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.
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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.
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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.
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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
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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.
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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.
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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-
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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.
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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.
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ECONOMIC DEVELOPMENT COMMITTEE
MINUTES-OCTOBER 27. 19"
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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
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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.
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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
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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.
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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_
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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
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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.
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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
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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