unanimously. V Aid. Feldman next welcomed Mr. Dennis Harder of Joseph Freed &. associates. Mr. Harder appeared before the EDC to request support for a sales tar rebate agreement similar to the Home Depot arrangement in order to cover extraordinary environmental remediation cost. Dennis Marino also acknowledged the presence of Mr. Chuck Fiorito of Freed & Assoc. and Mr. Bob Rychlicki of Kane McKenna, The City's financial consultant. Mr. Harder began by stating that Joseph Freeed & Associates is an experienced, family owned business and has completed several projects in the Chicago land area. It is a very successfi! diversified company with a reputation for taking on distressed properties and creating improved viable projects. Mr. Harder gave a brief history of the shopping center and the fate of the various tenants and the center's ultimate demise. He repeated the information he provided at the last EDC meeting regarding the extent of the shopping center contamination, illustrating the area with the use of a photo diorama of the center. Essentially the entire parking lot to the north of the center will be resurfaced. The portion of the parking lot in front of the new Dominick's, Office Depot and Frartk's' wilI have to be substantially remediated. Freed & Assoc. have learned from its consultants and previous owners that the nature of the contamination is primarily lead. a remediation study and action plan has been developed at considerable expense and the determination is that significant remediation must occur before the project can proceed. Mr. Harder continued that under the new rules of financing, the requirement to determine the extent of the contamination must be accomplished. Aid. Engelman asked if contamination was beneath the buildings. Mr. Harder said that only the contamination which can leach into other areas is of primary concern. The contaminated material must be removed and refilled with clean backfill. Mr. Harder than explained the cost of these remedial efforts, as outlined in the information they provided in the pro forma included in the EDC packet material. and wh} they believe these are extraordinar% expenses. He stated that from the beginning his firm has communicated to City staff that because of the contamination issue and remediation cost this project cannot be a financially feasible development without financial consideration from the City, and it is for this reason they are before the EDC tonight. Aid. Feldman asked if Freed was eligible for funds from the state for contamination clean up. Mr. Harder stated he did not believe they were. DRAFT -NOT -APPROVED Economic Development Committee Minutes- June l, I999 Pale 5 Aid. Engeeman asked if the responsibility for remediation rested with the previous owner(s). Mr. Harder said that the previous owner (Balcor) is involved in a tedious process to determine if any previous owners still exist, who may still have resources to compensate theta for remcdiation expenses, but their expectations for success are not very high Aid. Engelman stated that he thought the previous land owner has iiability for site clean up pricw to selling. Mr. Harder responded only if there was disposal of hazardous waste during the period of ownership. Aid Engelman commented that this was true if the previous owner was an innooau purchaser himself. Aid. Engehnan's next question was that Mr. Harder stated that once the clean up started they must continue to the end and they don't know wherer it will end. As such he asked, what makes Freed believe that if the City approves assistance for the project that S 1.6 million well be enough to complete the remediation. Mr. Harder stated that their best investigation efforts indicate that the contaminated area can be addressed as proposed. They have done their best to calculate the volume which must be removed. Aid. Feldman asked if Freed knew the kind of soil they are dealing with adding that he is aware of a situation where the contamination was literally encapsulated in a clay pit. Mr. Harder said they don't believe that clay is underneath the parking iot. more than likely it is sandy soil. Mr. Harder continued with his presentation, indicating where most of the redevelopment is going to occur. He said that they have successfully negotiated a lease with Dominick"s for a 59,000 square foot store and he highlighted the downsized Office Depot and what will be a new 18,000 square foot retail space. Aid. Newman asked why exactly Toys R Us will not be a part of this development. Mr. Harder stated that as far as he knew, Toys R Us conducted a regional review of their operations in Chicago and decided to relocate the store, subsequently deciding not to proceed with the relocation. Aid. Newman wanted assurance that the redevelopment had nothing to do with Toys R Us leaving. Some of the younger families are questioning whether or not they were forced out. Mr. Harder responded that this was not correct and if Freed had a choice it would have wanted to keep them. Mr. Harder %vent on to say that various local competitors seriously eroded Toys R Us' sales volume. Aid. Newman asked how Freed can guarantee the Cite that the redeveloped center would not be sold as prior o%vners have done. fir. Fiorito responded by repeating the family owned aspect of the company, the longevity of the principals and that they still own the first shopping center they developed 35 years ago in Arlington Heights. He agreed with Aid. Newman that any center could be sold from time to time but their history is retaining their properties. Aid. Newman continued by asking if Freed would stay during the entire length of the proposed financial rebate agreement which could be as long as 13 dears if approved. Mr. Fiorito said they certainl% hope so. while Mr. Harder added that the% only proceed with a project DRAFT -NOT -APPROVED Economic Development Committee :Minutes- June 3. 1999 Psi with the intent of retaining the property in its portfolio and that they have consistently adhered to tts policy over the years. In several instances they have reinvested in properties which have dectinx3 Mr. Fiorito stated that in this project, the number and kind of national tenants for which they bwm signed lea. -es for, or are in positive negotiations with has been excellent. Aid. Feldman suggested that other proprietary questions be placed on hold while Mr. Harder concluded his site plan review. Mr. Harder pledged to provide their own security and to put an end to fly dumping and enforce cleanliness of the property. He stated that the current tenants haee already provided positive feedback on the noticeable improvements. Ms. Krasnow asked if anothr restaurant was being sought. Mr. Harder answered affirmatively. Ald. Newman wanted the dreadful lighting situation on the property to be improved. He was assured that improvements were forthcoming within the intensity level for the entire site. Ald. Drumm= added that he did not see lighting intensity as much of an issue and that more concern was attributed to the large Iighted signs which are left on all night. Aid. Drummer is working closely with the developer in resolving this concern and he went on to say that a future neighborhood meeting its planned. AId. Newman inquired about the Pizza Hut status. \1r. Harder's answer was that they are still paying rent but Freed is unsure of their ultimate decision. Aid . Feldman asked if the Dominicks and the new retail space will be completed by year end. Mr. Harder said that was the plan. .old. Engelman asked for an explanation or motivation for the $20,000 neighborhood mitigating fund for ten years. Aid. Drummer said the idea was based on a similar arrangement Aid. Feldman coordinated for his ward %vith Home Depot ten rears ago. Aid. Drummer continued by stating that whenever the City deals with developers, the impact on neighborhoods should be considered and that the affected neighborhood should benefit and grow together with the development. The funds should be considered in the same light as the downtown Special Service District to ensure maintenance and beautiN-ing efforts. Aid. Drummer's comments led to a general. spirited discussion on the merits of adding a neighborhood funds feature to all future development agreements. AId. Drummer said it was done for Home Depot, the Waigreens at Main and Dodge and for the Hill project and that other wards have had a direct benefit from the arrangements. Aid. Engelman stated that the developer will complete the project to improve the neighborhood and now have to provide more dollars for the purpose of improving the neighborhood and he questioned the rationale. Aid. Newman maintained that the $250,000 funds provided in the Hill agreement to the City was not a neighborhood fund in the same sense. Aid. Feldman added that the funds from the Home Depot program not only were intended to mitigate negative impacts in the neighborhood. 4% DRAFT NOT -APPROVED Economic Development Committee Minutes -June 3. 1999 PACLZ The funds also provided a return to the community for bearing the brunt of the inconvenience of a large development in terms of increased traffic and the changes in its environment which far exceeded the rest of the Evanston community. Aid. Drur=er stressed the fact that this part of his ward is in dire need of attention, pointing out that it is the only industrial area of the City with unique problems and that it needs and deserves this kind of funding consideration external to any capital improvement programs. Aid. Feldman concurred, siting instances where the affected neighborhood derived benefits from such funds.. Mr. Berger expressed his opinion that the fund is proper but added that the thinking should not be on what ward gets the benefit but rather is it beneficial to the City. Aid. Newer agreed with Aid. Engelman's position and again added that the $250,000 provision from Hill is not neighborhood specific and stated that it will be added to the general fund to address costs incurred by the City. As such he disagreed that the funds should be defined as neighborhood mitigation allowance. Aid. Drummer disagreed and the Committee members continued a debate on the subject. Aid. Newman stated that a definitive solution needs to be addresed and that this issue will be on a future agenda for the City Council. Because the questions continued to involve proprietary financial disclosure, Ald. Feldman suggested an -end to open session and that entering into an executive session would be in order. Aid. Moran moved to enter Excutive Session and Aid. Newman seconded the motion. Dennis :Marino conducted a roll -call vote and the motion was unanimously approved. f gcutive Session commenced at annroximately 8:38 P.M. Executive Session concluded with a roll -call vute at approximately 9:35 P.M* Mr. Fiorito and :Mr. Harder were invited back into the meeting. Aid. Feldman informed them that staff has been instructed to continue negotiations along the proposed concepts with a goal of achieving an acceptable agreement. He also mention the City's concern for the chain of responsibility for the contamination and the desire for assurances of exauutive efforts are made to resolve this issue. Aid. Newman also asked for assurance that no agreement at this time with any prior owner absolves that owner of responsibility. Mr. Fiorito and Mr. Harder agreed but stated that they would have to check their records. Both aid. Newman and Aid. Feldman requested full disclosure. Aid. Newman made a motion to have staff and consultant to proceed and to negotiate a redevelopment Agreement for future Committee cnsideration. DRAFT -NOT -APPROVED Economic Development Committee Minutes -June 3. 19" rSa_ The motion was seconded by Aid. Moran. The motion was approved with Ms. Krasnow abstaining. Aid. Newman stated that staff did an excellent job in preparing the information for the EDC and the effort should be the standard for all finure preparations, and that topics of the packet should be forwarded to both school boards. Aid. Dnunmer said the neighborhood meeting will be planned before the next meeting and he will report back to the EDC. Next Mr. Alex Sproul asked for a status update on the Chicago and Main news stand. Mr. Crum advised that the demolition of the facility is imminent and a green space will be created. A1d. Newman said that a written report on the status of the news stand should be included for each EDC meeting until the issue is resolved There being no further business, Ms. Krasnow made a motion to adjourn which was seconded by Aid. Newman and unanimously approved by the members. The meeting ended at 9:51 P.M. The next EDC meeting will be .tune 23, 1999 at 8: I 5 P.M. Respec ly submitted, jr Morris E. Robinson Economic Development annex /• . DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT CONUNIITTEE .NII` UTES WEDNESDAY, MARCH 30, 19" ROOM 2404-7:04 P M. CIN IC CENTER MENIBERS PRESENNT: :old. Engelman. AId_ Feldman. Aid Moran. Aid. Neuman. .aid. Wynne. Percy Berger. Sydney Gra%is MEMBERS ABSENT: Lucille Krasnow. Greg Norwell PRESIDING OFFICIAL: Aid, Feldman, Chair OTHER CO[FNCIL MEMBERS PRESE`"T: None STAFF PRESENT: Dennis Marino. `iorris Robinson OTHERS PRESENT: Terry Jenkins- E'vmar,E Dennis A. Harder- Joseph Freed & Assoc.. Ronald C. Kysiak- Evanston Inventure and NUIEv. Research Park. :inn Dienner- Plan Commission, Rick Steinberg -CAD Summary of Actions: The meeting was convened at 7:18 P.M. by Aid. Feldman. The previous minutes of January 27 and February 10. 1998 were unanimously approved. The communication articles contained in the EDC packet were brietly discusse�. Aid. Feldman welcomed Mr. Dennis Harder of Joseph Freed &. Associates. Inc. Freed & Co. Is the developer of the Dempster' Dodge Shopping Center (Evanston Plaza). Mr. Harder appeared before the EDC to provide an update on the proposed redevelopment. Mr. Harder began by stating that his firm completely owns the Dempster/Dodge shopping center. He then explained the new configuration of the south end of the center and displayed the materials to be used in the project. Using sight plan visual aids, he advised the EDC that the To%s R Us store was closed and that the Office Depot store «'as downsizing it's current space. A new Dominick's «•ill be the anchor for the shopping center. however Dominick's was recently purchased by Safe Wa, and there will be a change in the way the Dominick's uas originally planned and appro%ed by the City. Instead of razing the existing building. Dominick's now wishes to reuse the existing former Silo building and the Toys-R-Us facility to create a grocery store of approximately 58.000 square feet.. Overall changes to the occupied buildings on 'the west side of the center will be minimized and landscaping on the east sid. of the center will be saved. In addition. with the smaller size requirements for Dominick's and Office Depot. a new retail space ofapproximatel} 10 to 13.000 square feet will be created. DJ FT -NOT -.APPROVED Economic Development Committee Minutes- Marrh 10.. 1999 Page 2 As a consequence of the new facades and uses. well matched materials new sigrAge and lighting will enhance the center and bring new life to the area. Essentially the entire parking Iot to the north of the center %+ill tv resurfaced. The portion of the parking lot in front of the new Dominick's. Office Depot and Franks' %%ill ha%a ro be substantially remediated. Freed & Assoc. Have learned from the Illinois E.P.A. and previous o•.-ners that the nature of the contamination is primarily lead. A remediation stud% and action plan has been developed at considerable expense and the determination is that significant remediation must occur before the project can proceed. Aid. Feldman asked if the original builders of the center faced the remediation issue. Nir. Harder responded that at the time the Evanston Plaza was constructed. more stringent E_P.A. regulations were not in effect nor was it a concern for financial sources. which is not the case today. Aid. Feldman asked if soil removal was necessary. Nir. Harder answered affirmati+ely stating the contamination in some areas has reached a depth of twelve feet. The process calls for the material to be treated in place and removed. Aid. Feldman asked if the contamination was enclosed. 'Mr. Harder explained that the contamination was contained in the area previously described but that the area constitutes approximately 40% of the parking lot. the other substantial cost associated with the remediation concerns replacing the contaminated part of : -e lot and to a certain extent. some of the lighting standards and other items removed during the ret—ediation process. Mr. Harder went on to explain that the entire remediation process represents et77aordinary cost. A14. Newman asked %t hat the plan was for the west side of the shopping center. Mr. Harder stated that the facades ,%ill be cleaned up and vacant spaces will be leased. Aid. Feldman asked if the de\ elopers had an idea of the types of tenants the+ dished for the spaces. \ir. Harder responded that once the anchor grocery store w•as established, there will be many interested stores typically found in such plazas. He mentioned that among the interested entities was Blockbuster Video. Ald. Feldman asked about the Pizza Hut restaurant. Mr. Harder said that although t'r_e store is closed. the tenant continues to pay the rent (Pepsi Cola) but the hope is that the redeveloprnent «ill prompt Pepsi to reconsider the restaurant use. Mr. Harder than stated that his Firm miiii ne presenting a detailed proposal to the City for assistance in dealing with the extraordinary remediation cost associated m.ith this project. They currently estimate these cost to be approximate 51.8 million. ++•hilt not completely and definitely k: ov6ng the full extent of the contamination. ! 4 Feldman asked for contirmation that Freed m as Qoing to pro% ide :he EDC and stag' with a detailed pro -forma and all substantiating details concerning the project and sczc,, icall, for the extraordinary cost portion. DRAt7-NOT-APPROVED Economic Development Committee Minutes- Nlarch ,10,. 1999 P&e 3 .%L-. Harder confirmed and added that preliminary discussions Dave centered on using the Home Dcpor tar rebate arrangement as a model. He wrnt on to express their commitment to the center and restated all the planned improvements. He anticipated providing staff with all the required data %4i:hin a week and appearing before the EDC during April. Grevas asked Mr. Harder for the projected time line for completing the project. fir. Harder responded that they are commirted to delivering the parcel to Dominick's to begin construction as early as June, and for the store to open in time for Thanksgiving. Ald. Feldman asked how Dominick's ability to build will be impacted by the remediation issue. Mr. Harder stated that Dominick's will not be prevented from working inside the existing building. Or:tce Depot will also be able to work inside their building. Aid. Feldman asked if the remediation effort will be completed in 3 to 4 months. Mr. Harder replied thm the cleanup +gill definitely be completed before the Dominick's opens. If the sites prove not to be deliverable as planned. then Jar. ;ary or February 2000 could be the revised optimum completion period. 4[s Grevas asked how Frank's -will be kept open during the remziiation period. ),Lr. Harder said tha: they will organize their digging and equipment moving arownd to minimize the impact. He estL-nated that the remedial activities should peak by June and continually ease from that point on. Den-nis Marina commented that the process for the proposal will be to review it in house and share it «ith Kane. McKenna &:Associates for thorough review. Prior :o reappearing before the EDC. se,. oral meetings «ill have occurred between Freed, the consultants and staff to complete the initial re-,:ew process in April. AId. Newman expressed his pleasure with the proposed redevelopment project and asked fir. Ha.raer if he knew what npe of liquor license Dominick's is seeking_ Mr. Harder stated that his firm has deliberately avoided involvement with the liquor issue, mutuall;. agreeing that it is Dominick's opportunity to negotiate directly with the City. Ali. Newman stated that his belief is that Dominick's is going to want a liquor license and that the issue needs to be dealt with as soon as possible. Although he is in favor of warm beer and wine, he remanded the members of the history with Phar Nfor which pre%ioasly occupied the Office Depot location. They too wanted a liquor licence and was ultimatel% denied. primarily because of the proxtmu%. to the high school. In light of that situation. it is important that this issue be resolved as soon as possible. Aid. Nm-rnan than stated that he would like to know more about what is planned for the west end of the shopping center and what new tenants are going in. particularly since the City %klk be asked to make substantial financial assistance to the proj:.t. Mr. Harder responded that skepticism from potential tenants will remain until the Dominick's p.ece is in place. Currently. they ha, a several prospects but it is premature to continent on exact1% 16%a1ch entities «ill sign on. DRAFT -NOT -APPROVED Economic Development Committee Minutes- March 30... 1999 Pale i Ald. Feldman continued by stating that the EDC's concern about tenancy is based on dhe desire far a quality development with quality tenants that %kill enhance the community. \tr. Harder agreed and he will be able to provide that information at the soonest possible time. Mr. Harder continued b� stating that overwheLningly the% Mill be national tenants and he gave examples of tenants in several other shoppimg centers developed by his firm. A:d. Feldman commented that he would imagine that Dominick's would also be just as concerned as to the types of tenants expected for the redevelopment project. tir. Harder confirmed the statement. Aid. Newman asked if the west side spaces will be large or small. Mr. Harder said that currently there are several small spaces but three spaces are bing consolidated to accommodate Blockbuster Video. He went on to say that perhaps half of the: remaining smaller spaces will be consolidated. N lr. Berger asked about the square footage of the ,;.ores along the west side of the center. NIr. Harder said the total is approximately 9.200 square feel At this point. Dennis yfarino advised the committee that he had met with Pat Casey regarding the liquor license issue and that Dominick's had not yet submitted an application for a liquor license. Dominick's has since met with tier. Casey to discuss the issue. Aid. Drummer has also been ad%ised of this matter. Aid. Feldman indicated the he had also spoken with Aid. Drummer about the liquor licence issue and is aware of his desires and concerns. Nir. Harder commented that it is also their I.ntert to make some positive contributions to the community such as job opportunities. Training and neighborhood improvements. Aid. Newman recollected that it always seemed unusually dark around the center and asked about new lighting recu,irements. Nlr. Harder said that the City engineers have addressed the maximum. light intensity and light fixtures and it will be improved. but balanced with the residential constraints. Ms. Ann Dienne: asked N1r. Marino if the new town houses being constructed at Dodge and Crain are positioned perpendicular to the shopping center so that the light would not direct'% affect the residents. N1r. `farino confirmed her comment. stating that the lighting will be designed in a manner *,,, prevent that situation. There being no more questions regarding this redevelopment project. id. Feldman thanked Mr. Harder for the presentation as did other members of the EDC. Aid. Feldman nett introduced Nlr. Tem Jenkins, Exeeuti%e Director. Etmark as the rem presenter. \Ir. Jenkins indicated that he «anted to take a fe-.- minutes to comment on his memor-:^dum which %%as included in the commuru,�3tion packet and Eo provide the EDC w ith his assessment of the status of the downto«-i and the developments occurring in that area. f` DRAFT NOT -APPROVED Economic Development Committee 41linutes- !March 39T. 1999 Palt S Mr. Jenkins began by stating that downtown is basically doing well with a ground floor retail vacancy rate of 6.9%, down from a high of approximately 10.3% eighteen to twenty four months ago. The amount of development activities is positive and overall the situation is significantIy better. particularly with the prospect of several new projects slated to begin. Aside from the Hill, Scribcor. Sherman Ave. and other projects, yfr. Jenkins suggested that in addition, the BankOne comer will probably become a prime redevelopment site in the not too distant future. Overall the good news is that given all these projects and future prospects is that the market place is positive about the downtown. With the degree of substantial and complex dev elopment which is occurring. certain issues arise which are of such complex nature that if not resolved in an efficient, parallel manner they can negatively affect the projects as well as negatively impacting on the City. Mr. Jenkins advised the EDC that Evmark understands the complexity- of these development dynamics and can be used as a resource and would be pleased to assist the City in a variety of %vat's. (le. communicating to the citizenry). He added that given the City's unique market niche and with the overworked City staff. Evanston is fortunate to have organizations such as Evmark. Inventure and the Chamber of Commerce, all of whom would be pleased to offer the assistance of their kno,%ledgeable and talented staff. under the direction of the City to help the City in it's pursuit of these opportunities. Ald. Feldman thanked Mr. Jennings for the presentation and underscored the value of the City %%orking with the private sector to meet the needs of the City and suggested that efforts should be made to establish these valuable partnerships. Ald.:tiew-man added that the Council has been making the proper development decisions which have in turn spurred additional development. and that the redevelopment of the Sherman Avenue Garage is paramount to creating a fabulous entry to that part of the downtown as well as spur continued development. He suggested that the private sector organizations could assist with the efforts to extend the T.I.F. district. which is essential, by helping to educate the non for profits and school districts on the imporance of the extension to achietie the proposed Sherman Avenue cede elopment initiative. .fr. Jenkins concurred with the need for the garage redevelopment and the need for more parking and stated his pleasure in participating in the discussions. fir. slam Norkert commented on how important this project will be to the Cir%.' Mr. Rick Steinberg stressed the importance of disseminating information to the public to minimize skepticism and misunderstandings. A M4 FT -NOT -APPROVED Economic Development Committee Minutes- March 30.. 1999 Pa&e b Aid. Feldman introduced Mr. Ronald Kysiak, Executive VP. \arthwesrem University/Eianston Research Park. Inc. (N'UERP) and Invent=, to present an update on dhe Research Park and "Technopolis". Mr. Kysiak began by stating the importance of the redevelopment occurring and the positive perception it creates. He then began to discuss the major entities and employers of the City. the future of Evanston and the technology role that Inventure hopes to acL-r•r in the long terra. Aside from the Research Park. there are 35 other technology companies in Evanston and they are here because there is a substantial educated human resource base to serve these companies. Evanston is unique in many ways and throughout the USA there may only be 13 or 20 other places similar to Evanston which is a distinct advantage. Mr. Kysiak proceeded to inform the EDC on state govenurient initiatives to nurture and finance the development of Regional Technology Centers. and he and a delegate of seven technology company CEOs visited Springfield and conversed with legislators to insure that Evanston is selected for full support and funding. In addition the% wanted to urge the passage of legislation which would specifically aid the Research, Park incubator which is currently over flowing. Appropriate state support would validate Evanston's technology strategy and will enhance Evanston's marketability as a place to establish a technology enterprise. The benefit of technology based development to the City will be the broad industry gro«th and employment potential. NIr. K%siak pledged to the EDC that his organization will do it's part in getting E•anston to the point of belt? a completely wired Technopolis and positioning the Citti as a major ::chnoloay center. Aid. Feldman thanked 'I-Ir. Kvsiak for his thought provoking and interesting presentation and encouraged him to return when he had more specific reports to share with t e EDC. Mr. Marino then pro%ided the EDC with a brief update on the World Sa%:.-tgs Bank on Howard Street. the Chandlers Building project, and Strange Engineering retention strategy. Aid. Newman asked Mr. Nfarino if at some point he would provide a perspe`tive on how a better census count will benefit the Ciry and school districts. especially as a means of receiving funds from the state and federal government other than rel,.ing only on raising taxes.the High School is seeking to determine tax abatement and business development co.)f+erati%e :-ojects with the Cir< Mr. Marino advised the EDC that a "Complete Count Census Committee'" i, being formed whose aim is to improve the count. He also stated that cooperative projects with the High School would be a strategicall% worthwhile effort and that he %%ould enthusiastically paric:pate with the School Liaison Group. . . 4 DRAFT -NOT -"PROVED Economic Development Committee Minutes- March .3R., 1,"9 Page 7r There being no further business, Ald. Wynne moved adjournment and it was seconded by Aid. Moran. The motion passed unanimously and the meeting was adjourned at 10:17 P.M. The next scheduled meeting will be April 2$, I999. submitted, Mo E. Robinson Econo is Development �I � x DRAFT -NOT -APPROVED ECONOMIC DEVELOPMENT COMMITTEE SPECIAL. MEETING MINUTES WEDNESDAY-F'EBRUARY 10, 19" ROOM 2402-7:00 P.M. CIVIC CENTER MEMBERS PRESENT: MEMBERS ABSENT: PRESIDING OFFICIAL OTHER COL:"NCIL MEMBERS PRESENT: STAFF PRESENT: OTHERS PRESENT: Summary of Actions: Aid. Feldman, Aid. Moran, Aid. Newman, Aid. Wynne, Sydney Grevas Aid. Engelman, Percy Berger, Lucille Krasnow, Greg Norwell Aid. Feldman, Chair None Judith Aiello, James Wolinski, Dennis Marino, Moms Robinson Stephen Kardel, Pres., Peter Lamberti V.P. (SCRIBCOR Real Estate Services), Michael DeVaul, Chair-MBE/WBE/EBE Cam. Aid. Feldman convened the meeting at 7:16 P.M. without a quorum. He stated that the Scribcor project was the only item on the agenda and that each member of the Economic Development Committee (EDC) had a copy of the draft agreement. He welcomed Scribcor representatives, Mr. Stephen Kardel and Mr. Peter Lamberti. Ms. Judith Aiello initiated the discussion by asking Mr. Kardel to present an overview of the project. Mr. KardelI stated that Scribcor has an admirable longevity and was originally known as the Scribcor Co. He stated that two generations of the Scribcor family have had numerous ties with the City of Evanston through the years. The Scribcor firm today employs approximately seventy people engaging in brokerage /property management, real estate investments and other. serwrices. Recently the firm has acted in the capacity of trustee with 1740 and 1800 Ridge during receivership proceedings and was responsible for real estate matters for the Evanston Hospital. Mr. Kardel stated that their experiences in Evanston have made it possible to understand the office space market in Evanston and that the concept of the new building under consideration is a result of discussions between Scribcor and Research Park representatives during the last three or four do DRAFT--NOT-APPROVED Economic Development Committee Minutes-February 10. 1999 Pz 2 years. They discovered that tenants who were ready to graduate from the Research Park could not find affordable office space and were compelled to leave Evanston. Pea Pod was used as an example. Mr. Kardel said that Evanston is a unique market, comprised of the principal "A" type buildings, which are very nice but because of their ornate and expensive amenities such as brick and marble elements, and costly maintenance may not be what the target market calls for. After further refining discussions with the Research Park representatives, Scribcor decided to design a building from the inside out with two factors in mind: 1.) To comfortably accommodate small tenants and 2.) with a price point in the S25.00 per square foot range. At this point, with the aid of large scale illustration of the proposed building. Mr. Kardel began to explain the building design and the constriction elements. It is their intention to leave the steel exposed to achieve a high-tech Iook which creates the illusion of larger space and economies in heating and cooling are recognized. At 7:35 P.M. Aid_ Moran arrived and a quorum was reached. Ald. Wynne asked if the building will be wired with Internet and have the computer ability to interface with the other buildings in the Research Park when construction is completed. Mr. Kardel's response was yes. Ald. Feldman asked how the square footage space allocations will be accomplished. Mr. Kardel said the method will have to be determined. The internal design is meant to be flexible to meet the small or large space requirements of any potential tenant. A general discussion on the proposed building esthetics ensued. Mr. Kardel stated that market research indicates that class "A" vacancy rate in Evanston buildings 7%. primarily in the BankOne, NBD and other large buildings. They believe these vacancies will be leased to capacity within twelve months. Scribcor started their project with a goal of leasing the space at $24.00 per square foot gross. Lease rate comparisons were made with other recent construction within the north shore areas. Ald. Wynne asked if construction will proceed without signed leases. Mr. Kardel responded that they are on the verge of letting contracts and that construction will proceed with or without signed tenants. They believe that once ground is broken, serious interest will be generated. Ald. Newman posed a parking question. His understanding is that two spaces are required per 1,000 square feet but what happens if only 75 spaces were needed. Would the City be responsible for the other spaces or would the extra spaces remain Scribcor's responsibility. 1,1lr. Kardel stated that the parking obligation will always be Scribcor's. Aid. Newman than asked about the language in the agreement concerning Minority/Women/Evanston Business Enterprises (MBE/WBEf'EBE) participation goals. Mr. Kardell detailed Scribcor's intent to meet the goals set forth in the agreement and agreed to making a presentation to the MBE/WBE/EBE Committee_ �li DRAFT -NOT -APPROVED Economic Development Committee Minutes-February 10, !?" Paw 3 Ald. Feldman requested that after the project is completed, it would be helpful if Scribcor slwcd their experience in meeting M/W/EBE goals with the EDC. He added that this kind of information is important for facilitating future projects. Ald. Moran expressed his appreciation for the design of the proposed office building. Mr. K,ardel mentioned that by incorporating the suggestions of the Site Plan And Appearance Committee they were able to produce a design that was appealing to everyone. Ald. Newman Suggested that Scribcor should agree to not sell the new building to a tax exempt organization and that a ban on nuclear weaponry research should be implemented consistent with other properties in the Research Park. Ald. Moran moved for approval of the agreement and it was seconded by Ald. Wynne. The mxsure passed unanimously. There being no further business the committee adjourned at 8:45 P.M. The next scheduled meeting is to be announced. Respectfully submitted, Morrif E. Robtnson Econdmic Development Danner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE NUNtTES WEDNESDAY, January 27, 1999 ROOM 2404-7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Ald. Engelman, Ald. Feldman. Ald. Moran, Ald. Newrnam Ald. Wynne, Perky Berger, Sydney Gravis, Lucille Krasnow, Greg Norwell, MEMBERS ABSENT: None PRESIDING OFFICIAL: Ald. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: None STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson OTHERS PRESENT: Robert Perlmutter (Heitman Retail Properties), Jonathan Peiman (Evanston Chamber of Commerce), Tensley Garris, (Evanston Convention & Visitors Bureau) Ann Diettner Summary of Actions: The meeting was convened at 8:00 P.M. by Alderman Feldman. The previous minutes of December 9, 1998 were unanimously approved. The attached communications were briefly reviewed. Judith Aiello requested that the Economic Development Committee (EDC) consider an unscheduled special meeting during the month of February for the purpose of discussing the proposed Scribcor office building development which is scheduled to be constructed in the Research Park. After some discussion concerning the date, February 10, 1999 %%as the date selected to conduct the meeting and the EDC agreed to convene at 7:00 P.M. Alderman Feldman welcomed Mr. Robert D. Perlmutter, Chairman of Heitman Retail Properties who appeared before the EDC to present an appeal to the City for assistance in the proposed redevelopment of the "Chandler" property. Judith Aiello commented that staff had complied with the EDC directive to meet with Heitman to review the financial request and the open issues it created in order to generate a recommendation. She stated that three issues had been raised, and these issues were outlined in the internal memorandum which was distributed to the EDC members prior to the meeting. The first issue is a request by a potential, upper level tenant who wants to have an open stairwell between the floors they wish to lease, but there were some code issues to resolve. This issue has subsequently been resolved. *A DRAFT -NOT -APPROVED Economic Development Committee Minutes- Janurary 27 1999 P 'e 2 Alderman Feldman asked specifically where the open stairwell %vould be. Mr. Perlmutter responded that the office stairwell would only be for the top three floors. Since the tenant requires a 15,000 Square foot space all on one floor preferably, the o iren stairwell is designed to meet the space hood, albeit not all on one floor, and preclude the tenant form relocating elseafiere. Alderman Feldman asked if the dimensions of the stairwell will be altered. fir. Perlmutter advised him that the existing, ornate stainveIl would be used. Ms. Aiello stated that the second issue was the creation of the plaza for which the developer is asking the City to provide revenue assistance for its completiom Initial negotiations involved the feasibility of the developer deeding the site of the plaza to the City together with the maintenance responsibility. The City staff declined that option, preferring the developer retain the land and the maintenance responsibility. In addition, the land would remain on the tax roll. The cost estimate to complete the plaza is approximately $114,000. After careful consideration, as outlined in the memorandum, the City believes a contribution is in order. She reminded the Committee that other redevelopment opportunities to redevelop this property were stymied because of the separate ownership of the land and the buildings causing the property to remain vacant for an inordinately long period. Also, the last interested developer %%anted the City to provide S500,000 which represented the entire cost for the land. Nis. Aiello presented staff suggested options to generate the funds to assist the plaza. First the City could devise a sales tax rebate formula and agreement similar to the one devised for Home Depot_ Secondly, staff has reviewed other sources of revenues within various City budget allocations. If trie City is able to get HUD clearance, a portion of the funds required may be obtained from the Central Business District Facade Improvement Program. Two other sources may be tapping the earned interest from the Downto«n Special Service District Maintenance Account and the earned interest from the Capital Improvement Fund. When the combination of these sources are taken into consideration, staff believes approximately 580,000-585.000 could be raised for a contribution. with the major portion, about $50.000, derived from sales tax rebate. NIs. Anne Deinner asked if there would be a time limit for the tax rebate. Ms. Aiello informed her that the arrangement would last for five years, At this point Ms. Aiello asked for the Committee to enter into executive session since proprietary financial information was going to be discussed. Prior to entering executive session. Alderman tiewznan wanted a clear understanding that the contributions considered were for creating the plaza. Ms Aiello confirmed this point. Nir. Perlmutter than presented a brief explanation of Heitman's rationale for arriving at the financial profortna presented and why they are seeking assistance to reach a return on equity of eleven percent_ Ar DRAFT -NOT -APPROVED Economic Development Committee Minutes- J>anuary 77. 1999 PsgF3 Mr. Perlmutter also stated that even if Heitman, with support from the City, pursues the = assessment reduction, the real estate tax revenue generated from the redevelopment project would still be substantially more than what is currently being received by the City. Currently the proper• generates approximately $31,000. After redevelopment, real estate taxes will rise five fold to am estimated $150,000 or $160,000. Alderman Engelman asked if the land used for the plaza will be ineligible for future developm= since it will not be deeded to the City. Ms. Aiello stated that restriction would be incorporated in® the agreement. Alderman Moran asked if the facade program was funded by the Community Development Bkx* Grant (CDBG) and if the funds were under utilized. Dennis Marino confirmed that the faces account was funded by CDBG and that it had limited funds available. Alderman Newman asked if there was going to be a maintenance agreement for the plaza with penalties for failing to comply. his. Aiello stated that developer maintenance responsibility would also be part of the redevelopment agreement. Ms. Krasnow made a motion to approve the concept to provide funds to the developer utilizing the methods suggested by Ms. Aiello and the motion was seconded by Alderman Newman. A generaD discussion on the merits of the project ensued, consisting of several positive comments from the committee and the motion was unanimously approved. Ms. Aiello continued with the third issue pertaining to the Chandler project. As outlined in the EDC memorandum, the developer has expressed interest in considering two County programs that relaxe to the tax assessment rate. The first is a Class 7 pertaining to properties which have been vacant and renovating will exceed two million dollars and the second is obtaining Class L landmark designations for the property. Both programs would allow for a ten year assessment reduction. The first eight years would allow for a tax rate of sixteen percent (16%) and then it would be raised to twenty- three percent in year nine. thim- percent in year ten and then return to the full thirty-eight percent in year eleven. The application process is unique for each designation and at this point the developer's preference is open as to which route to pursue. Mr. Perlmutter concurred but stated it= the landmark designation may be more beneficial to the City and the community in that it places added burden on the developer to not further develop the property in the future and provides the City %%ith greater control of potential decisions regarding the property. Alderman Feldman asked how the City would be involved in having the property designated in one of the categories. Mr. Perlmutter stated that although the Class L designation is done at the County level. City support would be important. Ms. Aiello stated that the City would have to pass a resolution and that public hearings held by the County would be desirable. Ald. Feldman then asked ofs DRAFT -NOT -APPROVED Economic Development Committee Minutes- January 27. 1999 Pfte how long a period the designation process would take. Ms. Aiello stated that although the City had not previously participated in such a process she would anticipate at least two to three months. Mr. Marino compared the process to a similar attempt made a few years ago for the Cotxct Theater and he remembered that the attempt required three months or more. Alderman Feldman asked for and received assurance that the property owner would initiate the application process. Alderman Engelman asked for a clarification as to exactly what the Committee is accomplishing with this effort, especially since it is affecting tar revenue to the City for the period of the merit reduction. Mr. Perlmutter stated that at this point it would be necessary to discuss the proprietary financial information and the economic impact of the revenues. Ms. Aiello suggested that the Conunittee enter into executive session at that point. Alderman Engelman moved to enter executive session and it was seconded by Ms. Krasnow. A unanimous roll call vote carried the motion. The EDC returned to open session at 9:30 P.M. recommending that the City Council take such actions as are necessary to facilitate the designation of the Chandler property for Class L status for the Assessor; and that staff be directed to reexamine the pro -forma with the developer to determine how much additional incentives are required of the City (capped at a maximum of $85,000) for the development of the plaza in addition to the landmark status, designed towards helping the developer reach an appropriate rate of return. Aid. Newman asked if it is possible to offer only a five year assessment reduction rather than ten. Both Ms. Aiello and Mr. Marino said that the County program (Class L) is for ten years, but they would investigate the possibility. Mr. Marino introduced Tensley Garris, the Evanston Convention & Visitors Bureau (ECVB) Director who was present to provide a program update of the Bureaus' activities as well as to present her request for funding assistance for next year. One difficulty which has occurred in the funding agreement was the projected shortfall in hotel tax revenues. Nis. Garris began with a recap of the formation of the Bureau and how it was initially established through a partnership with the City. The Illinois Bureau of Tourism. Northwestern University, The Omni Orrington, the Holiday Inn and other businesses. The mission of the bureau was to enhance tourism in Evanston. She re%iewed the marketing plan and the four strategies which were to be used to accomplished the goals. The four strategies are: a.) Increase the awareness of Evanston; b.) Implement a sales program: c.) Deliver the expected number of visitors to the City and d.) Provide for businesses serving visitors to the City. k DRAFT-NOT-APPROVF—D Economic Development Committee Minutes -Janney 27. 1999 c.) Deliver ft expected number of visitors to the City and d.) Provide for serving visitors to the City. Ms. Garris' presentation included an impressive booth and table with photos , products, brochures publications and other articles promoting Evanston. She cited the success experienced with public relations and increasing the awareness of the City to millions of readers via the circulation of the publications_ The largest commitment to the sales program was hiring Catherine McKenna as a full time sales manager. Her primary responsibilities are to work %%ith the hotels and the various event venues which meet the City's market capacity, to bring more groups into E---anston. Currently she and the sales manager are working on approximately fifty group leads. Five familiarity group tours have been conducted with eight different tow operators and one more -waiting to tour. Ms. Gams presented the primary fulfillment piece, the Destination Evanston brochure, as well as the Restaurant Guide, Imagine Evanston and Northwestern Football, Parking and Traffic brochure ( which goes in every ticket package mailed, approximately 50.000) which the ECVB has produced for the public. She also mentioned that she was particularly proud of the ECVB web site creation which contains extensive information on special events, restaurants and other events. ECVB is averaging 500 responses for kits per week. In addition, preliminary discussions have taken place with David Jennings concerning display cases in the parking garages. As far as prodding support for the local businesses, monthly information exchange forums are being conducted. Also partnerships have been established with the Chamber of Commerce as expected, Evmark and the Arts Council to complete projects. This initiative is expanding outside of the Evanston borders to include other North Shore attractions. Ms. Garris measured the success of the various programs by mailing surveys to people requesting information during the past year from ECVB and the responses indicate that 94% of the respondents % isited Evanston with an average length of stay of 1.3 days and spend an average of $70.00 per day excluding lodging. The results are believed to be good. Ms. Garris explained that the failure to meet the hotel tax revenue objective for meeting the funding requirement . is due to unique circumstances which should be put in proper perspective. She stated that the ECVB will slightly exceed the City budget for hotel taxes. even though the Holiday Inn eliminated 11.000 room nights from circulation during their multi -million dollar renovation, representing a 6% loss in room nights for Evanston. Also the Omni Orrington lost 4,000 room nights during the year. She culminated the presentation by stating that in two snort years the ECVB has gone from spending zero dollars on marketing the community to spending approximately $200,000 with excellent results for the efforts. his. Gams stated that the agreement with the City «vas for $50.000 for two years. based on a formula specifying a S25.000 base grant from the Economic Development Fund and an additional amount f DRAFT -NOT -APPROVED Economic Development Committee Minutes- January 27. 19" Pa g 66 not to exceed S25,000 based on incremental increases in the sales tax revenue. Since the dollars provided by the City are matched by a state grant, the shortfall in tax revenues imposes constraints on the program. She mentioned that Dennis Marino made a recommendation to the EDC to provide funds in the amount of S9,000 to fulfill a major media buy commitment which is imminent - Mr. lviarino provided more details concerning the issue. He stated that staff recommends ftmding the second S25,000 in increments rather than all at once, with the first $9,000, corning from hotel tax revenues received over the amount budgeted for the General Fund, if any, and the Economic Development Fund. To grant funds beyond the $9,000 would at this point be quite difficult due to the heavy demands on the Economic Development Fund and given that the projected increase in hotel tax revenue did not occur. Mr. Marino continued by informing the Committee that since the state fiscal year is July 1 to June 30, the City can overlap two City fiscal years within that time frame. In this manner, the matching dollar provision can be preserved. Ms. Krasnow commented that sooner or later the this method will catch up and then what. Ms. Garris said that The ECVB will come before the EDC each year for funding so that a solution will ultimately be required. Alderman Feldman asked Ms. Garris if other entities in the community have been approached for funding. Ms. Garris said that the major beneficiaries of the program have already bought into the plan. Alderman Feldman asked how much matching money is raised from the participants. Ms. Gams replied that the amount is approximately $104,000; $50,000 comes from the City, S25,000 from Northwestern, $10,000 from the Omni Orrington, $6,000 from the Holiday Inn and the remainder from other buy in businesses. The ECVB budget is currently S210.000 with the matching funds included. Alderman Newman moved to grant $9,000 for the fiscal year as recommended by staff and it was seconded by tits. Krasnow. The motion was unanimously approved. Judith Aiedo was next and she presented a brief Downtown Redevelopment Project Update. Following a general discussion pertaining to the project, Alderman Engelman moved for adjournment. which was seconded by his. Krasnow and unanimously approved. There being no further business, the meeting officially adjourned at 10:10 P.M. Res pe ly submitted, Morris. Robinson Y Economic Development Planner -Planning Division