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HomeMy WebLinkAboutMinutes 1997 - 1998A 40 DRAFT DRAFT ECONOMIC DEVELOPMENT COMMITTEE MINUTES Monday, February 3, 1997 Room 2404-9:15 p.m. Evanston Civic Center MEMBERS PRESENT: Aid. Engleman, Aid. Drummer, AId. Feldman, Aid. Moran, Aid. Heydemann, Martin Norkett, Lucille Krasnow, Greg Norwell MEMBERS ABSENT: Jerry Wallack PRESIDING OFFICIAL: Aid. Engelman STAFF PRESENT: Dennis Marino, David Venegas, Judy Aiello OTHERS PRESENT: Aid. Newman and Jonathan Perman a I. CALL TO ORDER Meeting was called to order at 9:15 p.m. II. CONSIDERATION OF MINUTES-12/11/97 Minutes were unanimously approved as submitted. III. COMMUNICATIONS Aid. Engelman introduced David Venegas, the new E.D. Planner, to the E.D. Committee. Aid. Engelman discussed and described the Research Park RFP, and the bidders meeting held l / 14/97. IV. DEVELOPMENT PLAN BY WEST EVANSTON MANUFACTURER. Aid. Engelman introduced Mr George Buhrfeind, President of C.E. Neihoff & Co., who described the firm's expansion plans. Mr. Buhrfeind passed out maps showing the expansion location, proposed vacated Grey St. and new loading dock area. He discussed the possible IRB financing plans so and thanked the City for assisting in the plans. Ald. Engelman stated that this proposed expansion is exactly the kind of development Evanston needs to encourage, and was discussed at meetings with 31 A' manufacturing companies. ft Dennis Marino informed the Committee that staff has met with the Public Works and Engineering Departments to review C.E. Neihoffs expansion plans and request to vacate Grey St. It appears that the Company's plans are consistent with City policy. However, plans must include access to utilities under the control of the City. Aid. Moran praised Mr. Buhrfeind for his commitment to the City, as did Aid. Krasnow. Aid. Drummer stated that the expansion plans were good for the neighborhood. Aid. Heydemann hopes that the Company will continue to make efforts to hire City residents. The Committee directed the staff to continue to work with the company and its expansion plans. V. SHERMAN AVE. PARKING GARAGE RFP. Dennis Marino and David Venegas stated that they received one proposal from Broadacre. David Venegas went on to describe and outline the key areas of the proposal. Aid. Newman spoke against the proposal because it would eliminate 100 parking spots. Mr. Perman also spoke against the idea of losing parking spots and losing control of the structure. Ms. Krasnow and Aid. Feldman both felt that there should be no reduction of parking spots. Aid. Feldman also stated that we should not. accept parking rate increases, and that we should move quickly to resolve the fate of the parking garage. Aid. Engelman and Moran both stated that staff should relay the Committee's wishes to the developer and see if they are still interested in meeting the needs of the Committee. Aid. Engelman would like the staff to come back with a final proposal by February's meeting that are within the constraints expressed by the Committee. go VI. ECONOMIC DEVELOPMENT STRATEGY Aid. Engelman highlighted the important issues in the E.D. Strategy draft and elaborated on the nine action steps. Aid. Feldman stated that we need to add the shopping center on Demster and Dodge as a priority area in the Strategy. Ms. Krasnow expressed that the Strategy lacked cooperation steps between the City's leading E.D. agencies. Aid. Moran mentioned that the arts and entertainment area needs to be part of the Strategy, and that it lacked how we are going to accomplish the goals. Aid. Fleydemann also expressed the importance of the arts. Aid. Engelman noted the Committee's suggestions and ideas and stated that he would work with the staff to incorporate those areas.' VII. HOME DEPOT NEIGHBORHOOD IMPROVEMENT FUND Dennis Marino passed out the Capital Improvement budget for the Home Depot Neighborhood Improvement Fund. Aid. Drummer made a motion to recommend the C1P budget to the Common Council. Motion was passed unanimously. Vill. OTHER BUSINESS Jonathan Perman stated he would like to discuss with the Committee the Chamber's plans for a Tourist and Convention Committee. • 4 IX. ADJOURNMENT eting was ad jo 0 at 10:50 p.m. David Venegas Economic Development Planner L71 L 7I r% Y ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, Feb. 26,1997 Rm. 2404-7:30 p.m. Evanston Civic Center MEMBERS PRESENT: Aid. Engelman, Martin Norkett, Vaughan Jones, Greg Norwell. MEMBERS ABSENT: Aid. Drummer, Aid. Feldman, Aid. Moran, Aid. Heydemann, Lucille Krasnow. PRESIDING OFFICIAL: Ald. Engelman STAFF PRESENT: Dennis Marino, David Venegas, Judy Aiello, David Jennings, and Roger Crum. OTHERS PRESENT: Jonathan Perman, Aid. Newman, Fidel Lopes. I. CALL TO ORDER Meeting was called to order at 7:45 p.m. 11. CONSIDERATION OF THE MINUTES - 2/26/97 No approval of minutes due to lack of quorum. 111. COMMUNICATIONS Aid. Engelman pointed out the attached memo from Mr. Terrence Jenkins, summarizing downtown vacancies. Aid. Engelman invited Mr. Jenkins to discuss the memo with EDC at the next meeting. Staff handed out copies of the following economic reports for EDC's information: Evanston's Property Tax Impact, Survey of Housing Construction, and Demographic and Economic Data Report. 1V. SHERMAN AVE. PARKING GARAGE. Dennis Marino summarized the staff recommendation he had co-authored with Judith Aiello and David Venegas, which advises the EDC to decline the Broadacre Proposal to purchase the garage. He added that the staff evaluation team had concluded that the proposal did not offer sufficient economic development benefits or monetary gain to the City to offset the loss of numerous parking spaces and a significant increase in parking rates, two weaknesses which had been cited by the EDC in its Meeting of February 3, 1997. Mr. Marino commented that the members of the evaluation team were also recommending that ground floor retail space be included in any major rehabiliation of the garage by the City. David Venegas summarized the proposal in greater depth and highlighted Broadacre's revised proposal. David also passed out a letter from Broadacre, received this evening, which addressed the four concerns EDC had with their original proposal. After reviewing the letter, Aid. Engelman asked Mr. Fidel Lopez, Vice President of Broadacre, to expand on the letter and revised proposal. Fidel outlined the following four areas: 1) Parking - by switching retailers from Boston Market to another unnamed retailer, there would no loss of parking. Fidel stressed that he could structure the development to fit the EDC's guidelines. 2) Parking Rates - Fidel stated that he would be willing to keep the current rates, but that the purchases price may need to be lowered. He also pointed out that the garage is near or at capacity. 3) Facade Improvements - Fidel mentioned that his proposal could include any exterior improvements that the City felt are important and that Broadacre's intent is to make the garage appealing to shoppers, day and night. a) Interior Improvements - Fidel stated that interior improvements will center around the consumer, and that if other improvements are required by the City for reasons other than to enhance the profitability of the garage, they should have been included in the RFP. Fidel also described Broadacre's extensive experience with parking garages, and that it is their intent to make the garage appealing to the consumer. The EDC asked Fidel questions on non-food retailers, keeping the first hour free, and the possibility of a joint venture. Fidel addressed all three by answering yes. But, stated that the conditions of the RFP may prevent flexibility on Broadacre's part. He also mentioned that a joint venture is possible and could be considered. Aid. Engelman asked if the City wanted to privatize the garage. If not, then EDC would not address the proposal. He also asked if the City should continue to operate the garage. He pointed out that Chicago has privatized all of its parking garages. Committee members also questioned if the City should be in the parking business. Mr. Norkett asked Fidel the profitability of the garage and what Broadacre was calculating. Fidel responded that there would be a loss for the first five years due to debt, which would be paid in five years. Aid. Newman spoke against the Broadacre's proposal for the following reasons: 1) the City's monetary loss, 2) the loss of parking spaces 3). retail use is irrelevant, 4) safety factors, especially during the evening hours, 5) loss of parking garage income. Fidel stated that without proposal parameters he could not address issues brought up by Aid. Newman. Jonathan Perman of the Chamber of Commerce stressed the importance of the garage and that perhaps a joint venture may be the solution. Fidel summarized his remarks by stating that Broadacre would not increase rates to drive people away, and that they would develop a marketing plan to get people to use the garage at night. Aid. Engelman pointed out that without a quorum the EDC could not act. He would bring the issue back to City Council for a decision on the direction of the parking garage. r V. REGIONAL TOURISM AND CONVENTION PROPOSAL Mr. Perman gave a background description of the Tourism and Convention Bureau (CVB) plan and handed out supporting documents. Mr. Perman described the documents as a plan outline and an economic benefit analysis. Mr. Perman went on to describe the benefits of a CVB and how it could attract visitors, small scale meetings and conventions. He pointed out the analysis hand-out and the economic benefit it shows by having a CVB. Mr. Perman highlighted the new revenue data from having a CVB. He stated that the first year could bring new revenue ranging from $100,000 to $2,500,000. Ald. Engelman asked questions about jobs created by the tourism industry as low-income, and why would people stay in Evanston as opposed to Chicago. Mr. Perman stated that there are several Evanston's landmarks, activities, and events that bring people here. Aid. Engelman mentioned that there may be some City residents who don't witirit tourists coming to Evanston. He stated that EDC could not make a recommendation, but the that the CVB could be part of the E.D. strategy. Aid. Engelman offered Mr. Perman the opportunity to come back to the EDC in April. Mr. Penman mentioned that he'll make a presentation to Evmark and other business groups in the next several weeks. Mr. Norkett and Norwell both expressed support for the CVB. VI. ECONOMIC DEVELOPMENT STRATEGY Dennis Marino summarized the latest draft of the Economic Development Strategy which includes eleven policy recommendations and programmatic activities to acheive the stated policies. He highlighted the.new economic trend analysis which had been included in the latest draft, including Evanston's largest employers, sectoral analysis, and tax trends. Dennis Marino asked the EDC if other issues or structure should be part of the document. Mr. Norwell and Mr. Norkett stated that they viewed the draft document favorably. Aid. Engelman stated that the strategy would again be discussed during the March EDC Meeting. He indicated that Ron Kysiak and Terry Jenkins were also to be invited to this Meeting to discuss economic trends and strategic initiatives. Aid. Engelman brought up the high tax issue and compared it to Skokie. Mr. Norkett stated that we should accept the tax situation and develop a strategy around it. Ald. Engelman mentioned the Tenneco's statement that Evanston lacked affordable housing for their middle -level managers, and asked if EDC should support mixed use development. Ald. Engelman suggested that the E.D. strategy should include the parking issue. Discussion followed on the merits of providing free parking. EDC members accepted the Economic Development Strategy and will review it in detail. VII. ADJOURNMENT The meeting was adjourned at 10:50 p.m. David Venegas Economic Development Planner DRAFT NOT APPROVED DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, March 26, 1997 Room 2404 - 7:30 P.M. Evanston Civic Center MEMBERS PRESENT: Aid. Engelman, Aid. Feldman, Aid. Moran, Lucille Krasnow, Greg Norwell, Martin Norkett MEMBERS ABSENT: Aid. Drummer, Aid. Heydemann, Vaughan Jones PRESIDING OFFICIAL: Aid. Engelman STAFF PRESENT: Dennis Marino, Judith Aiello, Mary Baaske OTHERS PRESENT: Terry Jenkins, Evmark; Ron Kysiak, Inventure; Jim Peterson, Margaret Winter, NCI Research; Gerald Leibforth, Tony Packard, Evanston Township District 202; Dan Johnson, District 65; Bizz Broderick, Martha Rosenberg, Rose Johnson, Sam Lederman I. CALL TO ORDER Aid. Engelman called the meeting to order at 7:40. He introduced the members of the Economic Development Committee to the audience. II. COMMUNICATIONS Communications were accepted into the record by Ald. Engelman. III. CONSIDERATION OF FEBRUARY 26, 1997 MINUTES Martin Norkett made a motion to approve the February 26, 1997 minutes. Aid. Feldman seconded. Motion passed 6 - 0. Economic Develooment Committee Pape Two March 26, 1997 IV. STATUS OF STRATEGY TO ELIMINATE STOREFRONT VACANCIES - TERRY JENKINS, EVMARK Terry Jenkins summarized his memorandum included in the EDC packet regarding the recent increase in vacancies downtown and the measures that are being taken to address that issue. Mr. Jenkins attributed the vacancies to the over building of retail, unusual circumstances contributing to vacancies (such as Oak Street/Whole Foods transfer and Chandlers situation), and an adjustment that is taking place relative to the price which landlords can ask for their space and the price which potential tenants are willing to pay. He said that because of the price that landlords were charging, it was his thought that there would be a continuing trend in the core area of downtown that would be largely regionals, nationals and well capitalized entrepreneurs who had a direct business plan and some experience. Mr. Jenkins reported that since he wrote his memorandum, six of the vacancies he listed have been filled. He said that one of the ways Evmark was trying to fill the vacancies in Evanston was to invite approximately 40 brokers to a breakfast at the Orrington Hotel where they would be shown a recruitment packet and be told of all the positive things happening in Evanston. Secondly, he said he has talked to approximately 70% of the property owners to get as much information as he could as to what was happening regarding their property. Third, Mr. Jenkins told the Committee that he has visited ten suburbs to select entrepreneur businesses in those communities that appeared to be very attractive, selling items that wouldn't necessarily duplicate what was already here. Ile said that the business of most interest were men, women, and children's clothing and gift items. Mr. Jenkins found 37 businesses that he thought would be of interest to Evanston. He said that he would be sending them a letter stating that he was in their community and saw their business and provide them with information about doing business in Evanston. This would be followed up by a phone call in approximately ten days to invite them to visit Evanston or he would go to see them. Hopefully, two or three of those businesses would open a business here in Evanston. Ald. Engelman said that the most recent triennial reassessment showed up in the tax bills in August of 1996, and asked if the property owners passed along the tax increase to the tenants. Mr. Jenkins said that it depended, that some property owners charged enough rent to cover a raisesn-taxc5. Ald. Engelman asked if the proximity of Old Orchard would hurt Evanston's cI ai nges of attracting national chains. Mr. Jenkins replied that over half of the national's rztaM-d were interested in opening a business in Evanston. Lucille Krasnow asked if it were possible to hire a consultant to attract regional and national businesses. She thought that the City should be more proactive instead of reactive. Further discussion ensued regarding Evanston's vacancy rate, the reasons for the vacancy and what steps could be taken to lower the vacancy rate. Economic Develonment Committee Paae Three March 26. 1997 V. EVANSTON'S PROPERTY TAX: PRESENT AND FUTURE IMPACT ON THE CITY'S ECONOMY - RON KYSIAK AND JAMES PETERSON Ron Kysiak said that because of a continuing stream of companies leaving Evanston, Inventure commissioned NCI to prepare a report concerning the impact of Evanston's property tax now and in the future. Mr. Kysiak asked Mr. Peterson of NCI to give the Committee a report of his findings. Mr. Peterson said that the report consists of three sections: first, a brief summary of the Evanston economy; second, the impact of an exceptionally high tax rate; and third, a general examination of the factors that influence businesses. He then gave a summary of the NC[ report that was included in the EDC packets. Aid. Engelman asked if Evanston's per pupil cost in grade school and high school was about the same as it is in Skokie and New Trier. He said according to Table 5 Evanston's tax rates for both the high school and grade school is about 50% higher than the other communities. When in fact, we are not spending more money on our children. lie saw the problem to be in our tax base, we have less people paying that tax base so the amount has to be greater. Aid. Engelman said that our economy is dominated by not -for -profits and while we are getting a tremendous economic boost by the wages that are paid by the not -far -profits, we have this major problem with our tax rate brought on by the existence of the not -for -profits within the community. Ron Kysiak said that about five years ago when the question of not -for -profits being a problem for the City came up, his office took a look at how much property percentage wise was off the tax base of Skokie versus Evanston. His findings were that Skokie and Evanston had approximately the same percentage of not -for -profit, the difference was that Skokie has Old Orchard and a lot of manufacturing and we do not. Ron Kysiak said that the last four or five buildings that were built had City assistance through TIF and that is what made the difference between building here or somewhere else. Aid. Engelman said that he understood the dramatic impact of the study about new construction, he asked if it also has the same impact on existing construction which is helping to cause what Terry talked about regarding the over valuation per square foot of rental rates in downtown "Evanston and part of the vacancy problem is waiting for the landlords to recognize that they cannot get the kind of rents that they want to get. Mr. Kysiak replied that the property owners could not keep absorbing the taxes themselves. He said that on basic inflation on operating and taxes everyone has the same percentage rate, but Evanston starts so much higher, that ours expands at a much higher rate. Discussion followed regarding the tax rate and methods to effect change. Aid. Engelman asked for any more discussion concerning Mr. Peterson's report. Aid. Feldman replied that lie would like to see this report circulated throughout the community. He said that the community needed to understand that the taxes they pay are not solving Evanston's problems. Aid. Feldman stated that in any decisions the Committee makes, this information has great pertinence and it is vital that the Community understand why these decisions are being made. lie thought at least the executive summary of Mr. Peterson's report should be reprinted Economic Development Committee Page Four March 26, 1997 and circulated to Evanston residents. Aid. Engelman said that now that we have this information, how do we, as a Committee, go about dealing with economic development in light of this information. Aid. Engelman asked Mr. Kysiak, in light of the issues discussed tonight, should the City explore economic incentives through tenant improvement, for instance, to attract your brand name retailers. Should the City be concentrating on technology and informational related companies, should the City be looking at investing money in infrastructure that will help technology related companies such as putting in fiber optic cable throughout the downtown. Mr. Kysiak said that the City should do those things it is good at, and infrastructure is what its good at. He said that is the City's strength. Mr. Peterson said that he has noticed that the duality of the workforce has become the number one location factor. Businesses want to locate in areas where they have access to qualified/skilled workers. He said that in interviewing businesses, their number one complaint was that they could not find skilled people in Evanston. It was Mr. Kysiak's opinion that Evanston needs to set up a program similar to one Oakton College has to provide those technical workers. It was thought that there should be more communication between the businesses and the schools. VI. ECONOMIC DEVELOPMENT STRATEGY Aid. Engelman asked for comment on the Economic Development Strategy. It was suggested that the table listing the top ten employers in Evanston was in error. Dennis Marino said he would review the list. Several Committee members felt that the Economic Development Strategy should be reviewed/monitored every ye o keep it current. VII. ADJOURNMENT There being no further business before the Committee, they adjourned at 10.20 p.m. Respectfully submitted Mary E Baaske ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, April 23,1.997 Rm. 2404-7:30 p.m. Evanston Civic Center MEMBERS PRESENT: Aid. Engelman, Aid. Moran, Aid. Drummer, Lucille Krasnow, Martin Norkett, Vaughan Jones, Greg Norwell MEMBERS ABSENT: Aid. Feldman, Aid. Heydemann PRESIDING OFFICIAL: Aid. Engelman STAFF PRESENT: Dennis Marino and David Venegas OTHERS PRESENT: Chuck Remen I. CALL TO ORDER Meeting was called to order at 7:50 p.m. II. CONSIDERATION OF THE MINUTES - 3/26/97 Aid. Engelman asked for a motion to approve 3/26/97 minutes, Aid. Drummer so moved and seconded. III. COMMUNICATIONS Communications were accepted into the record by Aid. Engelman. Aid. Engelman asked staff to discuss the Commercial Space Inventory, March 1997. David Venegas described the inventory list by pointing out that it was divided into three sections - downtown area, outside the downtown area, and industrial/manufacturing. The vacant space inventory lists property that is available for lease or sale as a way of identifying available space for retail or commercial needs. David Venegas also mentioned that staff has generated a database of brokers. Aid. Drummer asked about the property located at 2120 Greenwood Ave. David Venegas informed the Committee that the property has recently been purchased by the U-Haul Corp. U-Haul plans to use the facility as storage and repair. In addition, an office will be located there. Aid. Drummer asked to be informed of any other developments with the property. Research Park Tenant List Aid. Engelman described the Research Park Tenant list and stated that the Park is at near capacity. Aid. Engelman informed the Committee that Peapod Delivery Systems will be moving from the Park to a location in Skokie. The move was based on the amount of space required by Peapod, and that the Company needed a unique configuration of space that was not available in Evanston. Also, Peapod required the space immediately. Aid. Engelman stated that the Committee should be aware of situations such as this. Aid. Moran asked about the Research Park Authority and if they could provide any financial assistance to Evanston's Research Park. Ald. Moran asked if the Committee could have the Research Park Authority make a presentation and inquire how we could use their bonding authority. Bell Federal Bank Survey of Building Indicator Dennis Marino described the data in the Bell Federal Bank Construction Indicator. Dennis pointed out that Evanston experienced a surge of construction activity for the period from 12/95 housing. Dennis Marino also pointed out that building permits for housing including housing increased from 37 in 1995 to 152 in 1996, for a value of $4.3 in 1995 to $28 million in 1997. Aid. Engelman stated that the housing market is also "hot," and property is selling quickly once on the market. Ald. Drummer mentioned that we should be cautious of builders attempting to get around building codes by locating doors on the side of the house and calling the side yard as backyards. Governing, "Can Entertainment Save Central Cities" Dennis Marino stated that the article is very useful because it describes national trends in entertainment development in urban areas. The article described several cities that have used entertainment districts to revitalize areas of the city. Aid. Moran pointed out several sections in the article that the Committee should think about as the Research Park begins to evaluate the proposals. Lucille Krasnow stated that these types of developments are working because they are in conjunction with other attractions, and that the Committee should look at the Chamber's Tourist plan as part of promoting Evanston. Aid. Engelman stated that it was a good article and relates well to the four proposals the Research Park received. He suggested that the article be distributed to all the Aldermen. Vaughan Jones described the City of San Antonio and how the river was the main attraction. Evanston should look at San Antonio as an example of development. Vaughan Jones asked the Committee members if any of them have ever been to a large multiplex cinemas, and the traffic problems it creates. Aid. Engelman described the Research Park's UP process as reviewing the proposals and submitting their recommendation to the Research Park Board. Aid. Engelman stressed that the Research Board would look at all the issues that impact the project, such as traffic, appearance and how it fits within the downtown area. Blacksburg Electronic Village Dennis Marino passed out information and described the Blacksburg's computer network project. The project is a computer network system linking city residents and global electronic services. Aid. Engelman mentioned that the Research Park is looking at developing a computer network system, not only for the Park but for the City as well. IV. ECONOMIC DEVELOPMENT STRATEGY Aid. Engelman stated that the Committee should act on the Economic Development Strategy by recommending it and passing it on the Council. He also stated that the document should have input from other local Economic Development groups, such as the Chamber and Evmark. Aid. Drummer agreed only if it is done in a timely manner. Dennis Marino pointed out several changes, including the sales tax data, list of largest employers and the addition of goal #12. Ald. Engelman went on to read all twelve goals and received several suggestions for changes. Most of the changes entailed adding and eliminating a word or two, grammar and rewording sentences. Discussion followed as to whom the strategy is targeting and who would be the audience. Aid. Engelman stated that the strategy should be viewed as a partnership with other local Economic Development organizations and that input should be taken from them. This would leave an opportunity for the new Economic Development Committee members to have input into the document. Martin Norkett asked about including Chicago Ave. or mention the street in the document. Staff and Committee pointed out that the goals indirectly refer to Chicago Ave. and that the development on the street is addressed in the twelve goals and other sections of the strategy. Aid. Engelman discussed goal 49 and that it should be expanded with input from the Parking Committee. Dennis Marino said that the document will be shared with all Committees. Aid. Moran suggested that the last sentence in goal 910 be eliminated. Aid. Engelman asked for a motion to approve the Strategy and make it available to other Economic Development organizations for comments. It was seconded and approved. Dennis Marino stated that the document will be sent to the Council as a communication. V. ECONOMIC DEVELOPMENT COMMITTEE ANNUAL REPORT Aid. Engelman asked for a motion to approve the Annual Report. The motion was made, seconded and approved. VI. DEVELOPMENT UPDATES Dennis Marino described the situation with the outlot developments at Evanston Center, and World Bank and Blockbuster's proposals to locate operations there. He also mentioned that PetsMart is looking at developing a location at the Home Depot subdivision site. •y David Venegas updated the Committee on the progress of C.E. Neihoif's expansion. The Company has made a presentation in front of the Site Plan and Review Committee detailing its vacation of Grey St. and expansion plans. The Site Plan Committee approved the company's plans. The company has an agreement with the seller to purchase the proposed building. Dennis Marino stated that a Chicago based developer had appeared in front of the Site Plan Committee concerning a revitalization plan for the Demster/Dodge shopping center. Dennis Marino stated that there will be a resolution in front of the Council reserving the 1997 Volume Bond Cap of $3,671,650. VII.OTHER BUSINESS Aid. Engelman said that the Committee under his Chairmanship has met for the last time. All Aldermen members will be appointed by the authority elected at the Council meeting on the 28th of April. Aid. Engelman went on to congratulate the Committee members for all their hard work and what the Committee has accomplished during the last four years. Aid. Moran and other committee members congratulated Aid. Engelman for his dedication, hard work and excellent leadership during the last four years. VIII. ADJOURNMENT Meeting was adjourned at 9:45 p.m. David Venegas Economic Development Planner ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, May 28, 1997 Rm. 2404-7:30 p.m. Evanston Civic Center MEMBERS PRESENT: Aid. Feldman, Aid. Newman, Aid. Wynne, Lucille Krasnow, Martin Norkett, Vaughan Jones, Greg Norwell MEMBERS ABSENT: Aid. Engleman, Aid. Moran PRESIDING OFFICIAL: Aid. Feldman STAFF PRESENT: Dennis Marino and David Venegas OTHERS PRESENT: Roger Crum, Judith Aiello, Aid. Bernstein, Aid. Rainey, Jonathan Perman, Chuck Remen. CALL TO ORDER Meeting was called to order at 7:45 p.m. I. CONSIDERATION OF THE MINUTES - 4/23/97 David Venegas pointed out corrections made to the minutes and then passed out copies of revised minutes. Aid. Feldman asked for a motion to approve 4/23/97 minutes. Minutes were approved. II. WELCOME NEW ECONOMIC DEVELOPMENT COMMITTEE MEMBERS. Aid. Feldman welcomed the two new EDC members • Aid. Wynne and Aid. Newman. III. CHAMBER OF COMMERCE'S INITIATIVE: EVANSTON CONVENTION & TOURISM BUREAU. AId. Feldman introduced Jonathan Perman, Executive Director of the Chamber of Commerce, and asked him to describe the Chamber's plans. Mr. Perman gave a background description of the Evanston Convention & Visitors Bureau (CVB) and the benefits Evanston would receive from it. Mr. Penman stated that the CVB would attract Evanston's share of the tourism market, small scale meetings and conventions. He pointed out the economic benefit Evanston would receive from having a CVB and referred to the economic analysis in the packets. Aid. Newman asked how effective a job is Evanston doing to attract tourists. Mr Perman stated that Evanston, without a CVB, gets a "spill over" from major events held in Chicago, and that Evanston's hotels get booked up from these events. Aid. Newman asked about a third hotel. Mr. Perman replied that he believes that there is enough demand to support a third hotel. Aid. Newman asked how media relations would be handled by the CVB. Mr. Ferman stated that the CVB would act in a coordinated fashion to issue news releases, and that the CVB could be the coordinating entity for Evanston. Martin Norkett asked if the $20,000 would cover the whole city, including Howard St., Main St. and Southeast Evanston, in terms of marketing. Mr. Perman stated that the City of Evanston would be marketed. Mr. Norkett also expressed concern over the downtown vacancy rate and how that would reflect on marketing Evanston. Aid. Newman mentioned that the CVB would help solve the vacancy rate in downtown and other areas. Aid. Feldman asked about the budget. Mr. Perman pointed out that the budget has changed and provided a new 3 year budget. Mr. Perman stated that the Chamber has until June 1 Oth to come up with a match of $40,000 received from the State. Mr. Perman next stated that Inventure would provide $20,000 to match the Chamber's request of $20,000 from the City. Aid. Feldman stated that the City must commit to $20,000 fairly soon to support the CVB. Mr. Perman described how the hotel and restaurant tax would complete the budget. Mr. Perman stated that he has surveyed several hotels and restaurants and they have expressed support for the plan only if the additional tax goes directly to the CVB. Aid. Feldman expressed support for the CVB and hoped that the committee members felt the same. Referring to the budget, Aid. Newman asked when the other taxes indicted would be needed. Mr. Perman stated that the taxes would be needed fairly soon. Aid. Newman stated that he would be more comfortable if only the $20,000 would be needed now and delaying the tax portion of the budget until the CVB is operating. Aid. Newman also stated that he would like to hear from the restaurant people. Lucille Krasnow expressed support for the CVB and stated that the whole budget is needed in order for the plan to operate effectively. Aid. Feldman asked for a motion. Aid. Newman moved to approve $20,000 out of the Economic Development budget. A second was provided by Lucille Krasnow. The motion passed unanimously. IV. THE REUSE OF CORONET THEATER Aid. Feldman invited Eric Singer to present his plans for the reuse of the Coronet Theater. Mr. Singer stated that he is a member of a group interested in purchasing the theater, rehabing it and putting it back to use. Mr. Singer stated that the Music Box has expressed interest in leasing the space. Presently, the group has formed a LLC and is attempting to raise money to implement their plan. However, the group is operating under a two month time frame. Mr. Singer stated that he cannot provide detailed information, such as cost, at this time due to negotiations with the seller. Vaughan Jones asked about the concept of a second run theater. Mr. Singer stated that the group thought about the concept. However, the Music Box is discussing providing $500,000 for interior improvements. Aid. Feldman stated that he hopes the project succeeds. Aid. Feldman and other EDC members mentioned that local banks may be a source of financial support. 0 • V. REUSE OF MAIN STREET NEWSSTAND Aid. Feldman pointed out a letter received from the Main St. merchants concerning the newsstand. The letter stated that the Association has not had time to evaluate the use of property. Aid. Feldman asked if there is any time factor to be considered. Dennis Marino said no there isn't. Aid. Newman stated that he is not interested in a Master lease situation and that it should be possibly purchased by the City. He continued to say that if the site is not controlled appropriately and marketed it would stand vacant for another three years. Aid. Wynne stated that the City should some how get control of the property. She expressed that the space at one time did attract a wide range of people. AId. Bernstein pointed out that to reuse the building would require a zoning amendment. Aid. Feldman asked what would be the process in order to purchase the structure. Judy Aiello stated that it would have to go in front of the Council for discussion, and that an appraisal should be completed. Martin Norkett stated that a phase two environmental test should be completed on the property. Aid. Newman made a motion, second by Aid. Wynne, that the possible purchase of the space be addressed at the Council's Executive Session. The motion passed unanimously. VI. ECONOMIC DEVELOPMENT STRATEGY: PROCESS FOR PUBLIC COMMENT Dennis Marino stated that in April the EDC approved the working draft for public comment of the Economic Development Strategy and that the next step is to have staff develop a process for public comments. Dennis stated that at its meeting of April 23rd, the EDC requested that staff transmit the draft Economic Development Strategy to City Council. Secondly, the Committee requested initiation of a public comment process that includes the businesses which suggested many of the actions in the Strategy. Upon completion of the comment process, the EDC had intended to make appropriate revisions and transmit a final recommendation to the City Council for action. Dennis listed the six entities that the staff would receive comments from. Aid. Newman expressed his concern that the Strategy takes on too much, and asked who will take on the responsibility of implementing it. Aid. Newman pointed out several areas mentioned in the Strategy, i.e. Church[Dodge. AId. Newman asked about some policy questions, such as promoting business districts. Dennis Marino stated that the plan is to get as many of Evanston's Economic Development groups in implement the Strategy. He added that the staff is already working on many of the actions. Dennis stated that the City would not implement exclusively all actions in the Strategy. Dennis stated that the main point of the Strategy is to get many of the businesses and institutions involved and assist in implementing the Strategy. Aid. Feldman suggested putting the discussion of the Strategy an the next months agenda, and that the question of implementation would need to be addressed. Lucille Krasnow stated that the Strategy should be viewed as steps to be taken for economic development and not so much as a policy statement. Aid. Rainey described a situation encountered by a developer who expressed frustration of the City's permit process and development process. Both Aid. Feldman and Aid. Newman stated that has been a problem for a long time and that everyone knows it's a problem and something should be done. Aid. Newman stated that this is a management problem. Aid. Wynne asked if the process could be made easier. Aid. Newman mentioned the idea designating a person or department responsible for guiding a business through the permit process. Dennis Marino stated that considerable assistance is provided by staff upon request to busineses seeking to expand or locate in Evanston. He added that this role is filled by several staff including David Venegas. VII. CIP FUNDED ECONOMIC DEVELOPMENT PROJECT Dennis Marino stated that $100,000 was allocated for economic development activities in Neighborhood Business Districts in 1996-97. The EDC concluded then that it would not develop criteria for use of these funds until it completed the Economic Development Strategy. Now that the Strategy has been completed in draft, this item has been added to the agenda. $75,000 is available in fiscal year 1997-98 and $25,000 in 1998-99. Aid. Newman stated that EDC should schedule this on its agenda and develop criteria. VII. COMMUNICATIONS Aid. Feldman stated that the EDC needs to take a proactive role in dealing with the downtown vacancy. He further stated that we must deal with it problem now and make the downtown area viable. Dennis Marino stated that the committee has had discussions with Terry Jenkins, from Evmark, and Terry described a plan for attracting new businesses to downtown. Dennis asked EDC if they would like to have Terry address the Committee. Aid. Feldman said we should have Terry come to the EDC on a regular basis. Lucille Krasnow stated that the problem is bigger than Terry and that it's a big problem and we all need to be concerned about. Lucille suggested that we may need to bring in real estate professionals. She also questioned if we could put in new retail space in the research park, and that we don't have a strategy for correcting the problem. AId. Newman stated that one of the problems is out -of- town building owners. Aid. Newman suggested that the EDC include the downtown subject on its next agenda. Aid. Feldman suggested bringing in Evmark and the Chamber to discuss the downtown. This could be followed by a broader discussion involving a larger audience, as suggested by Dennis Marino. IX. DEVELOPMENT UPDATES Dennis Marino described the process of developing a Pets Mart, and that it still is a candidate for developing an outlot. David Venegas explained how C.E. Neihoff is proceeding with their project of purchasing the building west of them and requesting the vacation of Grey St. Staff will also work with the company in helping the company structure their financing. David went on to describe Strange Electric's desire to stay and expand in Evanston, and that staff is assisting them with possible financing strategies. David mentioned that this is part of implementing the Economic Development Strategy, including the leveraging of other financing resources. Ald. Feldman mentioned a developer that is proposing to develop retail in the Home Depot's outlot parcel. Dennis Marino described the situation with Demster/Dodge, where a developer is attempting to purchase the center. Dennis mentioned that the Gateway project is reportedly close to executing a lease with Dominick's and that they may close the store on Chicago Ave. if this occurs. Alta. Newman stated that if Dominick's moves and closes the building it would remain vacant for a long time. Dennis Marino said that there's a possibility of developing it into residential. X. ADJOURNMENT. Meeting was adjourned at 10:20 David Venegas Economic Development Planner • 9 A DRAFT NOT APPROVED DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING Wednesday, June 25, 1977 Room 2404 - 7:30 p.m. Evanston Civic Center MEMBERS PRESENT: Aid. Engelman, Aid. Feldman, Aid. Moran, Aid. Newman, Aid. Wynne, Vaughan Jones, Lucille Krasnow, Greg Norwell, Martin Norkett MEMBERS ABSENT: Lucille Krasnow PRESIDING OFFICIAL: Aid. Feldman STAFF PRESENT: Roger Crum, Dennis Marino, David Jennings, Michael Guttman, Chris Wonders, Mary Baaske OTHERS PRESENT: Aid. Bernstein; Aid. Rainey; Terry Jenkins, Evmark; Mary Riordan, Bob Home, Kevin Gazeley, Arthur Hill & Company; John lberle, John Buck & Co.; Bob Seidenberg, Evanston Review; Cameel Halim 1. CALL TO ORDER Aid. Feldman called the meeting to order at 7:40. 11. CONSIDERATION OF MAY 28, 1997 MINUTES Aid. Newman made a motion to approve the May 28, 1997 minutes. Marty Norkett seconded. Motion passed 8 - 0. Economic Development Committee Page Two June 25, 1997 Aid. Feldman presented Aid. Engleman with a Plaque of Appreciation on behalf of the members of the Economic Development Committee (EDC) and staff for chairing the Economic Development Committee for 1993 - 1997. III. TRAFFIC REPORT - DAVID JENNINGS Aid. Newman informed members of the Economic Development Committee that the Parking Committee was gathering information on usage of various parking areas in the City. He said David Jennings, City Traffic Engineer had done three or four studies of the downtown parking and included in the study was information of occupancy since the meter fees were increased. D. Jennings showed the Committee a map of the downtown showing the percent occupancy by block. He said that a study was done on three different days at four different times. D. Jennings told the Committee that parking occupancy was about 90% full at the peak hours in the downtown. IV. COMMUNICATIONS Communications were accepted into the record by Aid. Feldman V. PREVIOUS AGENDA ITEMS Dennis Marino told the Committee that one of the items discussed at the last EDC meeting was a proposal for the Coronet Theater. This proposal was made by a group of community residents to purchase the theater and bring in Music Box as operator of a two -screen theater at that site. lie said that staff met with the County Tax Assessor's office to discuss the possibility of a Class L Incentive, D. Marino explained that there is a possibility that if the Coronet is designated as a landmark, it would be eligible for a assessment reduction from 38% to 15% of assessed evaluation. D. Marino said that the Main Street News Stand was a substantial topic of discussion at the last meeting and staff was following up on that. lie said he hopes to have something more substantial for the Committee at their next meeting. With regard to the Economic Development Strategy, D. Marino said that it was discussed briefly and there was a suggestion that the new members of the Committee needed an opportunity to make comments regarding the Strategy. lie said stafThas initiated contacts with other economic development organizations in Evanston to better understand the opportunities for collaboration and the overlay of'responsibilitics related to that five-year strategy. D. Marino said that he has met with Jonathan Perman and would like to meet with Terry Jenkins, Ron Kysiak, and a number of merchant organizations. He expects to supply more information to EDC members in July or August. Economic Development Committee Page Three June 25, 1997 Another item discussed at the last EDC meeting was the Neighborhood Capital Improvement Program in the CIP. D. Marino said the indication at the last meeting was to discuss that topic in greater detail and develop a program this summer. He said it was not put on the agenda for tonight because of the two significant items already on the agenda, but that it would be picked up before the summer is over. IV. TERRY JENKINS, EVMARK Terry Jenkins, Executive Director of Evmark, distributed a list of current vacancies and key issues of the Iast two to four weeks in categories that discuss store openings, major issues that Evmark is dealing with, what is being done in the area of improvement, maintenance issues of downtown, and recent marketing programs to increase customers. Mr. Jenkins said that the base business downtown (ground level businesses) is 290 businesses. In the past, the history of vacancies ranged from a low of 1/2% to a high of 7%. He stated that currently, the vacancy rate is about 10% and is the highest it has been in seven years. Mr. Jenkins then informed the EDC members where some of the vacancies were and some information concerning them. He felt that price was an issue with many of the vacancies. Mr. Jenkins told the EDC members of future possible businesses locating in Evanston. As part of the maintenance issues, he mentioned that Evmark is sponsoring a Golden Sweep Program. In 50 - 80 windows downtown, there will be a golden broom that indicates that merchant is part of the Golden Sweep Program. These merchants will be doing a number of things in front of their store and in return Evmark will provide some benefits in marketing and advertising. Mr. Jenkins said that thus far, most of marketing and promotion has been oriented to the strongest segment downtown which is food and beverage. I -le stated that twenty-five percent of all tax revenue downtown is from the food and beverage segment. Mr. Jenkins said that Evmark is beginning to go into the next phase of marketing and has signed up 56 merchants for a coupon book that will be distributed to 115,000 households in the northshore area. He is hopeful that one day it will be 290 merchants. Aid. Feldman asked Cameel I-lalim (owner of the Carlson Building) to tell EDC members of his experience with the Carlson Building. Mr. I-lalim said when he bought the building many of the professional people were planning on moving out, but since he has bought the building, there have been only three or four people move out and many have expanded their office. The hotel has gone from a high vacancy rate to being sixty to seventy per cent rented for next year and with Northwestern students expects to be fully occupied. He has made renovations in the building and is in negotiations with several businesses to occupy space in the Carlson Building. Mr. l-lalim said he feels that the section cast of Sherman is very strong. Eeonomie Development Committee P 9L W .tune 25, 1997 V. REFERENCE FROM CITY COUNCIL MEETING OF NNE 9,1997 CONCERNING THE PROPOSALS TO DEVELOP THE SOUTHERN PART OF THE RESEARCH PARK Aid. Feldman found these proposals very encouraging. He said that there would be a formal presentation by the developers on July 23, 1997. Aid. Feldman asked for comments from the EDC members regarding the references from City Council concerning the proposals. Aid. Newman asked staff for a financial analysis of these proposals. Dennis Marino replied that the City has retained Kane McKenna to do a financial analysis of each of the proposals and expects to have an analysis presentation for the Committee during the month of July. Aid. Newman said he wanted to discuss hiring a consultant to represent the City in negotiations with each of the developers. Aid. Feldman said that it was suggested that the City have two consultants, a legal consultant, and an entertainment complex consultant. D. Marino said that a financial consultant has been consulted and is already working on this project and that David Jennings is focusing on the traffic parking study and is retaining a consultant. D. Marino informed the EDC members that standard City practice is to hire outside legal counsel with expertise in this area and that would be the third consultant. He said that it was also suggested that an additional consultant be hired with expertise in real estate and entertainment development. Commission members discussed the need for consultants, financing, public meetings, and the amount of time needed to complete the decision making. A motion was made and seconded to direct the City Manager to hire a consultant experienced in the entertainment complex field. Motion passed unanimously. It was decided to hold a special meeting on July 16, 1997, 6:00 p.m. (dependent on the availability of Kane McKenna), and a regular EDC meeting July 23, 1997 at 7:30 p.m. VI. EXECUTIVE SESSION Aid. Engelman moved to go into executive session for purposes of considering land acquisition.. Aid. Wynne seconded the motion. Motion passed unanimously. VII. ADJOURNMENT There being no further business before the Committee, they adjourned at 10:45 p.m. Respectfully submitted, Mary 13aaske DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING Wednesday, July 16,1997 7:00 P.M. CITY COUNCIL CHAMBERS EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Marty Norkett, Vaughn Jones, Lucille Krasnow, Greg Norwell STAFF PRESENT: Judith Aiello, Michael Guttman, Dennis Marino, Bob Shonk, Stephanie Steen, James Wolinski, Chris Wonders, Mary Baaske OTHERS PRESENT: Bob Rychlicki, Phil McKenna, Kane McKenna PRESIDING OFFICIAL: Aid. Feldman, Chair I. CALL TO ORDER Aid. Feldman called the meeting to order at 6:15 p.m. II. COMMUNICATIONS Aid. Feldman accepted the following communications into the record. 1. Memorandum from D. Jennings re: Status of Parking &. Traffic studies - Research Park development 2. Memorandum from Al Alterson; re: Status of Preliminary Zoning Analysis - Research Park Proposal Economic Development Committee Page Two July 16. 1997 III. EXECUTIVE SESSION: ACQUISITION OF REAL ESTATE Lucille Krasnow moved to adjourn into executive session at 6:26 p.m., to discuss real estate acquisition. Seconded by Ald. Moran. Voting IN a Roll Call vote were: Ald. Moran, Lucille Krasnow, Ald. Newman, Martin Norkett, Vaughn Jones, Greg Norwell. Motion passed. The Committee returned to open session at 8:04. IV. ADJOURNMENT There being no further business before the Committee, Aid. Feldman adjourned the meeting at 8:05. Respectfully submitted, Mary Hgaske Executive Secretary Planning Division DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING Wednesday, July 23,1997 7:00 P.M. CITY COUNCIL CHAMBERS EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Marty Norkett, Vaughn Jones, Lucille Krasnow, Greg Norwell STAFF: Dennis Marino, Judith Aiello, Roger Crum, James Wolinski, Arthur Alterson, Carolyn Smith, Mary Baaske, Sally Lufkin, Lisa Lyon, Marc Mylott, Michael Guttman, Stephanie Steen, Chris Wonders, OTHERS PRESENT: Aid. Bernstein; Aid. Kent; Aid. Rainey; John Buck, John lberle, The John Buck Company; Bruce Kaplan, Kim McGuire, Northern Realty Group, Ltd.,; Rick King, AMC; Scott Hindsley, ArchIdeas; Arthur Hill, Richard Welcome, Robert Horne, Kein Gasley, Arthur Hill & Co; Barry Elbasani, Elbasani & Logan Architects; Jeff Martin, Teska Associates; Mary A. Shoemaker, General Cinema Theaters; Mary Riordan, Polsky & Riordan; Karen Butler, Mike Szkatulski, Valerie Kretchmer, Dr. Thomas Stafford, Harey Saubart, Bob Nottenburg, Mary Singh, Steve Knutson, Coleen Murphy, Joseph Levy, Jr., John Hammerschlag, Jack Lerman, Dick Stillerman, Richard Cook, Nancy Sue Mohuke, Peter Mills, Bob Seidenberg, Sidney Zwick, and other citizens who did not sign in. PRESIDING OFFICIAL: Ald. Feldman, Chair 1. CALL TO ORDER Aid. Feldman called the meeting to order at 7:20. Economic Develonment Committee Paoe Two Julv 23. 1997 II. WELCOME BY CHAIR AND SUMMARY OF MEETING FORMAT Aid. Feldman welcomed the audience and explained the order of procedure. He stated that there would be an initial presentation by the John Buck Company, after which the Committee and other Aldermen would be able to ask questions. Then, the Arthur Hill Company will then give its presentation, and the Committee and other Aldermen will be able to ask questions. Aid. Feldman told the audience that when the Committee and aldermen were finished asking questions, members of the audience would be able to make comments and ask questions. He also informed the audience that answers to their questions would be in writing. Aid. Feldman reassured those concerned about the Levy Center that the Council had approved a resolution that the Levy Center will not be moved until a new facility has been provided. III. PRESENTATION BY JOHN BUCK COMPANY John Buck, introduced himself and thanked the Committee for the opportunity to present his proposal. Mr. Buck said that, in his judgment, the team is more important than the specific plans the Committee will be reviewing. He felt that if you have the right team, one that is willing to work with the City's staff, the plan can be adjusted according to market conditions and City preferences. Mr. Buck introduced John Iberle, Principal, of the John Buck Company. Mr. lberle introduced Rick King, Senior Vice President with American MultiCinema, Bruce Kaplan, President Northern Realty Group, and Scott Hindsley, Principal with ArchIdeas. He informed the Committee of the John Buck Company's history and projects they have completed. Mr. Iberle introduced Mr. Bruce Kaplan, President of Northern Realty Group, Ltd., to give his presentation. Mr. Kaplan, using a slide projector, showed the Committee some of the projects with which Northern Realty Group is and has been involved. Mr. Kaplan then asked Mr. Hindsley to give his presentation. Mr. Hindsley told the Committee that the name Archldeas was a blending of the words architecture and ideas which they found to be an appropriate description of the way his firm approaches their profession. He told the Committee that his company is five years old and gave a history of the company's association with the John Buck Company. Rick King, Senior Vice -President of the Northern Division of AMC Theaters, said that ANiC was Kansas City based and has been operating movie theaters since the early 1960's with predecessor companies dating back to the 1920's. fie mentioned that although they were not currently in the Chicago market, they are a leading North American theater company. Their company has over 2000 screens, which makes them the third largest North American movie company, but they are number one in the industry in overall theater attendance and revenue. Mr. Economic Development Committee Page Three July 23, 1997 King said that AMC is committed to the Chicago market and presently has two thirty -screen theaters under construction and several more in the planning stages. He attributed AMC's success to customer service and innovation. Mr. King told the Committee that AMC is a pioneer of the first multi-plex theater; cupholder armrest, high impact theater system; first company, and maybe the only company, to institute and maintain a professional management training academy; the only operator in the industry to administer movie watcher, which is a frequent movie goer award program. He said that since 1995 AMC is known as the pioneer of the mega- plex. Mr. King explained that a mega-plex is a high screen count facility, 16 screens or higher, featuring stadium risers, enlarged picture sizes, all digital sound, additional leg room (7 inches more than the industry standard), and enhanced seating quality. He said that a high screen count complex enables AMC the ability to dedicate additional seats to new titles when they open, increasing the consumers chance of seeing the movie; it maximizes customer choices because the theater is able to keep interesting films on screen for longer periods of time instead of having to take them off for the latest new release, and enables AMC is to maintain alternative programming on the screens. Mr. King told the Committee AMC's research led them to the conclusion that, in the future, theaters that will be successful will be much bigger and nicer than movie goers have known in the past. Audience acceptance to the mega-plex has been extraordinary. AMC mega- plex comprises 12 of the top 50 theaters in the United States. He said the audience is responding beyond expectation to the facility and to the program selection. Mr. King said mega-plex attendance per screen is running roughly double that of industry averages and close to 40% of ANIC's internal averages. Mr. King mentioned that ANtC believes that the Evanston market presents ideal demographics for their theaters, high density and high quality demographics. He told the Committee that AMC general managers have won the National Association of Theater Owner customer service award in each year since its inception three years ago. Mr. King informed the Committee that AMC is active in the conference, meeting and special show activities. He said they have a special program called Very Important Presentation that makes their facilities available for use in conferencing, special shows and theater benefits. Mr. King mentioned that they also try to maintain high levels in community development. Mr. King wanted the Committee to know of ANiC's flexibility. They initially identified the Evanston market as a ideal location for a 5,000 seat, 24 screen complex. He said that they are flexible both in design appearance and in sizing and configuring the facility to achieve the best 6t with the project. Mr. King concluded with the statement that ANiC is an experienced leader in the business, they are building the most advanced complex in the market with the highest level of amenities, they are a good citizen and will work with the City in delivering the best possible theater and project in this market. Economic Develonment Committee Pave Four July 23, 1997 Scott Hindsley, Archideas, told the Committee that Phase I would be on parcels 15, 16 & 17, Phase II on parcels 10 and 11, and Phase III on parcel 18. He showed slides of the intended interior of the proposed project. The north end of the building would be hotels stacked over office and ground level retail stretching across the entire base of the building. Above the retail, there would be three levels of parking. He felt that with the parking above retail and below the theater, no one would feel they didn't have access to parking. Mr. Hindsley said they tried to structure an architectural treatment respectful of the heritage of downtown Evanston. He pointed out that in the center of the building is the cinema entrance, a large glass expression, with the cinema above. The structure would reach a height of approximately 150' with a 150 room hotel as well as office space. Mr. Hindsley wanted to communicate that there were opportunities to move the Levy Center into the structure in the office portion. Bruce Kaplan, President, Northern Realty Group, Ltd explained that the retailers his project was targeting would not hurt the existing retail in Evanston. He said they were targeting retailers who wanted larger space than exists in the downtown. Mr. Kaplan said he felt the retailers would fall into six categories: sports/fitness, communication/computers, home and garden, apparel, entertainment/restaurants, and family needs/family support -day care. He said they would like to see things like a wellness center, things which involve rehab and a certain amount of fitness and medical support, etc. John Iberle walked through the economics of the John Buck proposal. He said there are several principles that have been addressed in the Buck proposal. One being the dense urban nature of the site, and because of the availability of other adjoining sites both within the area of the proposal as well as the rest of Research Park, they took the approach they wanted to enhance the value of those sites. Mr. iberle said because of the length of time they have been in Evanston, they were aware of many of the issues that need to be dealt with such as the Levy Center and the private ownership of parcel 18. Consequently, they designed a project that allowed them to proceed even as those other issues were being addressed. He went on to say that given that most of the competition is more typically suburban with acres of free parking available, an essential component was the need for parking. Mr. Iberle presented the economics from the public point of view of the entire built out development. He felt that to make the appropriate decision, it was important the Committee understand the economics of the project. In that regard, he incorporated the assumptions that are consistent with Kane McKenna, the consultants for the City. Upon development of all three parcels with retail and the parking proposed in phase II and private retail in phase 111, the incremental investment by the City is about $800,000. However that investment generates an additional $1.? million a year of public benefit. He said the way that is achieved is for the public side paying a bit of a premium for parking. The reason the premium is there is because the cinema is on top and the 60' atrium renders a significant amount of inefficiency in parking. It works well from the parking point of view but raises the cost. Nlr. lberle said that when his company met with the Research Park Board in May a number of Economic Development Committee Page Five July 23, 1997 questions were raised: 1. There is a CTA easement on the east side of the property and what would be the impact of that if we couldn't reach accommodations with the CTA? 2. The cinema size. Is this the right size for the community? 3. Parking is expensive, why? Mr. Iberle said that they have taken a look at a slight variation of their proposal in which the cinema is taken from on top of the parking and put across on parcel 10 and downsized somewhat. He thought that would do several things; it would allow them to provide parking in greater quantity and a lower cost. The cinema would be located on parcel 10, allowing the Levy Center to stay in place. John Buck thanked the Committee for the opportunity to present the proposal and recapped the firms accomplishments. He reiterated that the John Buck Company understands the Evanston Community and felt that the economics of his proposal was compelling and self evident. Aid. Newman asked if there was an expectation that the City would build and pay for the second 700 spaces in the parking garage, making the City's contribution to the Buck proposal a $20 million contribution as opposed to the $13 million contribution. Mr. Buck answered that the expectation is that the City would own and operate the Phase II parking as well. He believed that the investment could be supported by the revenue it will generate and thought it critically important that all of the parking be operated by the same ownership. Because of the future build - out of Research Park there is going to be more demand for parking. Ald. Newman wanted to know exactly what new revenue from parking the Buck Company thought would be coming to the City. Mr. Buck felt that, if anything, they have understated the amount given the amount of traffic they hope to generate, but they have not specifically said this is the amount of existing revenue and this is all supplemental. Aid. Engelman asked Mr. King if he believes that a 700 car parking garage would be sufficient for a 5000 seat development. Mr. King replied that normally a theater would like to see a 2.5 ratio seats to parking; places which would be 1700 to 2000. He said that he looked at the parking; available in a two to three block proximity in addition to the parking garage and was satisfied that there would be enough parking. Aid. Engelman felt that because of Evanston's location on the lakefront, it does not generate the high density raw population numbers that an in -land community might have. He asked why Economic Development Committee Page Six July 23, 1997 Evanston is considered high density with raw population numbers sufficient to justify the market, when his understanding is that AMC is looking for a population of 250,000 within a three-mile square radius. Mr. King replied that, typically, they Iook at a 5-7 mile population. The numbers for the 5-7 mile radius is about 400,000 people. Aid. Engelman asked how those numbers work in light of the fact that we already have a sizable amount of theaters immediately to our west in Old Orchard, and we have six to eight more screens to come on line on the Chicago side of Howard Street. Mr. King said the secret to a successful theater is to have a theater with the size and amenity level that will make it a success. The pattern is established that the customer is driving past the older smaller theater complexes to a new theater that offers the most choice and amenity level. He felt that the population concentration within the market area will support this theater and all the other theaters mentioned. Mr. King also thought that they could achieve higher levels of movie going frequency not only because of their facility, but because of the demographic groups he eluded to earlier - higher income and higher education levels typically translate into high movie going frequency. Aid. Engelman asked what was the minimum number of movie screens needed for AMC to be interested in this market. Mr. King said he defined mega-plex as 16 screens or more and thought that would be the baseline. He added that the higher the screen count the higher the levels of per -screen attendance. Aid. Engelman wondered how many seats were in a 16 screen theater. Mr. King replied that the rule of thumb was about 200 per theater. Ald. Engelman asked if AMC had experience with mega-plexes in college towns. Mr. King replied that their Tallahassee theater is located very close to the university, and they have recently opened 24 screens in Columbus, Ohio directly across the river from Ohio State University. At this point Mr. King offered to host a delegation to observe the Columbus facility. Mr. Buck informed the Committee that they had recently put in 9 screens at 600 N. Michigan and now wished they could have put in 18 or 20, but they could not be accommodated physically. He felt that Evanston was probably looking for an additional draw to the downtown core of Evanston which would aid and abet the other retailers in close proximity. Mr. Buck said that recent research indicates 30% of movie goers go to a meal either before or after a movie. He felt that since AMC is the most successful operator in the Country, and to the extent that you can allow more screens, AMC can serve the public more ably and will be a better draw, not only to this complex, but to the immediate area. Aid. Engelman asked what market analysis has been done to justify ANiC's belief that a minimum 16 screens is necessary to be successful in Evanston. Mr. King said that no specific Evanston market research along those lines has been done, their approach to that issue is that if they are allowed to build the high screen count in Evanston, that will be the choice of the Economic Development Committee Page Seven July 23, 1997 customer in the surrounding area. He added that most of the films are coming from seven, soon to be eight, suppliers, and that those suppliers are going to be having 12-14 movies in release, some of which will be popular enough to require multiple screens. Major distributors have first call on that inventory. When you can get above a 16 - 20 screen count, you put yourself in a position to dedicate and maintain what people call "art movies". Aid. Engelman asked how extensive is AMC's experience in existing theaters in utilization during the day for business conferencing, university related conferencing or community based operations. Mr. King replied that they have moderate and heavy volume in that activity in various locations. He said that in terms of ability to provide audio/visual, they have developed a reversible tray that fits into the cupholder armrest and allows people to take notes. AId. Engelman inquired why Mr. Kaplan believed he would be able to attract the big box national retailers to Evanston, especially since Old Orchard is so close. Mr. Kaplan answered that big boxes were not the choice, but instead some of the firms he is pursuing has a 15 - 30,000 sq. ft. range. Aid. Engelman wanted to know how Mr. Kaplan proposed to integrate this project in Evanston's existing downtown and by putting 100,000 sq. ft., into the market not compete with the existing vacancies or cannibalize the existing downtown. Mr. Kaplan replied that based on the size of the tenants he is looking for, there isn't a single tenant in downtown Evanston that would be a target, because the scale of the project and the depth of the stores does not lend itself to pursuing tenants in the downtown. Aid. Engelman asked Mr. Buck if he was chosen to be the developer could he be in the ground by spring? Mr. Buck said that everything depended on zoning. 1f, he could tell the financial community that he can get entitlements, they could be in the ground this spring. Aid. Feldman said that one of the concerns that seems to accompany the Buck project is the self-contained nature of the development. John Buck said that his team wanted to integrate the project with the community architecturally and from a programmatic standpoint. He said what the Committee is looking at now are schematics, that their objective is not to rob from the retail base that is already existent, but to add to it. John lberle thought that the major challenge is the physical barrier that exists because of the CTA embankment. Aid. Feldman inquired what the retail space would rent for per sq. ft. Mr. Iberle replied $20.06, with a range from $1 S to $20 depending on size. Aid. Feldman asked. considering the Corn Ed station is a landmark, if there was anyway that building could be adapted or integrated in the development. Mr. Iberle replied that they had not considered keeping the Com Ed station, that the location of the building is quite disruptive of the Economic Development Committee Page Eight July 23, 1997 pedestrian fabric that Research Park suggests. Also, its prior use as a utility station raises all kinds of questions as to its environmental condition. He said that he understood that studies have been done and indicates that its a clean site, but in today's climate that may not be enough. Aid. Feldman wondered in the event the Buck Company was not able to get in the ground by spring, when would be the next window of opportunity. Mr. lberle didn't think it was a particularly seasonal question, it was a question of diligence and perseverence. He said that they have proposed some below grade space and thought it enhanced the project. Mr. lberle said they have been successful in leasing that space in other locations, and to do that may take a little longer. He said he would have to review the project again. Aid. Feldman said that in their previous association in building the Park Evanston, it seems as though it took a long time for the project to be financed. He asked how Mr. Iberle thought this project was different? Mr. lberle said that at the time that building was built, the economy was just starting what has continued to be remarkable growth. The Park Evanston was the first high rise residential building in the Chicago market in almost five years, and one of the few in the entire country. He said by its nature, it was a project that no pre -leasing or prior commitment to it before it opened and consequently was deemed to be much more risky by the capital market. In this particular project with AMC as a tenant and the retail entertainment mix, it is a project that has very strong appeal to the capital market. John Buck added that the Park Evanston was completely speculative and there was no pre -leasing, which makes it more difficult to finance. The proposed Research Park development is substantially preleased and that changes the picture substantially. Lucille Krasnow thought that currently the Committee is mega-plex uneducated and need more information. She said that originally the Buck Proposal started out with 24 screens, then we've heard 12, then 16 and we've heard there is some flexibility. Ms. Krasnow wanted to hear from both developers a method by which we can understand what we should look at, what are they capable of doing at a minimum and what is maximum. She stated that she needed more information on where Evanston is regarding the market radius. She asked for information on Phase II and Phase 111. Mr. lberle felt that they did describe programatically what they hoped to accomplish on those phases. There are timing issues relative to the other parcels availability to be developed. He said he believes that by successfully developing the first phasq you greatly raise the interest in the other parcels. He added that the relocation of the Levy Center and the initial retail absorption are two issues that will enable the other phases to proceed faster. He thought that to develop immediately another 200,000 sq. ft would be too big a bulge to start out with. Lucille Krasnow wanted assurances that if there was trouble getting retailers, that they wouldn't decide to put four or live restaurants in the project. Bruce Kaplan said that the existing stock downtown Evanston precludes many retailers from coming into the downtown market by Economic Development Committee Page Nine July 23, 1997 virture of physical constraints. He said the way the parcels lay out in the proposed development, you cannot cut them into little pieces, it just would not work. Mr. Kaplan said Ms. Krasnow point was well taken and he would try to make every assurance that they will be addressed. Aid. Newman said that the project has 700 parking spaces and asked if there was flexibility to up that number in phase one. John lberle said that physically, the plan they presented limits the parking because the need to move the cinema customer up to the cinema level has a Iimitation. He said that the alternate plan to move the cinema across the street would both improve the cinema in that regard and improve the parking within that framework and allow another deck or two to be put up there. Mr. lberle said that there would be a benefit from the other parking facilities for the activity generated by broader Research Park development. If the Committee had any more questions, Aid. Feldman urged them to give them to staff and they would be answered in writing. IV. PRESENTATION BY ARTHUR HILL AND COMPANY Aid. Feldman introduced Arthur Hill, Chairman, Arthur Hill & Company, LLC. Mr. Hill stated that he had put together both a team and a plan and asked that they be considered together. He said these resources would be combined to get the best results for Evanston. In his view that consisted of a plan that was an addition to the neighborhood, a complement to what is already there. It contains the ingredients everyone is familiar with, put together in a way that has a feeling; of neighborhood, a feeling of a kind of streetscape, shops and places to dine that are consistent with the tone that already exists in Evanston. Mr. Hill said that the Arthur Hill & CO., was in its fourth year. Mr. Hill introduced Richard Welcome, Partner with Arthur Hill & Co.; Barry Elbasani, Partner, Elbasani & Logan Architects; Jeff Martin, Senior Associate, Teska Associates; Mary A. Shoemaker, Director of Real Estate, General Cinema Theaters; Mary Riordan, Partner, Polsky & Riordan, Robert D. Horne, Vice President, Arthur Hill & Co.; and Kevin B. Gaxley, Vice President, Arthur Hill & Co. Mr. Welcome told the Committee of his background and projects with which he was involved. He introduced Barry Elbasani, Partner, Elbasani & Logan Architects. Mr. Elbasani said he has always considered his firms practice in the downtown business. He explained his firm was thirty years old and has developed/designed approximately 50 million sq. ft.. of pure shopping area in addition to 20 million sq. ft., of major department stores/anchors which represents about 50% of their practice. Mr. Elbasani said one of the things his firm has learned is that bigger is not necessarily better, and the best retail is extraverted, not introverted. Finally, one of the things they learned is that while design is important, respect for context and downtown, how the building tits in the texture of the downtown is important. Mr. Elbasani explained that the project they proposed comprises the entire site. His proposal has 110,000 sq. Economic Development Committee Page Ten July 23, 1997 ft. of retail, 150 room hotel, parking for 900 - 1,000 cars and a 14 screen theater. Mr. Elbasani showed slides of projects his firm has done in downtown Denver, Colorado, Portland, Oregon, and Phoenix, Arizona, explaining why the concept in these towns worked there and would work in Evanston. He said that the project in Portland was one of the most successful projects on the west coast, due to the fact that people go there because of the experience of being on the street, of promenading, of enjoying the shops, the building and the sense that it is really civilized nice place to be in. Mr. Elbasani felt that the parking structure is a public parking structure, it belongs to the public. He said that some of the criteria for a public parking structure are: it must be found easily, be identifiable, and you should not feel captured. In a way, he said that he wanted to make the parking structure inconvenient, in a different way. He wanted people to come to this structure, find the shops, the theater, and the hotel by going on the street. Mr. Elbasani said that the cinema, which contains 14 screens, would be located on the second Boor because they wanted to reserve all the first floor for retail. In his experience, putting the theater on the second floor has worked extremely well. Also, there is a gathering place on the first floor in the middle of the retail and shops. One of the advantages in the Hill proposal, according to Mr. Elbasani, was connecting the Levy Center to the garage is that people would not have to go out in the weather from the car to the Levy Center. Mr. Elbasani told the Committee that the Hill team took the position that they wanted to remain absolutely neutral about the style of the project, hoping that there would be confidence in the track record of the developer in terms of obtaining financing, etc., and confidence in them as architects to come up with a scheme, through dialog with the City, that makes sense for the downtown Evanston. He said that the Committee had asked him why, when they had said they wanted an elevation drawing did he do an aerial? His answer was that he wanted to show that they were concerned about the sidewalk and the landscaping. Jeff Martin, Senior Associate with Teska Associates, told the Committee that.his firm was involved in the project because they were landscape architects and landscape designers to help tie the project to the community. He said that located in the downtown were the university campus, the downtown, and Research Park and that what they wanted to do was link up and complement all of them and create a pedestrian -friendly environment. Mr. Martin said that one of the specific urban design issues his firm wanted to tackle was the streetscape issue. He told the Committee that his firm has worked on the Evmark Streetscape Revitalization project for the last three or four years and wanted to pull some of that design vocabulary into the site, i.e., banner programs, art. Mr. Martin thought that would make the Research Park Development and the downtown similar and cohesive. He said they wanted to turn Church Street into a first-class street with a Economic Development Committee Page Eleven July 23, 1997 possible gateway at Benson and Church, which might be an area for some public art. Mary Shoemaker, Director of Real Estate, General Cinema Theaters, told the Committee that General Cinema is celebrating its 75th anniversary. She said that General Cinema had 112 screens in Chicago land and 11 theaters. Ms. Shoemaker told the Committee that most new theaters are going to have stadium seating and plusher seats. She said that a way that General Cinema differentiates itself from other theaters is that they feel they can offer different menus within that whole mega-plex complex. Right now, General Cinema is working on a joint venture with a company called Cinema -Grill. This is a concept in some theaters where you can go in and eat some food while you are watching a film. She said this is not for every theater, but is something they will be able to offer. Also, they are finalizing a joint venture with Robert Redford's Sundance group. They will be the only theater working directly with Mr. Redford as he rolls out entire art house presentations throughout the United States. Nis. Shoemaker said that 600 films were films were produced last year and over 1/3 of those films were art films. Ms. Shoemaker informed the Committee that General Cinema is under construction with a new 18 plex theater in Yorktown which will have a new concept called the Premium Theater. She explained that a Premium Theater is a self-contained theater concept within the theater complex, but is for a more upscale audience that will be able to make reservations for a ticket for a first run or art film. There will be a separate entrance way, so the patron will not have to stand outside and wait for a ticket. They will be met by a concierge when they enter the theater who will give them a ticket. There will be a self-contained cafe having higher -end finger type food. Nis. Shoemaker said that what General Cinema is saying to the general public is, "Let us work with you, we have different concepts we can give to you, depending upon what your population segmentation is." They said that this way the theater experience is a different experience, a more exciting and unique experience. Nis. Shoemaker stated that, General Cinema has a group called General Cinema Network. This is a financial network whereby they offer facilities for meeting purposes during the daytime in the off hours when they are not using the theaters. r In the summer, General Cinema has what they call a Movie Camp for children. This is where they offer, at very low rate, movie experiences for children for 8 - 10 weeks. The rest of the year they have a "Mootine's" on Saturday morning. This is an experience where children can come with their parents and friends and watch some old-time and family oriented films. Nis. Shoemaker told the Committee that General Cinema believes that theaters do not have to be a mega-plex (more than 18 - 20 screens). They didn't feel that there were that many good movies coming out of Hollywood to warrant anything bigger than 14 screens. Economic Development Committee Page Twelve July 23, 1997 Mr. Welcome stated that the Arthur Hill Company has proposed a parking garage of 900 to 1,000 parking spaces. He said the Arthur Hill Company believes that with the tax increments that will be generated by the project and the parking revenues that are possible, that the $10 million range of public participation for the project for parking and the relocation of the Levy Center produces a project that works and produces a very handsome return to the City of Evanston. Mr. Welcome said that it is also their feeling that in an urban context, the ultimate question is not how to maximize the return, but how to maximize the quality of the project for the people of Evanston. Mr. Welcome said that there seemed to be three big issues that permeated the discussions: Can the project be leased? Will it provide high enough rent to support the project? What is the impact on the balance of the downtown? He thought that what got lost in the conversation, is that when he is downtown he goes to book stores or restaurants, but never comes to Evanston to see a movie. He thought movies will be a major draw to the downtown, add three or four restaurants, but at the same time double the amount of pedestrian traffic. This project would create an opportunity not only to support the businesses within the project, but also augment the existing retail in the City of Evanston. Mr. Welcome said they have tried to come up with a plan that encourages people to use other existing facilities within the City. Mary Riordan, Partner, Polsky & Riordan, said the focus of her practice is development and redevelopment. She spoke of her 12 year association with the Homart Corporation and of the projects they have worked on together. Mr. Welcome summarized the presentation by stating that his team has created a plan that works in Evanston. He said they were retail developers and have extensive experience in retail development, they have come up with a plan where each element, the retail, the theater, the hotel and the parking each work on their own, but tied together create an urban context for Evanston. Ald. Newman asked if the retail and theater tenants pay $350,000 per year for parking, what type of lease is contemplated where the City would receive $350,000 per year. Mr. Welcome said that the concept was that in this location it is important to structure a deal where the theater patrons did not pay for parking in the evening, so there would be some kind of agreement with the theater to subsidize the garage and that is where they came up with the numbyr. Ald. Newman asked what type of retail would be going in to the base of the garage, who would be managing it, and how optimistic is the Hill Company it will work. Mr. Welcome answered that what is proposed is that the garage would be owned by the City, and that the revenue from the retailers that went in there would go to the City to support the garage. He said that have also explored putting the senior center there instead of some of the retail, could the parking garage be supported from the tax revenues from the project without the retail income. Bob Horn mentioned that the plan that was actually drawn and shown as an alternate with the Economic Development Committee Page Thirteen July 23, 1997 senior center in the garage area also includes some retail. Originally they has proposed 16,000 square feet of retail and there is some land behind the garage area that could be expanded into, so there would be approximately 10,000 sq. ft. that could be used as retail in addition to the Levy Center. Aid. Engelman said he appreciated the way the Hill proposal focused on the sense of place and the idea that it would be integrated with the downtown. However, this raises a few questions. He said there were two things that concerned him about the design integration with the downtown. Aid. Engelman said that on taking away the retail on Maple, his understanding was that one of the reasons there was to be ground floor retail was the idea of making this a pedestrian friendly place so that people would walk the streets of, not only the project, but then filter out to the rest of the City. He also said that the Hill proposal had cited the hotel on the south side of Church Street with two curb cuts which virtually creates the entire south side of Church Street as a non -pedestrian use other than as a transit from one side of the viaduct to the other side. How does the actual design of this project create this kind of sense of place and integration of community when, in fact, you are cutting off the pedestrian nature of the project? Mr. Elbasani said that what they have in mind is the combination of retail and cafe experience with the hotel at the base, properly Iandscaped which would actually encourage pedestrian traffic. Aid. Engelman asked what they envision charging per sq. ft. for retail. Mr. Welcome replied $22.50. Aid. Engelman said that the Arthur Hill project indicates that they will be using more green space and public area than the Buck proposal and asked how they would get a return on their investment to make this project work? Mr. Hill replied that basically one of the ways is to have the City provide the parking garage. He said that they were proposing 100,000 sq. ft. of retail plus the theaters. Mr. Hill said that the difference between the two proposals was the intensity of the development. Buck would invest more money and expect a higher rate of return. Aid. Engelman wondered if the intense use of the Buck development maximizes the return of the investment to the City by massing the same structure that the Hill proposal has on one side and leaving lot 10 and 18 available for future development. Mr. Hill said that there is inherent in the choices that are being addressed here - a competition of goals that has to be resolved. And, if in fact, the City's goals is to maximize the per sq. ft. value of a specific piece of Iaqd, the taller the building is. the more capital you pack onto it, the more you can say its worth. He said that Arthur Hill will have an acceptable return on a density that we think is better for Evanston. Aid. Engelman asked the !-Till staff to elaborate more upon their experience in attracting the retail tenants that need to be generated for this project. Mr. Hill said what they were talking about in this proposal is a new type of real estate development, a mega -theater anchored retail center. He stated that wherever these mega -theaters have been built in the United States, they generate a huge demand. Fie said that a significant portion of this center could be in food Economic Development Committee Page Fourteen July 23, 1997 services - maybe 40%. He felt that by creating a lot of interesting space, they would draw many retailers. Aid. Moran said he would be interested in hearing comments as to the impact of the poroposed development upon neighborhood commercial districts that have a theater in Evanston and the areas they are located in depend on the traffic generated by that theater. Mr. Elbasani said what he has found happening nationwide is that downtowns are now becoming the place to be. He thought that the project in terms of what it is and the scale they are proposing is appropriate for Evanston as it is and can grow as a downtown phenomena and can grow without jeopardizing what is going on outside of downtown. AId. Newman said that one of the reasons the movie theater complex is going to favorably compete with any other complex is that Evanston already has an array of fantastic, high -quality restaurants. A complex consisting of 40% food would bother him because they would be competing with restaurants already in existence. Mr. Hill said he felt this was something that could be worked out. Aid. Feldman inquired if financing, necessary permits, and zoning were in place, would the Hill team be able to start in the spring. Mr. Hill said yes, it can be done. Aid. Feldman asked if there was any place for a performing arts center in the Arthur Hill Proposal? Mr. Hill replied that physically they could be accommodated, the questions was economics. Following are questions and comments by citizens attending the meeting. Nancy Kotler thanked the developers for an exciting proposal and told the Committee she was at the meeting as Co -Chair of the Evanston Arts Council. She felt that this was the last chance Evanston would have to have a performing arts center. Ms. Kotler said that Evanston was constantly billing itself as a City of arts. She said there are many art organizations interested in having shows here and some have made inquiries about moving here. Ms. Kotler urged the Commission to give this serious consideration. , John Wertheinrer thought there was a counter demand between movie and live theater. He said that there might be a creative optimization for performance space and the movie theater. He informed the Committee that Presbyterian Homes owns a large parcel of land across from the YMCA and that some day there would be elderly housing in that immediate area. He felt that this would be an appropriate site for the Levy Center. Economic Development Committee Page Fifteen July 23, 1997 Mr. Wertheimer said that he thought that the main entrance to Evanston is along Emerson coming into Sherman Avenue and that the Committee should consider how the parking ties in with the automobile traffic. He said that having some mixed -use office space in the development would be a real boon to the Research Park. Peter Mills said he just leased the first floor of the Metra station. He felt he was directly in the middle of this and wanted to know what would be happening to his business. Jack Permarn, 2412 Park Place told the Committee that he was a teacher and taught at the Evanston Levy Center once a week. He said that he would be very upset if the Levy Center were demolished. Aid. Feldman replied that as far as the Committee and the City Council is concerned there is no possibility that the Levy Center location would be eliminated or changed without consultation with the senior citizens or without another location that deals with all the issues expressed. Aid. Feldman asked Mr. Penman to relay his message to the senior citizens at the Levy Center. Joyce Hutchinson said that as a taxpayer she was concerned with who was going to pay for tearing down the Levy Center and moving it. She felt that with the economy at an all time high, this is the time to cut off "corporate welfare". Ms. Hutchinson said that Research Park has already cost S l 7.000,000 and has not benefitted her at all. Jayne Volberdi ng explained that she was attending the meeting on behalf of the Evanston Symphony Orchestra and other performing arts groups in Evanston. She said that she wanted to work with the developers and City Council to have people come to downtown Evanston to see live theater, symphonic performance, opera, and dance. Ms. Volberding asked the Council to look at their plans and find a place for Levy Center and also the performing arts. Aid. Newman informed the audience that the garage being built would not be corporate welfare because it will be a city -owned asset. He said that he was extremely committed to keeping the Levy Center right where it is now. . John Haninnerschlag told the Committee that he was an Evanston resident of 12 years. I . Mr. Hammerschlag said that in the Hill proposal, the garage encroaches the parcel north of Clark and asked if that was in Hill's first proposal. ?. if the Levy Center is moved near the garage would it reduce the number of parking spaces? 3. How many additional levels would be required if you didn't encroach on the garage. 4. Is there a parking garage provided in the hotel? Economic Development Committee Page Sixteen duly 23, 1997 5. Mr. Hammerschlag wanted some justification for the cost of $25,000 a parking stall in the Buck proposal. 5. In the Buck proposal, it seems the acquisition of the CTA is important and if the theater is moved across the street is that also important and what is the impact. 7. He felt that having the "big boxes" would knock out some of the small competitors. 8. One developer is offering to pay $10 a foot for the land and another developer is offering to pay $20 a foot and the subsidies asked for are much different. It is his hope that the consultants will take a close look at these proposals. Aid. Bernstein asked the developers to create some method by which energy from this development could be transferred east across the embankment. (i.e. lighting of the area etc.) Aid. Feldman adjourned the meeting at 11:40 p.m. Respectfully submitted, " Mary E ke ExecutSecre t a tary Community Development Department Planning Division DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING Wednesday, August 11,1997 7:00 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Vaughn Jones, Greg Norwell MEMBERS ABSENT: Lucille Krasnow, Marty Norkett STAFF: Judith Aiello, Roger Crum, James Wolinski, David Jennings, Mary Baaske, Michael Guttman, Stephanie Steen, Chris Wonders, OTHERS PRESENT: PRESIDING OFFICIAL: I. CALL TO ORDER Aid. Bernstein; Luay Aboona, Kenig, Lindgren, O'Hara, Aboona, Inc.; Marty Stern, U. S. Equities Aid. Feldman Aid. Feldman called the meeting to order at 7:18 p.m., a quorum being present. II. CONSIDERATION OF MINUTES June 25, 1997 Regular Meeting July 16, 1997 Special Meeting July 23, 1997 Regular Meeting Aid. Moran made a motion to approve the June 25, July 16, and July 23, 1997 minutes. Vaughn Jones seconded the motion. Motion passed unanimously. III. TRAFFIC AND PARKING DEMAND APPRAISAL Luay Aboona, of Kenig, Lindgren, O'Hara, Aboona, Inc., expounded on the Traffic and Parking Demand Appraisal for the proposed urban entertainment complex in downtown Evanston. Aid. Wynne arrived at this time. Aid. Newman said that according to his interpretation of the report, if the City builds nothing right now we have 1,360 parking spaces. He asked Mr. Aboona if this report was referring to lots other than what would be built in the proposals. Mr. Aboona replied that he would have to get back to Ald. Newman. Aid. Newman asked if the concept of staggered starting times for movies was considered in the parking study. Mr. Aboona replied that it was. Aid. Newman wanted to clarify that a smaller number of movie screens starting at 6, 8 or 10 on a Saturday night would mean a heavier traffic pattern than a larger number of screens with smaller auditoriums (250 seats) and staggered starting times. Mr. Aboona replied in the affirmative. Ald. Engelman arrived at this time. Mr. Aboona summarized by saying that both project proposals can adequately be served by the existing street system serving the Evanston downtown. The primary routes to/from the project include Emerson, Church, Davis and Clark Streets. Internally Maple and Clark and Benson on the east edge of the project are capable of accommodating circulation and access to/from the parking facilities. Ald. Newman asked Mr. Aboona to come to one of the meetings of the Parking Committee. IV. INTRODUCTION OF DEVELOPMENT CONSULTANTS, U.S. EQUITIES Aid. Feldman introduced Marty Stern, a representative of U.S. Equities. Mr. Stern thanked the Committee and the City of Evanston for selecting his firm. He explained that U. S. Equities was a twenty-year old firm, that manages 38 million square feet of property; acts as consultants for private and public clients; is on the real estate board with the Chicago Board of Education; and is the City of Chicago's consultant for its Downtown TIF Districts. He added that U. S. Equities was the program manager for the Evanston Public Library. Mr. Stern said that his firm has recommended taking a more organized fact finding approach. Mr. Stern explained that his firm has and will continue to identify the issues, and will work with the City to determine the priorities and objectives the City has in relation to those Economic Development Committee Page Three August 11, 1997 issues. He went on to say that they would be working with each developer to improve each project and make it the best it can be. They will be consulting the public and asking for public input. Mr. Stern said that his firm will be providing the City with information required to make an informed decision. Mr. Stern listed what U.S. Equities felt were the major issues to be addressed: ■ Site Design ■ Traffic and Parking ■ Connection to Downtown ■ Movie Theater Demand and Economics ■ Retail/Restaurants ■ Levy Center a Cultural Arts Facility ■ Commonwealth Edison Substation ■ Building Design ■ Financial Issues ■ Land Acquisition. Aid. Newman mentioned that the City has a current rate structure in public parking garages and that the rate structure needed by both of the developers will bed at odds with what the City charges. He felt the developers needed some guidance and this should be discussed in the redevelopment agreement. IV. CULTURAL ARTS FACILITY PRESENTATION Peter Riebolt, managing director of the Next Theater informed the Committee that the Next Theater is starting their seventeenth season in Evanston. He said the Next Theater group wanted the EDC to know of their intention to submit a proposal for the inclusion of a potential cultural arts facility. He mentioned that the proposal will include a consortium of the performing arts groups, all of which have either their home or very strong roots in Evanston. Mr. Riebolt said that the anchor tenants would be the Next Theater Company and Looking Glass Theater of Chicago. Aid. Newman mentioned that he was a bit concerned in the sense that everyone would think that the Cultural Arts Facility is a good idea and would be a great addition to the development. He said he has had a telephone call froma member of the Arts Council who said that she expected him to be tough with the developer and make sure the developer built the facility. AId. Newman mentioned that the Cultural Arts Facility proposal is for 14,000 sq. ft. At $ t 0 a sq. ft. this would be $140,000 a year, divided by 12 is over $10,000 per month. He was concerned with what the theater would cost, what it would cost to operate, what would it cost if it were part Economic Development Committee Page Four August 11, 1997 of the movie theater complex, who would be able to use it, and he saw this as a very complicated issue. Judith Aiello, Assistant City Manager explained that the City Manager's Office has gone back to the Arts Council and asked them to present their program statement and what they believe this performing arts facility should be to the EDC at the August 27th meeting. She said once the City sees what the programmatic issues are, then the cost would be determined. Not only is there the issue of the cost of construction, but for most performing arts centers around the country, they have to be subsidized, typically by local governments. Ms. Aiello said that they have talked to both developers and asked them to look at their design and figure out if there is a way to incorporate a performing arts facility and not delay the project. She went on to say that if the arts community and the council decide this is a worthy goal, that funds could be raised, and not delay the project. Ms. Aiello stated that they are trying to address construction casts, get more information on the operating and the needs of the arts community, once they have that they will confirm operating costs, confirm construction costs, and either use U.S. Equities or choose another consultant to take a look at the findings. Then she will come back to the EDC and inform them of the cost to build, operate and the input from the arts community as to what they can contribute to it, the operating structure, so that EDC will have all the information needed in order to make a decision based upon which developer comes back and says that they can incorporate this in their design. V. EXECUTIVE SESSION Aid. Engelman made a motion to adjourn into executive session for the purposes of land acquisition. Aid. Wynne seconded the motion. Voting Aye, Aid. Engelman, Ald. Moran, Aid. Newman, Aid. Wynne, Greg Norwell. Motion passed unanimously. The Committee returned to open session at 10:00 p.m. VI. ADJOURNMENT There being no further business before the Committee, Aid. Feldman adjourned the meeting at 10:02 p.m. Respectfully submitted May /.Baask-e Executive Secretary Community Development Department Planning Division h DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING Wednesday, August 27,1997 7:OD P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Marty Norkett, Greg Norwell MEMBERS ABSENT: Vaughan Jones, Lucile Krasnow STAFF: Judith Aiello, Roger Crum, James Wolinski, Michael Guttman, Stephanie Steen, Doug Gaynor, Mary Baaske OTHERS PRESENT: Aid. Bernstein, Terry Jenkins, Nancy Kotler, John Wertymer, Mary Rouleau, Dr. Thomas Stafford, Will Edwards, John Iberle, Kevin Gazley, PRESIDING OFFICIAL: Aid. Feldman, Chair I. CALL TO ORDER Aid. Feldman called the meeting to order at 7:35. II. CONSIDERATION OF MINUTES OF THE AUGUST 11,1997 MEETING Aid. Newman made a motion to approve the August 11 minutes. AId. Engelman seconded the motion. Motion passed unanimously. III. COMMUNICATIONS Communications were accepted into the record by Aid. Feldman IV. PRESENTATION, EVANSTON ARTS COUNCIL Nancy Kotler, Chair of the Arts Council introduced John Wertymer, representative from the Arts Council. Mr. Wertymer mentioned the Comprehensive Plan's section on Community Environment which discusses within four different categories, the arts. Specifically, the goal in the Comprehensive Plan states a commitment to create a more supportive climate for artists, and community arts in the Evanston arts industry. He also pointed out that the Chamber of r Economic Develonment Committee Pave Two Auvust 17. 1997 Commerce endorses the concept of an entertainment complex in the Research Park with priority being placed on a direct and permanent linkage to the downtown and the rest of the City. He stated that the development should provide sufficient parking to accommodate new uses as well as to replace all existing parking in the Research Park, and if economically feasible, space for conference facilities and live theater should be included in the development. Mr. Wertymer pointed out that in a complex this size with 16 - 24 "movie boxes" it only means building one more "box" but with a different use - a live theater and some exhibit space. He said that this box could be anywhere from a minimum of 5,800 sq. ft. up to a maximum of 16,000 sq. ft. Mr. Wertymer felt that there would be a substantial saving in building a theater this way as opposed to building a separate building. Mr. Wertymcr informed the Committee that the Arts Council has received two proposals. One proposal addressed a 350 scat thrust seat stadium type theater, plus 150 seat studio theater. The other proposal refers to a 350 seat theater with thrust stage and stadium seating, plus a rehearsal space, office and lobby space. It was his belief that the cost of this facility would be in the range of $3 million dollars. Aid. Feldman asked if this was a stand alone building or attached box. Mr. Wertymer replied that the $3 million dollars was for a stand-alone building, plus 20% of soft costs which would include working capital. He said square footage costs ranged from $185 - $225 sq. ft. Mr. Wertymer said that the proposal containing the 350 seat theater, and the 150 seat theater was developed by two organizations, one organization being in Evanston and one with strong ties to Evanston. He said that if the groups wanting a 150 seat theater were to use the theater on Noyes instead of building a 150 seat theater, the arts theater shared lobby space with the movie theaters, their patrons bought concessions at the movie theaters concessions, he thought 5,800 sq. ft, would be needed for the 350 seat theater which would cost approximately about $ l .2 million dollars. lie went on to give estimated revenue and possible participants in the theater. Aid. Newman asked who would be the owner of the proposed theater. Mr. Wertymer answered that he was not sure. Judith Aiello informed the Committee that what the Arts Council was asked to do was to come and present a program statement. She said that what they have tried to do tonight is to give the Committee some options. It was up to the EDC to decide what they wanted to do with the information. Ms. Aiello stated that they have asked the developers to consider how the performing arts may be incorporated in the development, and that is something the developers are still reviewing. Discussion ensued regarding possible ownership, financing, operating costs, tenants, and the City's contribution. Aid. Newman stated that he would like to support the theater and theater community, but wanted to do it in a way that he could understand from the City's perspective. He said that if there were a group of theaters that wanted to operate a theater and needed a contribution to the building, he would be very happy to participate in a discussion where the City would fill in some Economic Development Committee Page Three August 17, 1997 type of gap and make a contribution to the building without being responsible for the operations of the building Aid. Feldman told the Committee that in his conversations with the Arts Council and some of the theater participants, that was exactly the kind of scenario that was being most discussed. He felt this was very encouraging. He said that the message he has received all along was that for all intents and purposes the responsibility for the theater was the Arts Council's, but they hoped for some kind of community support. Aid. Feldman summarized by saying that there were a number of institutions and the City of Evanston along with some very interested citizens and the Arts Council who are hoping to create an effort in this community to build a performing arts center with the help of the City. The theater groups responsible will run it, build it and will own it. The City will consider doing what is necessary as this develops. He thought the Arts Council plans to work closely with the City, and obtain information from the developers about their scenarios. Aid. Engelman thought the Committee should be aware that performing arts centers are almost exclusively not -for -profit, and before the Committee supports this project monetarily, we should also make sure that we are aware that this would be a construction of a not -far -profit, tax- exempt structure within the boundaries of the Research Park. John Iberle stated that there is a distinction of who the owner of the property is, if a not - for -profit is a lessee and a taxable entity owns the property, the taxes would have to be paid. If the not -for -profit entity owns it themselves, it is very likely that they would not pay taxes. Mr. lberle said that Judith Aiello mentioned that one of the goals tonight was to hear some programmatic direction from the Arts Council. He said he heard some bits and pieces that were helpful, but to further the process the Arts Council needs to take further steps in this regard. He thought it would be helpful to the developers for someone from the Arts Council to point out the types of development they would like. Mr. lberle felt that the Arts Council should survey the groups that are interested in participating in the theater and ask what it is they are looking for in a theater. Roger Crum, City Manager, mentioned that the City needs to have the Arts Council talk over their concept with Judith Aiello and U.S. Equities. U. S. Equities will then tell them what further information they need and that information would be relayed back to the developers through U. S. Equities. Ms. Aiello said that if after consulting with U.S. Equities, the firm has concluded that the Arts Council needs architectural help, T1F monies could be allocated. Aid. Newman wanted it understood that the City is already assisting through two staff people (the Director of the Arts Council and Judith Aiello, Assistant City Manager). roren-MLOgun i .� V. PROJECT UPDATE- Downtown/Research Park Redevelopment Proposals Judith Aiello, Assistant City Manager, informed the Committee that there would be a public forum on Wednesday, September 3, 1997. In addition to the groups she mentioned, she and the City Manager spoke to the Chamber Board to review the project and to invite them and their constituency to the meeting. In addition to a quarter page ad in the Evanston Review last week, there will be an even bigger ad this week to get people's attention. The purpose of the meeting is to obtain feedback and input from the community. She said that she and Mr. Crum had meetings with a representative of the Levy family about the whole issue. In addition they are scheduled to meet with the Levy Center Advisory Board on September 8. Nis. Aiello mentioned that Mr. Gaynor and Mr. Terry had arranged to convene a meeting of the Chairmen of the Commission on Aging and the Rec Board to discuss the whole issue of the Levy Center and they formed a subcommittee that will have representatives from each of those groups. Ms. Aiello said that the developers have been asked to see if the substation can be incorporated into the project, and if it is not incorporated into the project, then the application process for demolition needs to be addressed. She informed the committee that when this request was denied by the Council a few years ago, the resolution indicated that the denial was based upon the current, at the time, desire by Northlight to use the facility. If the situation changed, the applicant at the time ( a consortium of the University, Research Park and ComEd) could come back to the City Council, not the Preservation Commission, and present the change of circumstances and Council could consider the issuing of a Certificate of Special Merit. She said that it is her understanding that if the developers indicate that the facilities cannot be saved and based upon input from a public forum, that would be the route the City would be looking at closely. Ivis. Aiello said that first the Master Plan would have to be reviewed because the Master Plan would have to have some amendments or modifications. Ms. Aiello mentioned that she has had one meeting with the developers, and will be giving them a series of questions on each of the major topics that have been brought up. (Arts Center, Levy Center, Substation, financial feasibility, the design issue, and a myriad of other issues) She said that she was hoping to have several meetings with the developers in the month of September. The Site Review Plan Committee of the City has met on several occasions to discuss some of these site design guidelines. Ms. Aiello passed out copies of Site Plan Review's guidelines for the new project. She said that they would be given to the developers as soon as possible. Aid. Engelman made a motion to adjourn into executive session for purposes of discussing land acquisition. Aid. Moran seconded the motion. Voting aye, Aid. Wynne, Aid. Newman. Aid. Moran, Aid. Engelman, Greg Norwell, Marty Norkett. '3 Economic Development Committee Pave Five August 27. 1997 VI, ADJOURNMENT There being no further business before the Committee, they adjourned at 10:10 Respectfully submitted, 2�z Mdry EWwke Exec a Secretary Planning Division Community Development Department DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE PUBLIC MEETING Wednesday, September 3,1997 7:00 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Marty Norkett, Greg Norwell, Vaughan Jones, Lucile Krasnow MEMBERS ABSENT: Aid. Wynne STAFF: Judith Aiello, Roger Crum, Dennis Marino, James Wolinski, Michael Guttman, Stephanie Steen, Mary Baaske OTHERS PRESENT: Sidney Zwick, Dick Stillerman, Terry Jenkins, William Friedlander, Kirk Iwin, Ralph Friedman, Jonathan Perman, Kathryn Him, Deborah McDowell, Jane Volberding, Doraine Anderson, Jean L. London, Andrew Freinkel, Alan Leder, Steven Samson, James Evansizer, Eric Singer, Allison Katzman,l-lcidi Grosowsky, Andrew Metter, Kathy Burgess, R. Bloom, Frances Seidman, Mary Thompson, Darlene Ahrendt, Jerry Blumenfcid, L. Kuimke, J. Milsted, Bob Thompson, Barbara Barksdale, Karin Kalfas, Frances Rosedall, Marjorie Une, Jerome Hansman, Tony Adler, Beth & David Hart, Ed Willer, Gail Struve, Greg Hummel, John & Daphine Cunningham, Linda Dillman, Bob Home, Sue Burzawa, Ron Kysiak, Ralph Hovnanian, Alex Sproul, Bettie Jean Thomas, Bridget McDonough PRESIDING OFFICIAL: Aid. Feldman, Chair 1. CALL TO ORDER Aid. Feldman called the meeting to order at 7:11. He explained that the purpose of tonight's meeting was to receive comments from the community regarding the proposed mixed - use redevelopment project for the south portion of the Research Park. Aid. Feldman said that Economic Development Committee Page Two September 3. 1997 any questions asked by any of the speakers will not be answered this evening, but will be answered by staff in writing and sent to the person asking the question. If. PUBLIC COMMENTS Sidney Zwick expressed his views on some objections that have been raised regarding the proposed development. He said that Research Park was originally proposed as a mixed -use development and felt that what went into Research Park should be for the benefit of Evanston residents as well as for Northwestern University. Mr. Zwick felt it was gratifying to see the mixed -use development concept of retail, entertainment, hotels, and restaurants incorporated in the Research Park area. Mr. Zwick said an objection has been raised because the City is being asked to build a parking garage to accommodate the new development. I-Ie felt that this was no different from the encouragement and subsidy that the City has given to the other major economic developments and which are now bringing in additional sales tax and real estate revenue for the City. Mr. Zwick said that the City has already invested between 13 and 15 million dollars in the Research Park and this would give the City a change to recoup some of the investment by the additional revenue that will be coming from either of these two proposals. It was Mr. Zwick's opinion that the Hill proposal was the better of the two proposals, in part, due to their treatment of the Levy Center. He said lie did not share the thought that the ComEd building has great architectural significance. Mr. Zwick thought that Evanston citizens would have to be responsible for financing the proposed arts center and new Levy Center. Dick Stillerman told the Committee he thought that the new proposed development would bring added energy to the downtown and the needed tax revenue was a positive from his perspective. He felt that there were, of course, risks, but that they were worth taking because the alternative was a continuation ofacres of parking lots that are off the tax rolls. Mr. StiIlerman cited the reasons he felt the I -lilt proposal was the better ol`the two proposals and why it would fit in better into the downtown. I -le felt it important to keep Dave's Italian Kitchen and the Pineyard in Evanston. It was his opinion that the Levy Center should be built in approximately the same area it is now. Mr. Stillerman mentioned that if there was no group interested in the ComEd building, he would be in favor of its demolition. I -le commented that the theater groups that are seeking a live theater venue in the new development should pursue their project with the developers. Mr. Stillerman felt the City should not provide more than minimal seed money f'or the project and should not make any substantial Frnnnmin nCuP1ni mpnt rnmmittPP Avp Tkrnea tpmkPr i i qL 7 ' capital contribution or become an owner of the theater. Mr. Stillerman urged the Council to move as quickly as possible and choose a developer and proceed with the project. Terry Jenkins, Executive Director of Evmark, informed the audience that Evmark is an entity that is a public/private partnership with the City of Evanston whose mission is to market, promote, manage and enhance the economic viability of downtown Evanston while assisting the City in the maintenance of its appearance. He mentioned that the Iast ten months have seen the occupancy rate of the 291 ground level businesses in downtown hover around 91 % rather than the last seven year average of 95%. He added that the trend of the last sixty days have been positive and things are on the upswing. Overall, Evmark continues to host visitors from all over the Midwest and beyond who want to know how they can make their downtown more like ours. Mr. Jenkins said that there was still room to improve. He said that Evmark believes that the proposed development in the Research Park will contribute substantially to the overall and ongoing improvement of downtown. Mr. Jenkins went on to say that the apparent benefits of this development are in replacing vacant land with a vibrant entity generating sales and property tax revenue. However, equally important to the Financial issues is what the primary elements of this development offer to the existing downtown. First, movie theaters represent an obvious draw of people; secondly, the proposed big box type retailers generally generate merchandise which adds to or fills the baps of the current oflcring downtown and the size of the units proposed in the development do not appear to place them in head -to -head competition with the current retail base; third, a hotel adds overnight customers and guests with spendable income; fourth, the parking facility is very much needed as the current parking facilities are filled to near capacity during daylight hours. New office space suggested in one of the proposals also adds to the current base of 9,000 to 12,000 office and retail workers who are downtown every workday who form a significant segment of the downtown shopping marketplace. Mr. Jenkins told the Committee that Evmark encourages the City to move forward on the selection process as quickly, prudently, and feasible while allowing for appropriate public input. He asked that as the deal is shaped, and assuming the Levy Center is part of the project, the Committee keep in mind the following four points: I . Tile physical design of the development should integrate it into the downtown and not create a physical separation from the downtown. 2. Hopefully, the new development will be added to Special Service District #4 so that the new property owner, like all property owners downtown, will be directly involved in all aspects of the downtown's future. Economic Develonment Committee Pave Four Sentember 3. 1997 3. Evmark asks that the City make sure that the financial aspects of their arrangement with the hotel allows for a level of playing field with the two other hotels currently downtown. 4. The City take into account the parking needs of the entire downtown for the next five -to -ten years and not just the requirements of the development, otherwise this would be a big missed opportunity. 5. For all the reasons outlined earlier as to how this proposal and its elements are consistent with the primary elements of successful downtown revitalization, the further addition of a performing arts center would be a very powerful addition to the development and make downtown Evanston extremely unique and attractive. To the extent that the City contributes to such a center through TIF funds as part of the overall TIF contribution to the project, and the extent that the community supports this as appropriate public policy, Evmark also would be supportive. However, he asks that the planning for the annual operation of the center once it is built, be accomplished rather quickly so that this issue does not hold up an early commitment to the overall development. It is important that an agreement be reached, such that the annual operation and annual financing of the center be within the full responsibility of the arts community and not a second commitment from the City's general fund. Bill Friedlander stated that he was a thirty-year resident of Evanston. He urged the Committee to review the proposals. He felt that the developers were proposing too many movie theaters, shops and restaurants. Mr. Friedlander also stated that there was no need to demolish the current Levy Center and build a new one. I-Ic concluded by giving the Committee a rough sketch of what he thought the development should contain, I Ic said the development should have a hotel located in the middle of the development with its own parking garage, have a coffee shop, a cleaners, etc., but nothing that would compete with existing businesses downtown. There would be a modest entertainment center with one or two theater screens and one or two concert spaces. These theaters would not compete with current theaters in Evanston, but show art Films, foreign films or other films hard to find. Perhaps other spaces including a rebuilt and remodeled ComEd station would be designed to meet what needs are not already being met by existing facilities. There would be a modest amount of housing. He thought the Levy Center and existing enterprises south of Church Street should be left alone and wanted additional parking spaces kept to a minimum. Kirk livin, said lie spoke as a concerned citizen and as an architect licensed to practice architecture in the State of Illinois and a member of the Evanston Preservation Commission. He said he was speaking as an individual and not as a representative of the Evanston Preservation Commission. Mr. Irwin felt that because the developers were not asked to incorporate the ComEd Station into their proposals, the preservation process has been bypassed. He said that in his view, the interest of historic preservation and economic development are not necessarily Frnnnmir Deyelnp mint CnmmittPr R , CPrtemher 1_ 190 opposed to one another. Mr. Irwin felt that if properly designed, the new development will provide a physical environment that is friendly to pedestrians, will be well detailed architecturally, and its buildings will be made to fit into the existing architectural context with regard to size and scale. lie said that all three of these benefits of good historically sensitive design will have economic benefits and cited Faneuil Market Place in Boston, the Camden Yards development in Baltimore, and work recently completed in Santa Fe as examples. He hoped that the Research Park Redevelopment will recognize the uniqueness of Evanston's architectural heritage. Mr. Irwin encouraged the Committee to consider his comments and to work creatively with other interests which will be brought to bear on this project. Ralph Friedman said he was one of the many senior citizens of the Levy Center that would be affected by the proposed development. He said that senior citizens have paid taxes longer than other members of this community. Mr. Friedman also mentioned that as a group a greater percentage of seniors vote and they will be taking an active interest in the Committee's decision. ,Jonathan Perman, Executive Director of the Evanston Chamber of Commerce, informed the Committee that on Monday, August 25, the Chamber's Board of Directors passed unanimously the follokving resolution: The Chamber endorses the concept of an entertainment complex in file Northwestern University Evanston/Research Park Priority should be placed on creating a direct crud permanent linkage to the downtown and the rest of the City. The development should provide sufficient parking to accommodate new uses as well as to replace all existing supply ill the Research Park. If economically feasible, space for conference facilities and live theater .should be included in the development. These uses could be: attached to or a purl of the hotel complex; attached to or part of tiler movie complex; or built as a separate Structure. He said that the Chamber endorses the concept of an entertainment complex in the downtown and commends the Economic Development Committee, the Council, and the Research Board because, indeed, entertainment is one of the missing links in the downtown. Mr. Perman stated that Evanston has a variety of stores and places to go, transportation facilities, and restaurants that are almost unparalleled, but there is not a critical mass of entertainment activity. lie said that the Chamber was not concerned about the sire of the proposals in terms of movie theaters. In fact, when you look at the combined seating capacities of the Varsity and Valencia theaters when they were in operation, the lower end range ol'the two proposed complexes is only about one-third more than the other two theaters combined. Mr. Ferman mentioned that the complex is also in keeping with the Chamber's push in making Evanston a more regional destination, a place where not only our own people will conic to, but people from surrounding communities and even from out of town and out of state. •uu s Ceotember 3. 1997 Mr. Perman listed the Chamber's concerns as follows: 1. The critical importance of linking the development with the rest of downtown and the community, architecturally, through landscaping, and environmental design. 2. The development should integrate itself with mass transit that now exists in Evanston (CTA and Metra). 3. The development should be a place where the public can congregate, stroll or browse. A place that is inviting for people to come. 4. Conference and meeting space. 5. Live theater space. 6. Sense of esthetics. There is an opportunity to have a development/building showcase that is a masterful piece of architecture. Catherine Hern, a resident of Evanston and member of the Commission on Aging Commission. She said she was particularly concerned with where the new Levy Center would be and how accessible would it be. Ms. Hern stated that not only should Evanston have a Center, but it should be accessible to everyone. Deborah McDowell, President of the Preservation League of Evanston, provided the Committee with a written statement containing the Preservation League's view on adaptive reuse of the ComEd Substation and why it should be in the proposed Research Park development. Ms. McDowell stated that in evaluating these proposals, the Preservation League thinks it is important for the City Council to look carefully at not only the economic factors, but the factors that provide a sense of place. She said appropriateness of scale as it relates to the rest of the downtown area will be critical to the overall success of this project. The creation of a glass and steel "island" will further isolate the development from the existing town center. The use of materials is equally important in providing continuity. Ms. McDowell went on to say that the Research Park has already lost an opportunity to preserve an important piece of its history when the Butler Building was demolished. The reuse of the ComEd station provides us with a second chance to preserve another important part of our community. Tony Adler said he wanted to address the subject ofa performance and gallery complex. He said the reason lie was speaking was twofold; one, he is one of the founders of an arts organization in the City, (the Actors Gymnasium); and two, he was a theater critic and arts journalist for fifteen years in Chicago and has had a chance to watch a lot of theater and talk to a lot of artists over the past fifteen years. I le said that in addition to actors, a theater brings many technically skilled people to the area. Mr. Adler said that a theater company creates a growing relationship with the people who patronize it. He saw this as a great asset because people are willing to go great distances to see theater and they can see a movie anywhere. Economic Develonment Committee Pace Seven Sentember 3. 1997 Jane Volberding, president of the Evanston Symphony Orchestra, said that an arts theater is a unique opportunity for the City to become the cultural Mecca that it has been known for over the years. Besides artists and actors, the community also inspires and supports musicians. Within the performing arts complex that is being considered, the Symphony and other musical groups ask that in the Council's evaluation and what they ask the community to support to know that live performance includes symphony, chamber groups, vocal ensembles, theater, and dance. She felt that the theater must be sensitive to the needs of all of these groups, audience size, acoustically, and visual simulation. Doraine Anderson informed the Committee that the proposed development will be one - to -two blocks from her apartment. She said she is a member of the Plan Commission, but this evening she was speaking as a private citizcn. However, she did want to refer to the work of the Plan Commission. Approximately one and one-half years ago the Plan Commission held several public meetings at various locations in Evanston seeking input in the PIan Commissions efforts to undertake a rewrite of the Comprehensive General Plan. At one of these meetings an anonymous woman made a comment that she wished to impress upon the Commissioners. That comment was "Please do not build any more high rise buildings in downtown Evanston." Ms. Anderson said this struck a very responsive chord in her and she wished to bring this comment to the attention of the EDC and the Council which will ultimately decide this matter. She said that she has lived on the Northshore since 1952 and said she had seen both good and bad development over these years. Ms. Anderson asked the Committee to think about what they have watched develop on the Northshore over the last forty years and ask themselves what they have watched happen that is good and what is bad. She asked them to take this into their thinking process as they make their decisions. Andrew Freinkel said that lie was not against the new development. But that he did not understand why the City had to pay for it. Ile asked for clarification. Alan Leder, Director of the Illinois Arts Council and a three-year resident of Evanston. He stated that any plan for a new entertainment complex that does not include a performing and visual arts facility is reverting back to less evolved notions of Evanston's identity. Mr. Leder felt that as Evanston becomes more of a cultural destination it is really logical and natural that it is downtown. The present visual arts and performing arts venues speak eloquently of Evanston, but at present, there is no theater big enough for the arts. I le said that a 350 seat auditorium that is deep and wide enough to accommodate first rate full company performances would fill what he felt was a serious void in the area. If Evanston is to be the cultural center in the northern suburbs it must have a state -of -tic -art performance center as well as a state-of-the-art visual center that will set the standard for cultural diversity and depth of this community. Mr. Leder said that as a member of the Illinois Arts Council and a member of this community lie wholeheartedly supports the consideration of a performing arts mid -size theater, studio theater, visual arts gallery. iTiros ..0 � �11l1 i 6TX-TM-@1,;r=.. Steve Sampson, Chair of the Evanston Commission on Aging, said the Commission on Aging has always been concerned with the Levy Center and its impact upon the seniors in our community. It was his opinion that the Research Park Redevelopment offered a unique opportunity for enhanced programs and services in the Levy Center. He told the Committee that the Commission on Aging has begun a dialog with the community to discern its opinions on the needs for programming and services. To date they have met with the Chair of the Recreation Board, the Director of Health and Human Services, and the Director of Parks and Recreation. In the weeks to come they will be meeting with community groups and service providers to get their opinions. Mr. Sampson said that the Commission on Aging's goal is to have enhanced programs and services within the budgetary constraints of the city. It is the Commission's position that the Levy building should not be rehabbed, but a new facility should be built within the confines of the Research Center near the current location. lie told the Committee that in the weeks to come lie would Iike to come back to the committee and report on the Commission on Aging's progress. Eric Singer, owner of a restaurant on Main Street told the Committee of his concerns regarding the Research Park Development. He felt that building theaters and 100,000 square feet of retail makes Evanston like all other communities. Mr. Singer thought that we needed to slow down and take more time to consult the residents and decide exactly what we want here in Evanston. Andrew Mender, said that he agreed with the points Mr. Singer had raised, however he did feel that we needed a new hotel. lie told the Committee that he would support a theater with two or three screens that showed art films. Mr. Meader thought the Committee should hire a consultant/designer to critique whatever plans a developer submits. lie felt that this was a great opportunity to create a town square. Mr. Meader thought that the RFP needed to be rewritten. Cathy Burgess told the Committee that she has lived in the City for ten years and felt this was a unique community. She said she did not think the City needed this new entertainment complex. AIso, because she lives on Church Street, and felt that most of the traffic generated would be on Church Street she was concerned about the traffic this new development would bring. Ms. Burgess asked for copies of the proposals the Committee is considering, the Traffic and Demand Study, and the financial detail of who is paying for what and provide those things to the broad community. Alex Sproul informed the Committee that he was in favor of the performing arts center. He said he was surprised at the lack of recognition in the two plans of the two rail lines as that is one of the things that makes this community different from the suburbs. Mr. Sproul thought that a parking garage there would promote people to park and ride and would also bring more people in to patronize the shops and restaurants. Ile said that one of the problems that would have to be solved is how to get people from the train stations to the development and once that 1~ennomic DeveInpment Committer P= Nine Rentemher 3_ 1997 problem is solved, the City would be in good shape to integrate the development with the rest of the downtown on both sides of the tracks. Bridget McDonough, General Manager of Light Opera Works, and also a member of the Tourism Council of the Evanston Chamber of Commerce, wanted to lend her support to the proposed development, but with the following additions: One of those additions being a performing arts center with exhibition space for visual arts. She informed the Committee that unique events held in a performing arts center draw people from much farther than Evanston. At the Light Opera Works they have between 16,000 and 18,000 people a year attending and only 11% are residents of Evanston. She said that they bring people from as far away as Michigan. This is more people to cat in the restaurants and shop in the retail space. The development should include a full service hotel with meeting and banquet facilities. The architecture should be integrated into the downtown of Evanston. If an amusement tax is levied that the proceeds should be earmarked for increasing the Arts Counci's grants program, for support of the performing arts space, and for support of the new Evanston Convention and visitor's bureau. John Wertymer, member of the Arts Council, reminded the Committee of how Evanston was before Old Orchard when there were big name department stores and the thousands of people that would come to Evanston. He said that what we're trying to do is work as a community is to bring the vitality back the way it was before and add on to what we have today. Mr. Wertymer referred to his previous presentation which was in support of an arts center. He said the feeling at the Arts Council is that the proposed arts center is very compatible with what is being planned right now. He said that there are alternatives, it doesn't all have to be built today, and that they are trying to search for the most viable effective way of doing this. Ralph t1lovnanian spoke on the historical demolition of architecture. Colleen Murphy, resident of Evanston, said she was here to speak in favor of the Hill Proposal. Ms. Murphy supported the Hill proposal because of its commitment to the architectural integrity of downtown Evanston and the possible adaptive reuse of tile ComEd building. She said she and her husband looked forward to walking four blocks to go to the movies instead of going to Old Orchard. Morris Robinson, said he was for development, but for a more creative use of development. Economic Development Committee Paee Ten September 3, 1997 Bob Thompson, president of the Levy Advisory Board, told the Committee of the advantages of leaving the Levy Center were it stands. He said the present Levy Center Building is conveniently located to transportation and shopping. Mr. Thompson mentioned that the Levy Center is on the ground floor with easy access with room for a large auditorium with stage and stage lights, multi purpose room, a large room for ceramics and crafts, two kitchens room for shuffle board, etc. He said that neither proposal provided the extensive facility that already exists and why spend the money to replace a satisfactory building. Ann Deiner read the article "Rebuilding a Sense of Community" printed in the Wall Street Journal on August 29, 1997. Evan Guo, a college student from Shanghai, told the Committee that Evanston was famous as far away as Shanghai. He said he was told Evanston is a Culture Club and that is the reason he chose to attend Northwestern. Mr. Guo said he would be leaving in two years and hoped to be able to go home and tell the people that Evanston is a city for culture and for arts and will never sacrifice culture and arts for commercial interests. Aid. Feldman thanked the people for coming. The meeting adjourned at 9:05. Respectfully submitted, Ma6 E. Wske Executiv Secretary Planning Division Community Development Department ,c DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING Wednesday, September 24 7:30 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid Engelman, Vaughan Jones, Aid. Moran, Aid. Newman, Aid. Wynne, Marty Norkett, Greg Norwell MEMBERS ABSENT: Aid. Feldman, Lucile Krasnow STAFF: Judith Aiello, Roger Crum, Doug Gaynor, Dennis Marino, Michael Guttman, James Wolinski, Stephanie Steen, Mary Baaske, Lisa Lewis OTHERS PRESENT: Aid. Bernstein, Aid. Drummer, Aid. Rainey, Terry Jenkins, Marty Stern, Arthur Hill, Doraine Anderson, Chuck Remen, James Repsold, Kathy Burgess, Richard Cook, Bob Horne, Alex Sproul PRESIDING OFFICIAL: I. CALL TO ORDER Aid. Newman, Acting Chair Aid. Newman called the meeting to order at 7:35 p.m. II. APPROVAL OF MINUTES OF AUGUST 27, 1997 Aid. Moran made a motion to approve the minutes of August 27, 1997. Motion seconded by Vaughan Jones. Motion passed unanimously. Ill. RESEARCH PARK Judith Aiello, Assistant City Manager, explained that, after Marty Stern, U.S. Equities, consulted with both developers, and after public comment about the proposals, the John Buck Company concluded that it wanted to revise its proposal, She said that representatives from the John Buck Company were at the meeting tonight to give a brief presentation. Ms. Aiello asked Mr. Stern to give an overview of his work with the two developers. Mr. Stern informed the Committee that his company had been working with each of the developers to update their proposals and make each of tile proposals the best they can be. lie said that after hearing Evanston residents concerns at the public meeting, the two companies are trying to answer all the questions and concerns raised. The Arthur Hill Company felt the changes they would have to make were not significant enough to warrant anew presentation at this time. However, the John Buck decided their changes were extensive enough that they wished to present those changes to the Committee. Mr. Stern then introduced John Iberle of the John duck Company. Aid. Newman commented that in the original proposal by the Buck Company, there was a lot of financial data that accompanied the proposal and asked if there would be a change in the economic data submitted tonight. Mr. Stern replied that it was his understanding that the physical proposal would be presented tonight and the John Buck Company would be furnishing additional financial information to U.S. Equities at a later date. After U. S. Equities has analyzed the information Mr. Stern said he would report back to the Committee with the financial aspects of both projects. Mr. Iberle said that, by the end of the week, they hope to have a package that includes the plan revisions as well as a summary of the economics, Mr. Iberle said that the approach his company had taken with its first proposal was founded on a number of key facts and observations including: (1) the fact that this was a dense urban community not a suburban green field; (2) the availability of the sites included in the RPP varies; (3) the goal of trying to use this project to add value not just within the immediate confines of this project, but also to the rest of the downtown retail community; (4) competing against other projects such as Old Orchard and Edens Plaza that offer free parking; (5) the desire to maximize parking so that it will enhance future opportunities within Research Park; (6) the importance of parcel 18 where there is a great opportunity to create something significant in terms of public space and utility. Mr. Iberle told the Committee that his company learned some things from their successful development at 1630 Chicago Avenue which had an impact on what they presented. He said the initial proposal for the Washington National site included a significant amount of open space, but when they went through the review process they heard from the Plan Commission and the Zoning Board of Appeals in no uncertain terms that the plan f'or Downtown Evanston required lot line to lot line commercial development, so that was the thinking of the John Buck Company in response to the RF'P for the Research Park sites. After reviewing the plans for Research Park, Mr. Iberle said that it seemed that if there were going to be tall buildings in the Park they would be located in the Central Plaza, so that was part of the John Buck Company's thinking when they submitted its proposal. Frnnnmir Develnpment Cnmmitt e Par Three Reptemher 24. 1947 Mr. Iberle mentioned that issues and questions had been raised regarding: • Pedestrian circulation and the relation of the park to the street. • Levy Center - whether the current center is kept and remodeled, or a new center is built and where the center would be located. • A performing arts center has a great deal of support and appeal for a large part of the community, but it is a difficult and lengthy process to determine the appropriate outcome. • CTA easement - would it be addressed. • Size of cinema complex. • Parking component and what is proper cost • Importance of integrating this project with the rest of downtown retail activities. Mr. Iberle said that the John Buck Company heard all these comments and has attempted to respond in the revised proposal positively and proactively. Mr. Iberle showed the Committee previous concept/site plan drawings from the first John Buck proposal including first and second phase. Mr. Iberle told the Committee that the Buck Company had made three straight forward changes to the original proposal and showed them the concept drawings of the proposal presented tonight. He pointed out that they had taken the Cinema and moved it to the west side of Maple Avenue. Also, the size of the Cinema has been reduced to 3,500 seats. The Hotel tower had been moved across Maple to sit north of the cinema and the two office floors initially proposed below the hotel were eliminated, reducing the height of the tower to 90 feet. Regarding (lie CTA casement, Mr. lberle said that it would only be used for access for loading, and the property does not encroach on the CTA easement in any way. Mr. lberle pointed out that the parking is still above retail, but in the proposal presented tonight it is a much more efficient and effective parking structure where in four levels above retail, they can provide parking for approximately 1,000 cars (335 sq. ft. per space). He explained that the resulting cost would be much lower because the premiums associated with the prior scheme has been eliminated. Mr. Iberle suggested paying a slight premium in the cost of the building (maybe I or 2%) to increase the foundation capacity so that at a later point, if development of the rest of the park warrants, one or two more levels could be added to the parking structure. Noel MacDonald, Operations Manager for AMC Theaters, informed the Committee that the proposed theater is a very custom design, which fits into the footprint on the plan. He explained that his company was an exhibitor - they show movies - and that is all they do and emphasized that AMC is known by the industry as serving the customer better than anyone. The customers in Evanston are particularly attractive to AMC for the following reasons; population density, level of education - over 35% has a college degree versus 19% nationwide, and high income levels. Mr. MacDonald stated that all these things make a market attractive, but in Economic Development Committee Pave Four September 24. 1997 particular these characteristics make specialty programming attractive. Those demographics mean art films and independent films will be much more successful than in a normal location. He said that if AMC builds the theater, they will commit to having houses dedicated to specialty programming year round. He further explained that having 18 screens allows them to spread out the traffic, and give more show times to popular movies which gives people an alternative in half an hour if their show is sold out. Mr. MacDonald mentioned that AMC is experienced in downtown theater and cited their Kabuki theater in downtown San Francisco and in the Midland project in Kansas City as examples. Mr. MacDonald said that AMC facilities are available for community use. Most of the Company's grassroots marketing programs are done to benefit a charity, i.e. the local fire department, the United Way, Housing for the Homeless, etc. During the day, they also give non profit groups the use of their auditoriums for free. Mr. MacDonald invited the Committee to visit the two AMC theaters that will be opening in the near future in the Chicago area. Mr. Iberle pointed out the two remaining parcels (Parcel 18 and Parcel 11) and the possible use of them for the Levy Center and the proposed Arts Center. I-Ie said that the community needs to decide if they want to keep the current Levy Center or build a new one. Also, he felt that there was no question but that a Cultural Arts Center would be a wonderful complementary use to the proposed development. Mr. Iberle said that it would take some time to work out the decisions regarding the Levy Center and the Cultural Arts Center. In fact, it would take more time than what is available to get this project underway by spring. Two proposed scenarios were given by Mr. Iberle. In one scenario, the Levy Center would remain in its existing location. The investment necessary to upgrade the building and to deal with maintenance issues to integrate it with the new development could take place at this location. If that is the decision that is made, then the other site could be provided as a platform for the performing arts center. This could give a 12 month window of opportunity for the Arts Community to determinc what their will theater cost, how it will be funded, how it will be operated and sustained. The second scenario would include a new Levy Center in one of the two open sites and if, in the window of opportunity, a feasible plan cannot be implemented, the John Buck Company would be prepared to take whatever site was not used and develop that for commercial/retail use and integrate it with the rest of the project. Mr. Iberle pointed out that according to the traffic study done by Kenig, Lindgren, O'Hara, Aboona, Inc., (KLOA) Church Street carries about five times as much traffic as Emerson and the streets to the north. Even after the development Church Street will still be the major entry point to downtown by a factor of three or four. He felt the key was to create visual connections for people coming to the Church Street Station. Mr. Iberle showed a picture of the Fconomi . Development C'nmUjittec Pnge Fib S&nt�mhgr ?4 1442 viaduct on Church and pointed out its deteriorated state. He then showed a rendering of what the viaduct could look like when redone. In summary Mr. Iberle commented that the Buck Company had been very successful with 1630 Chicago Avenue and they have demonstrated the ability to listen to the community and respond. He added the revised proposal has been responsive to community concerns including a parking garage that is much more efficient and less costly to the community and will serve the remainder of downtown as well as commuter traffic. The location of the hotel and cinemas on the west side of Maple strengthen the development and provides better traffic . The visual connection via the viaduct further enhances the downtown connection. Putting retail along the front of the cinema results in no blank walls facing the street and gives a very generous entry with the retail frontage. Mr. Kaplan pointed out that there was not a single blank wall facing anything other than the easement. All the streets have either a hotel or retail. Mr. Iberle said that Parcel 18 could be used to create a major public space as a gateway where Evanston has great mass transit assets. He went on to say that this plan also gives them time to address creation of a performing arts center. This cannot be solved in sixty days, but could be solved in twelve months. He felt that if it could not be solved in twelve months there was a good chance that it would not be solved. As his last point, Mr. Iberle said that the John Buck Company is very dedicated to this community, that they have made several huge investments in Evanston in the last five years. Their investments appear at the east end of downtown, so there is no one else with more incentive to maintain this zone as healthy as it can possibly be made and to make certain that there is a connection between the east and west side of Downtown. He explained that they have to look at the downtown because they are vested here and have residents and tenants on the other side of the downtown zone. Mr. lberle felt that the John Buck Company's performance speaks to the fact that they listen to the community and are responsive, they are successful here , they are on time and on budget and made it happen and Iook forward to the opportunity to make it happen again. Aid. Wynne asked what the height of the major retail building will be. Mr. Iberle responded that it would be 55' and set back from the street approximately 20 - 25 ft. Aid. Wynne asked for the height and width of the hotel. Mr. Iberle answered it was 75 feet tall and from to 54 to 74 feet wide. Aid. Newman asked what the square footage of the retail. Mr. Iberle replied that there was approximately 74,000 sq. ft. Aid. Newman asked what footage there was in their first proposal. Mr. Iberle said there was 82,000 sq. fi. Doraine Anderson asked who would be financing the cost of repairing/remodeling the CTA viaduct. Mr. lberle answered that he thought the first step would be to investigate federal Rrnnnmir 11nyrMnmF+nt C'nmmittt2w P—T Civ C wr'1[t and state grant funds. Ms. Anderson asked if there was a possibility that the John Buck Company would make a contribution to the cost of the viaduct. Mr. lberle responded that in their economic proposal they have payments, and how the City chooses to allocate those is up to the City. AId. Newman interjected that at the present time the City has a Iobbyist working on getting federal funds with Congressman Yates. Dick Stillerman, an Evanston resident, asked how the change in John Buck Proposal translates into how many dollars the City has to invest in this project. Mr. lberle said that they were still trying to finalize all the numbers, but basically the garage is 1,000 spaces now and that would cost approximately S 13,000,000. He stated what the cost of the Levy Center and the Performing Arts Center would cost would have to be resolved. Kathy Burgess, stated that she lives on Church Street and also that she represented a neighborhood group. Ms. Burgess asked where cars would enter the parkins garage. Mr. Ibcrle answered that the entrance and exists were located adjacent to the elevators, and that there was an inbound ramp available from Church Street, and an inbound and double exit ramp on Clark Street. Ms. Burgess said that she was disappointed in the traffic study because it was isolated just to the development and ignored that Church Street is a residential street. She asked if a traffic study could be conducted that included Church Street as a residential street and one of the main streets leading into downtown Evanston. Vaughan Jones asked if (lie type of retail the developers hoped to attract had changed with this new proposal. Mr. Kaplan replied that they still hoped to attract the same retailers as before. Judith Aiello informed the Committee that she and Marty Stern had been engaged in discussions with the developers to present them with a series of questions based upon their presentation and the goal has been to assemble all the necessary information so staff can make a recommendation and present it to the Committee so that the Committee can make a recommendation to the City Council. She said that a preliminary timetable has been developed and wanted to go over that timetable with the Committee. Ms. Aiello mentioned that she and Mr. Stern have been meeting with the developers and were going to have a series of meetings with them during the next few weeks. She thought that these meeting would continue during the month of October. Ms. Aiello said that she would like the Committee to schedule a special CDC meeting on October 29 for both developers to make a final presentation to the Committee with invitations extended to Council, the flan Commission and all other appropriate boards and commissions. This will give the public, the Committee and the boards and commissions the opportunity to have the final review on the final proposal of each developer. �i�r� �• ��n � gnu September 24. 1997 Ms. Aiello told the Committee that she would like to have the entire November meeting set aside for the discussion of this project. If that was not possible, Ms. Aiello asked to hold a special meeting. Aid. Newman asked why there had to be additional presentations on October 29. He said that he would like to use the 29th to make a recommendation. Ms. Aiello answered that staff' has been setting bits and pieces of information as we've gone along and we really believe that we need to have a full presentation, not just esthetics, but financials, other conditions, all the business points that are going to be presented. Staff feels that to involve the community, we need to have enough information out there. The consultants and staff do not believe we are going to get enough of that information and do a thorough analysis to get back to the Committee so that you have enough time prior to the 29th to really review it. That would mean we would have to get it to you a week ahead of time which means we would have to have all the information from the developers today, and we don't. The consultants and staff need the month of October to identify the data To have both U.S. Equities and Kane McKenna we want to make sure that we have proposals that are doable and not run into a glitch three weeks Iater. Mr. Stern said that the committee will need the time after the presentation on the 29th to ask the right questions and evaluate the data. Ms. Aiello said that once the decision has been made of the recommendation from the Committee to the Council what staff would ask the Committee to request a special meeting of the City Council on December 8. City Council only has one meeting in December, and typically it is jam packed meeting and this is too important of a decision to try to fit in. If this schedule is met it is our goal that during the end of December, the month of January the attorneys would work on the redevelopment agreement. Aid. Moran asked if there would be any more meetings for public input, he felt very strongly that it is important to get public input. Fie thought that there is a likelihood of having some fairly substantive additional details between now and the end of October that the public would be very interested in. It was Aid. Rainey's opinion that there should be one meeting scheduled strictly for public input. After much discussion the following meeting schedule to discuss the Research Park proposals was decided upon. October 291h - 7 O'clock Presentations - heavily publicized November 12 - EDC Special Meeting to receive comments from the public November 19 - EDC Regular Meeting December 8 - Request for Special Meeting of the City Council Ms. Burgess asked that proposals be printed up and copies made available to the public for the November 12th meeting. Aid. Drummer voiced his concern and that of the residents of Church Street of the traffic the new proposal will bring. Fle stated that Church Street already carries five times as much traffic as any street in the downtown area. Aid. Drummer informed the Committee that not only is Church Street a residential street, but it is also a truck route, has two schools, and several Fconomic Develonment Committee Paee Me Sentember 24. 1997 small business located on Church Street. He asked for a traffic study on Church Street and gave some examples how the traffic on Church Street could be alleviated. Aid. Newman asked for copies of the traffic study to be made available at the November October 29th meeting. Ms. Aiello said that perhaps KLOA could look at some key intersections going west on Church Street between now and the 29th. IV. TERRY JENKINS UPDATE Mr. Jenkins gave copies of the recent downtown retail space inventory to the Committee. Fie said that there has been a lot of movement in the last 45 days and he has heard more changes in asking prices going up and some deals being done in the last six months than he has heard in the last seven years. Mr. Jenkins said that demand stays high even though the vacancy rate at 7 112% is higher than we've been in eight years. Fie mentioned that there are some positive things happening as noted on the inventory sheet, however there are some significant changes in the market place. There have been positive results in the last sixty days in terms of raw percentage of vacancies. There is a wide range of asking and actual leasing buying prices depending on where the vacancy is in downtown. Mr. Jenkins said he believes that there are some buildings over the last couple of years that have been purchased at substantial prices which is good news because it means people are interested in our market. But, it also means that a building that has had no debt on it for a number of years and is sold has a lot to do with what a new landlord is willing to do as far as an asking price for rent is on that building. Ald. Moran wondered whether the vacancy problem that Evanston has now is an idiosyncratic one, that it doesn't have to do with the market downtown, it has to do with those properties or it has to do with particular players. Mr. Jenkins said that there is a variety of factors, and they seem to compete with one another. Fle said it seems to vary on a building to building basis. 'there are cases where the leases are still being paid by the old tenant, which dampens the landlords enthusiasm and aggressiveness in filling the vacancy. Sooner or later that will end, in some cases it will end the first quarter in 1998 and in some cases it doesn't end until 1999. Mr. Jenkins said that there are a lot of complicated issues with downtown properties. V. MAIN STREET NEWSSTAND Ms. Aiello said that the City engaged an appraiser to do an appraisal of the building and have given the appraisal to the C'fA for review. If the appraisal is acceptable to the CTA, the City will be going back to the Council with a process by which the City will purchase the facility From the CTA and attract an appropriate retailer. Aid. Newman mentioned that he thought Council said that once the City acquires the building they were going to work with the Main Street business and try to find an operator of a newsstand that will fit in the area. 0 Economic Develoia,ment Committee Page Nine Sentemher 24. 1997 VI. CIP FUNDED BUSINESS DISTRICT IMPROVEMENT PROGRAM Aid. Newman mentioned that there were two things that concerned him. He said that his intent when he originally suggested the City have this fund was that he wanted to focus on the business districts that arc not the already revitalized business districts. The reason was that the downtown has a special service district, the City has put in new sidewalks, new garbage cans and done a tremendous amount on the Main Street Business District, and Dempster Street and Central Street are good examples of vibrant districts all on their own. lie said he was very concerned about the dollar for dollar match for the business on Noyes Street, Foster and a certain part of Howard Street. He wanted to see this program targeted for those business districts and other comparable districts. Ald. Moran said lie also did not like the dollar -for -dollar match. He thought that this program should not be started with any set formula or any certain district restriction. If someone wanted to come up with a Iocal business enhancement project, what is the difference where it is. Aid. Moran did not see the logic in restricting the program in any way. In his view, this program was not meant to target any certain business district. He stated lie did not reject the economic review of an area or situation as a faulty criterium, it may be a very valuable one, but in his mind it shouldn't lead to the exclusion of others. Ald. Newman said lie would find it totally unreasonable to put money back onto Main Street considering the amount of money already spent there. He felt that the smaller business districts are incredible jewels to this community, there are many businesses in these districts, they don't have as much money, and they haven't gotten the attention of the other business districts. AId. Wynne said she also had concerns about the dollar -for -dollar match. She felt that no one should be excluded. Aid. Wynne said that she would weigh very carefully and heavily the business district that has not had an infusion of City money, that came up with a really interesting project that they could not do on their own, had a lot of merit and might make a significant difference. Vaughan Jones asked for a listing of the last five years of what districts have received this type of funding to see if this program has been distributed equitably to various parts of the City. Dennis Marino replied that this was a new program, tie would generate information about facades and grants that have been made, where they have been made and some capital improvement figures. lie said that most of these kinds of programs operated in other cities have a two -fold purpose, one is to fund projects that physically enhance the area or basically give an opportunity to design and execute a marketing strategy that hadn't occurred before. The other purpose is to encourage business organizing and collaboration where it doesn't exist. One of the reasons under the list of eligible applicants {Collaborative Efforts of Three or More Business a Economic Development Committee Prue Ten September 24, 1997 Owners), is to at least make sure that this is a collective effort that has a potential for replication without City funds. Aid. Newman mentioned he understands that there is a December 31, 1997 application deadline. Mr. Marino said that his goal is to see the money committed this fiscal year because we have $75,000 in the CIP. This is the latest date we could have in order for the Committee to make recommendations and funding decisions by the end of the fiscal year. Aid. Newman asked if Mr. Marino would have time to do some reach out on Howard, Poster, Noyes, Church and Dodge and work with the Alderman so that some proposals can be generated. Mr. Marino stated that the key to success to this program is the marketing effort. Aid. Newman asked if between now and October 22, Mr. Marino could report back on some initial efforts to reach out over the next month. VII, ECONOMIC DEVELOPMENT STRATEGY Mr. Marino informed the Commission that in April 1997, the EDC approved a working draft of the Economic Development Strategy that it sent on to Council. That draft was shared with the new Committee in May. It was the direction of the Committee at that time to develop a mechanism so that new committee members and also new aldermen could have an opportunity to participate in the development of the Strategy and add to it or make comments. He stated that he had developed a questionnaire that enables each of the EDC members to go through the Strategy and indicate with regard to goals, policies and programs listed whether or not you would like to add other things or have a sense of priority about some of the stated policies or programs, or if you disagree with some of those issues in the Strategy. Staff thought that this was the most efficient way to accomplish this. Mr. Marino distributed copies of the questionnaire and asked the members to return them by October 13, he could then collate some of the responses and work with the Chair to develop a consensus. VIII. ADJOURNMENT There being no further business before the Committee they adjourned at 10 p.m. RiE. fully submitted, kc Executive Secretary Planning Division Community Development Department w .. .« •. � ... ........ . r.. .V• .a. +. .-. •.r..... .,.- . . .. .. .y .. .w� -. v. .� « •. .�.n tea_. .. .-...-r.. .ry,.. - .a.�«�. . .•w_ .. DRAFT - NOT APPROVED DRAFT - NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MEETING MEMBERS PRESENT: MEMBERS ABSENT: STAFF: OTHERS PRESENT: PRESIDING OFFICIAL: I. CALL TO ORDER Wednesday, October 22, 1997 7:30 P.M. EVANSTON CIVIC CENTER Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Marty Norkett, Lucille Krasnow Vaughan Jones, Greg Norwell Judith Aiello, Dennis Marino, David Jennings, Stephanie Steen, Mary Baaske Jonathan Penman, Troy Thiel, John Hammerslag, David Reynolds, James Repsold Aid. Feldman Aid. Feldman called the meeting to order at 7:45, a quorum being present. 11. CONSIDERATION OF MINUTES OF SEPTEMBER 3, 1997 AND SEPTEMBER 24, 1997 Aid. Newman made a motion to approve the minutes of September 3, and September 24, 1997 minutes. Aid. Engelman seconded. Aid. Engelman mentioned that the September 24 minutes listed him as present and he did not attend this meeting. Motion to approve the minutes passed unanimously with this one correction. III. COMMUNICATIONS A. October 14, 1997 Letter from Ridge Historic District Neighbors to Roger D, Crum. Judith Aiello said that, based on Aid. Drummer and Kathy Burgess's presentation at Fennnmir Develnpment Committee P+P Twn flrtnh r 1997 the last meeting, the consulting firm of Kenig, Lindgren, O'Hare, Aboona, Inc., has been retained to do another traffic study further west at Church and Ridge and Church and Dodge intersections. B. Small Business Support Systems in San Diego, Public Investment, June 1997. C. Downtown Idea Exchange, October 1, 1997. D. Public Notice of Schedule of Meetings to Address the Research Park Entertainment Proposals. AId. Newman questioned the necessity of having so many meetings. Judith Aiello explained that on October 29, each developer has significantly changed their proposals, and it is felt that its important that those proposals are presented again to the public. On November 12, the public is invited to give their comments. At that time, it is hoped there will also be enough time to go into closed session to discuss the financials of these proposals. The November 19 meeting is when the EDC will be making their recommendations to City Council. December l is an optional meeting either for EDC or City Council if November 19 is not enough time for EDC to make their decision, there is another opportunity for EDC to meet in order to meet the deadline of December 8 for Council to make their final approval. Aid. Feldman accepted the communications into the record. IV. SHERMAN AVENUE PARKING GARAGE Ald. Newman explained that the report being handed out to the Committee has been received by the Parking Committee regarding the Sherman Avenue Parking Garage. He said that the essence of that report is twofold: 1. In order to keep the Sherman Avenue Parking Garage operational, there is a significant amount of money that needs to be spent amounting to approximately $690,000 with an additional $200,000 for optional repair work. 2. Council had budgeted $2 million dollars to do enhancements on the elevators, stairwells and other cosmetic improvements. Doing these repairs, the garage will last another three to five years. Aid. Newman said that the issues the Parking Committee discussed earlier this evening were that the source of funding for these repairs be the $2 million that was put aside to do enhancements and the second issue was the future of the Sherman Avenue Garage. There were suggestions of how many spaces were needed, location of the garage, other development opportunities. If a new Sherman Avenue Street garage of 700 spaces is built, there would have to be a significant rate increase in order to accommodate the funding. David Jennings commented that the first few pages of the report are more detailed an the conditions of the garage, the last two pages are the rough estimates of the cost to do the repairs that will extend the life of the garage another three to five years. He said there are no guarantees in this type of work, the structure is aging and there are problems that need to be solved now. Mr. Jennings explained that the consultant looks at the traffic patterns of the garage. Garages are exposed concrete structures and they do have some natural cracking. He said when a garage gets the type of cracking patterns that are happening now, its kind of a red flag because these cracking patterns are tracking some of the major supporting members of the garage. The engineering firm Economic Develooment Committee Pape Three October 22. 1997 excavates little areas by the cables to see what is happening and as they have done this they confirmed that some of the cabling has deteriorated and needs to be replaced. Because of the nature of the repairs, the City is getting a second opinion. If the second engineering firm confirms the finding of our first consultant, Council can make a decision. Mr. Jennings said that design work for the garage would be done over the winter and repairs would be done over spring and summer. He thought the repair work could be done over one construction season. The majority of the $690,000 is for the cable replacement work. The $200.000 staff recommends be spent is to replace the deck coating on the roof deck. Ali the decks have a membrane on them to keep the salt that the cars bring in from penetrating the concrete and further rusting the seal. The roof deck has places where the membrane is missing. Mr. Jennings explained that this was not a bid price, but what the consultant suggests will cost in today's market. Aid. Engelman asked how many parking spaces would be Iost while the parking garage is being repaired. Mr. Jennings said he was not sure, but the intent was to keep the garage open during the construction. Portions of the garage would have to be closed, but the garage would operate at reduced capacity. Aid. Engelman asked how long the Committee would have to find a long term solution if the short term repair is not done. Mr. Jennings said he could not answer that, he could only repeat what the consultant said, and that is that if you fix the garage now, it will last three to five years. After much discussion, it was decided to get a second opinion and, if that opinion is the same as the first, to spend $1 million to fix the parking garage so that it will last another three to five years and use those years to find a permanent solution. It was suggested to use $ I million of the $2 million already set aside. Jonathan Perman stated that he thought part of the long term solution involves adding more spaces to the Research Park entertainment garage. V. RESEARCH PARK UPDATE Judith Aiello informed EDC members that the Arts Council approved a proposal regarding the Performing Arts Complex and will be transmitting it to the Human Services Committee (which is the Committee to which the Arts Council reports). Ms. Aiello then distributed a copy of that report to the EDC. She said that the Arts Council is endorsing the concept of the performing arts, but they have not been able to provide detailed numbers. Nis. Aiello mentioned that the City has indicated to both developers that they should have some space within their proposal for a performing arts center. Both of the developers have incorporated a performing arts center in their development. The developers are assuming that the center is a publicly funded facility as is the Levy Center. She said the Levy Center subcommittee is working on their program statement and at some point would like to make a presentation to EDC. Economic Development Committee Paee Four October 22. 1997 VI. C. E. NIEHOFF UPDATE Dennis Marino informed the Committee members that C.E. Niehoff has purchased an adjacent property and proposes to expand its manufacturing operation into that space. They are also acquiring the parking space to the north of that building. He said that they have asked the City to vacate Grey Avenue in this location. Mr. Marino said that C. E. Niehoff has met extensively with the Public Works Department to discuss procedures for this vacation and issues like rerouting the utilities etc. C. E. Niehoff has also recently acquired a company from the west coast and some of the functions of that company will be relocated to Evanston. Presently C. E. Niehoff employs 150 people, and is expected to grow. He felt the important issue was retaining a manufacturer of some scale within Evanston and allowing that company to expand. Aid. Feldman mentioned that he met with George Burfiend of C. E. Niehoff, and that C. E. Niehoff is a very employee friendly business, in fact, much of the stock is owned by employees. He asked Mr. Marino if someone from the C. E. Niehoff Company should be at the City Council meeting on November 27, 1997 when the alley vacation is scheduled for introduction. Mr. Marino replied that he thought that C. E. Nichoff should have a representative present at that Council meeting . Mr. Marino said that a side benefit of this alley vacation is that over the years there has been a little bit of conflict with the townhouses on the east side of Brown Avenue and some uses at the plant and as a result of this project truck docks will be relocated to the west and there will be some berming and landscaping. Lee Street where the old Mayfair/Northwestem crosses Lee Street has been closed for many years, and what will be allowed now is the opening through the Niehoff parking lot. It will be done in a way that it will not allow a variety of traffic to come through this lot. Fie mentioned that C. E. Niehoff manufacturers very large alternators. VI1. ECONOMIC DEVELOPMENT STRATEGY Dennis Marino informed the Committee that there had been a brief discussion of the Economic Development Strategy at the last meeting and a questionnaire had been passed out. A few of the Committee members have completed the questionnaire and given it back to him. Aid. Feldman asked if the questionnaire and the Economic Development Strategy had been distributed to the Council. Mr. Marino answered that lie had distributed copies to the Council and also the Mayor. Aid. Feldman suggested that Mr. Marino write a note to the Council saying that the Committee would appreciate their comments. VII1. CIP FUNDED DISTRICT IMPROVEMENT PROGRAM Dennis Marino said that at the September 7 meeting several suggestions were made and he Economic Development Committee Pave Five October 22. 1997 had incorporated them into the draft that he had distributed to them tonight. The dollar for dollar match that was in the draft distributed on September 7 had been dropped, and he has included most of the issues identified at the Iast meeting and previous discussions. Aid. Feldman asked if there had been a discussion regarding prioritizing certain areas of the City. Mr. Marino replied that there had been a discussion whether this program should be for all districts or only for certain neighborhood districts that had not previously received these funds. He said that matter was not resolved. Aid. Engelman said he would not restrict this to any neighborhood district. He said that while he understood the reasoning for not doing the dollar for dollar mach, he did not think this would be a bad idea. That special consideration could be given to projects that have a dollar for dollar match to encourage applicants. Aid. Feldman thought maybe with a dollar for dollar match, you could raise the limit to $30,000. Aid. Newman said that he would like to help out some of the smaller business districts that have not received any money from the City. Aid. Wynne said she would be reluctant to exclude any part of the City. Applications from any district should be accepted and the EDC's determination would be made not only on the quality, the immediacy, and also the criteria and include the need of that particular business district. Mr. Marino said that it was staffs intention to do a mailing to everyone in the City's data base based on the Economic Development Survey and try to do an update on that data base. He said that staff would reach out to the business districts that are not organized and do not have a specific contact person to make them aware of this program and solicit applications from across the boards from all districts. Aid. Feldman thought that it would take special attention to those districts that were not organized. He felt that attendance at some of the meetings would be required by local Aldermen and staff. Mr. Marino said that he would like to be able to do that in the time that is left, but didn't think that was possible considering the great amount of commercial districts. He did see staff going out and contacting businesses, many of which were contacted previously to writing the Economic Development Strategy. Mr. Marino said that another issue was if this is seen as a multi -year program and what is being built is knowledge about these kinds of funding opportunities and encouraging people to apply both now and in the next year. [le mentioned he has made a request of the CIP team to consider an additional $100,000 for next year. Aid. Engelman asked if staff would submit a geographical representation ofsales tax revenues so they would know what taxes are generated by what areas. Mr. Marino said this could be done as long as there arc more than two businesses in a district in a single category classified by the State. The State wants to be sure that data cannot be given on a single business. Economic, Develonmen ommittee Page Six Octqh"2, 1997 Mr. Marino said that he shares the goals of the EDC in reaching out to the areas that have not generally been involved in this kind of program. He said that the City already does that through the Facade Program. The Planning staff is very active at Church and Dodge, there was a meeting at the high school this morning with about twenty people and the goal is to go to some of the businesses as well as another subcommittee going to a number of the neighbors to determine what they would like to see happen on Church and Dodge. Staff is very active through the Howard Street Redevelopment Committee involved with Chicago and Evanston businesses. After much discussion regarding the CIP Fund program, Aid. Newman made a suggestion that a business organization match would not required, but may be discussed to enhance the project. The Economic Development Committee approved the revised program as submitted by staff. IX SCHEDULING OF JOINT REVIEW BOARD (JRB) MEETING Dennis Marino explained that the Joint Review Board is a required item in terms of tax increment financing districts, it is the body under state statute by which all the taxing districts get together, when a TIF district is proposed they review it and make a recommendation to the City Council. In the first three years of the TIF they meet annually, and after that they meet on an irregular basis. This is the third year meeting of the Church Chicago TIF for the John Buck Development on the Washington National site. We are also due for a meeting regarding Howard Hartrey , and what staff proposes is back to back meetings. The past history of those meetings is to hold them at 8:00 a.m. with the meetings lasting until about 9:30 or 10:00 a.m. The taxing districts involved in Church/Chicago in addition to the City include the high school District 65, the County, Oakton Community College. For Howard Hartrey, the districts are the City, High School District 65, Oakton Community College, and Ridgeville Park District. Aid. Engelman moved approval that we designate the Chair of the Economic Development Committee to attend on behalf of the City and to Chair the meeting. Aid. Wynne seconded the motion. Motion passed unanimously. Aid. Wynne moved to adjourn the meeting. Aid. Engelman seconded the motion. Meeting adjourned at 9 p.m. Respectfully submitted, Mary E. Baaske Executive secretary Planning Division Community Development Department t �Yr .,. .-..••aw«�� •. �K••7�'.�i+...�•r-��•..••�»•tiw..-�-..•wY...�wwrrS�r....•.�;_a..rr�.rr��..�.+•w....A^.. •..ir.•n�.+►1...h Vw��r...M"�. M� DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, October 29, 1997 7:30 P.M. CITY COUNCIL CHAMBERS MEMBERS PRESENT: Aid. Feldman, Aid. Bernstein, Aid. Engelman. Aid. Newman. Aid. Wynne, Vaughan Jones, Lucile Krasnow, Marty Norkett, Greg Norwell STAFF PRESENT: Dennis Marino, James Wolinski, Judith Aiello, Mary Baaske OTHERS PRESENT: Arthur Hill, Kevin Gazley, Richard Welcome, Mary Shoemaker, Stan Nitzberg, Mary Riordan, Nick Patina, Barry Elbasani, Arthur Hill Company; John Buck, Rick King, Scott Hindsley, Debra Mitchell, Bruce Kaplan, John Iberle, John Buck Company PRESIDING OFFICIAL: Aid. Feldman 1. CALL TO ORDER A quorum being present, Ald. Feldman called the meeting to order at 7:45. 11. PRESENTATION BY DEVELOPERS Aid. Feldman explained that the presentations by each developer, the John Buck Company and the Arthur Hill Company, would include an introduction of each team, an articulation of the project philosophy and concept, a site plan of the project, an explanation of the overall plan, the retail element, the concept of the cinema and the hotel, reference to the performing arts center and its placement, the Levy Center, financial aspects, and economic benefits to the City, and the timing and implementation of the project. The detailed financial review of the proposals, the inclusion of the Levy Center and the results of the new traffic study will be discussed at length at the beginning of the public hearing that will be held on November 12, 1997. Following the presentations, thirty minutes will be allowed for the Committee and the ..• , - r• -. . ., - ".1.-1 .a —A.-"%- K•4.1 .3. .1 - .-4�6 .,iwi wr., '�a�.�..� 61. o..0..--- _4.J--.-9...f. . -. y..r y. .-- . v.R 4- . Economic DeyeIgnment Committee PU; Twn October 29`1997 Council to question each developer. It is assumed that each presentation will take approximately thirty minutes. Questions from the audience can be written on cards being passed out and may be submitted to a member of our staff either tonight or by the October 31, 1997 in order to be answered by the developers or the City in writing on or before the November 12 public hearing. At the public hearing, the audience will be allowed to comment, but if the questions are detailed, it is asked that they be submitted in writing and they will be answered in writing. Aid. Feldman gave the following perspective on the proposed project. He said the development proposals being heard tonight have a history that goes back a long time. It started with discussions on developing property that was underutilized and vacant, property that the City was not able to fill with Research Park buildings and property that we were concerned might not be filled at all in the near future, robbing the City of both opportunity and resources. In December of 1996, the board of the Research Park sent out an RFP to many developers. In April of this year, a committee of architects, aldermen, developers, the city manager and representatives of Northwestern met to evaluate the proposals that were submitted in response to that R>~P. They recommended to the City Council the two development firms that are present tonight. After those proposals were presented to the public and the Economic Development Committee (ED), the Committee held its first public hearing on June 25, 1997 and shortly thereafter the City contracted with U.S. Equities, a large and well respected development and consulting firm, to act as our representative in guiding the City in negotiations with the two developers. U. S. Equities is the same firm that helped us build the library, and they helped us build it under budget. Since then numerous negotiation and working sessions were held between staff, Marty Stern of U.S. Equities, and the developers in order to distill and refine the proposals to better reflect the input received by this Committee from previous public hearing and citizen comments. The Economic Development Committee heard from the Arts Council, The Recreation Board, the Chamber of Commerce, Evniark, Levy Center Advisory Board, members of the Levy Center, members of the Research Park Board, traffic consultants. the financial consulting firm of Kane McKenna, and the many letters of concern received by City Council and this Committee. The proposals heard this evening will reflect that process of response and refinement. After a developer is chosen, that same process will continue until a development agreement has been signed. On November 12 the Economic Development Committee will hold a meeting to receive public comments in the Council Chambers. On November 19. the Economic Development Committee will meet to choose a developer. On December 1, there will be either an Economic Development Committee meeting or a City Council meeting as necessary. On December R, a tentative Council meeting; will occur at which time the Council will ratify or choose a developer if one is not chosen on December 1, 1997. Aid. Feldman said as Chairman of the EDC lie has received many letters and call of interest and concern. Marty Stern, of U. S. Equities stated he was first present on July 23 to hear the Arthur Hill Company and the John Buck Company present their proposals. In early August, U.S. Equities was hired by the City to advise the City and negotiate on the City's behalf. Mr. Stem said that he suggested the City have an open process because it is critical that all of the concerns of the public could be heard and articulated. Several public hearings have been held on various . �-ti• ..•.�h.•••a.�,»•«i.��.�...+,••/'+..•r. r: hs �.., •..yr �r .�•. ...�rll r•r- •r..n •:.•n�.•t,.•�i•..�.� �s+.� .r•.w. r • ».• ..•.nw,w rr•a �• - �•n� gnu �r - .,• •. aspects of the projects and defined the process by which U.S. Equities would work equally with both developers to make each project the best it can be and to incorporate the collective wisdom of the public, the staff, and development marketing and financing professionals. At these public hearings the developers have heard first hand the questions, concerns, suggestions, praise, criticism, the hopes and the wishes of the public and its elected officials. The City staff and U. S. Equities have added their thoughts to work with each developer to help sort the feasible from the infeasible, the possible from the impossible and to help things become more feasible. Together with Kane McKenna Associates and KOLA traffic engineers, U. S. Equities has worked with the developer to get the questions answered, narrow the uncertainties related to the project and ease concerns. Both developers have listened carefully to the public comment and are back tonight to present revised and more detailed proposals. ARTHUR HILL COMPANY PRESENTA TION Arthur Hill, Chairman of the Arthur Hill Company, stated that his company started working with the City over eighteen months ago on a plan to bring state of the art cinemas and appropriate complimentary uses to Evanston. He told the audience that there is a sea change going on in movie theaters and it is sweeping across the U.S, with stadium seating, high tech sound, nicer amenities and more screens. The additional screens allow for staggered starting times which he felt, is better for the local merchants and spreads out traffic coming to the theater. Mr. Hill said his company's approach is to bring quality uses and designs that fit into the neighborhood, and to obtain for Evanston the jobs, real estate taxes, sales taxes, and a boost to the other Evanston retail and the overall economy. fie said his company's neighborhood oriented approach that includes a plaza, a new senior center, and advocacy for the planned performing arts center has been part of the Arthur Hill Company's approach from the start. The updated plan reflects exactly the same values, but has the benefit of input of citizens at previous meetings, consultants, City staff, as well as more time to refine the design. Mr. Hill said the goal of the Arthur Hill Company was to bring to Evanston the elements that the people of Evanston desire, to do it with excellence and to provide a financial basis and appropriate public benefits that are compelling to the people of Evanston. He wanted his company to be viewed as the company that pays attention, who has the knowledge, and will deliver what most of the citizens of Evanston really want. Mr. Hill introduced Kevin Gazley, Vice -President of Development, Bruce Reed, Executive Vice President of Realty Services; Robert Home, Vice President; Richard Welcome, partner, Arthur Hill Company; Mary Shoemaker. Director of Real Estate for General Cinema Theaters: Stan Nitzberg, principle in Mid -American Realty Corp.; Mary Riordon, Partner, Polsky & Riordan; Nick Patera, Teska and Associates; Barry Elbasani, Partner, Elbasani & Logan Architects. Mr. Elbasani showed slides both of the original proposal and of the recent changes in refining the project. He said streets, promenading, plazas, places for people to sit are as ,.• .. ... ,r• �� ..w. � .. ...� ..r .,.---.w 1...-••.... .. r .ter.. e...►�:...��,t r-�..,�-•.-ti .'�r �r4,. � mow' ...•.�riL., e'�..-.....-..1�-•f..,,- Economic Development Committee Page Four October 29, 1997 important as streets. Mr. Elbasani added that the most successful projects today are not introverted enclaves in closed buildings, but rather open, weather protected life on the streets. He said the plaza is very relevant, important, upscale and correct and coming back to the way America was 100 year ago and the way Europe has been for a thousand years. Mr. Elbasani said the Arthur Hill Co. (AHC) wanted to create a neighborhood of a mix of uses, life on the streets, relationships between what is going on inside and outside and further, by taking the property down all at once. they can create the sidewalks plazas and the relevant connections to the downtown. Fie said they propose a project of approximately 100,000 to 130,000 square feet of retail uses, plus a hotel, entertainment, restaurants and a theater complex, all supported by a parking structure. Mr. Elbasani showed slides of the changes to the Arthur Hill Company's proposal that include suggestions by Evanston citizens. He pointed out the location of the proposed Levy Center having access from Maple and access from the garage. He also identified the proposed location of a performing arts facility with a series of shops leading to Church Street. Mr. Elbasani said the hotel would be on the second floor and would be as high as the existing research facility across the street. There is also a second level of the senior center which is essentially a sun deck with adjacent facilities, the performing arts facility itself, and an adjacent cafe overlooking the Church Street/Maple intersection. Across the street would be more retail shops. On the second floor above the retail would be the theater with additional restaurants and cafes looking down into the plaza. He mentioned that the theater design would be considered later, but there would be no blank walls. The vision of Church Street, according to Mr. Elbasani, was a gathering place, a place of having fun. and showed the view of what it would look like sitting inside a restaurant looking out on the street. He thought the dialogue between what is going inside and what is going on outside is extremely important. Mr. Elbasani said that Elbasani and Logan Architects feel the style of the development should be directed by the City, so that it will be appropriate to the City. In the end, he said that essentially what the team is trying to accomplish is a somewhat urbane, dense, but low rise complex. This is much in the tradition of any great European city. The concept of AHC will be a continuous process of building. The development will not be built a building at a time. AHC proposes that the parking structure will be a first in the ground effort, a separate building, and at the same time the theater and retail building, and a new senior citizens center will be constructed. In Project B the hotel, additional shops, and lobbies will be built. Project C would be a two-story retail. The last parcel of land would be ideal for a performing arts center. Mary Shoemaker, General Cinema (GC) Director of Real Estate, informed the audience that General Cinema has a huge presence market in the Chicago area and would like to continue it in Evanston. She said that GC was looking to do a neighborhood -type project. To that end, they have been very carefully looking at the demographics in Evanston and have been tailoring . _ -. .: �. • . ,,, •va,-. ..•:• .•a+«.-•.r.Y 4,.. . •ems' r:-. .. ,i.. , -,ti�. �..-,•.y«.��..-•. �. �... .,. -7r -A -I -v A•••.,,•..r Economic Develonment Committee Pave Five October 22. 1997 what they think should be the theater complex in Evanston. GC is looking at a theater with around 3,400 seats with 12 - 16 screens. The overall square footage would be 74,000 to 75,000 square feet. Ms. Shoemaker, said that based on the demographic read of Evanston, GC is putting in not only regular screens, but also a mix of premium theater and art houses. She said that GC has signed a joint venture with Robert Redford's Sundance Group, and will be building a series of art houses across the United States. ;v[s. Shoemaker said that GC was presently building a theater in Yorktown and were testing what is called a premium concept theater. It is a small theater of 100 seats with a separate entrance, plusher seats, a small area for espresso, cappuccino, and different food fare. This theater is more upscale - bistro Style. GC offers video conference during the daytime. GC works with the communities in offering these services for corporations, colleges, etc. GC also reaches out to the younger members of the community through Saturday matinees that are offered to families at a much reduced price in order for children to come in and have some fun with old time cartoon experience. In the summer, GC offers summer movie camps, good family -type movies. She summarized her presentation by saying that GC thinks that they offer a neighborhood -type theater experience to the citizens of Evanston. Stan Nitzberg, Principle of Mid America Realty Leasing Division, shared his professional view of the project based upon 22 years of experience in retailing and retail estate. He said Mid America is the largest firm in Chicago doing retail exclusively, they lease and manage 12 - 13 million square feet in the Chicago area. Mr. Nitzberg stated that Mid America's role is to make intelligent decisions about retailers to become part of the project that will be successful for the community, the developers and the City. The great access to transportation broadens the base that people can come from, and broadens the capability of bringing and drawing people to Evanston to support the other business in the community as well as this project. He felt that Mid American could create a proper balance of local and national type merchants, big and small, to create a balanced tenant mix. Mr. Nitzberg summed up his presentation by saying that what differentiates their effort is being able to balance both a perspective for what's important to Evanston, the requirements for what makes retailing successful, and the practical aspects of development so that all the parties, all the aspects involved, have a successful and profitable project. Richard Welcome. Partner of the Arthur Flit[ Company spoke of the financial aspects, and what AHC wanted from the City. He stated that to make the economics work for this project, AHC is looking to Evanston to do five things: build a parking garage; pay for the relocation of the senior center; make some improvements to the Church Street overpasses; make some streetscape improvements in the public right-of-way and-, get involved in some minor demolition. Mr. Welcome said that AHC wanted the City to invest a little over $13 million in this project. The result of doing this will be to create net income from the garage, sales tax, real estate taxes, and hotel occupancy taxes - none of which are currently being derived from this property. the total Financial benefit from the project will amount to approximately $3 million per year. r.w..-+�-: . _-L.I.­1r 4 r•. r­-... I0'. .-"A"....- - .•�..r.....4...�. J-Y...r«•ti•. -.•r`, -- Economic Development Committee Pave Six October 22 1997 In summary, he said that what AHC has presented is a development that takes advantage of and reinforces Evanston's unique position as the educational and cultural entertainment center for the Chicago region. AHC has proposed a very special group of uses, based upon the General Cinema Multiplex. He added that GC is not only a theater that shows mainline movies, but has special conference facilities, special programs for children, a special arts theater and a special premium theater. The result of these theaters will create a synergy that will not only aid the existing businesses in Evanston , but create opportunity for additional businesses. He said AHC has responded to the communities desire to develop a performing arts center by creating a location for the arts center that is at the very heart of this development. The senior center has been preserved and enhanced with a new facility and made an integral part of the development. Finally, a hotel is included that will satisfy not only the needs of the community, but the university. In addition to developing these compelling array of uses, ELS and TESKA have designed a visually exciting complex that pay homage to the both the scale and texture of Evanston. Aid. Newman asked AHC to explain whether the types of retail that would come to this project would currently be able to locate in existing spaces that are downtown and how will the retail to be developed in this project affect the rest of the downtown. Mr. Nitzberg replied that there are approximately 100,000 square feet of non -theater retail. Almost half of that is oriented to what is called big box retail. There will be smaller restaurants and uses that would be able to fit into some existing space downtown, but they are more complementary to the theater concept as it is being presented and do not represent the primary retail. Aid. Newman stated that there have been several issues raised by the community, that considering there is a multiplex in Old Orchard, another being built on Howard Street, that we might build something that might not be able to attract enough people for these theaters to make them successful. He asked AHC why they wouldn't want to build four or six screens as opposed to 12 - 16 screens. Ms. Shoemaker replied that when General Cinema (GC) reviews the market, the film, and operations people, together with the real estate department, do a very extensive demographic analysis of this market. Part of the reason she mentioned 12 - 16 screens is because she doesn't know what the market is right now and if you bring in art houses that brings in a whole different element. She said GC offers a different product, in addition to the stand alone theater. GC is offering a whole experience with the restaurants and the downtown Evanston area. Ms. Shoemaker added that if GC didn't think it would be successful, they would not do it. Aid. Newman asked if GC or any other movie theater operator would come to Evanston to build a 4-6 screen movie theater. Nis. Shoemaker said "No, we think that the number we are working with right now makes sense". She said you have to have enough screens to be competitive and play the product coming out of Hollywood. Aid. Feldman asked for an explanation of the connection of the size (number of seats) of the theater, the amount of people that might be drawn into the area, and the benefit to the retail businesses. Mr. Nitzberg responded there are two ways to answer: first, retailers of the quality ....+- . ---+» .. «-,-..« wt. ,....-.. , . - . *—+4,. ,,.-.....«. y., --... a.., -,--. ww .r-... Fconomic Deve]gnment Committee Page Seven • =W41MRD that AHC wants to attract are going to want to relate to a theater they think is going to be in business for a long time. Second, GC's presence and its reputation to do what is right will be enough for the retailers to believe that they have made a good decision. Mayor Lorraine Morton asked what changes would be made in the amenities within the theater that would make it available for daytime use. Ms. Shoemaker answered that everything was already in place, GC's theater are being used for conferencing around the United States. THE JOHN BUCK CO,►IPANY PRESEA'TA TION John Iberle, Senior Vice -President, introduced John Buck, Debra Mitchell, Vice President- Finance, James Geymer, Project Manager in the John Buck Company; Rick King, Senior Vice- President and regional operation manager for AMC Cinemas; Scott Hindsley, Archldeas; and Bruce Kaplan, President Northern Realty Group, Ltd. John Buck stated that this was a project that would complete the Research Park, tie in the mass transportation systems and create a revenue base for the citizens of Evanston. He explained that the John Buck Company had been in business since 1981, has 450 employees, and possesses extensive development assets in the Chicago area. He added the John Buck Company had just completed the Park Evanston project. a successful mixed use development in downtown Evanston. Mr. Buck commented that his company has recently bought the office building located at 1603 Orrington and is spending millions of dollars in rebuilding and retenanting that building. Bruce Kaplan showed slides of the development team's past projects. He said that the Buck Company works on an ongoing basis for Sears, Walt Disney, Hewlitt Packard, and many others. He said that Northern Realty was involved since inception on Navy Pier They were also involved in the original Northwestern Atrium which is now called the Citicorp Center which combined retail and transportation. They have done extension work for the Bank of America, including its renovation of the old Continental Bank building. Northern also has exclusive representation in the Chicago area of the Let Us Entertain You Enterprises, The Corner Bakery, Big Bowl, and Starbucks Coffee. They also represent the St. Louis Bread Company, The Gap, and Banana Republic. Mr. Kaplan stated that the newest member of the development team is Herb McLaughlin, of Kaplan, McLaughlin, and Diaz, who he described as one of the leading architects in the world. He said he joins Scott Hindsley of Archldeas, and pointed out that this was not a substitution, but an addition. He introduced Rick King, of AMC Theaters. AMC is the number one cinema exhibitor in North America in total revenues with 2,000 screens in 220 locations. Mr. Kaplan gave an overview of how the Buck/Northem team views this project. He said they viewed the Church Street Station as a series of opportunities. It is an opportunity to bring theaters and night life back to downtovm Evanston. One time the Valencia, the Coronet and the Varsity theaters had 3,700 seats combined in downtown Evanston (the Buck Company is Economic Development Committee Payee Eight October 22, 1997 proposing 3,500 seats). They see an opportunity to add 180,000 square feet of new stores and restaurants to downtown Evanston. He felt this would broaden the retail base and that could only be good for Evanston. They see an opportunity to create a new, better, more convenient and prominent home for the Levy Center. They are presenting an opportunity for those who wanted a performing arts center to locate in downtown Evanston to do exactly that in an extraordinarily prominent location. They intend to create a transition that ties together the CTA, Metra, additional parking, the Research Park, the existing downtown Evanston retail district, Levy Center, as well as the performing arts center. After listening to public comment, the Buck Company is certain that what they have designed will expand Evanston's boundaries, the viable area of Evanston, but will not hurt the existing retail. Mr. Kaplan introduced Herb ivicLaughlin by saying that iVlr. McLaughlin has won over 100 design awards in recent years. He has just authored the section in the Urban Land Institute's upcoming book on entertainment centers. Mr. McLaughlin oversees his firms work in Barcelona, Brussels, Korea, Japan, and Brazil. He said that Mr. McLaughlin is also the Chair of the National Trust for Preservation. Mr. McLaughlin won the Presidential Design Award from President Clinton. Mr. McLaughlin showed slides of other projects he had designed (Germany, Paris, San Francisco, 2 Rodeo Drive, 1 Colorado in Pasadena) and illustrated how they were relevant to Evanston. He hoped to create this kind of public open space in Evanston. Mr. McLaughlin said it was about community, people interacting with each other, and a new kind of shopping (leisure, recreational). Mr. McLaughlin felt the most relevant project for Evanston was One Colorado in Pasadena. Since One Colorado went in on one square block, retail sales have quadrupled in four years. It has faced major competition from a mall less than a mile away and is beating it in terms of retail volume. iVir. McLaughlin then showed sketch designs of the proposed John Buck project (he emphasized that they were sketch designs). Looking down Maple Street, there is a cinema on the right, a two-story retail portion on the left with the parking garage well disguised behind it. He said the proposed Levy Center is an elegant element which faces the vehicular drop off from the station, the focus of a lot of energy is on a pair of piazzas that face each other, and Maple Street which is activated with retail its entire length. He pointed out the various components of the project. Mr. McLaughlin mentioned some of the guiding principles that have formed this design. One being the position of the parking so that it serves not only the development, but the downtown as well. To mask the cinema walls, there is retail along Maple Street and a hotel next to the cinema. The cinema entry is located so there is a direct connection into Clark Street. Mr. Kaplan interjected that, in answer to public comment, the Levy Center was moved closer to public transportation. John lberle informed the Committee that the proposal included 180,000 square feet of retail. a 3.500 seat complex of 18 screens, and a 181 room hotel. The total project contains Economic Development Committee Page Nine October 22, 1997 approximately 360,000 square feet with a private investment of $50 to $55 million dollars. In addition, there are the public components of the parking garage , the Levy Center, and potentially the performing arts center. Those three uses are potentially 400,000 square feet of space with a cost of $15 to $20 million, depending on the scope of the performing arts complex. He said that approximately 20 construction jobs will be required, and when the project is fully operational somewhere between 700 and 900 jobs will be created. Mr. Iberle said that what is needed from the City is a cleared site. funding for the public parking facility, and the funding necessary to create the funding for the home of the new Levy Center. Based on the program presented tonight. Mr. lberle said it is expected that this project will generate $1.7 million annually in real estate taxes; another $1.1 million in other taxes such as sales, amusement and hotel room taxes; and parking garage income of several hundred thousand for a total of $3.1 to $3.2 million dollars. Based on discussion with the City's consultants the Buck Company believes that after using City finance to pay for the public improvements that there will still be a net increment to the City of about $1.25 million a year. The expectation of the Buck Company is to have this project underway in the ground starting next June or July toward an opening in the fall of 1988. Mr. lberle said that the John Buck Company has organized an experienced team that has worked together on other projects of this type. He added that the firm is vested and experienced in working Evanston. Thirdly he commented that the firm has great depth and staying power. The Buck Company has people that not only work, but live in Evanston. He said the Buck Company is responsive, as minutes from meetings regarding the Park Evanston will attest. Mr. lberle felt that commitment was a very important issue as these projects take a tremendous amount of perseverance, and feels that the Buck Company had demonstrated this many times. The Buck Company has come in to make a successful project where some of the legendary names in Chicago and the State were not. With the two investments of the NBD Building and Park Evanston, the Buck Company has a tremendous incentive to make sure this project succeeds for all of downtown. Mr. lberle commented that the choice that is being made tonight is not about money, designs or plans, its about people and about trust. A team will be picked that the Committee trusts is in the best interests of Evanston. The Buck Company has been working in Evanston for many months and hopes that the Committee agrees that the Buck Company has gained trust in Evanston. Aid. Newman commented on the proposed conditions in the Buck proposal. He asked if the 50% reduction in the building and permit fees charged in Evanston were necessary for the Buck Company to do the project. Mr. lberle responded that every dollar counts, and certainly the City's costs should be covered, but their experience has been that the fees tend to not cover larger projects. Aid. Newman said it stated in the proposal that the City agrees to operate the Benson Economic Develonment Committee Pace Ten October 22. 1997 Street garage consistent with current parameters and asked if that meant the City would sign a development agreement that says the City would lock in certain prices and would have to operate the Benson Street garage at that site in perpetuity. Mr. lberle said that up to this point, a great deal of discussion has focused on the how the garage operates and will be paid for, the formulas discussed look at either direct pricing by garage patrons versus amusement tax versus other vehicles, so the Buck Company believes that there has to be an agreement as to which vehicle will be used to pay for this parking garage. The more important issue to Benson Street is availability. and he understood there are questions as to the viability of that structure. If the Benson Street garage is not available, an alternative would be to increase the foundation capacity of the garage proposed to make that a 1,200 or 1,500 facility. The decision could be made to do that today, in which case, that would not be an issue. In the Buck proposal, it states that the City will continue to operate the new parking garage in a manner acceptable to the developer. Aid. Newman inquired what the fee structure would be that the Buck Company is proposing in terms of day time permits, cost to people on a daily basis, weekends. and at night. Mr. Iberle said that his understanding is the approach would be that the current policy would be maintained, which basically is pay for parking permits, use during day hours, and free parking on evenings and weekends. Aid. Feldman stated that many citizens have commented on the desirability of including art films in the presentation and asked for comment from the Buck Company. Rick King said using the square footage and about the same seat count as the AHC proposal, the Buck Company is proposing 18 screens. He mentioned that originally AMC's appetite was for an even higher number of screens. and what is driving their appetite as a company is seeing an increased audience for what used to be art films. ANIC believes the audience for the main stream film and the audience for the art or specialty films are one and the same. It is not only ANIC's intention, but their commitment. to provide a year round selection of art films. Aid. Feldman asked for an explanation of the driving force behind that appetite, and what the relationship may or may not have to the success of either the cinema or the cinema retail development. Mr. King stated that the increase in the screen count of movie theaters started a few years ago and resulted from the dramatic increase of production rate. It resulted in increasing movie goers demand and interest in the choice of selection and the reason we have experience from movie goers indicated that they patronize a theater that has more choices more often than othem•ise. The higher screen count theater enables an increased investment of a higher amenity package: a larger screen, a more comfortable seat, an enhanced sound system, stadium seating system and enhanced decor. The pattern is clear, the high screen count theaters are clearly outperforming smaller screen count currently, and he thought that was a trend that would not only continue, but get stronger. Well over b0% of people who patronize multi - screen theaters have not made up their mind as to which movie they want to see. They know that not only will a film that they are going to like be available, but because of the multiplicity of screens there will be a variety of starting times and places to eat. A multi-plex theater also Economic Develonment Committee Paae Eleven October 22, 1997 allows you to show an art film more readily and multiple times. One more advantage to the multi -plea theater is multiple screens mean multiple start times sequenced in a fashion that gives a steady even flow of traffic without pulsing. It becomes a much less congested situation. He added that the average screen in this country sells on the average of 45,000 tickets a year, the average AMC multi -plea screen sells 72,000 tickets per year. Lucile Krasnow asked if the Buck Company was steadfast on 18 theaters. Mr. King replied that the smaller screen count theater tends to become invisible to the customer in competition with higher screen count theaters which are certain to be built in the surrounding area. He said that ANIC has created an attendance model that takes into account the forthcoming theaters on Howard Street and the potential new screens at the Old Orchard and AMC remains more than satisfied that their own attendance levels are reachable. Mr. Buck added that what his company has found in the industry is that the heaver the screen count the more customers. Ms. Krasnow mentioned that it looked like the Hill proposal has more open space and asked Mr. Buck to address this issue, and also the issue of phasing. Mr. Buck stated that he no longer believed that the median on Maple Avenue was appropriate any longer, it was part of the Research Park plan of an office environment. He said he is now creating a pedestrian - retail environment and believes that space is more helpful within the sidewalk. This creates seating opportunities for the cafes, and restaurants. Mr. Buck added that it was JBC's intention to do this project at the same time, however, the issues of resolution of the Levy Center's home, and with that resolved there is a window of opportunity to craft an operating and finance plan for the performing arts center. He believed that those two uses should relate to each other and secure public open space. With regard to the open space issue, Mr. McLaughlin explained that they were trying to create two kinds of basic space. circulation space and repose space. One of the things JBC wanted to do was make the walking experience as Iengthy as possible and that is why they went as far up Maple Street as they could with retail. A big piazza is not desirable because it would just sit there deadening the general environment too much of the time. Ms. Krasnow asked how the space would be used that is behind the Levy Center (the South side of Church). Mr. McLaughlin said that was a subject they would Iike to discuss, that it was possible to combine the Levy Center with some retail. But until plans for the Levy Center were finalized, the JBC team felt it was premature to come forward with a concrete proposal, but the preference is to have retail there. Ald. Wynne mentioned that the rest of the downtown is connected to the proposed development along Church Street, and asked what the use of the north side of the Levy Center will be that connects with the rest of downtown. Mr. Kaplan replied that JBC envisions Church as being a double loaded street - both sides. Economic Development Committee Page Twelve October 22, 1997 Ald. Feldman said that most of the piazzas that have historical significance in terms of being used by the local population, all of them have one quality and that is that a number of streets feed into a relatively enclosed location which defined the space as exactly that, a place for people to rest or meet other people. It is usually surrounded by coffee shops, restaurants, and small retail. He sensed that there was a great deal of attention to the energy of the person using the retail, but did not sense a plan to encourage them to stop and rest. He wondered if that happened as a result of what has been designed or if that has to be planned. Mr. McLaughlin's answer was "both", he said that restaurants and cafes tend to activate the modern piazza. Ald. Feldman asked if there was a window of opportunity that the community has to offer the performing arts center to come to a viable point where construction could start. Mr. Kaplan said there is a commitment to make sure the Levy Center always has a home. The first question is to determine where that home is, if it is to be a new home, that home has to be made ready. Once that is determined, it will determine the window of opportunity for the performing arts center. He hoped that window would be from six to ten months. Ald. Wynne asked for a written summary of how a multi-plex theater would be economically feasible so that the summary could be available to the public. Mr. King said he would do that. Marty Stern stated this was clearly a concern of the community and proposed to meet individually with the theater operators, combine their information and USE'S information. He would then sum up for the community U.S. Equities sense and opinion regarding screen seating and theories that have been put forth as to why this proposal makes sense. Ald. Wynne asked for clarification regarding the use of the piazza's for the fanners market. Nlr. lberle said that. at this point. there is a 2 '/z acre parcel that could be used for the Farmer's Market. Aid. Feldman pointed out that this development does not presently impede on the site currently being used for the Farmers Market. Ald. Bernstein mentioned that there have been a lot of concerns expressed with regard to the traffic impact of this location. He asked if the developers would include projections of where the patrons of the theaters would be coming from in their demographics. It was Mr. Kaplan's understanding that the City of Evanston has undertaken traffic studies, and JBC has given them all the relative material regarding size, intended tenant mix, projected attendance for the theaters, fie added that the City was undertaking a study on traffic impact. Ald. Bernstein questioned why AMC wanted to come to Evanston and where are the perspective movie goers were expected to come from. Mr. King replied that normally about 70 to 7i% of the audience comes within a six mile radius of the theater. What that points to is very heavy local repeat usage of the facility from the immediate surrounding trade area. Mr. Kaplan said that he felt that not too many people would come from west of Old Orchard to come to us, r, Economic Development Committee Page Thirteen October 22, 1997 he thought that given the north south transportation routes, there would be a very elliptical traffic pattern. with most of the patrons coming from north and south. Mr. King replied that the Northwestern community is a significant market. He said that one of the things that AMC has provided is a daily and hourly projection of when the tickets are expected to be sold, the highest demand day is Saturday, when they expect to sell I0,000 tickets (over the course of a full day). Aid. Rainey asked Mr. Iberle to comment on the JBC's management philosophy and how the properties will be maintained. Mr. Iberle said that the JBC intends to participate fully with Evmark and that the focus of the JBC as a company is urban in nature, whether its an office building or retail, including security, maintenance, traffic control. Mr. Kaplan said he did not believe that the tenants would have a merchants association per se'. He understood that Aid. Rainey was concerned about trash on the sidewalk, unmaintained signs, security, etc. Mr. Iberle explained that since all the buildings are owned by JBC, they had every intention of being responsible for the sidewalks. landscaping, cleaning of storefronts. The tenants are required (in the lease) to maintain a first class standard, and the tenants would be charged a maintenance charge. Mr. Buck commented that JBC manages 15 million feet of space and much of that is at grade. JBC has their own security group and are very cognizant of security and cleanliness issues. He said that any projects they manage the sites are maintained by them irrespective of the any City's responsibility. Aid. Rainey asked for the same response from the Arthur Hill Company. Aid. Feldman said they would provide that answer in writing. Aid. Newman asked how long AMC has been in business. Mr. King said that the company has roots back to 1920's and has been constituted in its present form since 1963. He mentioned that AMC started with the mega-plex screens of 15 or 16 theaters in the late 1980's. Aid. Newman asked if any projects had been closed since ANIC opened them. Mr. King replied that they have not. Aid. Newman asked if AMC would consider having 12 screens with a maximum of 2,4400 screens. Mr. King said that they were very concerned with the long term viability of the complex, originally they wanted more screens than they have, the present seat count is pretty close to the threshold of what is considered a viable long-term theater operation. Ms. Krasno,.v's was concerned about retail already in Evanston moving to the new project. Mr. Kaplan explained that JBC didn't want empty store fronts on the east side of Evanston if only for their own interests with the NBD building and Park Evanston. Also, the kind of product that JBC intends to offer is large open spaces which have high ceilings which presently cannot be accommodated in downtown Evanston. The competition for these types of boxes are suburban strip shopping not downtown Evanston. He felt the biggest danger that downtown Evanston faces is losing tenants because they are not doing well. The reason most retail does not do well in central business districts is because there is insufficient critical mass. Increasing the amount of retail, bringing the movie theater. parking, and restaurants bring more people to the downto%-,-t. Economic Development Committee Pave Fourteen October 22. 1997 Ald. Feldman said the basis of this project is the hope to bring more people downtown, but making certain that there is an easy fluid attractive way to go from the new development to the downtown so that it becomes so it becomes an adjunct part of rather than a competition to the downtown. Ald. Newman mentioned another concern was not having people in the downtown in the evening. Mr. Kaplan said this project would extend the hours of downtown Evanston, and once this project is constructed it will spread all over the downtown. III. ADJOURNMENT There being no further questions, Ald. Feldman adjourned the meeting at 10.40. Respectfully submitted, May E. aaske Executive Secretary Planning Division Community Development Department DRAFT - NOT APPROVED DRAFT • NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE PUBLIC MEETING MINUTES Wednesday, November 12, 1997 7: 30 P.M. CITY COUNCIL CHAMBERS EVANSTON CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Ald Engelman, Aid. Moran, Ald. Newman, Ald, Wynne, Vaughan Jones, Lucille Krasnow, Marty Norkett, Greg Norwell STAFF: Roger Crum, Judith Aiello, James Wolinski, Dennis Marino, Michael Guttman, Stephanie Steen, Mary Baaske OTHER CITY COUNCIL Ald. Bernstein, Aid. Drummer, Aid. Kent, Ald. Rainey, MEMBERS PRESENT: Mayor Morton PRESIDING OFFICIAL: Ald. Feldman SUMMARY OF DISCUSSION I. CALL TO ORDER Ald. Feldman called the meeting to order at 7:44 p.m. II. PURPOSE OF MEETING Judith Aiello, Assistant City Manager, gave the following overview of the Research Park proposal. Ms. Aiello said that the redevelopment area was first designated in 1988 as Downtown Frnnnrnir_ nPyPlnnmPnt r nmmiltPP Piohlir MPPtinn 1 1117107 Pa II by the City Council and the Plan Commission as an area that could entertain redevelopment for greater and higher uses than was present. In order to facilitate development, the City implemented a redevelopment tool that was popular at the time called Tax Increment Financing (TIF). The purpose of TIF is to create a redevelopment district so that the project created within that district creates enough new revenue to pay for debt that is incurred to pay for necessary infrastructure, clearance and redevelopment efforts in order for new development to occur. The City created this area as a TIF district. The first building in that district was built by the Carley Capital Group - 1800 Sherman. The Carley Capital Group created a redevelopment plan for a nixed -use development plan for commercial and residential development with office, retail, hotels, cultural facilities and uses. At the same time the City and University undertook discussions about economic development in Evanston. In order to facilitate that economic development, the University pledged to entertain a stewardship role in development. The University was also promoting a new field of technology transfer designed to help basic industry in the United States, by transferring work from University laboratories to help American industry compete. City Council, the Plan Commission, and the University merged their ideas of redevelopment for the Downtown II area with technology transfer and refocused attention and created the Northwestern University Evanston Research Park (NUERP). In 1984, the City and the Northwestern trustees endorsed that concept and recognized that this was going to be anywhere from a ten to twenty year project, that there were going to be offices, residential, retail, and cultural opportunities.. That goal has been achieved at the north end of the Research Park where over 200,000 square feet of development have been created and over 900 jobs. Revenues within that TIF District have exceeded most expectations and projections. It did not exceed all of the projections because the bottom dropped out of the speculative office market. All of the buildings within the Research Park are occupied, paying real estate taxes, and there are waiting lists to get in. In 1994, the City engaged the Balcor Consulting Group (BCG) which advised the City to take advantage of the commercial market place that is opening up. The BCG advised the City to not give up the north end of the Research Park, find ways to build speculative office buildings, and stimulate and nurture new commercial development in the south end. The Research Park entity decided to issue a Request for Proposal (RFP) which was issued in December 1996. The RFP was structured to respond to issues that have been raised by the public. The University said they would be willing to entertain this land opportunity with the City and swap the land as long as it was of high quality with the City doing the development. The University indicated they were not in the development business and did not want to be. However, they did support the Research Park issuing the RFP. There were four proposals that came back to the Research Park. A team consisting of the University President, University Architect, City staff, representatives from the Chamber of Frnnamtr v lnnmPnt C nmmittPP Pi�hti�, ntin� 1 1 I17/47 Dq 7 Commerce and Evmark reviewed the proposals, This team then recommended to City Council two proposals, one from the John Buck Company, and the other from the Arthur Hill & Company. Those two proposals were sent by the Research Park to the City in June 1997. The City Council directed those proposals to the Economic Development Committee for their further review and study. Every month since June the Economic Development Committee has had these two proposals on their agenda for discussion. The two developers gave a pubfic presentation on July 23. A follow up meeting was held for citizen comment. After hearing the citizen comment, the developers revised their proposals, and another meeting was held for the developers to present their revised proposals. Since the two proposals were presented October 29, the City has been utilizing the two consultants they had engaged to assist in the review of the proposals. The City engaged both U.S. Equities and Kane McKenna and Associates. U. S Equities is a Chicago based internationally renowned development company who does both development and management. Kane McKenna is a Chicago based firm that does national consulting work for communities engaged in tax increment financing districts. Both of these developers have been working with the City and have had weekly meetings with each developer, dissecting their proposals and putting them back together. Martin Stern of U. S, Equities, the City's project consultant, stated that he has worked with each of the developers to make the projects the best they can be, and has been researching whether the elements of the projects themselves are the right elements for the City of Evanston. The total project cost is approximately $53 million, not including the cost of the hotel. He added that 20% equity is typical in this type of project. yir. Stern stated that the good news is the project is financially feasible, by which he meant that all of the public infrastructure and work that needs to be done can be paid for with incremental real estate taxes produced by the project, incremental sales taxes produced by the project, parking revenue, and hotel and other taxes related to the project. There will be no real estate tax increase related to this project as the project pays for itself and provides a surplus to the City. He mentioned that financial data will be presented as to where the developers' proposals are, but that once a developer is selected, the proposal will be able to be to fine tuned to get the cost to the City down, and get the revenues to the City up. 4ir Stern said that he and staff will continue to work after a developer is selected to continue to reflect the Evanston citizens' comments, concerns and create a project that secures Evanston's future as a downtown retail and entertainment center, and a place where the community can come. Ann Carra, President of the Playground and Recreation Board, said she is also part of the Levy Center planning group that includes members of the Levy Center Board, the Leisure Learning Center, and the Commission on Aging. The Committee is staffed by Jay Terry, Director of Health and Human Services; Doug Gaynor, Director of Parks, Forestry, and Recreation; and by t t 1 t 7 /07 P!Igc 4 Lois Miller, Levy Center Manager. Ms. Carra said the Committee has been meeting for several months to discuss types of programming important to seniors in the City of Evanston, and how those programs could help shape what a new Levy Center facility would look like in light of the redevelopment proposals. She stated the following items were critical in the success of any senior citizen program: 1) the activity area of any new facility be on the first floor level; 2) that the facility be close to parking and that parking for senior participants be free of charge; 3) that the facility be close to public transportation; 4) it have a minimum of 25,000 square feet. She stated that members of the Committee will take a tour of the different senior centers in the area, and then will provide the EDC with written suggestions for components of a new senior center facility. John Wertymer, representing a committee that is working on developing the performing arts, stated he is a member of the Evanston Arts Council and has been discussing a performing arts center for years, but a real opportunity has not existed until now. He added that he was confident that the necessary funds could be raised. He added that the Committee has accounted for $3.5 million of total cost of $5.7 million for the Center. Mr. Wertymer stated that he accepted the time constraints involved in raising funds. Judith Aiello next summarized the traffic study that had been completed to date by KOLA. The findings were that the proposed parking garage was adequate to meet the needs of the development. In addition, each of the nearby major intersections were run B+ pre development, however, each intersection will add one to two seconds to get through the intersection after the development. Based on citizen and Aldermanic requests, KOLA was asked to do some additional research focusing on key intersections. Roger Crum, City Manager, stated that the project as proposed is financially feasible. The project requires private investment of over $50 million. In addition, the City is being asked to provide $20 million to fund a parking garage, a new Levy Center, land assembly and capital improvements. All $20 million will be paid back by revenues generated by the development. It does not take away anything from the general fund. In fact, the project will add $250,000 annually to the General Fund for services. He concluded by stating that in ten years the project will be fully on the tax rolls, after the expiration of the TIF. Marty Stern summarized a handout which was distributed highlighting major financial elements (copy attached) of each proposal. Phil McKenna of Kane McKenna Associates confirmed that his firm had completed its preliminary analysis and has confirmed that the development can be fully financed by project revenues and will return a net positive cash flow to the City during the life of the TIF and after the TIF expires. He confirmed that his projections assume a new entertainment tax. Ald. Feldman invited citizens to begin to comment as they are called per the sign in sheet. Valerie Kretchmer stated that she viewed this as one of the most exciting and positive projects to happen in Evanston in a long time. As a professional planning consultant, she added that most of g 1 1 /11107 on i her clients would kill to attract this type of development. She added that Evanston would become the envy of the suburbs if this development is completed. Ms. Kretchmer applauded the City for its careful consideration of this proposal and the use of highly specialized consultants. She concluded that we move forward with approval of this development given that the market is here now and may not be later. Don't back away because of naysayers, it is too good a project to lose. Debra Chandler commented that she agreed with Ms. Kretchmer. She moved to Evanston to live in an urban environment smaller than Chicago. She concluded that the proposed development, if done tastefully, would complement the existing downtown. Jack Gross stated that he maintained an insurance office in Downtown Evanston. He added that the proposed project is excellent. He asked if the consultants had adequately considered the competitiveness of the theater market given the ability to support 16 additional screens. He added that he was concerned about violent movies and the possibility they would attract teenagers. Harry Mann commented that he has owned a building near Clark and Sherman since the 1950's. He summarized the history of downtown Evanston since the 1950's. He commented on the health of the downtown in the 1950's. He encouraged the Committee to approve the project because he viewed the success of the project as the only way to revitalize downtown Margie Newman presented a statement of the Coalition for Appropriate Development of the Research Park. She objected to both of the current proposals and the process under which they were developed. Ms. Newman stated that there should have been more public participation in the process of preparing the RFP. Secondly, she did not believe information had been shared on a timely basis, especially financial projections. The speaker objected to the proposals because of issues of scale, density, number of theater seats, and parking and traffic problems. She contended that neither proposal is compatible with downtown Evanston. Ms. Newman proposed an alternative development which included a hotel and conference center, a performing arts center, a renovation of the Levy center, a parking garage and residential development. She proposed that a new RFP be issued and distributed an outline of an appropriate RFP designed to achieve the type of project her group has proposed. She recommended that the City's current time line be eliminated. Jim Nash of Farnswoth Hill is an owner of a mixed use property in Downtown Evanston. He strongly encouraged the Committee to approve one of the two proposed developments. He added that the development would help recreate the wonderful downtown Evanston he remembered as a child. Ben Page commented that he was part of the Ridge Historic Neighbors and that he wanted to slow down the process, scale it back and get more citizen input. He referred to a petition that over 500 people had signed. He asked the Committee to follow the recommendation of Ms. Newman He presented the petition to the Committee. Proun llif:D.eucinnment r nmmittep PAlin Mwwti1 1/17/97 Pr+q�,_[L Ron Isaacson, a business owner and residential property owner, stated that he was disturbed by the inaccuracies of the two previous speakers. He stated that the project will dramatically help downtown and it will neither restrict the egress of traffic, nor create traffic problems. He added that he was more concerned about Sherman Avenue being empty. He was very encouraged by the movie theaters proposal which would strengthen downtown. He cautioned people not to always second guess the professional experts about the feasibility of the development. Mr. Isaacson concluded that this does not need to be an adversarial process. He stated that people can work together to achieve commonly shared economic development goals. He complemented the EDC for its thoroughness and its focus on the short and long term benefits for the community Liz Reeves, a member of the Ridge Neighbors, commented that she was most concerned about the traffic likely to be generated by the development. She referenced traffic congestion at Old Orchard Theaters. She encouraged the Committee not to make another bad decision on top of the past bad decision to support the Research Park. She asked the Committee to delay its decision and recreate the process with a different approach. Eli Cohen stated that he lived in Evanston for over forty years. He complemented the John Buck Company on its high quality work and encouraged the Committee to choose JBC if it decides to move forward with the project. Terry Jenkins of Evmark expressed the organization's strong support for the proposed projects. He added that Downtown is doing well, but not excellent. He added that the key to a successful downtown is the number of people who are present. A secondary key is the size of the market area which is 3.5 mile radius. He commented that more destination shoppers are needed. He concluded by stating that the proposed projects would increase the number of people coming downtown and expand the market. He added that he was pleased that both developers had expressed interest in becoming part of the Evmark special service district. Troy Thiel asked for another meeting of the type occurring tonight. He advocated that the current proposals were dangerous and had limited financial benefit to the City. He encouraged positive economic development, but viewed both proposals as lacking because they did not include a convention center, Mr. Thiel supports the proposed Performing Arts Center. He objected to the number of movie seats and the traffic congestion that he believes will occur. He concluded that this would harm property values. Mr. Thiel advocated limiting new retail which he believed would hurt existing retail throughout the city and affect residential property values in adjacent neighborhoods. Mr. Thiel proposed an alternative development of lower scale and density. Kathy Burgess stated that she was a member of the Dewey Community Center and the Ridge Historic Neighbors. She added that she was opposed to the Cineplex and insisted upon a small cluster of theaters. In addition, she commented that she did not want a large retail development with related traffic and chain stores. Lastly, she stated that she was concerned about concentrating too much traffic west of the el tracks and the total cost of the project to the City. Frnnnmir r]PVP}nnmPnt r nmatittPP P11hUr Manting 1 1 /17/Q7 Ala g-'Z Bob Thompson, representing the Levy Center, presented a statement of the Levy center Advisory Board. He applauded the City for its effort to improve the business climate of downtown Evanston. Concerning the Levy Center, he stated that the new facility must be on street level, all on one floor with 20,000 - 25,000 s.f., and in close proximity to mass transportation and parking. He added that his first choice is to remain in the current building with substantial upgrading. If this is not possible, then the standards stated earlier must be adhered to. Ray Pierrehumbert, representing Dempster Neighbors, stated that he had lived in many European cities and he considered Evanston to be a City. He commented that the City has taken a wrong turn in doing the proposed development and it will be a mistake that will be difficult to undo. He objected to subsiding developers for this type of development. He especially objected to giving away prime land for such a low price. Mr. Pierrehumbert concluded by stating that the John Buck Company will own too much property in Evanston and he added that he objected to their design approach. He complemented the Hill Company for soliciting the Sundance Company to provide art films and he stated that he was more confident in their architect. He requested that the EDC recommend the Hill proposal but not give them carte blanche. Chuck Remen, an Evanston resident for 60 years, a member of the Chamber of the Commerce and the Southeast Evanston Association, stated that he supported the proposed development because of Evanston needing more economic development and the quality reputation of the two developers. He acknowledged that some residents were feeling threatened by the development, but he hoped the EDC and Council would move forward with the development after completing a professional traffic and parking study. Linda Dewaskin, a downtown business owner and a south Evanston resident, stated that she and her husband supported the proposed development. She added that she has lived here for twenty years. Ms. Dewaskin read a letter from Ann Jennett of the Youth Job Center which expressed support for the proposed development due to the new employment it will generate for young Evanston residents. She asked that the EDC encourage the developers to hire Evanston residents. Ms. Dewaskin commented on the history of downtown over the past twenty years, highlighting trips to the Varsity Theater, ice cream palors, department store visits, the Dominick and may other stores. She encouraged the opponents of the proposed projects to reflect upon the importance of this project in returning Evanston to the prominence that it once had. She encouraged the Committee to approve this project to attract more people and to reduce the unacceptable vacancy rates she has witnessed in downtown Evanston currently. Jonathan Perman, Executive Director of the Chamber of Commerce, highlighted some of the changes that Evanston had experienced as it lost its former role as the retail and cultural entertainment center of the North Shore. The changes included the loss of3500 theater seats as a result of the closing of the Varsity and Valencia Theaters as well as the loss of major department stores, representing 300,000 s.f. and the effective decline of retail sales adjusted for inflation. He stated that the two proposals before the EDC begin to recapture the entertainment and retail uses that have been lost over the past thirty years Both projects added needed parking and a Frnnnmir rlpyPlnpWi-ntro_ mittge Piihlir MPpsin` 1 1 /17/Q7 P-,F-$_ desired hotel. He concluded that the Chamber supports the proposed projects with strong consideration to be given to more meeting and conference space as well as the performing arts center if financially feasible. He added that the project must be integrated with the existing downtown and mass transit nodes that are present at the site. Marita Kuhl recommended appointing volunteers to review the proposed development, including volunteers from the neighborhood. She proposed that the site in question be turned into a park. Sidney Zwick, a resident since 1938, expressed support for the proposed development, and highlighted his experience with economic development projects in Southwest Evanston which have been successful. He suggested that there could be more meetings to talk about the need to promote private development to alleviate the pressure on residential properties. He added that this project, if it changes Evanston, will change it for the better and return it to the level of success it once enjoyed. Dorothy Dare, President of the Dewey Community Conference, stated that her organization supports development in Downtown Evanston. She encouraged the Committee to slow down the process and added that she was dazzled by the experts the City had assembled. She added that the EDC should supply the residents with more information and feedback on their concerns. Nancy Kotler, co-chair of the Evanston Arts Council, encouraged the EDC to make the Performing Arts Center a focal point of the development, not an addendum. Tom Fisch], a downtown business operating and life-long Evanston resident, commented that the theaters and the new hotel would greatly help downtown. He added that a walk on Sherman would indicate that things are not going well downtown and this type of new development is important. Eric Singer encouraged the Committee to slow the process down. He commented that the proposed development lacks creativity and he hoped that this could be addressed. He added that he had fears about the development and he had hoped the EDC would address this, but it has not. Mr. Singer stated that Hill does not have a commitment from Sundance and that the Buck Company is not appropriate. He added that he would love to see Sundance present, but he would not like to see 18 screens. He expressed concern about the fate of the Farmers Market. He concluded by stating that the Citizen Committee in which he has participated supports new development on this site but it should be of a much smaller scale. Richard Stillerman stated that he was speaking as a supporter of the development proposed. He added that the time has long passed to develop the land in question and start generating real estate taxes. The Master Plan of the Research Park provides for high rises and much more dense use than is proposed by either of the two developers. If the Park had been developed as envisioned with 2 million s.f of space, we would have had much greater traffic impact than we would under the current proposals. There has not been sufficient demand for Research Park uses as originally planned. The current project is a modest development compared to a complete build out of the Research Park. Concerns about traffic development appear to be overstated. The highest traffic demand will be on weekends when other office uses are closed. Many people will take public transportation or more importantly, they will walk. He added that the chances of customers parking west of Ridge is slight. Mr. Stillerman commented that the specter of traffic congestion raised by opponents of the project are not justified given the access to the site from many arterial streets from the north, west, east and south. Traffic will be well dispersed. Mr. Stillerman commented that he was a proponent of the Hill proposal because of its design, ambiance, use of open space and its lower cost to the City. He added that Hill's architect appears to have a strong grasp of what Evanston is about. Mr. Stillerman encouraged the Committee and Council to move forward with its decision before the end of 1997. Jack Legman, who is involved in the Levy Center, stressed the importance of addressing the needs of the Center, especially maintaining the Levy Center on the ground floor. He added that it cannot be moved to the second floor to allow retail on the first floor. Marty Stern clarified that the developers have been encouraged to present options for the Levy Center and retail uses as the process evolves while looking at all reasonable opportunities. John Hammerslag, a resident and experienced parking consultant, focused his comments upon the parking element of the proposal. He added that he was pro development and viewed both proposals as having several positive elements. Concerning the original Research Park, he highlighted several positive benefits of this development despite the real estate slide of the early 1990's. He cautioned that speculative office development may again be possible given the state of the economy. Mr. Hammerschlag raised concerns about the volume of new retail included in the proposal and its impact on smaller businesses downtown. Mr. Hammerschlag stated that he was cautious about projected revenues for the garage although $300,000 net revenue from parking was an improvement over previous projections he had heard. He encouraged the Committee to look at incremental parking revenue not just new revenue from this garage given the loss of income from existing surface tots. He stated that the parking structure needs to be visually appealing, but not hidden. He encouraged the Committee to took at the 201 Madison Parking Garage in Downtown Chicago to see a garage that is visually appealing, yet visible to users. He criticized both parking garage proposals for not being sufficiently visible. Mr. Hammmerschlag added that the City should insure that each garage has two exits. .old Feldman stated that this was the last speaker registered to speak under public comment. He reintroduced Marty Stern. Mr Stern complimented the EDC on the process in which it has engaged and reminded everyone that this phase is Step I on a long road, beginning with the selection of a developer. He added that the current purpose is to highlight the differences between these two developers and select one. Mr. Stern highlighted the following issues which have been raised- potential traffic impact analysis on surrounding areas as well as the downtown; the optimal number of theater seats (3500), scale and character of Evanston; the amount of retail; appropriate public involvement and process; the Levy Center; the performing arts center; and the need to bargain hard to maximize benefit to the City. Ald. Newman stated that whichever developer is selected will have to carefully address each of the issues Mr. Stem summarized. He added that he Iived very close to the downtown and will work with the selected developer to insure that the issues raised are addressed carefully. Ald. Feldman asked Judith Aiello to read questions from the audience that had been written on cards by members of the audience. Ms. Aiello began by indicating that questions from previous meetings and responses were available to members of the audience. If anyone did not receive these documents please contact her after the meeting. Question#1: Is the land price proposed by the developers too low? Ms. Aiello stated that the proposed purchase price was the first volley by the developers, not the price for which the City has agreed to sell the land. She added that Mr. Stem had emphasized the City's intent to bargain hard. This applies to the land price. Questions #2: Has the effect of this development on the Howard Street Gateway development which will benefit Howard Street and South Evanston, been fully assessed? Mr. Stern stated that the Gateway theaters have been considered in the market analysis. The conclusion is that both theater cineplexes can thrive and that Evanston also has opportunity to generate municipal revenue from theaters. Ms. Aiello added that the Gateway development is in a TIF District and will feature different components that the proposed downtown project does not include, such as a major grocery store. Question #3: Will the proposed development shift the center of downtown away from Sherman Avenue? Ms. Aiello responded that the retail proposed for the new development will add space of a size not currently available in the downtown. This will lead to many more people downtown benefitting existing and new merchants. Q 44: How much has the City expended on land acquisition for the existing Research Park? hls. Aiello responded that the City had expended about $3 million for acquisition and related costs. Revenues generated within the TlF district have exceeded annual debt service. Bonds will be retired in 2008. Q f5 How much streetfront retail does each developer manage Mr. Hill responded that Mid America is the retail partner which manages 8,5 million feet in many different settings including Michigan Ave., Lincoln Park, Bucktown, Schaumburg and in many other sites. Mr. lberle stated that the Buck Co. manages 15 million feet of space of which 750,000 is urban streetfront retail. Q 96: Who will pay for parking? Economic rhmelopment r nmmitt= Public M"alugg 1 1 /� 1 W 'PAM 1 1 Ms, Aiello stated that the user will pay for parking except for the free parking periods which are after 6 pm and on Sundays. A change in this policy is not planned. Q #7: How much is Denver funding in the Hill project in that City? $24 million for garage, infrastructure and public art paid for by a TIF. Q #8: How can we insure that the development does not take away retailers from existing downtown? Mr. Stern responded that the proposed retail will have a different size range in terms of available space, it will attract a different retail niche that should be complimentary to the existing downtown and an enhanced critical mass of shoppers. Q#9 How will Dave's Italian Kitchen and the Pineyard be addressed? Ms. Aiello responded that the City has had discussions with owners and tenants in both buildings. She added that relocation benefits will be available to each restaurant including moving costs, equipment reconnection, sign age and other related costs. Ald. Newman added that there is a lot of communication with Dave's and a hope that he will relocate within Evanston. Q # 10 Has the City considered the METRA reconstruction plans for the Davis Street station and has this been incorporated into planning for this project? Ms. Aiello responded that the City will continue to have discussion with METRA and the CTA as the proposed project moves forward. Ald. Feldman thanked all members of the audience and the development teams for their participation this evening. He encouraged participants to attend the next meeting on November 19th. The Meeting was adjourned at 12:30 a.m. WiaLfary aske Executive Secretary DRAFT - NOT APPROVED DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE PUBLIC MEETING MINUTES Wednesday, November 19, 1997 7:30 P.M. CITY COUNCIL CHAMBERS EVANSTON CIVIC CENTER MEMBERS PRESENT: Ald. Feldman, Ald Engelman, Aid. Moran, Ald. Newman, Ald. Wynne, Vaughan Jones, Lucille Krasnow, Marty Norkett, Greg Norwell STAFF: Roger Crum, Judith Aiello, James Wolinski, Dennis Marino, Michael Guttman, Stephanie Steen, Mary Baaske OTHER CITY COUNCIL MEMBERS PRESENT: Ald. Bernstein, Ald. Drummer, Ald. Kent, Aid. Rainey, Mayor Morton _ PRESIDING OFFICIAL: Ald. Feldman I. CALL TO ORDER AND PURPOSE OF MEETING Ald. Feldman called the meeting to order at 7:35 p.m. Ald. Feldman announced that the decision as to choice of developers will be made at the December 1 EDC meeting, and not this evening. On December 1, EDC will also meet with the neighbors in the historic Ridge District to discuss the traffic report. Tonight, the consultants, U.S. Equities and Kane McKenna will give their reports after a brief overview of the Traffic Study by David Jennings, City Traffic Engineer, with time for discussion and questions from the public. IL CONSIDERATION OF MINUTES The minutes of October 15 and 29, 1997 were approved unanimously. A III. COMMUNICATIONS The Downtown Idea Exchange and listing for EDC meetings from June - November 1997 were distributed in the packets. The Committee accepted these communications. M. RESEARCH PARK PROPOSALS Ald. Feldman asked for an overview of the Traffic Study performed by the City's consultant, KOLA. David Jennings began by stating that the consultant was asked to review the impact on Church Street and the operating conditions on Church Street from the Research Park to McCormick Blvd. KOLA was also asked to examine Dempster and Emerson to determine the impact on some signals and provide operational recommendations. Mr. Jennings reviewed delay time figures at various intersections and reported that the consultants found that the proposed development did not appear to significantly impact the operation of the intersections studied. At the Ridge/Emerson intersection, the consultants suggested the widening of the north and south lanes of Ridge Avenue to accommodate a two-phase signal. Other ideas involved Church Street one-way considerations and dropping the speed limits near the high school when pedestrians are present, and raising them at other times, which State law allows. IV. RESEARCH PARK ENTERTAINMENT PROPOSALS Marty Stern reported on the status of the proposed redevelopment. He focused on three main areas: the process to date and further necessary next steps; the project and its evolution; and the key differences between the two development proposals. The process thus far has involved two developers. Key issues must now be resolved, greater detail is required and designs must be finalized in order to determine the financing and cost. One developer must have the City's full commitment in terms of negotiating an agreement so that all the details can be worked out, thus a decision must now be made between the two developers. Mr. Stern outlined the following recommended process: once the developer is agreed upon, they will work with the City for approximately 90 days on a development agreement, which will contain target dates for huge milestones such as completing design, obtaining financing and starting construction. The next major checkpoint with the Council and the public will be the approval of the development agreement. If the City is not satisfied with the progress of the developer, it will retain the right to drop the designated developer and negotiate with the other developer. Mr. Stern stated that the development proposals are much better than when they were first presented, and are both people and pedestrian oriented. Both proposals extend and integrate with the current downtown and use materials consistent with what is used currently downtown. Both bring needed uses and bring people. There will be a performing arts center and a more modern and efficient Levy Center that will be paid for by tax proceeds generated by the project. Regarding the movie complex, Mr. Stern stated that the issue is the right number of seats and 7 AgOP generally, more screens are better since this accommodates the showing of smaller audience films, and more times can be offered which aids in traffic dispersion and dispersion of pedestrians to downtown. There is a danger in under serving the market which would create the need for more competition. It is for these reasons that they would not recommend significantly reducing the number of seats. He added that the taxes and public benefits make this a very attractive and exciting project. Mr. Stem added that both proposals work in terms of being self-supporting. This means that tax revenues, i.e. real estate, sales, hotel and entertainment taxes and parking revenues, should be sufficient to take care of all expenses including debt service. Additionally, it will not disrupt any other City plans for TIF revenues. In comparing the two proposals, they found that in summarizing the revenues by source, there was less than $100,000 differential between the two, and that the revenue Rae items total about $3.1 mullion in each case. He pointed out that even when the TIp district ends in 2008, there will still be enough money to service debt service and provide for City services. The City's share will then be in excess of $500,000 annually, and the school districts will benefit as well. Mr. McKenna added that the schools would get a minimum of $ l million annually. Discussion occurred concerning whether the net requested public expenditure was closer to a $300,000 difference between the two proposals. It was clarified that the Buck development would likely produce additional sales taxes due to the additional retail their proposal contains. The $100,000 referred to previously was revenues net of deduction for expenditures. At this early stage, the numbers differ about 1-1.5% between the two proposals. Ald. Newman pointed out that what is done with -the Church street viaduct is an important consideration. W. Stern highlighted differences in the proposals with respect to parking, retail, the location of the Levy Center and location of the Cinema. Mr. Hill explained that Cinema patrons in his proposal can approach from three directions. Their design encourages pedestrian traffic, while reducing vehicular traffic. Regarding activity generators for the area south of Church Street should the Levy Center occupy the first floor, John lberle stated that perhaps the dimensions of the building could be changed to activate the street . Vaughn Jones asked for the definition of a long-term relationship in real estate development issues since any future owner of the property may not have the same level of commitment. Marty Stern responded that both developers expressed the intention of managing the project for a long time. Regarding the integration with the downtown area, especially the retail emphasis on Sherman and Orrington, Mr. Jones would like to see some incentive to encourage commitment to strengthen those areas. Mr. Stern responded that both developers have committed to working with Evmark. Numerous citizens expressed opinions and concerns related to traffic impact, parking sufficiency, the size of theaters, and the impact of the new retail upon existing retail. Several citizens expressed concern about the process and requested that the Committee move more slowly. Ald. Feldman called the audience's attention to the two parking studies prepared by KOLA and reminded that there would be a special parking meeting on December 1, I997 at 6:30 PM, before the EDC Meeting scheduled for 8:00 P.M. that night to consider which developer to select. He added that the process of addressing the concerns of neighbors would be a continuing process long after the developer is selected. He stated that this decision is a beginning, not a conclusion of the process. He concluded by stating that much hard work needs to be done. A member of the audience inquired as to how much money each developer would make from the project. John Buck stated that his company expected a 12% annualized rate of return on an equity investment of $7 million in the project. Arthur Hill responded with a similar expected return and projected equity investment. Another member of the audience asked how much each developer had invested to date in preparing and presenting the project. Each developer stated a range of $150,000-$200,000 in costs to date. Hans Friedman stated that he was not opposed to an appropriate development on the site, but that he wanted it to reflect the scale and design characteristics of Evanston. He encouraged whichever developer is selected to work carefully with the community to allow participation in shaping the design of the project. Eric Singer concurred with Mr. Friedman, but also encouraged the EDC to slow down the process and considering reissuing an RFP. A citizen asked if the RFP had included sufficient review to reflect the concerns of the RFP. Ald Engelman responded that the RFP was issued by the Research Park Governing Board which has substantial participation by the City. He added that the genesis of the project and RFP were within the City and the Council, including the Economic Development Committee. Ald. Feldman thanked the audience and the developers for their participation this evening and adjourned the Meeting, on a roll call vote, into Executive Session to discuss land acquisition. Members adjourned from Executive Session into open session at 1:05 a.m. Dennis Marino summarized a memorandum that had been included in the Committee packet concerning the Downtown and Storefront improvement programs financial status. He indicated that the CD Committee had declined to recommend 1998-99 funding for either program. In addition, $53,000 of the Fund Balance for the Downtown Storefront program had been reprogrammed by the Committee. He concluded that the programs are likely to run out of available funds early in FY 1998-99. Frnnarnir nenre•lnnmrnt rnMM;""r P11h1ir. M"Aag 1 1110/07 p9ge S Ald. Engelman moved to send a reference to the CD Committee urging 1998-99 funding of the programs as requested. Ald, Wynne provided a second. The motion was unanimously approved. The meeting was adjourned at 1:15 a.m. Jo arquharson 0 Secretary DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE PUBLIC MEETING MINUTES Wednesday, December 10, 1997 Room 2404 - 7: 30 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Ald. Newman, Aid. Wynne, Vaughan Jones, Lucille Krasnow, Marty Norkett, Greg Norwell STAFF: Judith Aiello, James Wolinski, Dennis Marino, Mary Baaske OTHERS PRESENT: Aid. Bernstein; Aid. Drummer; Dennis Harder, Joseph Freed & Associates, Inc; PRESIDING OFFICIAL: Aid. Feldman I. CALL TO ORDER A quorum being present, Aid. Feldman called the meeting to order at 7:47 p.m. II. CONSIDERATION OF MINUTES OF DECEMBER $, 1997 MEETING Aid. Newman moved approval of the December 8, 1997 Economic Development Minutes. Aid. Wynne seconded the motion. Motion passed unanimously. 11 Economic Development Committee Minutes - December 10.1997 Pa eQ Two III. COMMUNICATIONS Memorandum of December 5, 1997 from Economic Development Committee to CDBG Committee; Reference - CDBG Funding of the Storefront Improvement Program. Aid. Feldman asked Aid. Drummer if EDC would receive an official communication regarding their memorandum of December 5. Aid. Drummer replied that the CD Committee appreciated the memorandum, and as of now their original decision stands. He said the appeal should be made to City Council. IV. PROPOSED SCHEDULE OF 1988 EDC MEETINGS Dennis Marino explained that the meeting schedule was essentially the same as this year. The meetings will be held on the fourth Wednesday of the month except if that Wednesday falls on a holiday, in which case it will be moved up one week. Aid. Newman asked if the Economic Development Committee meetings could start at 7:45 instead of 7:30. The Committee agreed. V. PRESENTATION BY JOSEPH FREED COMPANY CONCERNING REDEVELOPMENT OF THE DEMPSTER-DODGE SHOPPING CENTER (EVANSTON PLAZA) Dennis Marino introduced Dennis Harder of the Joseph Freed Company (JFC). Mr. Harder explained that the Joseph Freed Company was a development company and was located in Wheeling. He reminded the Committee that the Joseph Freed Company was involved in the redevelopment of Main Street Commons. Mr. Harder introduced Mike Cottor of Balcor, the current owner of Evanston Plaza. Mr. Harder informed EDC that the Joseph Freed Company is under contract to purchase the plaza and his purpose in coming to the meeting tonight was to start the process and discuss and share information with the Commission. He said his long term objective was to acquire the center and to improve and retenant the development. Mr. Harder summarized the Joseph Freed Company's plans by telling the Committee of the negotiations with a grocery store and his plans for the reconfiguration of the Plaza. The Committee discussed the status of TOYS R US.. He stated that in order to undertake the kind of change his company wants to make in this Center, they must fill a gap in their pro forma. Because of the expense and change required in redeveloping the center, his company was looking for discussions with staff and the community at large about a program of public financial support. Mr. Harder said he understands the process that was gone through with Home Depot and looked to that as a model and added that JFC has done projects like that before. .4 Economic Development Committee Minutes - December 10,1997 Paae Three Aid. Feldman asked Mr. Harder what the projected time table is for the center. Mr. Harder stated that the environmental remediation is one of the first things that must be done and tends to complicate the economics of the Plaza. He thought that the transaction would probably be closed in mid -spring and assuming environmental remediation went well, he felt he could start remodeling the center in mid-1998. Aid. Engelman urged Mr. Harder to include in his pro forma, the losses that will be resulting from the possible loss of business already located in the center and how it might affect existing surrounding businesses. Judith Aiello recommended that Kane McKenna be engaged for assistance in evaluating the sales tax reimbursement for extraordinary costs similar to the Home Depot project. Aid. Newman said that he would like the Committee to look at both the sales tax reimbursement approach, and the TIF district and see what the differences are. He thought that if the Committee is considering a TIF, the high school should be notified. Ms. Aiello said that when the Freed Company first approached the City with the idea of a TIF district, the staff thought that public policy has been no more TIF based upon the school district's reaction at the Iast creation of a TIF. However, she added, if that is the Committee's direction for staff to take a look at, she thought it would be beneficial to raise this issue at the next the next City/School Committee meeting, that this was something the City is considering. Aid. Feldman mentioned that at a meeting with EDC, both superintendents, and business representatives of the districts, they talked about a significant interest both in Church/Dodge and Dempster/Dodge in terms of revitalization. Ms. Krasnow wanted the record to show that for any future vote on this matter, her husband's firm (Krasnow, Sanberg, and Kohn) represents Joseph Freed and Associates and she was removing herself from any vote. Aid. Newman wanted Mr. Harder to leave this meeting with the impression that EDC is very interested in this project. VI. RESEARCH PARK DEVELOPMENT Aid. Feldman asked the Committee to look at the list handed out to them tonight that includes a list of issues taken from the conversations of the Committee during the last two meetings. This list will be transmitted to the City Council for inclusion in negotiation process, some of those items are exploratory, others are actual negotiated items. Aid. Newman moved to accept this list. Aid. Wynne seconded the motion. The motion passed unanimously. Economic Development Committee Minutes - December 10,1997 Pane Four VII. EXECUTIVE SESSION Aid. Engelman made a motion to adjourn to Executive Session for the purpose of discussion of matters of land acquisition of a proprietary nature. Marty Norkett seconded the motion. Voting Aye on a roll call vote: Aid. Engelman, Aid. Feldman, AId. Moran, Aid. Newman, Vaughan Jones, Lucile Krasnow, Marty Norkett, Greg Norwell. The Committee went into Executive Session at 8:26 and resumed public session at 9:05. VIII. CHANDLER PROPERTY (630 Davis) The Committee discussed the appropriateness of providing financial assistance to the proposed Chandler redevelopment. Judith Aiello summarized the expressed interest of the developers in receiving financial assistance of $500,000. Aid. Feldman thought the issue was if there was any merit at all in giving the developers of the Chandler building $500,000 and whether the City can afford it. He said that if the property is involved in litigation, the City should do nothing, but if the exit from litigation is contingent on the parties receiving $500,000, it should be considered. Ms. Krasnow said that all she was hearing relates to a lack of understanding about the City's policy and that is where she needed clarification. What is the policy of who is given the money, it doesn't matter how poor or rich we are as a City, or what deal is on the table, it has to do with how this particular deal fits into City policy. She asked Judith Aiello to help the Committee understand their options. Ms. Krasnow thought that the Committee should decide if they want the policy and this project brought to the Committee right now, and decide how much time staff should devote to this question. Aid. Bernstein didn't see a lot of difference in dealing with this situation and dealing with the Freed project that was just before the Committee. He thought this was a very important piece of property and exactly like Research Park. The question is what, if any, incentives is the City going to provide to the developer whoever it is. Ald. Bernstein encouraged the Committee not to take any action without all the information needed. Ald. Newman thought that the Committee should give Mr. Johnson a chance to talk about his project. Judith Aiello said that the developers should also be asked to provide a confidential letter regarding their current situation as it relates to litigation and also their possible tenants. Aid. Engelman said that the City does have a specific policy with specific guidelines whose guidelines are set forth in the Illinois statutes that define what is TIF eligible and what is tax sharing eligible. d Economic Development Committee Minutes - December 10,1997 Pare Five Marty Norkett made a motion to invite Mr. Johnson and his group, get all the documentation and information that is needed. Ald. Newman seconded the motion. Motion passed unanimously. IX. ADJOURNMENT There being no further business, the Committee adjourned at 9:30 Respectfully submitted, Mary . aaske Execu ' e Secretary Planning Division Community Development Department .* ECONOMIC DEVELOPMENT COMMITTEE MEETING 7:30 p.m., December 8, 1997 CITY COUNCIL CHAMBERS MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid, Moran, Ald. Newman, Aid. Wynne, Vaughan Jones, Lucile Krasnow, Marty Norkett, Greg Norwell STAFF PRESENT: Judith Aiello, Dennis Marino, Mary Baaske PRESIDING OFFICIAL: Aid. Feldman I. CALL TO ORDER A quorum being present, Aid. Feldman called the Economic Development Committee meeting to order at 7:40 p.m. II. MEETING PURPOSE Aid. Feldman welcomed the audience to the Economic Development Committee (EDC) meeting. He explained that tonight's meeting was a continuation of the process of examining the development proposals for the Research Park. Marty Norkett moved to adjourn to Executive Session for the purposes of reviewing proprietary information received related to land acquisition. Aid. Wynne seconded the motion. Roll call: voting aye, Aid. Feldman, Aid. Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Vaughan Jones, Lucille Krasnow, Marty Norkett, Greg Norwell. EDC went into executive session at 7:42 p.m and reconvened into open session at 8:05 p.m. Aid. Wynne stated that at the last EDC meeting on Monday, December 1, 1997, she commented that there was support from some retailers in the 3rd Ward for going forward with the project. She had received a petition from the Dempster Street area merchants and by mistake said the support was from the Main Street Merchants and wanted the records to reflect this correction. 41 Economic Development Committee Meeting - December 8, 1997 J�Au Two EDC discussed the following list of issues in comparing the two developers. Land Use Aid. Engelman thought that overall land use is the same in both projects and the question is not how the developers plan on using the land, but where they will site various uses. Site Design Aid. Engelman was concerned about the massing of the garage in the Buck proposal on the site that it is located on. He said there were two structures that basically create large blocks, the garage and the movie theater. He added that the Hill proposal of putting the garage in the back has some appeal. Aid. Engelman said that what Evanston is looking for is not a hugh structure that looks the same from one end of the block to the other. Another concern of Aid. Engelman's was that Church Street be activated on both sides, he felt it important that there be a pedestrian friendly corridor. Aid. Engelman asked Marty Stem if the City is locked into the architecture and siting of various properties by the developers. Mr. Stern replied that there are certain elements that can be moved, but each developer has demonstrated his ideas about where the components of their proposal should go and why there they should be there. Marty Norkett disagreed and said that when a site plan is done, the bottom line is what the tenants want, what type of exposure they want, and access to parking. He thought the national retailers would look at the parking to the north and say its too far for customers to walk. Mr. Norkett asked if it were possible to have two parking decks, one to the north for the hotel and cinema, and one for the retail that would also service the people on Church Street. Marty Stern said that it was conceptually possible, but if the parking was going to be split it would have to be located on top of both the retail and cinema, or it would use much more land. Aid. Engelman said that in splitting the parking it would double the number of people working at the parking structure, you lose circulation because of the entrance and exit ramps. Aid. Engelman said another concern was the Hill parking garage being sited at the intersection of three streets with one entrance. He commented that one of the advantages of the Buck proposal was that there are entrances off of the two major streets in the City (Church and Davis). Marty Norkett thought that the Committee has not discussed the parking sufficiently. He added that the development should have parking that is convenient to the consumer, and the concept of two parking garages would relieve some of the traffic problems. Aid. Newman said that last Saturday at approximately 6:30 p.m. he monitored the traffic Economic Development Committee Meeting - December 8, 1997 Page Three, on Church Street and Maple Avenue, and found that Maple was basically deserted. So the idea that there would be a traffic jam because there is some additional usage being added to the downtown has not been supported. Greg Norwell said that one of the most important issues in the proposal was the parking structure. While he thought that the Hill location was preferable in terms of traffic flow, it allows traffic to come in from the north on Maple, and from the left turn basis from Church and from the east on Clark. He was concerned that shoppers coming to the development might not want to drive the extra block tor park as in the HilI's parking garage. Also, the placement of the movie theaters in the Hill proposal might limit the type of retailers who would want to locate at that site. More substantial tenants would be attracted because people would be more likely to shop in a retail store and know that they can park right in the facility where the store is located as in the Buck proposal. Ald. Feldman told the Committee to put in writing all their areas of concern and those concerns would be used in negotiating with the chosen developer. Ald. Wynne asked how discussions of the Parking Committee will be incorporated into City Council's discussion. She felt that the size of the parking garage was critical. Ald. Feldman said that both EDC and the City Council would want to hear that discussion and try to use that information to inform the negotiating team in deliberations with the developer. Density and Scale Vaughan Jones thought that the public should be aware that the plans for the development have been scaled down considerably from the plans that were presented in the summer. This was a result of citizen and committee input. Matgrials AId. Newman said that the materials of the project, as well as the specific points of the architecture, will be part of the negotiating agreement. Marty Stern informed the Committee that both the developers have indicated there would be a strong use of masonry as opposed to heavy uses of glass or steel or modem materials. Both have said that they intend to use materials that are contextual to the rest of the downtown Evanston. Development Team Marty Norkett thought that both development teams were basically even, both developers have very good leasing teams. Ald. Newman said that while both leasing teams are excellent, but that both Mr. I -lilt and Mr. Welcome have a career in retail. They have experience in intermingling hX11mart quality retail with entertainment. Marty Norkett said there is no doubt that Arthur Hill ran Real Estate for a long time, but he was not the team. He may have been the team Ieader, and there is a big difference. John Buck is the team leader, he is not the team. Economic Development Committee Meeting - December 8, 1997 Page Four Mr. Norkett said that what should be looked at is the retail team. Aid. Newman said he thought that the leader of the team adds a vision and shows leadership in terms of integrating the leasing team and the architect. Aid. Wynne said that while you have to look at the team, you have to think about what is our urban center. She said that she looked at what developer was most familiar and had strength in an urban center such as Evanston. While the John Buck Company is very familiar with the City of Chicago, she has also looked at Hill's experience in a community such as Portland, Oregon, and Hill's architect's experience coming from Berkeley, California. She asked for other thoughts from the Committee about this issue.. Lucille Kxasnow commented that Arthur Hill would be able to put a lot of attention into the project right now, because it is one of major emphasis for him right now. John Buck has had so much experience in a tremendous number of venues that it would be hard for her to believe that he couldn't come to this venue and get the vision of what people are interested in and key into it. She added that, as a retailer and resident, she needed to look at who was going to best protect the rest of downtown, incorporate the downtown and make it part of the project. She concluded that John Buck is stronger and has more of a self interest to make sure the project ties to the existing downtown. Looking at the size of the two organizations, there is no doubt that there will always be backup in the John Buck organization to complete the project. She said she does have concerns about who are the principles in the Arthur Hill Company, how many there are, and who will be available if Arthur Hill is not available. Ms. Krasnow went on to express her concerns about possible retail in the Research Park. Aid. Feldman asked Marty Stern if, in the negotiating process, it was an acceptable part of the negotiations to articulate clearly a retail tenant philosophy. Mr. Stern replied that there would be negotiations regarding the range of tenancy. Financial Strength Vaughan Jones asked at what point would a lender step in and ask the developer and his partners to bring in more capital, how serious an issue is that and does it happen very often. Marty Stem said that would be governed by the agreement between the lender and the developer. Most agreements require that the loans be in balance which means that there is enough money left to complete the project. Marty Norkett thought that both developers have the capability of finding the capital and completing the project. Capital al Impro�cnts Aid. Newman said a key point to him is that the most critical part of the project other than bringing the people in and having the retail succeed, is the appearance of the project. The City Economic Development Committee Meeting - December 8, 1997 egg Five doesn't want a mall, it wants an attractive project and one that addresses the underpass. In the Hill proposal, they ask for $1.2 million to put into landscaping and the underpass. The Buck proposal asked for $250,000. He felt that the City was privileged to have an architect such as Mr. Elbasani interested in doing work in Evanston because it was very vital that the City have someone with that type of vision. Aid. Newman said giving the priority to landscaping and the underpass was a very significant recognition of what the priorities of this town are and that the Hill priorities are the right priorities for this project. Marty Norkett stated that the underpass was a part of the development, but there are other critical areas that must be discussed. He said that when you spend money, make sure you spend money that will go back to the taxpayers. Its possible to forego an underpass to have a bigger parking lot. He said he was looking at tax revenues and dollars back to the City. Mr. Norkett said that the aesthetics of an underpass does not prohibit anyone from getting to the downtown and the Committee should look at where the money is being spent and in getting the best deal for the dollar. Aid. Engelman thought it was very important to visually integrate the downtown and this project and that the Committee address that viaduct as well as other viaducts in the community. He said he was not sure there was a distinction between the developers in this issue. When he saw the financials it looked like the Hill proposal was more expensive than the Buck proposal, but on the other hand the Hill proposal included additional dollars expended for public capital improvements. Aid. Engelman asked how much negotiation will the Council be doing after they pick a developer. Mr. Stern said the negotiations would be considerable. Both developers understand the types of returns that are necessary in the market to make this project go forward and what is a fair return for the developers. The developers are entitled to that fair return. Beyond that there may be more or less that the project can carry. As the Council gets more details and drives the cost of the project down, and maintains the rates of return that are needed for the developer to go ahead and receive a fair return, we may find that there are additional dollars generated which we will negotiate to put back into public improvements. Aid. Engelman understood that there was give and take to reach a common goal, but he had problems understanding when you are down to one developer if you really have a common goal of negotiating financial terms. Mr. Stern said the final determination whether the project will go ahead or not is going to come back to this Committee, to various design review people, and to the citizens of Evanston. He said it was the job of the negotiators and the developers to make this project, not only feasible, but as good as it can conceivably be. Manaeemcnt Aid. Engelman said he realized that the Denver Pavilion was new and not open yet, and Economic Development Committee Meeting - December 8, 1997 Page Six asked Marty Stem if he knew who the long term manager of that project would be. Arthur Hill stated the Denver Pavilion was the project of the Arthur Hill Company and that they were the co -developer. He said that it would be managed by an entity that is organized by the two co -developers. In Evanston, if the Hill Company is the developer, the project will be managed in the long term by an entity that is organized by Stan Nitzberg's Mid America and Arthur Hill and Company. Mid America presently manages 8,500,000 sq. ft of retail, and they are the largest manager of retail in the Chicago land area. John Iberle said that the John Buck Company would manage the project along with the other 15 million ft. of commercial property that the John Buck Company currently manages. Aid. Engelman asked if Mid -America was an equity investor in the Evanston project with the Hill Company. Mr. Hill said that they were not, the development entity consisted of Arthur Hill and Company and Richard Welcome. He added that his company has entered into an agreement with Mid -America to provide leasing services and they will be an owner in the entity that does the operating management. Creativity Lucile Krasnow stated that as she looks at the plans she finds them both, as they need to be at this point, vague. She said that she is confused as why some people firmly support one of the design plans, other than the placement of buildings, and that other people firmly support the other project. Ms. Krasnow asked for Committee members to explain why they think that the current drawings say anything about either creativity or lack of it. Aid. Newman replied that the Hill people created activity on both ends of Clark and on Church Street. He thought that the flows of people should go toward the downtown as much as possible and felt the Hill Company created a project that did this. Marty Norkett said he looked at it almost like a beauty contest and both plans can be deceiving because both plans will change four or live times before the existing plan is sealed, signed and ready to go to construction. He advised not looking at it as a plan, but to look at it as a conceptual idea that will change four or five times. The project has to work financially. Vaughan Jones felt that the eastern and southern ends of the business district are equally important. The renderings of the viaduct is nice and cute, but that could change in two years and we could be doing something else. He felt the creativity would come into play as people are brought in from the south and east end of the business district. Aid. Engelman thought both developers were creative in their own way, but he was still concerned about the massive straight wall on the parking garage site in the Buck proposal. He liked the way the Arthur Hill proposal broke up the various sites into several different components. In the Hill proposal there are small public spaces in various nooks and crannies, there is a public space on both sides of Clark Street right in the middle of the block . One problem he had with the Hill proposal was that every time he was looking at one of the public spaces, he was looking out of a restaurant. But, with a climate such as Evanston has what will that space really be used for. As much as he doesn't like the blank wall in the Buck development Economic Development Committee Meeting - December 8, 1997 pace Seven where the parking structure is, its location provides a good connection point to the downtown and that it really is the appropriate place for a garage. If you put the parking garage where the Hill Company has it and people will go across the street to the movie theater, or maybe to the retail, but will you get them to the retail in the existing downtown. Aid. Engelman said there was a lot of creativity in the Hill proposal, but in the long run, he wasn't sure it was appropriate. Aid. Feldman commented that almost from the beginning when the design was first illustrated in the plans the developers submitted initially, he was attracted to the design and concept presented by the Arthur Hill Company's architect. He felt it reflected a concept of main street with an individual number of businesses and created separate entities instead of a large mall. More important was that the Hill Company presented this development as another neighborhood in the downtown. What the Committee heard over and over again was that it should be a people place, a place for people to meet, visit and shop. Aid. Feldman said that this concept was shown in the architectural photographs of other work that were shown to the Committee by Mr. Elbasani. He thought that kind of plan was also communicated to the John Buck Company who saw some value in those concepts and decided that they would try to support those values as well. Aid. Feldman said to him, the soul, the spirit the creativity of the architect, the kind of sympathetic response of a person to the values of a community are not the kind of thing that can be negotiated. He went on to explain his reasons for supporting the Arthur Hill Company's proposal. Greg Norwell asked for information about the number of films Sundance produces and are they willing to let art films from other distributors be shown on their screens. He wondered if there are six screens for Sundance and ten for general cinema, whether those remaining ten screens would still have 3,400 seats. Arthur Hill said there will be approximately six to eight Sundance Screens out of the total number of approximately 16 screens The total number of seats in the Hill Company's proposal is 3,400 which that includes General Cinema and Sundance auditoriums. He said they are studying design solutions and recommendations both to have Sundance in the main pavilion north of Church and also on a second level above retail south of Church. Greg Rikowsky, CEO of operations for Sundance. He explained that Sundance Cinema's was the newest entry into the specialty and independent film market place. He wanted to explain that Sundance was not a producer, they exhibit films that are produced and distributed all over the world. Mr. Rikowsky said that what he has heard about Evanston lines up with what Sundance's values and sensibilities are in terms of the communal cultural experience. While Sundance is a movie exhibitor and is focused on the movie business, but as an adjunct to that business is also closely aligned to the arts and the community. He said that what Sundance would like to do is change the face of movie going that would include specialty and independent film. Sundanceis theaters would have significant common areas where theater patrons can enjoy cappuccino, magazines, and film archives. Sundance would be encouraging customers to talk Economic Development Committee Meeting - December 8, 1997 Page Met about the movie they planned on seeing, or stay after the movie to talk about the film they have just seen. Vaughan Jones said that originally General Cinema had to have at least 16 screens to make putting in a theater economically feasible, how is it possible for them to open a theater with only ten screens. Because with Sundance taking six of their screens, ten is the number of screens left to them. Marty Stcm replied that one of the key issues in the number of seats is people being able to come to one area and know that there are movies that they want to see. From that point of view, because these theaters arp in the same complex and may be operated under two different styles, it does preclude the basic concept that a movie you want to see will be playing in downtown Evanston. Mary Schumaker wanted the Committee to understand that Sundance and General Cinema are engaged in a joint venture. She said that General Cinema has always looked at this development as including six to eight screens of Sundance art theaters. Marty Norkett asked if General Cinema and Sundance would come to Evanston if the John Buck Company was picked as developer. Arthur Hill replied that his feeling was that was a proprietary area. He also felt that each developer has put together its vision, its preliminary design and combination of ingredients. Greg Rikowsky said that General Cinema was Sundance's partner in this venture, but Sundance is a stand alone company that has their own identity, management team, film buyers, and marketing people. The relationship of General Cinema is primarily financial. The decision to come to Evanston is independent, and the set of criteria that Sundance uses to evaluate a deal is in many ways different from the way that General Cinema reaches a decision. He also said that he is working on five projects right now and only one of those projects include General Cinema. The Committee took a five minute break at this time. After the break, a member of the audience asked if Arthur Hill and Company was chosen as the developer if Sundance was truly committed or was just considering Evanston. Mr. Rikowsky replied that if the Arthur Hill Company is chosen, there will be a Sundance cinema in Evanston. Aid. Moran stated he had reserved his remarks until now because the format the Committee used up to this point has been to have the Committee members give their perspective on the two proposals before us. He said the basic thrust of his remarks was not to offer an observation or set of observations but to speak to the proposals on the whole. Economic Development Committee Meeting - December 8, 1997 n Aid. Moran said that, from his perspective, he has seen a remarkable outpouring from the community seeking input in relation to the redevelopment of the south end of Research Park. There was a remarkable meeting here a month ago and he has not seen as many people attend any meeting since he has been on the City Council. He said it was clear that the vast majority of the people here were seeking to encourage redevelopment of this area, but were seeking something different that what was being proposed by these two developers. Since that time, he has seen a cavalcade of calls and letters from citizens, the vast majority of which sought to have some reconsideration of this Committee and City Council as proposed by The John Buck Company and the Arthur Hill Company. The commentary he has heard has been unusual commentary because it hasn't been the kind of commentary that we have heard on a number of issues where there are clear lines drawn and there are people totally in favor and people totally against. Aid. Moran feels that what the people are trying to say is that they want a development that works for Evanston. The proposals that are before us reflecting a certain design, a massing, and land use are proposals that the respective developers, in his opinion, will adhere to over the course of time. His concern is that although there has been a lot of discussion about what can and cannot be done in relation to the development agreement after there is a selection of a developer, his intuition tells him that basically what we are told by these two developers is what we will get. There may be slight changes, but basically this is what we will get. Aid. Moran said he would like to see the redevelopment have a hotel that would have significant conferencing facilities that would be state of the art, have a smaller theater such as Sundanee, and a performing arts center. He felt that there were serious flaws in the parking studies that were done, as to how many people will be in the theaters in terms of parking and financials and a lack of consistency between the two that concerns him. Aid. Moran said he is for economic development in Evanston, but thinks the City should slow down, take a much tougher look than what has been done so far. He would prefer that the ultimate mix in relation to a development that will be in the south end of the Research Park, be what Evanston has asked for and what it wants. Ald. Moran mentioned an article the Chicago Tribune about Conway Park (an office development in Lake Forest). In relation to the working up of the Conway Park development, there was an anticipation that a hotel would be built in the Conway Park complex. The article commented on the fact that there now is a competition being sponsored by the Conway Park between hotel companies. Conway Park now has six or eight different proposals by different hotel companies pitching their ability to complete the Conway Park development in a way that those in charge of the Park will think will enhance that particular development. He felt it was symbolic of the difficulty he has with the box the City has put itself in with this particular process in relation to the two proposals that the developers have come forward. This has been Economic Development Committee Meeting - December 8, 1997 EAPC n bannered as a cinema/entertainment complex and the presumption has been that there would be something in the nature of a competition with respect to those who would come forward with the component parts of the complex. In this instance we have two proposals with a hotel component, but the hotel component in both proposals are the same. AId. Moran was concerned that there is the thought that the City cannot do any better. He said that Evanston has always attempted to achieve quality and owes it to itself to achieve for that quality. Aid. Moran summarized by saying that he though that there was work to do. The supposition is that, tonight we are picking a developer, but what is really being requested is a request for a project that hopefully will be completed successfully. But it is a project we are voting for tonight and its the project that he thought had not been shaped properly yet. Aid. Moran said this was not a criticism of the proposers, he said they had done good work, but his basic approach is that the right project is not on the board. There are some positive elements but more work needs to be done. He did not want to end up with a modern mall. Aid. Moran urged the City to step back from this project, listen to the citizens, think about our values, and to concentrate more clearly and critically. He said this was not the right project and he does not want to vote for this project tonight. Aid. Newman said the one thing that struck him about Aid. Moran's comments was like in the movie "An Affair to Remember," he feels like Evanston is the man at the top of the Empire State building waiting, and waiting, and waiting, and yes, waiting. He said what has been done in the Research Park for the vision that Aid. Moran has supported is we've waited, we've waited, we've waited. The reason we've waited is a thing called the market place. We haven't been able to get what we want in the Research Park, because the private market hasn't been willing to build it unless the City will bankroll it. He invited Alderman Moran to demonstrate how his concept of development would get financed. Alderman Newman added that the downtown should have entertainment and life at night and the market place is ready to act now to enhance the downtown and bring people back and bring a retail base back. Alderman Feldman asked for a motion to recommend a developer to the City Council. Alderman Newman moved that the Arthur Hill Company be recommended to the City Council as the Developer for the downtown project, seconded by Alderman Wynne. Vaughan Jones moved to amend the motion by having each member of the Committee name the developer they want as part of the selection process. Alderman Feldman suggested that a roll -call vote be taken. Vaughan Jones stated that he was embarrassed that the Committee has participated in this process, which Ne characterized as a sham process, since the Aldermen have already set a process in place to vote for what they want regardless of the Committee's recommendation. Economic Development Committee Meeting - December 8, 1997 Page Ele ,yen Alderman Feldman stated that he was going to vote in support of the Arthur Hill motion. He explained that company has provided a creative response to the needs of the community. He disagreed with Aldermen Newman asserting that this development is more than a question of just responding to the marketplace. This will not be a mall like all other malls, nor a multiplex like all others, but will be something different. However, he indicated his interest in pursuing a possibility of a different kind or higher level of hotel. Alderman Feldman also stated that he aspired to make this development succeed as a community place, a commercial place, and he expressed his support for a performing arts center. This must be an active, vital place. Six screens in the Sundance theater would not hold enough people to revitalize this community. He expressed confidence that problems will be solved with respect to the imposition on neighborhoods. Rather than being an abdication of a dream, he stated that the proposal comes the closest to representing Evanston's values, will look good, will be welcomed by Evanston and will be of great benefit to the community. AIderman Engelman expressed that he also has the dream of the Research Park of ten years ago, but timing is everything, and he was not sure we have the time to wait another ten years for the ultimate building of all of the space in the Research Park. He referred to this committee's discussion (I'/: years ago) of a six -eight screen movie theater complex tied to the Sherman Avenue parking garage. That time was past, and now is the time for this project. He agreed with Alderman Moran as to the values he has articulated about this project, and he stated that these values do represent the vision of the committee. There will be a vote tonight. He stated that he had not yet firmly made up his mind, but could be convinced otherwise. Alderman Engelman explained that the Arthur Hill design and use of space is appealing: the piazzas, the small spaces, the movement of people up and down Church Street. He did not find the massive structure proposed by the Buck Company for the old Dominick's site appealing. He recognized the practicality of that structure and the connection that it brings to the downtown area. There would be ability for persons to park in that structure and go west or east. Perhaps appropriate architecture can solve the problem of the massive parking structure. He stated that these were two very excellent development teams. Both have brought wonderful, qualified people to the project who understand Evanston. Alderman Engelman characterized the Arthur Hill Company as the mavericks, which may be riskier, but there is something exciting about their vision. The Buck Company has a proven track record and would be more capable to weather a major storm. The Buck Company also has a long term commitment to Evanston and is a major stakeholder in our downtown, which weighs very strongly in his opinion. Regarding the commitment to stay with the project, he was pleased to hear that the Arthur Hill Company would stay with the project through a joint venture or management entity with Mid -America. But Mid -America is not an equity investor. The Buck Company will be managing their project when it is over and they have everything invested in it to lose, which does concern him. He invited other members of the Committee to express themselves before he expresses his preference. Lucille Krasnow expressed her pleasure with both developers. She stated that she has Economic Development Committee Meeting - December 8, 1997 ,Page Twel r changed her mind several times, and as she listened to Alderman Moran, she questioned whether there has been enough public input. She was not willing to move ahead without further exploring the concept of the conference center and has become very nervous about the number of theaters after having tried to go to Whole Foods. Could there be an error in the projected traffic calculations. She has felt less energy for this project in the community recently. She felt ready to vote so that 90-day period for public input could begin. Then the developer's response to the public will become apparent and certain issues can be revisited if necessary. Alderman Wynne stated that she is ready to vote tonight and did not deem this evening a sham as Mr. Jones had described this evening. As a member of the Parking Committee, she planned to look more thoroughly at the parking requirements and raise some issues on Wednesday evening at the Parking Committee meeting. She was also not convinced that the numbers were correct regarding the traffic situation. She expressed her desire to pursue a better quality hotel as a conference center. She hoped to devise a plan that would tap into the architectural talent in Evanston so as to shape this project that will keep with the architectural heritage in this community. She has listened carefully to the comments this evening and there are two points that have caused her to lean in one direction. The architects from the Hill group have impressed her from the beginning. He is from Berkeley, which is a community similar to Evanston being adjacent to a large community, adjacent to water, and has a very participatory community voice. Thus his understanding of Evanston is very clear. The inclusion of Sundance also has influenced her decision; it makes this complex unique in ways that we have wanted it to be unique. She knows there is enormous support in the community for a performing arts center. Greg Norwell stated that he supports Alderman Moran's comments, in part. As a liaison from the Zoning Board, he is concerned with preservation, and personally lives only 3 blocks from the development. He disagrees with the characterization of this effort as a sham process, and has been very impressed with the democratic process that he has seen here. He noted the hard work done by the staff, presentations made by the developers and the fair-mindedness coming from everyone on this committee. He finds the Hill project appealing, but did have concerns along the lines of those expressed by Alderman Engelman. He is particularly interested in Ms. Krasnow's views as a retailer in the downtown area. The Buck project, although less interesting, does seem safer and more likely to be supportive to development in other parts of the downtown area, which stems from the placement of the parking garage. He does not consider himself an expert on these matters, yet the experts are telling us that both projects can work. In terms of the future development of the Research Park, he stated that the location of the theaters more toward the middle of the Park would be somewhat of a disincentive for future development of office buildings or residential development, which weighs on the Hill project. Traffic is less likely to be a problem with the Hill development, but he thought the Buck project traffic situation could be solved through the use of one-way streets. He does not want to offend anybody and has an admiration fai both developers. His logic leads him to support the Buck project. Economic Development Committee Meeting - December 8, 1997 Page Thirteen Marty Norkett, as a member of the Plan Commission, had polled that Commission's membership and they are very much in favor of the Hill project, as are the citizens and the neighbors. He recalled that the Shaw Company was here once and the Research Park has not been completed. As the only real estate person on this committee, he has to go with strength in numbers to limit the risk. The 1980 downturn in the market caused the Shaw Company to go. He stated that he would vote for the Buck proposal because the Hill Company did not have the numbers to weather a storm. Vaughan Jones apologised for his earlier statement that this process was a sham, explaining that he had felt as though the Committee was being railroaded into a decision. He acknowledged that staff and Committee members have worked hard in this process. He stated that he will vote for the Buck proposal, primarily because Evanston has been down the road of the developer not able to perform and this is a project of scope and size that cannot afford mistakes. He expressed conviction that if you work with the Buck people, they will listen to your concerns. He stated that the Hill Company would probably be excellent for another project that did not carry the long-term risk of the theater being filled and the agenda in the entire complex being set toward the City of Evanston. The strength in numbers will prevail if there is an economic downturn. Projects must be finished and the developer must work with Evmark to fill spaces on Sherman Avenue and Orrington to ensure the long-term viability of the entire downtown area. Alderman Feldman called for the vote that the Arthur Hill Company be selected as the developer for the project. In a roll -call vote the motion failed; 4 Aye (Newman, Wynne, Krasnow, Feldman), 5 Nay (Engelman, Moran, Jones, Norkett, Norwell). Vaughan Jones motioned that the John Buck Company be selected as the developer for this project, seconded by Marty Norkett. There being no further discussion, the roll -call vote was taken and the motion failed; 4 Aye (Engelman, Jones, Norkett, Norwell), 5 Nay (Moran, Newman, Wynne, Krasnow, Feldman). Alderman Engelman made a motion to refer this matter to the City Council without recommendation but with all comments made by all parties and all information received for the Council to make a decision, seconded by Alderman Newman. The motion carried 8-1. (Nay: Moran) Alderman Feldman stated that this item will be reported to the City Council on Monday, December 15, 1997 as the motion indicated. Economic Development Committee Meeting - December 8, 1997 P ee Fourteen III. ADJOURNMENT There being no further business, Alderman Wynne motioned to adjourn. The Committee agreed by consensus to adjoum. Meeting adjourned at 11:40 p.m. Respectfully submitted, 4' a Mary E. Baaske Executive Secretary Community Development Department Planning Division ECONOMIC DEVELOPMENT COMMITTEE MEETING 8:00 P. M. December 1, 1997 CITY COUNCIL CHAMBERS MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Moran, Aid. Newman, Aid. Moran, Vaughan Jones, Lucile Krasnow, Marty Norkett, Greg Norwell STAFF PRESENT: Judith Aiello, Dennis Marino, Mary Baaske OTHERS PRESENT: Mayor Morton; Aid. Rainey; Aid. Bernstein; Martin Stern, U.S. Equities; John Buck, John Iberle, John Buck Company; Arthur Hill, Arthur Hill & Company PRESIDING OFFICIAL: AId. Feldman I. CALL TO ORDER Aid. Feldman called the meeting to order at 8:11 p.m., a quorum being present. II. CONSIDERATION OF MINUTES OF MEETINGS OF NOVEMBER 12,1997 AND NOVEMBER 19,1997 Aid. Engelman made a motion to approve the November 12 and November 19 minutes. Seconded by Marty Norkett. Motion passed unanimously. III. COMMUNICATION: CLIPPINGS FROM THE CHICAGO TRIBUNE CONCERNING PROPOSED PROJECT Aid. Feldman accepted the communications into the record. IV. CITIZEN COMMENT Jack Lerman spoke in behalf of the Levy Center and said he was concerned about the placement of the Levy Center and gave his reasons for believing the Levy Center should be on the first floor. Economic Development Committee Meeting - December 1, 1997 Pape 2 Becky Hill, a member of the Coalition for Appropriate Development in Research Park, told the Committee that she thought the Coalition could work with Arthur Hill & Company, although she preferred a different project concept.. Ben Page stated that he was a member of the Coalition for Appropriate Development and asked the Committee to slow down the process. He said that of the two developers he would choose Arthur Hill & Company. Lis Reeves commended Aid. Kent on the way he presided on the Church/Dodge Neighborhood meeting. She said she liked the sense of community that meeting brought and that Aid. Kent was very respectful to all participants. Jim Gamden spoke of his concern that the City was proceeding too fast. He asked that the Economic Development Committee take more time. V. DEVELOPER STATEMENTS Each developer - Arthur Hill and John Buck, presented a summary of their respective projects and a statement of strengths of their respective team's feature. VI. ADJOURNMENT TO EXECUTIVE SESSION Aid. Engelman moved to adjourn to Executive Session for the purpose of land acquisition at 8:50 p.m. Aid. Wynne seconded the motion. Roll Call. Voting aye - Aid. Engelman, Aid. Feldman, Aid. Moran, Aid. Newman, Aid. Wynne, Jones, Krasnow, Norkett, Norwell. Meeting reconvened at 9:16. VII. CONSIDERATION OF WHICH DEVELOPER TO RECOMMEND TO THE CITY COUNCIL Aid. Feldman read a letter that was written to the editor of the Evanston Review by Shelley Gilchrist. Ald. Newman made a motion that the Economic Development Committee recommend the Arthur Hill Company be the developer for the project. Aid. Wynne seconded the motion. AId. Newman said he has given his choice of developer a lot of thought, and based on the materials he hds received and comments he has received from people in his ward and Economic Development Committee Meeting - December 1, 1997 E= I Community. He said that it must be understood that not one dollar of existing tax revenues will be used to build the garage in this project. The garage will only be built from revenues generated from the land and the project in the Research Park area. Aid. Newman added that the originator for the idea of an entertainment development in the Research Park was the Arthur Hill Company. One of the reasons Aid. Newman thought the Arthur Hill Company should be the developer is that it recruited architect Barry Elbasani who was able to bring the type of thinking and the type of creativity that this community requires when a project like this is going to be undertaken in the downtown. Arthur Hill was also able to recruit General Cinema which has one of the strongest balance sheets in the industry. Aid. Newman concluded by stating that the emphasis on Church Street would be better for the overall downtown. Ald. Engelman said that the members of the Committee have been meeting as a Committee on this issue for eight months, and the number of meetings that have been held during those eight months have been staggering. Amazingly enough, he commented, this is the very first opportunity this Committee has had to talk among itself about the proposals, each of the aspects of the proposals, and each of the aspects of the developer teams that have been put together. He said he had hoped that before the Committee got into a debate as to which developer was going to be picked, there would be a dialogue and a discussion because he has not made his decision as yet. Aid. Engelman said he had opinions as to which development team member may be better suited for a particular aspect of this project, and may see little pieces of the puzzle, but he had not put the whole puzzle together. He felt that the City was very fortunate to have two very strong, qualified people come forward in response to the ultimate RFP. Aid. Engelman referred to Judith Aiello's memorandum of November 26, 1997 and said that page six of that memorandum identified some of the aspects of this project that should be discussed. He felt that some of the important things that should be considered in choosing a developer were: which development team has a strong familiarity with urban centers, the developers capacity, the developers capability, the development teams experience in retail, its financial strength, its management, its land use and design, its density scale and materials, its architecture, and its creativity. Aid. Engelman said he asked Marty Stern several weeks ago if in picking a developer they were locked into an architecture to which Mr. Stern replied "no". Aid. Engelman said he has the following questions: * When a developer is picked, is the City locked into an architectural rendering? * How Iocked in is the City in the question of land use and site design in terms of the issues raised about the south side of Church Street? * Are we locked into the use as a Levy Senior Center as opposed to a retail center. * Are we locked into the location of the elements of the proposal? Economic Development Committee Meeting - December 1, 1997 EaP 4 Aid. Engelman said he heard Mr. Buck when he said that the Buck Company was flexible, but it would have to revisit some of the issues if they are asked to change some of the elements. Marty Stern replied that the Economic Development Committee and both developers have indicated a continuing desire to work with the community and to work with this Committee to continue to modify and improve this project. He said that the City is not literally locked into anything. The point Mr. Buck was making is that to the extent that changes proposed significantly affect the econotpics of the project, that those are serious changes and that both developers and the City need to reserve the right to revisit that should those types of changes arise. Aid. Engelman asked Marty Stern to explain the importance of depth of organization and developer capacity and capability in choosing one of the developers. Mr. Stern said that developer capability is extremely important and that both of the developers by virtue of their experience are capable. The John Buck Company has a greater number of employees with experience and experience working as a team, but the Hill Company has also been together for awhile and had undertaken fewer projects, but the Hill team has proven their capability as well. Aid. Moran offered his sincere gratitude and congratulations to both developers who have devoted a tremendous amount of energy and resources to this process. He said it has been a very affirming process for him to see two quality organizations come forward and express an interest in making these kinds of investments in our community. While it is on the EDC agenda to select one of two developers, he had a slightly different approach tonight. Aid. Moran thought that there were some interesting aspects to the project as it has been presented, but he had some difficulties with some other components of the project and needed to express them. Fie said he was still not convinced that the concept of a multiplex cinema as the keystone to this development is the best thing for Evanston. He thought that it would be a healthy development if there was some establishment of some cinema in the downtown area, but the multi-plex concept is not one that squares up with the historical aspects of the central business district or the Evanston commercial area in general, not only the central business district, but its outlying commercial areas. Ald. Moran said he thought it would be good to have a cinema, but not one of the size and mass that is being proposed. He felt that a smaller scale facility would be a positive thing for Evanston. Aid. Moran said that this was an opportunity to have a hotel with conference capability that would be consistent with establishing Evanston's new convention and visitors bureau. He added that with the presence of Northwestern here, Evanston needs a hotel/conference center that is high quality, state of the art, highly articulated and will be shown to be the kind of place that would really draw a specialized market, Aid. Moran was concerned about the size of the retail, the possible impact on the central Economic Development Committee Meeting - December 1, 1997 EuP ,5 business district if a large amount of commercial space opens up and if a significant migration of our commercial east of the tracks go west of the tracks to this new space. He did not feel that Evanston could afford to lose their central business district for the success of this particular project. Aid. Moran thought the performing arts center was a great idea, one that would make the downtown hum. He said that with a combination of a performing arts center and a smaller cinema Evanston could have a very interesting entertainment complex. Aid. Moran said he was very concerned about going forward with the project without knowing what was going to happen to the Levy Center. He thought that there should be substantial discussion about what the City would really like to see happen here. The Committee really needs further discussion and if it requires some deferral in terms of this developer selection, it would not be a problem as far as he was concerned. If this project or some project like it were to go forward, he said it would be the most complicated economic development project that he has been involved with in the six and one- half years he has been on the Council and by far the most expensive one. Aid. Moran felt that the risk should be examined from the City's point of view. He thought there needed to be more discussion with the community so that the Committee could get a better sense of what the community wants so when and if the process goes forward, the Committee will be confident the risks that the City is being asked to take and the large commitments in resources that the City will have to make will be the right commitments. As a citizen who has been on the Economic Development Committee for four years, Vaughan Jones said it was exciting to participate in the discussions about the proposed project and learn about how the process works in attracting developers to the City of Evanston. As a member of the EDC Committee, Mr. Jones said that he was looking forward to seeing the project come to fruition. He said there were some components that would not make everyone happy, but overall the citizens will benefit from an investment in their town. As a citizen, he said his concerns were long term viability. He added that the City has to have a commitment from a developer that has the wherewithal to complete the project from beginning to end. The City cannot have any questions. He said there seemed to be significant unreadiness in the Committee and he would not like to see a motion put forth to select the Arthur Hill Company. If anything, it should be deferred for a short period of time, but the Committee needs to go forward, go with a developer who has the depth and financial wherewithal to be able to pull the project together from beginning to end. Vaughan Jones asked Marty Stern to walk the Committee through the process of how a developer from the time they sign an agreement with the City until they have to go through the components of capital raising and the commercial lending process. Marty Stbrn replied that the banks lend money on projects and their only question is how are we going to get repaid. The developer will tell them to look to the economics of the project Economic Development Committee Meeting - December 1, 1997 zuP 6 and that will include the leases they have signed and the economic generating capacity of the project. The bankers will also look to what goes wrong, if the plans don't work out, they will protect themselves and ask for guarantees from the developers. It would not be uncommon for the banks to ask for a guarantee of completion provided by the developer, they may ask for guarantees related to leasing. In general, they want to know that if they are counting on the project to repay them, they want to know the project will be built, and the project will be leased the way it was supposed to be. They will look foremost at the amount of equity that is raised in the project, how much money from the investors and not from the bank will be in the project because that money is usual ly,comm i tted and is held in front of the bank. The bank would get its money back first. For example, if a project cost $50 million and the bank is lending $30 million, that $20 million has to come from somewhere. That bank is at a lot less risk than if it is lending $40 million and $10 million is invested in the project. The bank will look at all those things and in terms of developer capacity, they will look at the developer's ability to raise that equity investment and then the equity actually raised, they will look at the quality of the project itself and the developers capability of completing the project. Vaughan Jones asked what recourse do the banks and the City have if the guarantees are not met. Mr. Stern said that if the agreement is done right (and we intend to have it done right) one recourse and protection for the City is that a bank and investor who are equally concerned, perhaps more concerned than the City and has more to lose, the City is not putting up any money. The City is not taking any risk until the project starts construction. The City's primary risk comes once the project is in operation and is counting on certain tax and parking revenues, and certain usages to repay the bonds that the City issues. If those revenues are insufficient there is potentially a risk. The way the City covers itself is to be very conservative in its estimates, have a cushion so that even if the projections are not quite what is met they should still be enough to meet the obligations. The City s risk in this matter financially is a lot less than the developers risk. Aid. Newman said he had a problem with the way the discussion was proceeding and gave the following explanation. He said there is actually three different points of view being expressed and it seemed to him that the Committee might have more unity on some of the individual aspects than the final selection process. The first point of view being expressed is by Aid. Moran, whether the City should go forward with this project in its present form, whether its either developer. The second point of view he is hearing from Vaughan Jones is that he is concerned with the relative strength of the developer. Aid. Newman said he is hearing that Vaughan Jones wants to go forward with a development. The other question is the timetable of this process which will hopefully ultimately result in the beginning of a construction in July. Aid. Newman stated that he thought that if the Committee were polled tonight in regard to the view being offered by Aid. Moran that we not go forward with the proposed form of development, Aid. Moran would be in a very small minority on this Committee. It was also his thought that there was much consensus to go forward, however there was probably a Economic Development Committee Meeting - December 1, 1997 BaP 7 disagreement within the Committee as to which developer is the better developer. Aid. Newman felt that since the City invited these two developers and the developers have invested time and money, in order for the City to maintain credibility, Council has to pick one of these developers. He said that, at the present time, he felt the Committee should discuss whether the project should go forward, what time table is in the best interest of the City, and whether we can come to an agreement as to which developer to choose. Ald. Newman suggested that someone on the Committee would not get their choice of developer, and that wouldn't mean that, as a group, the Committee doesn't want this project to happen and happen in a timely matter. He asked the Committee "Should we be doing a development?" Ald. Newman then withdrew his previous motion and made a motion to go forward with a development along the lines presented by both developers to include the movie theaters, the performing arts center, the hotel, and the new Levy Center. Aid. Engelman seconded the motion. Aid. Drummer said he was not at the meeting to speak in favor of either of the developers, he wanted to understand the bottom line of the project. He said he has spent a lot of time studying the financial aspect of the development. It seemed to him that the City would be putting in a lot of money over the next twenty years and what would the City be getting back in twenty years. As he looked at the project he felt that the land cost was not in a favorable position to the City. Aid. Drummer said that the City was not asking for enough money for the land (approximately $2 million less than it was worth). He said that the City is being asked to commit $20 million for public improvements, including the garage, and all of the public improvements, garage and debts will amount to another $11 million, totaling $31 million that the City has to put in this project over the next twenty years. He said that the City would be putting in $31 million to generate $50 million. Aid. Drummer said that over the life of this project the entertainment tax would amount to $7.5 million dollars and this money would go solely to pay for the garage, then there is another $4 milIion in lost revenue from existing parking. Looking over this project for twenty years, it only generates $50 million, there will only be $4.5 million in usable cash, and that usable cash will not b e used by the City because in the year 2008 all the money is frozen into the TIF so that there is nothing going into the City coffers right now as to relates to the project, and nothing will until 2008. In 2008 the tax money will have to be split with all the other taxing bodies. Ald. Drummer commented that if the City does nothing, in the year 2008 the City will have $20 million compared to this investment of $45 million that the City will have to put in this project. He felt that the City needs to find a way to get more money for the land, and that more of the entertainment tax goes into the City coffers now, otherwise we will be losing money. It was his opinion that the project could not stand alone, it would have to be heavily subsidized by tho City. He thought that the City should not offer free parking after 6 o'clock. Aid. Drummer said he would make sure that there would be a minority business component to Economic Development Committee Meeting - December 1, 1997 2M R the project, he wanted it built in the agreement that the City would guarantee participation. For now, Aid. Drummer thought that this development was not a good deal for the City. Marty Norkett said he agreed with Aid. Drummer, that the Committee has not discussed all the ramifications of this project starting today and ending up twenty years from today. He said tonight was the first time the Committee has had a small glimpse of what the real dollar amounts could be and what the risk/value is to the City. What if the developer goes broke, the parking garage doesn't work, if we give away free parking and it doesn't work and the tenants can't make money, who would pick up the pieces. Mr. Norkett felt that more time should be spent to figure out the financial aspect of this project. Aid. Feldman asked Bob Rychlicki with Kane McKenna, the City's financial consultant, how long the financials have been available. Mr. Rychlicki said that the financials were prepared in initial form in July and have been refined since then. Aid. Feldman asked if the financials had changed since November. Mr. Rychlicki said they had not. Aid. Feldman commented that what Mr. Rychlicki would be presenting tonight would not be new, that the information is the same as it was in November. Mr. Rychlicki said the first point he wanted to address with respect to Aid. Drummer's concern about the entertainment tax not going to the City, was there is a line item amount before the debt service amounts of $250,000 for City services which is adjusted upwards for inflation every year and whether the City decides to allocate the entertainment tax or portion of sales taxes, that is an amount that would go into the general coffers every year prior to any payments on debt service. There is an offset for City costs and there would be a return back to the general fund. Secondly, Mr. Rychlicki said that they have, in discussion with staff, identified some of the lost parking revenues and the assumption that he was operating under is that the parking spaces that are currently there would be relocated to another surface parking and those revenues would continue to be received by the City because of the relocation of those uses for other surface parking. The issue as it relates to free parking is the rates that were utilized were based upon the existing parking structure and took into consideration the parking after 6 o'clock as well as the weekend parking. The underlying assumption as it relates to the parking revenues is that users will pay for the parking and that parking is factored into the analysis. The term free parking is not correct, there is a charge for parking factored in based on the current schedule. Marty Stern asked if the tax revenues stated are incremental tax revenues so that the tax revenues from the existing project fund would continue to build even after you have the garage. Mr. Rychlicki said that was correct, also at the end of 2008, in addition to the schools getting their money the City gets around $500,000 at that point. Economic Development Committee Meeting - December 1, 1997 2=9 Lucile Krasnow, said that in answer to the question "Should we move ahead with the project?", the answer is absolutely, and now, and she wanted to move ahead with the project as fast as possible. Her main reason for wanting to move ahead as quickly as possible is that she is a retailer in downtown Evanston. She said if she were asked if she thought this would give the downtown a shot in the arm, she would reply "absolutely". Ms. Krasnow stated that for all of the EDC meetings, it was always her voice that asked what is being done about the vacancies downtown, and said she couldn't help mentioning that tonight. There has been fees paid to consultants to talk about the proposed development, but consultants have never been hired to talk about the current project - the current project being the downtown. Ms. Krasnow said she was extremely concerned about how this particular project fits into what is the current project. She mentioned that she has a great business, but is very worried when she hears many people around her, on Dempster and in the downtown asking what is happening, its not getting any better. When she hears that there used to be a 4% vacancy and now we have a 7, 8, or 9% vacancy, she sees this project as giving a tremendous shot in the arm to the current project. When she looks at what the current developers are proposing, Ms. Krasnow said she could vote, but she keeps asking herself why she is so confused. On the one hand John Buck owns two major buildings in the downtown, who but John Buck and Company would do a better job at making sure that the current project stays filled. She is convinced that he would do an excellent job, he owns too much real estate in town not to do a good job. On the other hand, was she totally thrilled and entranced by Arthur Hill's architect? yes. But, she has not seen any renderings. Ms. Krasnow said he was a charming man who would probably listen to the citizens and have some wonderful projects, but she is not sure. She feels that citizen comment is very important and for some reason many citizens are talking about going with the Arthur Hill project. Ms. Krasnow said the biggest question for her was, if in fact, the current proposals change in any way what happens when your down to one developer. You no longer know what another developer would have offered you in that instance, you no longer have the vision of the other developer, and you no Idnger have the opportunity for the competition of two developers. She thought there was a point in which you have to go with one developer and was not convinced that the Committee is at that point. Ms. Krasnow said it was dangerous to delay, but it was also dangerous to make a quick decision. Aid. Moran commented that he thought Ald. Newman's motion missed the point he was trying to make, the point being the timetable that was set for the Committee was that there would be a very large number of meetings and do a very large number of things, but all of it led to tonight. Up until tonight, the Committee has not discussed this project, we have heard public comment, heard from the consultants, and heard from the developers; but have not talked to each other as a Committee. The point of his suggestion was that the Committee needs to take a little more time and talk to each other and perhaps, talk to the public some more. Economic Development Committee Meeting - December 1, 1997 Page 10 Aid. Newman said that there is a certain amount of fairness to the consultant. One of the things that has been suggested by our consultant is that when we pick a developer, we only negotiate with that developer for 90 days. If the City is unable to reach a satisfactory agreement, the City can go back to the other developer. He said that everybody would like a full service convention hotel, and everyone would like to draw the downtown the way they would like it. But, unfortunately the market place waits for no one. In a lot of ways you are a victim of the market place, and if the market place is not willing to build a full service hotel with all the conference space, we have been told by our consultant, (who is one of the outstanding developers in the country) who has saved us a lot of money on other projects, that the hotel that is being proposed by both developers is all that the market is willing to do. Every year that goes by that the City waits, as it did on the Research Park project, the City loses a tremendous amount of opportunity. Aid. Newman felt there is only so much the City can say to a developer in terms of wanting them to invest money in architectural renderings, time and effort on speculation. He said that at some time the City has to say to the developers, if the City wants to be taken seriously by the development community, that the City is going to make a choice. There will continue to be discussion on this project because this project has to go to the Council and all the points that Aid, Drummer made have to be dealt with in a development agreement and this committee will have all the opportunity over the next three or four months to talk about the development agreement, to decide not to go forward with the development agreements, or to adjust the development agreement. Aid. Newman went on to say that the City cannot put the developers in limbo forever and ask them to invest money on speculation. Lucile Krasnow said she was not concerned with the developers, she thought they could take care of themselves. She thought the area of most concern was that after all of these months, the Committee has a tremendous amount of information and opinions that should be shared and felt the Committee should have another meeting to continue discussion. If this Committee is not validated, if the only thing that counts is the Council vote, she said she could leave. But if its valid that you have the non -council members here, you need to hear our discussion as opposed to having us listen to the community and developers, never really discuss it and ask for our vote. She felt if, after listening to the Committee members and citizens the project would change, that would be unfair to the developer that wasn't chosen because maybe they would have approached those changes in a different way. It would no longer be the same project and the Committee would have voted on a developer that didn't have a chance to bid on the complete project. Aid. Newman asked Ms. Krasnow what she thought would significantly change to impact this project. The parking garage must have a certain number of spaces and the market will only support a hotel as proposed by the two developers. He said he was willing to spend as much time as needed to discuss this project, because the financial markets are so good right now, Economic Development Committee Meeting - December 1, 1997 zap 11 and this development is so needed by this community that he is going to fight to get this development done. Aid. Newman said it was not a question of worrying about the developers, but wanting the developers to remain interested in the City. Ald. Feldman stated that the City is going to help create a development that is going to add a multi -dimensional aspect to this community, and that's where his vote is going. People who have lived in Evanston all their lives and living on a fixed income are having to Ieave Evanston because they cannot afford the taxes. This development will help reduce those taxes. Aid. Feldman said that the Financials of the development have been on the aldermen desk a long time and any questions would have been answered or discussed at any time that any member of this committee had brought it up. He felt that the Committee should not talk about when they were going to discuss the project, but that they should start talking now. Aid. Engelman said that a lot of things had been said tonight, but that he was not going to respond to them tonight. He felt that they should be responded to at some point in time. Aid. Engelman said he agreed with Ms. Krasnow, this is the project and the time is now. All the things Aid. Moran said are true, the values espoused are appropriate, but this is the project and the time is now. This doesn't mean that Ms. Krasnow"s questions should not be asked or that we as a Committee should not go through the issues of land use, design, density, developer capacity, development team. Aid. Engelman asked Mr. Stern to remind the Committee why the decision has to be made now. Mr. Stem gave several reasons why the decision should be done now. He added there is no question that there are still many unanswered questions as the Committee has pointed out. Mr. Stem said his point in suggesting that the Committee choose a developer is, to get the information, to do the work, to spend the money that is necessary to get those answers in detail and in a way that is satisfactory, requires choosing a developer. The issue is that with regard to major design issues a lot of work needs to be done in flushing out the design. Everyone is concerned, understands the charge, and has a very good sense of what the community wants in design; scale and materials. To get specifics with regard to tenants that are ready to sign letters of intent or ready to sign leases, Mr. Stern stated the Committee needs to choose a developer and let him get out into the market and secure tenants. The same goes for financing, we want to know the details of the financing, but everything so far, and all that we are capable of getting is theoretical. If the City wants to know the details of the financing, we have to get a developer out there in the market to do that. He went on to say that the hard negotiations over price, of the details of the development agreement, of guarantees, and commitments Ieaves a lot of work to be done. Mr. Stem said that is very difficult to do that in parallel with both developers. He added that while he would never discourage all the debate the Committee wants, the idea of going away for two months and see what develops has an answer of "not much". No one is going to be in the position of time or money to get the information and answer the questions that the Committee wants. To get the real answers, the correct answers in time and money need to be spent and it Economic Development Committee Meeting - December 1, 1997 Pie 12 would be very difficult to get both developers to go ahead and do that in parallel. Aid. Engelman stated that while the financials have been available for a month, the Committee heard new financial information not addressing the returns on the project but addressing the risk issues. He said Mr. Jones had brought up some very excellent points about capacity and risk and Ms. Krasnow brought up excellent points about long term commitment to the downtown. He felt there were still many questions to be discussed such as : can the south side of Church Street be activated and still have the Levy Center on the ground floor in the Buck project, the siting of the garage way off in the corner in the Hill project. Aid. Engelman felt that there were certain aspects to negotiating a development agreement that the City doesn't have the ability to do if it chooses one developer. He thought that the Committee needed to have much more discussion and get all their many questions answered. Aid. Engelman said he was willing to attend as many meetings as it would take to arrive at a choice of developer. Aid. Newman stated he was not sure the members of the Committee were familiar with the process and where it stood at this point. He said the Evanston City Council has a special meeting set for December 8 and this item of business is on the agenda. There is no mandatory requirement in the rules of the Evanston City Council that the Council needs a recommendation from any advisory body before it acts. He added that what he thought needed to happen tonight is that this Committee needs to say something. The Council is meeting with this item on the agenda next week. On December 8 there is a set meeting of the City Council and if any member of the Council wants to make a motion on anything related to this development, it will be in order. He thought the Committee should say something to the Council that is meeting on December 8. Aid. Engelman said that while the City Council may have a special meeting set for next Monday, there is nothing that would prevent the City Council from deferring that meeting and allowing this Committee to meet next Monday, and hopefully, Council could take up the issue on December 14 when it regularly meets. However, if the Council wants to make a vote regardless of what this Economic Development Committee thinks or feels, he thought it did the citizens of this community and the members of the EDC, be they aldermen or citizen members, a disservice. Lucile Krasnow, said that if, in fact the Council votes on this item without the formal recommendation of the EDC, she would be happy to tender her resignation from the Committee. Aid. Wynne thought that this Committee has to deliberate on the proposals. This is the Committee that has sat through all the meetings, and reviewed all the material and has asked the initial set of questions. She felt it was very valuable to have the input of the Committee members. Aid. Wynne said that Aid. Engelman had given the Committee a structure in terms of taking on issue by issue and discussing in some organized way the format that the Committee has. Economic Development Committee Meeting - December 1, 1997 Pa_ ee 1'i Ald. Wynne said that the merchants in the 3rd Ward were very supportive of this project. There are other people in the 3rd Ward with other views. One of the critical things that is talked about is making this project unique to Evanston but still achieving the goal of revitalizing the downtown. Aid. Rainey said that as a member of the city Council she was looking forward to the EDC's recommendation. She stated that the EDC has an obligation to send to the City Council a recommendation, either a statement that the committee was unable to reach a conclusion or a recommendation for a developer. Aid. Rainey said that in the early sixties, there was a Stevens, Lords, Wiebolds, Rothchilds, Marshall Fields, Bramsons, Peck and Peck, Joseph Shoe Store, Wally Reeds, Chandlers, the Varsity, the Valencia, the Coronet, A&P, Washington National, and Lyttons. She said that she was an authority on the theaters that used to be in Evanston because she worked at one as a ticket sales person. AId. Rainey said that there were many, many weekends when she personally sold in excess of a thousand tickets and at the same time the Valencia would be selling six and eight hundred tickets in one night. So, within one block there were 1,600 theater tickets being sold for many nights and many, many years. She mentioned that Evanston was an exciting town and people used to drive to Evanston from Highland Park and surrounding suburbs and she does not ever remember there being grid lock on the streets. Aid. Rainey said that she wanted to say that she had been at almost all the EDC meetings lately, has read all the materials the EDC has read and watched the Committee members have discussion and on the other hand, been extremely surprised by the lack of discussion. She told the Committee that the Committee needs to move on. She was very anxious to receive the Committee's recommendation and would accept whoever the Committee recommends and then make a decision based on the EDC's commentary. Aid. Rainey informed the Committee that she campaigned on the promise of -making sure that she helped make downtown development happen. The Eighth Ward has the second poorest census block in the City. They need the help of the development in the downtown, as do other wards. This development is not going to take one thing from poverty stricken areas of this community, it will only add to them. Aid. Rainey said that people don't shop downtown because there is nothing they want to buy. She told the Committee to come down to the Eighth Ward and go into Target, and Best Buy, that those stores are extremely busy. Because of these stores, Evanston has seen an increase in the sales taxes. Economic Development Committee Meeting - December 1, 1997 EaP 14 Aid. Rainey stated that one of these two developers are going to bring this project to fruition and the City has an opportunity to formulate and to mold how that happens, but not if the Committee is paralyzed. She guaranteed that if the Committee drags this out a long time we will see those acres in the Downtown area sit fallow for ten more years, and that would be a crime. She thought that January 1, 1998 should be the beginning of those ninety days of working with the chosen developer. Lucille Krasnow moved that the Committee take an evening to go through the questions that Judy Aiello has posed and add in some of the Committees, and that it be done in good form and good cheer to get to know''each others opinions better and hopefully come to a decision. Aid. Engelman seconded the motion. It was suggested that the next meeting be on December 8. Aid. Newman said that December 8 was a Council meeting and he did not believe that the EDC had the authority to change that Council meeting. Aid. Feldman asked Judith Aiello if the December 8 meeting was advertised as a definite meeting or one that might me taken up by the Economic Development Committee. Ms. Aiello replied that it was publicized as a special meeting of the City Council to discuss the Economic Development Committee's recommendation. She reminded the Committee that they also have a regularly scheduled EDC meeting December 10 so that if the Committee wanted to have a discussion on December 8 and December 10 that would still leave Council December 15, which there is a tradition of having Economic Development projects go well into the night. Ald. Engelman said that he did not believe that there was a duly constituted meeting of the City Council on December 8. fie did not believe that the City Council approved a resolution establishing a special meeting that night. Even if they did, he thought it was presumption of the City Council to discuss this issue before EDC was through with it. Aid. Wynne said she also did not agree to scheduling December 8 for a City Council meeting and felt that EDC needed December 8 and a meeting on December 10 as a backup. AId. Moran said that the meeting on Monday was a special order of business to discuss this Committee's recommendation and if there is no recommendation we can't meet the rationale for the meeting. It was decided the next meeting of the Economic Development Committee would be on December 8, 1997 at 7:30 p.m. Aid. Feldman listed the following order of business: Land Use Site Design Density of Scale Materials Development Team Developer Capacity Economic Development Committee Meeting - December 1, 1997 Eager Developer Capability Retail Experience Financial Strength Capital Improvements Management Creativity Aid. Feldman asked if there were any questions, he wanted them by Tuesday afternoon and requested they be sent to Ms. Aiello: The Committee agreed that if there was not a decision about which developer during the December 8 meeting, they were committed to selecting a developer during the December 10 meeting. VII1 ADJOURNMENT Aid. Engelman moved to adjourn. Aid. Wynne seconded the motion. Meeting adjourned at 12:02 A.M. Respectfully submitted, Mary Z.aaske Executive Secretary Planning Divsiion Community Development Department 4 DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, January 28, 1998 Room 2404 - 7:45 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Vaughan Jones, Lucille Krasnow, Marty Norkett, Greg Norwell STAFF: Roger Crum, Judith Aiello, Dennis Marino, David Jennings, Michael Guttman, Stephanie Steen, Mary Baaske OTHERS PRESENT: Aid. Rainey; Dennis Harder, Joseph Freed & Associates, Inc; Terry Jenkins, Evmark; Jack Weiss, Jack Weiss and Associates; Robert Rychlicki, Kane McKenna & Assoc.; Parking Committee Members; Jonathan Perman, Chamber of Commerce; James Repsold; Chuck Reman PRESIDING OFFICIAL: Aid. Feldman I. CALL TO ORDER A quorum bcing present, Aid. Feldman called the meeting to order at 7:55 p.m. II. PRESENTATION BY JACK WEISS Mr. Weiss of Jack Weiss & Associates gave a presentation of the design wayfinding signage his Company had designed for the City of Evanston. He explained that the program was to guide Economic Development Committee Meetino - January 28, 1998 Page 2 visitors through the City to virtually every business, cultural, educational, athletic, and recreational venue in the City. In addition, the signs are to help guide the public to designated parking areas adjacent to business districts in Evanston. Mr. Weiss mentioned the following points of his proposed design for Evanston's wayfinding signage: - Eliminates most of the disjointed assortment of parkway signs which have accumulated over the years. - Bring visual consistency and unity to the overall signage effort. - Logical process has been designed to determine what destinations are included and where they are to appear on signs. - Access routes including all major arterial streets and selected collector streets were surveyed and prioritized. Criteria being: 36" wide Gateway Signs are designed for placement at entrances and exits from the City on these streets. 36" Wide Directory Signs are designed for placement at the intersections of these streets. "Downtown" is shown on all inbound signs; business streets, parks, hospitals, and Northwestern University are shown on inbound signs within I mile radius of the sign location; business districts and all other destinations are shown within %2 mile radius of the sign location. - 24" wide Guide Signs, including Parking signs, are specified for placement at intersections of major and secondary streets, where Directory Signs do not appear, to direct motorists to a final destination. Criteria for listing destinations on Guide Signs is that all destinations are shown within'/2 mile radius of the sign location where a Directory Sign does not appear. Jonathan Perman said that this signage all evolved from discussions that began two and one-half years ago with the Parking Committee, the Chamber, Evmark and the City Parking and Traffic Engineer. He said that what they discovered is that there is a tremendous variety of signs with a real lack of coordination in the City. If you are a visitor in the City and not familiar with where things are, you would have a very difficult time finding where the shopping, theaters, and library are located. Mr. Perman stated that we want people to come from outside of Evanston to shop in our shops, eat in our restaurants, and go to our cultural institutions. The Committee felt that it was very necessary to have a clear, coordinated, and understandable sign system to achieve this goal. Lucille Krasnow asked how the issue of how many signs and where they would be put was decided. Mr. Weiss asked Ms. Krasnow to be aware of how many she sees on parkways when she is driving to work the next day, and then she would understand when a lot of these signs will be replaced with the signs he has designed. The signs will be placed at every major intersection of Economic Development Committee Meeting - January 28. 1998 Page 3 every major artery, and be placed about 100 - 150 away from the intersections. David Jennings mentioned that currently there were from 12,000 to 15,000 signs in existence in Evanston. Ms. Krasnow asked how many signs would be taken down and replaced with the 230 signs proposed. Mr. Jennings replied that there would be a net gain, but he didn't feel it would be noticeable. Ald. Engelman expressed concern with the size of the signs. Mr. Weiss said that if the signs are any smaller, the type would have to be reduced accordingly and then would be too small for the drivers to read. Ald. Newman asked for clarification on where the parking signs would be placed downtown indicating parking. It was Mr. Weiss's hope that there will be a uniform parking sign throughout the City so that it would be instantly recognizable. He added that within a half mile from any parking facility there would be a parking sign. Once downtown, there would be more signs directing the driver to parking facilities. Discussion ensued regarding the placement of parking signs in the downtown. Terry Jenkins mentioned that there were a number of decisions as to where signs directed people. To illustrate, coming in from the east off of Sheridan Road where the road comes around the cemetery, the signage now directs people to Chicago Avenue as opposed to though the neighborhoods. Going north on Sheridan where that turn is on Davis, the sign would direct you to turn there, but instead directs you to turn on Clark, so that when you turn there is a parking garage. Mr. Weiss acknowledged the Committee working with him on these signs, Jonathan Ferman, Terry Jenkins, David Jennings and Jonathan Glus. David Jennings said a recommendation has been made in the CIP request that would be presented Saturday at the Council meeting to include the signage program in next year's CIP at an estimated cost of $75,000. Mr. Weiss said that once this request was approved, the signage program could be started next summer, and he estimated it would take four to six weeks for fabrication. III. CONSIDERATION OF MINUTES OF DECEMBER 10,1997 Lucille Krasnow moved approval of the December 10, 1997 minutes. Motion seconded by Marty Norkett. Motion was approved unanimously. IV. COMMUNICATIONS Dennis Marino called the Committee's attention to the Neighborhood Business District Improvement Program document included in their packet and advised the Committee that the deadline has been extended to March 20 from February 20. Economic Development Committee Meeting - January 28. 1998 Page 4 V. DEMPSTER DODGE REDEVELOPMENT PROPOSAL Dennis Marino introduced Bob Rychlicki, with Kane McKenna and Dennis Harder, Freed Corporation, and Michael Conter, Balcor. He stated that the EDC has requested a preliminary examination of TIF feasibility for the redevelopment of Evanston Plaza. Mr. Rychlicki said that the first issue addressed by his firm was to assess the Equalized Assessed Valuation (EAV) of Evanston Plaza. He said he looked at the County records for 1997 for the EAV and found it exactly the same as it was for 1996 which is around $6 a square foot. And that trend, over the past ten years has been going up and tracking the City's EAV over that same period of time. Depending upon where the request is going to come from, public assistance from the developers side, the redevelopment plans as it relates to what kind of uses will be put there, and what kind of increase in taxes, the base as it stands from a TIF standpoint or economic development standpoint is fairly high. There would have to be some protest as it relates to the growth in vacancy in 1996. The current owners had tried to do that, but it was not accepted by the Assessor's office. Mr. Rychlicki said he had filed a Freedom of Information request, trying to determine what the basis was, and there had been a previous protest in 1996 but it was unsuccessful. Aid. Engelman asked if the Freed Company had talked about the EAV versus the purchase price. Mr. Rychlicki said that if a TIF is set up before July 1998 the Clerk will utilize whatever the 1996 base regardless of whatever happens with the sale or subsequent protest, after July or August of 1998 they will utilize whatever the 1997 EAV is. Aid. Feldman asked if there was any use planned for that location that would alter the EAV. Right now there is about 220,000 feet on that site and he asked Mr. Harder if there would be an increase in square footage at that location. Mr. Harder explained that the Freed Company was looking at a grocery store in that location. Ald. Newman asked how it would change the potential in terms of benefits to the City, one of the things Aid. Drummer was talking about was drawing a bigger TIF District. Aid. Engelman mentioned that he wasn't sure that the EDC had gotten over the initial hurdle that they want to do some form of incentive for this project. Dennis Harder said he wasn't prepared to present any new information that he hadn't already shared at the last EDC meeting. He said that this was a very complex project that is moving toward resolution and that resolution will include preparation of an economic feasibility analysis in a pro forma basis and will also include detailed information. Mr. Harder thought that this would come together by the next EDC meeting and will decide a course of action and will provide staff with information a couple weeks ahead of time. VI. RESEARCH PARK ENTERTAINMENT PROPOSAL Ms. Aiello gave EDC the following update as to where the City was with negotiations for the Research Park: Economic Development Committee Meeting - January 28, 1998 Page 5 Since September 1997 when the Arthur Hill and Company (AHC) was chosen to be the developer of Research Park, the negotiating team has been meeting and moving the project forward. The City negotiating team consists of: City staff representatives, U.S. Equities, Kane McKenna, and Burke & Ryan (legal counsel). She said that the development team has met with AHC once before the holidays, and three times in January 1998, in addition to numerous phone conversations. Ms. Aiello stated originally it was hoped to have a redevelopment agreement in ninety days, but she didn't think that would be possible for a variety of reasons. Most significantly was the fact that the redevelopment agreement was much more complicated than originally thought. The Committee and Council adopted approximately twenty points that will be looked at as negotiations continue. She said they are not the only issues being looked at, the whole process is sort of a melding of design issues and business points. There are several phases to this stage of the project. One phase is design and site planning while consulting potential users (hotels and cinemas). At the same time Mid -America is in the process of designing a marketing strategy, a leasing plan, and should be ready to bring that to the market place in the next sixty to seventy days. The Hill team and the City are working to refine the garage which was one of the weakest points in the Hill proposal. The Levy Center Ad Hoc Committee, another component of the design development stage, has been meeting and, hopefully, within the next two to three weeks there will be a report that will indicate a programmatic statement. As of now, the Performing Arts Center appears to be a collaboration of several entities, but strategy still needs to be worked out, not only for the programmatic elements, but also the financing side. Ms. Aiello stated there needs to be a lot more dialogue with the Council and EDC as to what Council's role is going to be. Ms. Aiello said that another issue that is in for public review is the Design Charrette, something that Barry EIbasani has spoken about and something that is in the planning stages right now. What is proposed is to choose no more than 20 design professionals within Evanston, probably working through Design Evanston, who will help in choosing these individuals. This Design Charrette would be a one day session that would have four different components. The first component would be a presentation by the Hill team, including Mr. Elbasani, that will basically set out at this point in time what the site plan looks like. Also, discussion about some design components occur at this stage. The second session would be dialogue between the Hill team and design professionals. Economic Development Committee Meeting - January 28. 1998 Page 5 The third session is a sort of break out where the public would be involved. Each of the design professionals would take a table and be a table captain. The citizens would sit around the table and provide input to the design professionals about what they heard and what their own ideas are, primarily focused on design aspects. At the conclusion, the full session would reconvene and each of the table captains would report back to the Hill team what came out of their discussions with the citizens. After the third session is concluded, the Hill team would write a report. Anything that would come out of that session would have to be analyzed for whatever financial implications there might be and the Hill people will take that into consideration, and then, ultimately the Council. The final design responsibility is with the Hill team, not with the design professionals, but the City does want their input. At the regular public meetings of the EDC, Ms. Aiello will be giving updates of the development process. The fourth phase, Business Negotiations, has begun to occur, but this cannot be fully addressed until there is a revised site plan. Once there is a revised and final site plan, the revised pro forma is finalized and then the Arthur Hill people and the Kane McKenna people can work the numbers. Once we have the numbers, we can really start negotiations. The negotiating team is now beginning to outline some of the business points, and some of the general boiler plate language included in most Redevelopment Agreements. The City's lawyers have prepared the first draft and hopefully we will be exchanging that with the Hill people in the next week. Ms. Aiello added that there are a lot of business items that have to get done, one of which is a land swap with the university, and she said that discussions have been underway. The negotiating subcommittee is comprised of Aid. Newman, Aid. Feldman, and Aid. Engelman and has been meeting with the university and will be meeting with NU again in the near future to finalize the arrangements. Ms. Aiello stated that many years ago, the City did the Clark Street underpass viaduct construction, there was a joint environmental report prepared for the City, the University, and the CTA. She said that the City has engaged the environmental firm of Garrity and Miller to go back and update that report. Also, they will be looking at some of the other environmental issues that the City is going to have to deal with in the land that the City will be providing to the university, and the land that we will be acquiring south of Church Street. One of the final negotiation points is the land acquisition from private parties. The Council has authorized the condemnation of Parcel 18 and that is underway. Economic Development Committee Meeting - January 28, 1998 Page 7 Finally, in addition to the public EDC meetings, we will have the public design charrette, once we have the revised site plan there will be a public meeting to present the final agreement to the public and one more meeting to allow public input. Aid. Newman asked if there was financial information that could be shared with the public. Ms. Aiello stated that, as that information became available, it would be made public provided it is not proprietary information. Aid. Moran commented that the movie company should share their market information and the figures that made them think that they would succeed in the Evanston market. Aid. Newman also thought that the movie company should be able to share information without compromising their position in the market. Aid. Engelman asked Aid. Feldman what he envisioned to be the role of the EDC on this project at this point in time. Is it going to be merely to recommend to the Council the redevelopment agreement, or will EDC have input on aspects of the redevelopment agreement to recommend to the Council as the Council makes decisions. It was Ald. Newman's opinion that this was a jurisdiction problem and should be decided in the Rules Committee, to which he made a reference. VII. ECONOMIC DEVELOPMENT STRATEGY Dennis Marino reminded the Committee that Iate last year EDC members completed a questionnaire based on working drafts of the Economic Development Strategy. He explained that the memo attached to the questionnaire summarizes where members had agreement on major policies and programs. He thought that this would be a good baseline for beginning a discussion. In the current budget year, staff did indicate that by the end of the fiscal year we would be completing the Economic Development Strategy. Mr. Marino then gave a summary of the replies to the questionnaire that included three goals and twelve action items. He commented that there was substantial agreement about the twelve action or policy items with some difference of opinion about a few proposed program elements. He mentioned that this survey had been given to all members of the City Council, but only those Council members that were on the EDC gave a response, in addition to citizen members of the EDC. Aid. Newman commented that the goal of making the cost of business competitive by addressing the problem of high real estate taxes should instead be a strategy of how to deal with high property taxes. In his view, that was the number one reason that Evanston has economic development problems. He was not sure that the community has the will to deal with high property taxes. Aid. Newman felt that as a community some of our greatest concerns are the services that are provided, school districts, and the scale of what the City does. He thought that a real economic development strategy that has that as Goal 91 really has to look at why taxes are high and examine whether this community has the will to do anything on spending issues. Economic Development Committee Meeting - January 28, 1998 Payee 8 Aid. Engelman said that was exactly why it was a goal in the Economic Development Strategy. The Economic Development Strategy was not designed to promulgate a specific program to remedy a certain wrong that was seen in the community. The Economic Development Strategy was not developed solely by the members of the Economic Development Committee that was constituted under the last Council. The Economic Development Strategy was developed by the community where meetings were held geographically, by retail and industry type. Surveys were sent out to every business in Evanston, and the synthesis that is seen is what came to the Committee. If the Economic Development Strategy were to contain everything that is wrong and everything that people wanted to address there would be a very unwieldy document. Terry Jenkins commented that sometimes all the dialogue about property taxes was frustrating. That while it is important for organizations like Evmark to support the City, the frustrating point is that when the taxpayer's bill is analyzed, whether it's commercial or residential, the result is that the City's portion is 20% or less of the whole bill. What is in play within that, are rather small numbers and one begins to think that yes, we have an expense problem, but maybe we have a revenue problem. He hoped that there would be a 5, 10, or 15 year look at where Evanston is and where it is going, and that there would be more light shed on the revenue and expense side and what is in play and what are the principles of the community that decides what is in play and what is not. Aid. Newman said that when he speaks of an economic development strategy, he wanted to have something in place that the City needs to do as a whole to promote economic development. He felt that the community needed to come to terms with why the taxes are high and what we, as a community, are willing to do. Marty Norkett mentioned that when the Plan Commission held public meetings in 1995-1996, the number one topic regardless of the age of the public attending the meetings, was real estate taxes and cutting services. He felt that the City must come to a conclusion as to how the taxes could be stabilized and how more revenue can be brought into the City. Jonathan Perman suggested incorporating the idea of Evanston becoming a more connected city and having the infrastructure in place that allows us to market ourselves as a cultural and business community that is really advanced technologically into the Economic Development Strategy. Aid. Feldman asked Mr. Perman to have Mr. Kysiak send EDC the written presentation and analysis of Technopolis. Dennis Marino mentioned that while the draft strategy doesn't use the term "Technopolis", there are approximately seven items that would implement that strategy. He thought that perhaps it should be rewritten to include what Mr. Kysiak is proposing. AId. Engelman said that when the Strategy was devised to the point it currently is at, everyone knew there would be things that would come along that were more specific, that would fit under the general umbrella such as the Technopolis. He thought it was very appropriate to amend the strategy Economic Development Committee Meeting - January 28.1998 Pawe 9 to be more specific. However, he did not think that the strategy should be held up. The strategy is a series of concepts and an articulation of the priorities of this community. We may not have all the programs in place to reach the objectives or goals but at least once the priorities are established, we have a focus to begin to develop programs to reach these objectives. Chuck Remen commented that if all TIF districts were fully assessed, fully taxed, and fully distributed, it would lower the tax rate in Evanston less than 25%. He said one of the reasons is that Evanston spends 20% more per capita than either Wilmette or Niles. Additionally, Evanston's EAV per capita is one-third less than Wilmette and 50% less than Niles. Mr. Remen felt that the City needed to get on a long term schedule. After much discussion on ways to improve Evanston's tax base and economy, Dennis Marino suggested that staff revise the Economic Development Strategy in a very concise way reflecting the areas of agreement established through the questionnaire. He said that a lot of the discussion in the last hour was about ways to implement that strategy and specific targets and priorities within that strategy. VIII. ADJOURNMENT There being no further business before the Committee, they adjourned at 10:25 p.m. Respectfully submitted, Ma&B , Executive Secretary Plannir1g,vivision Community Development .6 DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, March 25, 1998 Room 2404 - 7.45 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid Engelman, Aid. Moran, Aid. Newman, . Aid. Wynne, Percy Berger, Marty Norkett MEMBERS ABSENT: Lucile Krasnow, Greg Norwell STAFF: Roger Crum, Judith Aiello, Dennis Marino, Stephanie Steen, Mary Baaske OTHERS PRESENT: Aid. Bernstein; Aid. Rainey; Jonathan Perman, Chamber of Commerce; James Repsold; Kathy Burgess; Alan Brunettin; Marie Newman; Bekki Hams Kaplan; Susan Weissman; Bonnie Hauser; Bob Seidenberg; Troy Thiel; Jeff Balch PRESIDING OFFICIAL: Ald. Feldman 1. CALL TO ORDER A quorum being present, Aid. Feldman called the meeting to order at 8:10 p.m. R. CONSIDERATION OF JANUARY 28, 1998 MINUTES Aid. Engelman moved approval of the January 28, 1998 minutes, seconded by Marty Norkett. Motion passed unanimously. Economic Development Committee Minutes - March 25. 194R Pagc2, III. COMMUNICATIONS Aid. Feldman accepted the communications into the record. IV. RESEARCH PARK ENTERTAINMENT PROPOSAL UPDATE Judith Aiello, Assistant City Manager, gave an update regarding the status of the Research Park Entertainment Proposal. She said that this project is probably the most complex project the City has ever done and that when Arthur Hill and Company was selected as the developer in December, she had indicated that there were many steps that would have to be gone through for this very complex project. J. Aiello said that id the time period since the Hill Team was selected, the negotiating team (consisting of Marty Stern, U. S. Equities; Bill Ryan, Berk & Ryan; Judith Aiello, Assistant City Manager; Herb Hill, Legal Dept, and Dennis Marino, Planning; Herb Hill, First Asst. Corp Counsel; Stephanie Steen, City Manager's Office) has been meeting on a regular basis and has gone through many iterations in preparation of the site plan, those iterations resulting from the Hill Team's discussions and negotiations with the potential tenants. She said the uses that are in the development continue to be General Cinema, Sundance (General Cinema and Sundance combined will have 3,400 seats) retail, a hotel, the Performing Arts Center, and a Senior Center. Since the Hill Team was selected and meetings held, several issues have developed that have resulted in a revised site plan. This revised site plan was presented at the Design Charrette held on Saturday, March 14, 1998. J. Aiello explained that the Design Charette was an opportunity for the public and the Evanston design community to interact with the Hill team, receive the information as to the evaluation of the site plan and provide comments back to the Hill team. There were approximately 23 design professionals from Evanston selected by Design Evanston and the City, and approximately 20 - 25 citizens selected by the City Council. She explained the first phase of the meeting consisted of the Hill Team reviewing the evolution of the site plan. The second phase was the interaction between the design professionals, all of whom either worked or lived in the City of Evanston. J. Aiello said this was an impressive crowd of architects and very active citizen participation. There were about three architects and four citizens at each table. Each table was equipped with paper and colored pencils, and for an hour they drew and discussed what they wanted at the redevelopment site. At the conclusion of this discussion, each of the groups presented to the entire group what their thoughts were. J. Aiello distributed copies of those comments to the Economic Development Committee (EDC). She said the Hill team believes they received a lot of very valuable input and that input will be incorporated as they finalize the site plan. The Hill Team will present the revised site plan on April 2. J. Aiello explained some of the changes from the original site plan. She said the area Economic Development Committee Minutes - March 1 5. 199R Page I between Davis and University Place is still under consideration. It is proposed that the area south of Church would have retail, the senior center, and the Performing Arts Center. J. Aiello mentioned that the area south of Church Street is probably the area that received the most discussion generated at the Design Charette. At the south end, the senior center is shown as being divided into two buildings. She explained that when Mr. Elbasani (Hill & Co's architect) looked at this space, he believed that a linear connection between the CTA entrance and the METRA needed to be maintained. Since that time some of those issues have been clarified, and on April 2nd the Council and EDC will hold a joint meeting to receive a revised joint site plan. J. Aiello pointed out that the senior center is approximately 28,000 sq ft., which is what the seniors had identified within their program statement. The performing arts, which is on the second level, is also within the range that was identified within their program statement. She said the two program statements for the senior center and the performing arts center will be presented to the Human Services Committee on Monday, April 6. At that time, the Human Services Committee will review the site plan and sign off on the program statement. Then the next phase can proceed which is to take the program statement and translate it into the interior site plan. The second level south of Church Street will be Sundance. J. Aiello said that Sundance has desired to have a separate presence other than being incorporated with the cinema located north of Church with ground level retail. Retail is to be continued north of Church on the ground level all the way from Church through the parking garage, including retail on the ground level of the parking garage. J. Aiello infonrned EDC that the evolution of the parking garage is the area that has had the most changes and iterations since the Hill Team was approved. At one point the hotel was in front of the garage, but after reviewing that plan the Hill Team and negotiating committee concluded that it was a very inefficient operation of the garage and would be much more costly for the City to build it that way. The hotel is now at the corner of University and Maple on the southwest corner. J. Aiello said there has been the desire within the community, members of the Council, and EDC to have the opportunity for conference space. She mentioned that the floor plan for the hotel has called for anywhere from 1,000 to 3,000 sq. ft. of conference space. The negotiating committee believes that would not be enough conference space and has had several meetings with the University and major institutional users to assess what their conference needs. J. Aiello explained that the goal of the committee is to make sure that there is enough conference space within the hotel that will accommodate the needs of not only the University, but some of the other major institutional users. In order to accommodate this needed conference space, the hotel was moved to the north of the garage which gives greater potential to address conferencing needs. Economic Development Committee Minutes - March 75 199R P!, %A. This site plan also shows a hypothetical office building, however there is no office building that is planned to be built at this time. The desire to have that office shown there was to show that the existing foot print of the development could still accommodate another office building as was originally envisioned with the original master plan of the Research Park. At the second and third level will be the cinema on the east side of Maple. A residential use (endorsed at the Design Charette) is envisioned on the west side of Maple. J. Aiello said that once the site plan has been finalized, the negotiating team would then go back to financial analysis. Since the first set of numbers that were presented in the selection process, there has not been any number crunching. She explained this was because the negotiating committee had been trying to finalize the site plan. J. Aiello stated that due to the complexity of this redevelopment and the fluidity of the site plan, the City did not have a redevelopment agreement in ninety days as was originally desired. She added that the City Council had approved an additional ninety days on Monday, March 23, 1998 for review. It was J. Aiello's hope that within that ninety day period, a redevelopment agreement could be brought back to EDC and discussion started. She added that negotiations have been going extremely well. J. Aiello mentioned that mid -America, through its leasing agent, has been in the process of putting together a brochure that will be sent out to the retail community. Mid -America has also developed a marketing concept which is a high end specialty retail that would be found in a university community. She added that she communicated to them that this is not just a community that caters to the university students downtown, but it is a university community that has a very high educational level and a very eclectic use and interesting mix of uses that should be marketed also. Marty Norkett asked if on April 2, if Arthur Hill & Co., will have layout of the stores. J. Aiello answered that at this point Arthur & Hill Co., wants to leave the first floor flexible to accommodate whatever potential business would be interested. Ald. Moran asked what changes have occurred in those categories in this revised site plan in terms of the space that is allotted to each category of uses. J. Aiello replied that the only change has been that the number of parking spaces has been increased. Based upon input from the charette, and because the big plazas are not the kind of thing the Chicago winter is conducive to, they may be configuring some of that space. Kathy Burgess asked if when J. Aiello spoke of the housing component, if she meant adding one story on the buildings on the west side of Maple. J. Aiello replied "possibly yes". Ms. Burgess asked if J. Aiello would explain what was meant when she referred to environmental issues. J. Aiello explained that the area west of Maple and south of Clark was the old City yards, where the Public Works, Health Department, Recreation Department, dog pound, incinerator, etc were located, and because of that there are issues that have to be addressed. She Economic Development Committee bdjn iten - March 75. 1 OR Pa & said that there was some environmental work done in the area in the early 1990's and the area is fairly clean, but the City will have additional testing done. Beckki Kaplan asked for the status of the Pineyard restaurant. J. Aiello said that the City is negotiating with the owner of the Pineyard building and awaiting environmental results. She said that the City is awaiting an appraisal back from the property owner of Dave's Italian Kitchen. J. AieIlo added that both of those restaurants would be relocated in accordance to the City's relocation policy adopted in the mid-1980's. She explained that the Relocation Policy takes the federal guideline as a base and adds to it. The City pays for all the moving, all disconnecting, reconnecting, all business cards, stationery, and some of the search for new property. If they are going into a rental situation, we also pay for some rent differential, and they are also given a basic hardship payment. Ms. Kaplan asked where the Farmers Market would be located. J. Aiello replied that the Farmer's Market would always remain in the same general area. V. CHURCH AND DODGE Dennis Marino, Assistant Director for Planning, referred the Committee to the draft statement contained in their packet stating the goals and objectives developed by the Church/Dodge Task Force. He explained that the Task Force was formed in September, 1997 to begin to look at the three blocks in the Church/Dodge business district to try to come up with a strategy for revitalizing those three blocks. These goals/objectives were a result of four meetings where 22 people representing different sectors in the community were present and agreed on these issues. D. Marino said that this forms a framework for considering proposals that come forward as well as initiating projects and programs. D. Marino pointed out that there were four other objectives listed on page two which are not yet agreed upon as consensus items. He informed the Committee that the Task Force's next meeting will consider more precise statements as to what they would like to see on specific blocks, and the possibilities that may exist within the community. Aid. Feldman asked how much communication there was between the Task Force and the citizens of the area not associated with the Task Force. D, Marino replied that Aid. Kent had convened a meeting at the Civic Center in December where approximately 120 citizens from that area attended. It was an open mike, where people could voice their aspirations for that particular business district. Aid. Newman said that he was interested in hearing if someone was looking at what the marketplace was willing to do at Church/Dodge. D. Marino said that there has been some preliminary market analysis done of the spending patterns in the area, and the economic capacity both in the immediate census tract to the north as well as the census tract south of the high Economic Development Committee Minutes - Ma 1' )S 100f Page 6 school. He said the median income in the census tract was not far off city-wide median income, so there was significant disposable income. D. Marino said that more work is needed on the part of the Task Force in terms of moving from these consensus objectives to specific project framing for both uses and real estate in terms of envisioning what that is going to be, and interacting with the private market at the same time. Aid. Newman said he was interested in a survey of the community and what type of developments were of interest. Aid. Moran mentioned that he had tried to interest someone in 1817 Church and was not successful. Aid. Feldman inquired if Aid. Moran thought there would have been a different response, if, instead of approaching them on just 1817 Church as a member of the City Council, they were approached as a coalition that represents broad aspects of the committee including some financial and develbpment people. Aid. Moran replied that he certainly hoped there would be, and that the question may ultimately be "What premise can we develop that will allow us to go out to that community and get some interesting responses?" Discussion ensued regarding 1817 Church Street. VI. ANNUAL REPORT OF THE ECONOMIC DEVELOPMENT COMMITTEE Aid. Moran moved approval of the annual report. Aid. Wynne seconded the motion. Motion passed unanimously. VI1. DRAFT OF ECONOMIC DEVELOPMENT COMMITTEE'S PRIORITIES FOR 1998/99 Aid. Moran wanted to add to continue to encourage the further development of the Research Park added to the list of priorities. Aid. Wynne asked if they were listed in any order of priority to which D. Marino replied that they were not. Aid. Engelman thought that in light of the fact that GreatBanc Evanston has to move within the next year, and wherever they move is going to set a president for further development of that major intersection, that it was the most immediate priority this Committee has outside of an urban entertainment development complex. Aid. Wynne informed the Committee that the Evanston Bank is considering moving across the street either as a one-story bank building or they might move as a one story bank building with seven floors above them. She said she has been trying to meet with Mr. Zaring, but he has declined to meet with her at this time because he doesn't feel there is anything to discuss until he makes up his mind. She said she has encouraged him to build the higher density building. She Economic Development Committee Min ntec - M r _h ?5 VAR felt that this development would have a dramatic impact on Chicago Avenue. Aid. Wynne thought that the EDC should support and encourage efforts to develop a Chicago Avenue plan with the Plan Commission, the Neighborhood Committee, and the neighborhood. Roger Crum, City Manager, mentioned that he had spoken with Mr. Zaring. He said that Mr. Zaring does want to build a major building if he can get financing and would like to hear that the City is in favor of this project. Aid. Engelman moved that EDC concur with the Plan Commission's recommendation that we are very interested in the development of that property of that density. Aid. Moran seconded the motion. Motion passed unanimously. Aid. Engelman suggested that Aid. Feldman send a letter to the president of the bank advising the president that this committee is supportive. Aid. Newman stated that he thought the EDC should do whatever it can to maintain communication with the automobile dealers on Chicago Avenue. With the suggested revisions, the Committee approved the 1998-99 priorities as amended. - Complete review and approval process for Research Park Entertainment Development - Stimulate the revitalization of the Dempster/Dodge Shopping Center. - Support efforts to revitalize the Church/Dodge Business District. - Participate in efforts to lower retail vacancy in Downtown Evanston. - Successfully implement the Neighborhood Business District Improvement Program. - Participate in and support the emergence of the Technopolis Strategy of Evanston Inventure. - Continue to encourage the development of the Research Park. - Support efforts to revitalize the Howard Street Business Corridor, including appropriate cooperation with Chicago. - Evaluate the impact of tourism attraction efforts and provide appropriate support. - Encourage mixed use development in the downtown and within major business and commercial corridors. - Encourage the retention of auto dealerships through effective communication and problem solving. - Retain and encourage expansion of existing manufactures where feasible and appropriate. - Share perspectives and comment upon emerging revisions to the Comprehensive Plan and the Chicago Avenue Planning Process and encourage the development of Chicago Avenue. VIII. NEIGHBORHOOD BUSINESS DISTRICT IMPROVEMENT PROGRAM. Dennis Marino explained that the Planning Division had received nine applications from districts throughout the City. He went through the list of applicants and the characteristics of Economic Development Committee Minutes -Marc 7i. 199R their requests. PA4 R Following is a list of the applicants for the Neighborhood Business District Program: Central Street/Green Bay Road Business Association Central Street (1700 Block) Chicago - Dempster Merchants Association Florence/Crain Neighbors Howard Street Redevelopment Committee Howard Street (330 Block) Main Street Merchants Noyes Street Banner and Illumination Project - Southeast Evanston Association Aid. Feldman said that one of the issues discussed for this program was the inclusion of businesses and business districts that are small and might have some difficulty in getting together and devise an application, and asked how has the Committee had addressed that issue. D. Marino replied that there had not been as much response as he would have liked, but there is an application from the Florence/Crain Neighbors which is a joint venture between the neighborhood group and four or five businesses, and there is also an application from Noyes Street. D. Marino said that the marketing that was done included a display ad in the Evanston Review, a mailing was done to approximately 1,700 businesses that were in our data base, staff went into various businesses in person and passed out copies of the application, and some not - for -profits talked to local businesses about their. He said in the future, it is hoped that there will be additional applications from the smaller business districts, but that will take some time. Aid. Feldman asked for a list of businesses contacted. Dennis Marino said the next process is for staff to meet with each of the applicants to discuss their proposal in more detail. The EDC will then be given copies of all proposals so that they are aware of the details. This will then be an item for consideration of recommendation for the April meeting. Marty Norkett inquired when the funds would be distributed. D. Marino responded that he thought the funds from the CIP would be available in May and it is possible the funds would be distributed the end of May. He explained that this program was already funded in the current CIP for $75,000 and staff has proposals for approximately $ l08,000. Aid. Feldman asked what criteria the staff would use. D. Marino said that there is a four page guideline which would be distributed to EDC. Ald. Newman thought the outreach to some of the small business districts was not sufficient. It was his opinion that staff needed to spend a lot of time helping the small business owners apply for these funds. Economic Development Committee Minutes - M=h 75, 1999 PAXE Percy Berger thought that the process of reaching out, being aggressive, distribution of applications throughout the community, and having someone on staff follow up was a good first step. He said that if the process from the beginning is a wide distribution, that is the nature of what free enterprise should be. P. Berger thought that a probable second step should be to have some type of liaison to look at the parts of the City that didn't respond to the application. The liaison would follow up to see if the application was received and understood, but the businesses owner decided not to participate. IX. OTHER BUSINESS Dennis Marino informed the Committee that Balcor and the Joseph Freed Company are still engaged in due diligence and hope to be at the EDC meeting in April to give a report on their progress in planning the revitalization of the Dempster -Dodge shopping center. He said that he has met with them and Balcor and they are still working on putting something together. Ald. Feldman said that the regular meeting of the EDC on April 22, 1998 has been changed to April 29, 1998. 'there will be a meeting on April 22, 1998 to receive public input regarding the site plan that will be presented to the Council on April 2, 1998. X. ADJOURNMENT There being no further business before the Committee they adjourned at 9:36 p.m. Respectfully submitted, Mary . eBaa�ske, Executive Secretary Planning Division Community Development DRAFT NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, April 15, 1998 City Council Chambers - 7:00 P.M. EVANSTON CIVIC CENTER MEMBERS PRESENT: Aid. Feldman„ Aid. Newman, Aid. Wynne, Percy Berger, Lucile Krasnow, Marty Norkett, Greg Norwell MEMBERS ABSENT: Aid Engelman, Aid. Moran STAFF: Roger Crum, Judith Aiello, Dennis Marino, Mary Baaske OTHERS PRESENT: Arthur Hill, Robert Horne, Bruce Reid, Arthur Hill & Company; Marty Stern, U.S. Equities; Aid. Rainey; Aid. Bernstein; Mayor Morton; Linda DeWoskin; Hans Friedman; Lloyd Idelman, Rich Shereikis, Liz Reeves, Mark Stromberg, Frank Koppelman, Dorothy Dare, John Fervoy, Jill Greenman, Liane Casten, Fred Koppelman, Bonnie Michaels, Bekki Kaplan, Daniel Merchan, Troy Theil, Virginia Rippeteau, Jonathan Perman, Bridget McDonough, Eric Jacobson, Larry Widmyer, Anne Heider, R. Stephen Warner, Jeff Balch, Ken McNeiI, Dan Kaplan, and other citizens. 1. CALL TO ORDER Aid. Feldman called the meeting to order at 7:12, a quorum being present. I1. INTRODUCTION AND STATEMENT OF PURPOSE Aid. Feldman thanked the audience for attending the meeting and stated that the purpose of the meeting was to hear from the community. He explained that the site plan that would be presented tonight was a revised site plan in response to issues raised by the community in public forums, the design charette, and discussions Economic Development Committee � Peel RI 11CC in7 - Mmr t S t UQR PULL • In 1998, ETHS now has approximately 2,800 students, Evanston has approximately 73,000 residents, and no entertainment downtown except for restaurants. • We must consider what hasn't changed, Evanston is still 8.2 square miles, a diverse dynamic population that requires services. • But Evanston residents alone cannot support the continued increase in costs of services in the way that Evanston has evolved over the last few years as a retail center. • We are a City that has chosen to become a destination for specialty shopping. There are many vacancies downtown, specialty shops are finding it difficult to make a profit because of the high taxes and there are not enough customers to support those customers. • The dynamic of the downtown must be changed, establish an excitement about Evanston people want to come to, not only for special shops, but to experience the magnificent restaurants, we need something to excite and ignite that interest in Evanston. • This project properly developed, designed with a strong connectivity to the downtown is that excitement that can bring people to Evanston and increase sales taxes, give a shot in the arm property tax wise, and lead Evanston into the year 2000 and beyond as a vital, healthy place to work and live. Haas Friedman gave a short history of his background and gave the following review of the proposed development: • Current development bordered by Church and Davis and the two elevated tracks is a planning disaster. • Feels that locating the Levy Center south of Church is too cramped. • Vehicular access for senior citizens and the handicapped persons to the Levy Center and to the Performing Arts Center is through the parking lot of 19 parking stalls tucked into the last remaining breathing space between the tracks. When those stalls are occupied or blocked by trucks serving the performing arts center, all of the seniors would have to drive back out of the lot into Davis Street through the Metm underpass, drive up Maple to Church, Church to Benson, make a left turn across oncoming traffic on Benson to turn into the Sherman Avenue Garage, park their cars on who knows what level, take the elevator down to street level, cross Benson Avenue at mid -block, walk through the CTA station and keep on walking to the Levy Center and the Performing Arts Center. • Doesn't like location of Performing Arts Center. • Wants to leave the Levy Center were it is and rehabilitate, reface, add to it, and bring it up to code. • Calls "crammed Space" the east -west clearance between the 18-20 feet high concrete abutments of the CTA and Metra underpasses is about 75 feet except that the diagonal dimension of the enclosed stairway to the Metra Platform cuts this opening to about 50 feet. 20 plus feet more are given over to the driveway leading to the 64 foot wide Economic Development Committee Riperial MPrting _ Mpr 15 1 CAR P &P 4 parking lot he feels is squeezed in between Metra's 20 foot high retaining wall and the Performing Arts Center. • Alternative possibility is to place Levy Center and Performing Arts Center on Maple Avenue, North of Church. • Does not like 250 foot circle referred to as a "Piazza" because of the heavily traveled intersection of Church and Maple, its traffic lights, conflicting cross -over left turns from Church onto Maple and from Maple onto Church and, four eastbound traffic lanes o Church Street. The busy traffic lanes and the little sidewalk corners on the north and south side of Church Street are not a warm and "fuzzy" place for tables and chairs. He said this is not the public plaza the design professionals who participated in the March 14 Design Charrette had in mind. • Said that north on Maple, the plans show that the median strip and the trees are gone and Maple Avenue has been turned into a parking lot with diagonal parking on each side and traffic reduced to two narrow lanes each, northbound and southbound. • Asked if tearing up Maple Avenue is another economical solution. • Wants the developer instructed to get the Levy Center and the Performing Arts Center out of the space between Davis, Church, the CTA and Metra and provide a site on Maple Avenue. • Remind the Developer that 4 traffic lanes, traffic lights and hazardous traffic movements do not a public plaza make. • Tell the developer the City's quite recent investment in the improvements existing on Maple avenue are still considered worthwhile and continue to be in the City's best interest and that any proposed development along Maple Avenue will have to respect and accommodate these improvements. Liz RCCEQ, lives in the second ward and said she was at the meeting to speak on behalf of the Coalition for Appropriate Development. She feels the continued growth of the size of the development makes her wonder why she recommended selecting Arthur Hill and Company. Ms. Reeves had the following concemlquestions: • Hill Company refuses to respond to citizens and citizen groups. • City and Hill unresponsive to citizen concerns. • Have the parking estimates been recalculated to account for the increased size of the development? • Hopes zoning ordinance will not be overridden as was the case with the Whole Foods development. • Additional diagonal street along Maple Street will mean more traffic snarls on Benson Avenue. • This is not the appropriate solution to traffic and parking problem, urges the City and Hill staff to seek more creative and functional uses for this problem. • There is an ongoing disregard for the health of the downtown. • The fact that the development has its own name, Church Street Plaza, reflects that it Economic Development Committee I;per*n1 Meeting .. MAV 1 S 1 QQR p'VA—j- now has its own identity, plans to integrate to integrate or link the downtown with Church Street Plaza seems to be the last to be addressed. How much retail can the community and the existing downtown sustain? We don't know as no market study has been undertaken by the City to determine these answers. Sundance and General Cinema are now said to be only one of the cinemas Hill is negotiating with. Sundance was the one redeeming feature of the development. Urges diversification rather than expansion, greater attention to the details of the development including traffic, parking, financial return to the City and impact upon the current downtown. Wants all citizens to have access to all financials connected with this development. ltifar& Stern. U.S.&uities, stated that preliminary financial information having to do with the initial plan was presented when the initial plan was set out and developers were chosen. Since that time, there has not been an update of the financial situation because they are still trying to settle the plan. Until it is known where the buildings are, what the materials are, and what rents are going to be paid, it would be a waste of time recalculating numbers that will continually change. There are intense negotiations going on and some information must be held confidential. If people were told the City was expecting a certain number of dollars for some spot, that would become the ceiling. How could the City possibly get a better financial deal if all of the City's negotiating points and limits are out on the table. Some data must be held confidential at the moment. All costs related to the development will be more than paid for by the sales and real estate taxes and parking fees generated by the project. Before the Council votes on this it will all be calculated and presented to the Council and the public. LLQvd Idelnian, a Evanston resident for over 35 years, said he saw a pamphlet at the library urging citizens to show up on April 15 and demand appropriate development. He said that there were myths and reality on the back of the page of the pamphlet. • Pamphlet states that there would only be an annual return of less than $40 per household . He said that was more than he was getting out of that area now. • Have to pay for parking garage and infrastructure and improvements. Always have to pay for improvements, hopefully we'Il get a return on them. • There were complaints that there was not enough parking, now that there is more parking proposed, they are complaining about the cost to the taxpayers. You can't have it both ways. • Homart wanted to put in a Sears development where the 1800 Building is, Sears would be the anchor for the north end and Marshall Fields would be the anchor for the south end. There was a big uproar about what that was going to do to the merchants between the two stores. Well, all of the merchants that were between the two stores are gone and meanwhile the big stores save up and went to Old Orchard. He would not like Evanston to make that mistake again. • Wants the development to go forward and help the City of Evanston. Economic Development Committee q! ersal Meeting - M,av 1 5 t 44R Pam- A Frank Knnnelman resident of Evanston for twenty years. He said he supports the development in the Research Park and shares the objectives of other community members, the Council, and City Staff that such development should be consistent with the character of Evanston, support the existing Downtown and reduce the tax burden of property owners. However, he said the information available to the public raises serious questions whether the proposed development will achieve these objectives. He listed the following: • Feels with the addition of 25,000 sq. ft. of retail there will not be enough parking. This deficit in parking is in addition to the increase of the 160 additional parking spaces added. He said there needs to be 150 to 250 more spaces. City's consultants came up with an artificially low value of parking requirements by approximately 400 spaces by making the dubious claim that a person visiting the mall only needs a parking space to attend the first of many purposes. The space that someone would need to attend a second purpose is not counted. • The consultant based his numbers on 24 hours a day seven days a week. It was Mr. Koppelman's opinion that the transit load share is substantially lower in the evening hours than it is during the daytime hours. • The analysis assumes that 450 spaces in the Benson garage will be used for people going to the development. Human nature is such that people want to park as close as possible to where their going. • The overflow of parking will undermine the downtown. • The city will have to provide additional parking at additional cost. • The report from Kane McKenna (November, 1997) this projection indicates that revenues would be approximately $60,000 per year which works out to less than $ l per person living in Evanston. Kane McKenna further projects that the net revenues would increase to $330,000 per year in I008, which is $3 or $4 per person living in Evanston. • Taking the value of land currently owned by the City, the Cost of acquiring the land south of Church Street and the cost of acquiring the land owned by Northwestern University, even the most conservative estimate of these costs is $10 million. • Parking revenues estimated by the City as income to offset these charges, includes substantial revenue from daily parkers which already available to the City and is not an increment in parking revenue attributable to this investment. • if the increased parking cost and the capital cost it is suggested that the City's investment will not be $20 million, it will be $35 million. • Unless there is substantial improvement in the proposed mall, it will undermine the existing downtown and city finances rather than provide gains which is the original basis for pursuit of this development. Dorothy Dare. an Evanston resident for twenty-nine years, stated that she was currently president of the Dewey Community Conference. She thanked the Committee for the opportunity to review the design at the Charette and was gratified that this process was open to the Economic Development Committee Prial bApeting- Mav 15 194R pvr-Z community and that many of the ideas of the architects and citizens have been incorporated into the plan. Ms. Dare said she wanted to focus on one aspect of the design and that was the Levy Center/Performing Arts Center and the hotel. She gave the following ideas for changes to the development: • Ms. Dare thought there would be certain energies created by switching the location of these two buildings. • Levy Center at south end of site, citizens are required to cross busy streets. • Additional cost to soundproof Performing Arts Center. • If the hotel were to be cited where the Levy Center is proposed, the guests at the hotel would not be cut oft` from downtown Evanston and would recognize that their stay here can extend beyond the Northwestern campus. • Hotel would rise far above the tracks and be less bothered by noise invasion than would the Performing Arts Center. • Locating the hotel near transportation centers, people arriving by taxi would find it easy to locate the hotel, and would be convenient for people staying at the hotel and commuting to the City. • Why not locate the most active facility in the center of the action. • Billboard capabilities of the theaters and the Performing Arts Center would still be visible from the tracks. Ms. Dare said that while this proposal was still on paper, it would be possible to reconsider the siting of the hotel, the Levy Center and the Performing Arts Center. She felt it would be preferable to bring guests into the center of town and move the facilities used by the residents to the less trafficked areas. Crane Cuxten, an Evanston resident for twenty-four years said that the development belonged along 1-94 than in Downtown Evanston. She had the following concerns: • Concerned about driving her car on Church Street on a busy summer night as people get out of their car to get to a movie on time. Wonders how long it will take her to get to the library (paid for with her tax dollars). • Where will she find a place to park on Benson Avenue when she goes to the health club, when other people are parking there in order to eat and see a play. • Are there any studies to see if the people will spill over to the shops on the east side of the tracks. • Are there thorough studies marking traffic patterns or crowd control? • Is there money available for additional police protection and security that will be needed when all those hoped for people converge onto Evanston from all over the north shore and Chicago? • Will the traffic in front of her house become worse once the complex is finished? • How easy will it be for citizens to sell their house located on the main thoroughfares once the new complex is complete? • Why have the people requesting meetings been ignored? Economic Development Committee ,.4�ne�i�1_M,e��t�nr - t1Aav 15 144R ArA9CL& • What is the rush?. • Why does the project keep getting bigger when Skokie pulled back its plans to build seven more screens because of traffic problems? Ms. Casten said that people want to put faith in their elected officials and most of the residents believed that the issues are being studied and that Council will come up with the best plans for the community. She felt that the EDC and the Council was not ready to vote on the proposed development plan and asked them to continue dialogue with the community. Bekki &121an, had the following concerns on behalf of Nichols Neighbors. • Before approving the proposed development, they would like it reevaluated. • A detailed estimate of the proposed project cost as well as the City's potential revenue generation be provided. • Thorough professional evaluation on the impact the proposed development will have on traffic, existing retail stores and restaurants, including those that must be reevaluated. • Members of Nichols Neighbors were not convinced that the City of Evanston is doing an adequate job in considering the possibilities and evaluating the impact of such a major development. She said that all of Nichols Neighbors want this development to be a wise investment for the future of Evanston. fly an Evanston resident and member of Coalition for Appropriate Development has the following concerns: • Cinema count - too high • Increased retail space • Housing - more parking • Design Charette - only allowed to talk about architecture, - missed opportunities, wanted to talk about parking, traffic, feasibility flow and what citizens see as an attractive entrance. • Levy Center stuffed in corner, what is going to happen to the buses currently using that site, where is that going to be moved to? How much will that cost? • Concerned about revisions to important intersections around the site, those intersections are rated D+ at best and P or l:- now. • Garage located at the north end of site, making access by East Railroad Avenue, Maple and Clark Street plan is four-way stop sign to access a 1200 car garage - unacceptable. Take an hour to get in and out, plus pedestrians trying to cross the street to get to movies. • Suggested limiting the number of turns and move the parking garage to the south end of the development. • Thought there should be two parking garages, one at each end of the development. • What are statistics in the evening hours that this site will be used? • Wants to discuss how the S% entertainment tax will be implemented, will it be Economic Development Committee S= erinl MPptinng - Mm► 15 1 QQR P'se 9 citywide? • What more is the City paying for in this plan. Are we paying for more land, larger garage, the performing arts center? • What is the process and what is it costing the City to move Dave's and Pineyard? • What is the cost of the larger square footage of retail? • Keeps hearing there will be Eddie Bauer and that type of business, feels that will hurt existing outdoor business in Evanston. • There is no market study, no competition study of the film industry. • If Hill eventually sells development, City should recoup money it has invested and that should be put into the contract. Mr. Thiel asked the City to make a market study of the history of Evanston, why did Marshall Fields leave, why did the movie theaters close, etc, Yiminia R ppep fir, an Evanston resident for forty-one years, is a founding member of Dewey Community Conference and is a member of the Coalition for Appropriate Development of the Research Park. many. She said that speaking as a senior citizen living on a fixed income, her concerns are • What is the cost of the project. • What happens to the large space occupied by multi screen theaters, if the theaters go the way of the drive-in theaters, or the theater cannot be made profitable, who pays? • Why would anyone staying at the hotel venture into the downtown when all their needs are planning to be met in the new development. • Having visited senior citizen centers in other areas, she found that they were much more adequate than the one currently proposed, and often in park -like settings. • Friends and acquaintances have moved elsewhere because of high taxes, she cannot afford to pay more taxes for this gamble. • She wanted see Evanston become a livelier, more profitable and citizen -friendly community, not a burden for those who choose to live in Evanston. Anathan Pernian, Excetgive Director. Chamber gf Catanrerce, said that the Chamber represents 700 business in Evanston and within those businesses 25,000 employees. He said that for those people that didn't believe that Arthur Hill & Company were for real he wanted to tell them of his recent trip. Mr. Perman stated that one week ago, he was standing on a dead pedestrian mall in downtown Denver looking up at the Denver pavilions, an Arthur Hill & Company development, under construction. He said that he was looking at a downtown that was in far worse shape than Evanston was in the evening. Mr. Perman said he could see that an idea of integrating a new development that includes movie theaters, stores, and restaurants could develop synergies and rebuild a downtown and build the critical mass of people as the Hill Development is doing in Denver. Economic Development Committee , Print MPPtin�r _ M�v 1 rt QQR A Mr. Perman said that the Evanston Chamber of Commerce has been supportive of the an entertainment complex and that in 1997, the Chamber called for several things to be integrated in the proposal and a number of those things have been integrated, such as: • Integ ation and use of transit, to promote the development through transit. This development, as proposed, makes a great use of the two rail stations and the right-of- ways and not only uses them as a way to bring people back and forth, but also with thousand of people going to and from Evanston every day, this will be an advertisement for the City, unlike the way the train stations stand now. • Eul se ice hote with conference Ste, while not there yet, there are indications that conference space and exhibition space will be included. • Performing Arts Space if economically feasible. This project has been included in all the plans up to now and continues to be included in each evolution of this project. • New Concept of Residential, a good part of the additional space is residential and a downtown that functions, that is successful, is one where people reside. • Wants to see the link between the existing downtown and the proposed development through architecture, landscaping, and creative design. • The reality of Evanston's tax base is that the fiscal capacity of the City has failed to grow and that we are more and more a community with less ability to pay for services that citizens and businesses desire and the Chamber believes that the project has the potential to enhance that tax base. • Accept the fact that while Evanston belongs to the property owners, business leaders, people who have homes, schools, families, it is also a community that should be shared with others including shoppers, travelers, people who are willing to spend money in Evanston who do not live here. The population of Evanston is not enough to support the services and the activities that are desired in Evanston, so we must look beyond one, two or three miles out and create an Evanston that is a destination for both businesses and residents. Mr. Pennan mentioned that the KLOA report on traffic plainly says that the traffic generated by this report can be accommodated by the existing street system with few minor modifications (changes in signaling, changes on the intersection of Church and Ridge and changes whether we have this development or not are needed at the busy intersection of Green Bay, Emerson and Ridge Avenue). "if the estimate of future traffic at the intersections are underestimated by 100%, the intersections will operate at an acceptable manner", a quote from the KLOA study. At the last Parking Committee meeting where the Parking Committee met with the Coalition for Appropriate Development and consultants from KLOA, he found that the two sides were not that far apart on what the parking needs were for the City. They were apart by 250 or 250 spaces. Economic Development Committee S, Prial_MPAting - Mny 1 S 1 QQR V�V i 1 Mr. Perman said that he has confidence in Evanston and confidence that this development can work. Evanston has a good track record when it comes to Tax Increment Finance Districts. He thought that on a solid evaluation, the City was batting four for four in economic development projects. The Sams Club Development, the Howard/Hartrey Development, the Home Depot Development, and the Park Evanston project (which is exceeding expectations) are all doing well enhancing Evanston's tax base and malting this a better quality City for its residents as well as attracting visitors to the Community. Bridget_ McDonough, General Manager of Light Works, and a member of the Board of Directors of the new Evanston Business Bureau, said she wanted to speak in favor of this development - especially the inclusion of the Performing Arts Center. • She felt that this development properly designed, executed, and taking into consideration citizens concerns will be an excellent addition to Evanston. • The Evanston Convention Visitors Bureau (CVB) will be funded 50% by the State of Illinois who will match our local funds, and with the work the Evanston CVB will do, they will be working very hard to get the new people that are coming into town and staying at that hotel, seeing those movies, and attending those performing arts events to come early and dine, come early and shop, and stay late and have coffee, etc. ar , Widmver. lives in the First Ward and said he was at the meeting to speak in favor of the whole development process. He stated the following: • At this phase he was concerned that everyone work together to make sure that there is a successful development. • He is Chairman of the Southeast Evanston Association, and Chairman of their Chicago Avenue initiative. He explained that they were looking at development along Chicago Avenue. • He is in commercial real estate and has worked with developers and has not found any developer yet who was willing to spend money expecting to take a loss. • He felt that finances would and should dictate the ultimate size of the proposed development in Research Park. • Was concerned about the high taxes and thought that we should consider very carefully what is causing the high tax problem in the City. • Evanston does not have a large enough tax base to support the every increasing cost of maintaining current services. • To a large degree high taxes come from the amount of money spent supporting the two school districts in the City. Nevertheless, what is left over from the high school taxes have to be used to support the City. • He felt the City needs to increase the tax base, or the other alternative is to increase fees or increase the cost of services whether its called property tax, sewer tax, trash collection tax, etc. • Unless Evanston residents want to pay a lot more taxes, we have to consider the alternative and that alternative is to increase our tax base. Economic Development Committee IP VA12 • We have to encourage development as appropriate for the City in multiple areas, by increasing and making the downtown more viable, he believes there will also be a spin off effect of making other areas more viable. • There has been a lot of talk about the downtown area and what is causing the vacancies, he said that the cause was lack of a plan on how to keep the stores full and how to keep people coming into the City. What was being accomplished with this project, in conjunction with the current downtown groups, is to try and establish such a plan to maintain that viability. • Very much in favor of the development and hoped that the process would continue to be one of community involvement and always in a positive vein about how we will make this project successful. • Let's stop the "How are we going to stop the project". Jeff Balch, lives in the ninth ward is concerned that the demand for movie theaters would decrease. He handed out literature to support his concern. V. COMMITTEE/COUNCIL QUESTIONS Aid. Feldman thanked the audience for coming and told them the questions raised tonight would be answered. Aid. Newman, stated that in the prior pro forma the amount of money generated over the twenty year period by the development was closer to $70 million. He said his memory was that the City's investment for the garage which the city will own and operate anyway would be paid only out of those new revenues. The intersections around the Maple and Church, Church and Benson, Davis and Benson, Maple and Emerson were all B+ and B's. After the development they were still B+ and B's and asked that be check out. Aid. Newman asked for information on the outstanding track record the City has had with each and every one of the TIF districts that we've undergone. He said he had a concern about the angle parking on Maple Avenue and asked the Arthur Hill Company to revisit this issue. Ald. Newman asked what the movie theater operator will have to invest over the twenty year period in order to be part of this development. He felt it was important for the community to know what the private sector will be investing. Aid. Feldman asked Mr. Hill to keep him informed of the placement of the entrance to the garage changes. Economic Development Committee Special M_P�t'in_g,-,Mair t5 t4UR D He said that one of the reasons the hotel is placed where it is because of the space for expansion and that there are no plans from anyone to put an office building by the hotel. Aid. Feldman said he would like a listed rationale from Arthur Hill & Company for the benefits of siting the Levy Center where they have in the new site plan. He wanted to know the difficulty in changing the planned site. Mr. Hill stated that he wanted to have considered answers and provide them for the EDC, Council, and for distribution to the public. He wanted to consult with Mr. Elbasani about several of the questions before lie answered them. Mr. Hill said they would study the question of the angle parking further, but the purpose of the angle parking is to aid in having a successful new retail neighborhood. In reply to a question from Aid. Newman regarding investment by the private sector, he said it was substantial. From his knowledge of the business and the knowledge of the cinemas that his company is building in Downtown Denver, before they move in movie operators will be investing in excess of $8 million of private sector capital in interior work. This investment is in addition to committing to paying rent for twenty years. Mr. Hill said that the four way stop at the garage is under review. He felt that the placement of the garage was an excellent one, because it serves the Research Park, the existing retail areas, the new neighborhood and it has reasonable spacing. Regarding earlier comments about his Company increasing the size and scope, Mr. Hill explained that he was not trying to pack this site with every square foot. He said that with the present hotel location it would be possible to add additional conference facilities. The hotels are willing to put some conference space in, but they are not willing to put as much in as many of the downtown and university people would like. Mr. Hill said he would provide the EDC with a written rationale for the advantages of this particular location of the Levy Center. He mentioned that the increased size of the retail only amounts to an equivalency of one store, and that he was here for site plan discussion and approval, not for final design. In conclusion, Mr. Hill stated his Company was honored to be the developer for this project, he listens very carefully to the comments, but cannot do everything to make everyone happy. He said his Company accepts the responsibility of making this development a success and complement to the Downtown. Aid. Feldman recommended that Mr. Hill meet with the Chamber of Commerce and selected representatives from the east side of the viaduct to integrate this development into the Economic Development Committee Snerial Meeting _ My 15 199R P�t� SI - downtown. Mr. Hill replied that for his company to meet with Chamber representatives, Evmark, and selected local merchants is a correct thing to do and it will be done. He added that he would do it as soon as possible. Aid. Feldman mentioned that when Mr. Elbasani was at the April 2 meeting, he was asked how this design reflects the historical architectural tradition of Evanston. Mr. Elbasani replied that while the building size in this site plan drawing is correct, it is not architecture. It is not the design, the materials, or the way he intends to accomplish reflecting Evanston's historical tradition for the specific buildings. That has not been decided. Marty Stern said that many of the suggestions that came up in the Charette, many of the concerns have been accepted, but to the extent that suggestions made have not been accepted does not mean they have.not been fully analyzed. They reflect an important reality, but there are a couple of costs in a project like this that are absolutely fixed, whether you put one square foot on this amount of land or more. The other thing that is relatively fixed in the number of parking spaces that are needed because you are replacing surface spaces that are there. With the cost of the land being relatively fixed and the cost of the garage being relatively fixed, suggestions that are for significantly lower development that produce less revenue, produce less ability to pay for those while not affecting the costs, really endanger the financial feasibility of the project. He said it is impossible to say let's have less development but let's make it a financially stronger project in the same sentence because there are lots of costs involved that are the same whether we have half the number of square feet or the full number of square feet. Mr. Stem said he just wanted it known the difficulty the negotiating team and the City has in meeting all the objectives that have been put out by the public. Mr. Stem regarding a previous statement made by one of the commentators of "Let's ignore the professionals, let's ignore the knowledge, let's ignore everything we know, let's think about common sense," all he could think about was one piece of common sense, party after party got up and said they didn't want to hurt the downtown, this is going to hurt the downtown, but every business owner, including the Chamber of Commerce and everyone who is truly effected by this is tell you we want it, is telling you we need it - that's common sense. VI. ADJOURNMENT There being no further business, Aid. Feldman adjourned the meeting at 9:36 p.m. Respectfully submitted, Mary E. aske Executive Secretary, Planning Division Community Development Department M r ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, April 29, 1998 City Council Chambers - 7: 45 P.M. MEMBERS PRESENT: STAFF: OTHERS PRESENT: II. CONIC Aid. E Moran second EVANSTON CIVIC Aid. Feldman, Aid. Wynne, F Greg Norwell Judith Aiello, Mary Baaske or'_deFfi17:55, a quorum being present. 25, AND APRIL 15 MINUTES ie March 25 and April 15, 1998 minutes. Aid. d unanimously. 6Waccepted into the record by Aid. Feldman. D BUSINESS DISTRICT IMPROVEMENT PROGRAM A nr is. iarino related that there were nine responses to the request for participation in t Flee reminded the Committee that this was a program that EDC was responsible for startm d was funded for $75,000 in Capital Improvement Program funds. D. Marino continued by saying that there were nine proposals totaling $125,000, and that staff's recommendations were for $72,639. Of the nine proposals, staff is recommending funding Economic Development Committee Minutgs ADri129.1998 P C2 seven. Concerning the other two proposals that were not funded, one was referred to another program (the Alley Lighting Program) and the other applicant withdrew in support of the other proposals on the Chicago Avenue Corridor with the expectation that the City would address some of the issues it was raising through the City's normal operating procedures. Lisa Lyon, Neighborhood Planner, and Dennis M, the business districts requesting funding and provided the Pro osR al # 1 The Central Street Business Asso and flags for Central Street and Green Bay. (Aid. Mo Avenue would be painted by R&TA in the near future big portion of that $200,000 would be to remove the l+ Staff is recommending funding of $5,344. Proposal 92 This proposal is also on Cei businesses that are located in the block in which; is for landscaping improvements, installatiott- U recommending funding at $11,691. Aid, dma access for the handicapped. L. Lyon re ed that D. Marino said that they had spoken Davi E proposals that get into these kinds "5 ues with what he has read subject to final appro will go thou another prot�,-p'ite plan Fire Deparet nt and the Citv�s AEnFl�necr wiillt it had taken of mad e„ppli ` that the A MfiK $200,000. He e d that a _t currently on the viaduct.) ntral-5treet/ 1700 BlUM"bmitted by eight foie??Evai qp theaters"a ylocated. Their request )banters and:a eet furniture. Staff is n was ca�'"derrn'ia ,liar the planters could impede Affect hWdiscussed with the merchants. lennings,Zfaffic Engineer, about a number of on a preWinary basis, has been comfortable D. Manno added that each of these proposal ey are ready to start work and that is when the �volvcd. UOt C)s2 3,' The Chica&.lDejoster titerchants Association proposed three components .� r. ~. Fit to their applica`ton: •-•-�- Beautih dhan.= concrete planers and wayfinding signage for the district. Two�inaarrketmg-propomen�ts, one being a pamphlet having a directory and map as well as .,4 vebsite. = � ;'Staff is recommending�funding at $13,895. Proposal 94 Florence/Crain Neighbors - enhanced lighting, landscaping, planter and street.fumiture. Staff is recommending funding at $8,500. Y. ;$�p0Sa1'5 I-loward Street Redevelopment - $11,000 for banner replacement, seasonal banncrs;�tandscaping, and enhancement of vacant storefronts. Aid. Feldman asked if anything could be done about excessive signage. D. Marino replied that he knew that was an issue for the sign inspector, but the inspector could not cover every store. Judith Aiello said that to be sure every store is in compliance, you would have to go back every day and the City does not have that kind of manpower. Economic Development Committee Minutes - April 29. 1998 PV&_L Proposal #b - Main Street Merchants - $ l 0,098 for banners, winter lighting and landscaping. Ald. Wynne asked how the landscaping would be maintained. Alex Sproul answered that the City was installing a spigot on the outside of one of the businesses so that the flowers/shrubbery could be watered. A& Proposal #7 - Noyes Street Merchants and Cultural A s Cente T for banners for Noyes Street and for Noyes Center; partial funding of side . Lucile Krasnow asked how staff determine the I W of fundiri" or eh or felt there was disparity where certain areas got what th ed far TMarino' aff looked at each proposal individually in terms of what th ing to do of all, whether or not this was an eligible expense as approved b�hj _Rt&o� eir budget was also looked .r_s at todetermine if they had projected the costs reasanablys�",✓wr Ms. Krasnow stated that she felt the money,should be alloci1QTas ysicaI change and improvement as opposed to other types of publielkli tion'�,Rromotion�suwebsites. D. Marino answered that, in terms of changingprogrpssgnidelines ext year that would be appropriate, if that is the Committee's wis�i If EDC;vas,tn; t this point to these proposals, it would put us in an awkwar_.�' ituatiow cause" w�'YYlist a number of these as permissible activities in the Commit L '�dpprove&-,Program description. (Marketing activities, landscaping, etc.) � ,ee , Ald. ewman agreed thahysical acti 'ttes,shnuld be a high priority. Ms. Krasnow said she would;>�ch more°comfortable if the:tnon ' were reallocated to physical improvements only. Akib�,dgjMsaid thatkwhile he;agreed with Ms. Krasnow, he remembered that the approved program statement•Iiked various activt$ies, but did not limit response to those listed activities. .. F -;,;SIN He said he wouldiiiotrsiivant to senil:t}ie message that EDC did not want something other than a planter or a banner,and'if a merchant;group felt that something that was a little off the beaten path but ,= uld help their ,thaf'we not quash that concept. Ms. Krasnow again stressed that she felt tha.#Money should btk'4�nf_o; physical improvements only. `Percy Berger asked if the cost of the website was known. D. Marino replied he thought it �. ,d proximately $3,500. Mr. Berger stated that if the merchant association believes that this Ls -something that is important to them, we should not get into limiting (if its a capital e.Veriditbrc).hoWJ iey think, how they perceive, and what they think the value to their business issunless+w 46'villing to get into their budgeting and determine if its an acceptable return to them nd,gote City. Aid. Wynne asked if there were physical improvements that were not funded because of not enough funding. D. Marino replied that they were not. One proposal was downsized because of the scale of the business district, not because of funding issues. Aid. Feldman said EDC needed to decide if they were going to change the criteria for this year, or sustain its current ..w Economic Development Committee MinilIC5 - April 29. 1999 Pam„ direction for this year and have a dialogue for what the standards should be next year. Aid. Newman asked how much money would be available next year. D. Marino replied that there would be $50,000 for 1999 and $50,000 for 2000. Alb Ms. Krasnow made a motion to approve funding all their physical aspects are and take the remainder of the fun( send out a letter for other physical improvements. Aid. N4 Engelman said he would support staff's recommended f �'Z Chicago/Dempster Merchants marketing brochure. He SR very consistent with the Technolpois Project which the @ supporting. Discussion ensued regarding the funding of95 website versus funding physical improvements only. Aid. Feldman stated that if EDC thinks it is -more improvements than the program the merchants.WVant: vtre ; 14; .-.. Development funds and make the specific im iroveme have no intention of doing what they wan Aid. Engelman moved to the money for the website. Ms. abstention. Aldan moved that'th Comm �lte secondedhbt*r)Gt n. lviotioapassed,7-2. V. MAIN:9TR_ EET NE,WSSTA b nI he pro 0% of what Id eith r next year or m secon ion. Aid. with e exc e iat a website n ndations including the just takethe Economic ask thim what they want, if we ent to W311 Krasnow's motion to add back in the amCndment. Motion failed 4 aye, 4 nay, 1 /77 !Pt staffs full recommendation. Aid. Wynne PROPERTY STATUS , ,rttfdith Aiello infoim"e'Committee that staff was meeting with the CTA on Monday, Ma 1998 to review thelly syggestions for the capital. When the City purchases the newsstand theftinds that we give to the CTA for the acquisition will be used to fund some projects within Evun tan. She mentioned that it is up to the City to decide where those projects will be. The GTAgave a series of'recornmendations of what they felt was appropriate. s.ry .��.. 1!i6Aiello said that, after touring those sites, she found that some of the CTA rccommcnd ons had already been done. After looking at the site, staff found there were some r c c o m4m other things that needed to be done and tried to balance what staff thought was maintenance versus what was capital. In addition, she will be talking to them about the graffiti issues at all of their stations, ideas for more rapid response and prosecution of offenders. Economic Development Committee Minutes - April 29. 1998 Pr9,L Ms. Aiello said that the Main Street Merchants have informed the Council that they would like the City to consider having the space occupied by individuals who operate Main News which is currently on the east side of Chicago Avenue, just south of Main. Ald. Wynne mentioned that she had been approached by another individual interested in the ne tand. Ms. Aiello thought that if there are more parties interested, the City should p ,out aaMP. Aid. Newman said that, in his opinion, it has taken far too long to sseettle the t newsstand issue. Aid. Feldman asked AIex Sproul, representative 6 'the Main Sheet ' f th & recommended the use of that building as a newspaper s and ` gested som in the Association to operate the newsstand. Mr. Sproul sat en the Main Str chants Association was asked their opinion, they asked that Main "` given the first opportunity to occupy that space. He stated that when the Association gave"lheii?opmion on the tenant of the Mainstreet newspaper stand, they were taking no position on terttis and-onditions, he felt that should be up to the City. Percy Berger suggested EDOrnake a rccdmtnCttdhtion for a process that maximizes the property's value to the Council. Ms.�A ello said §he-W uld proceed with the r •c,:�--.••• 3 -tea ti r process for getting a tenant for the newstand-RW meeting�wi'�h the GTA on Monday. VI. PROJECT UPDATES Dennis Marino, said the avin `� ank is i rested in the outlot in front of Best Buy. They are currently before ing BoA.5' f Approvals. He said that the project at Dempster/Dodge is still movin r►vard. g"' Y VII. RES ARCH PAR1K,r ,. Ms. Aiello -said that therc`whs;ap blic hearing on the revised site plan of the development atReseucii'Pruk. She that they were working on the zoning analysis of both the Hill nrdf8 h and th `paikiii issue of all 26 acres of Research Park. y. Aiello statedTafislic Hill Team is in negotiations with anchor tenants and is marketing pieces to go to the International Shopping Center Show in the middle of 12a! h Friddm' an addressed the issue of the current site plan of Research Park and the opposit on,, :exists. He illustrated his ideas for changes to the site plan on the chalkboard. Discussion ensued between Mr. Friedman and Committee members. Ms. Krasnow asked for clarification on who was constructing the shell for the Performing Arts Center. Ms. Aiello said that, as of this date, the City would construct the shell as part of the Levy Senior Center development and that the interior space would be paid for by the Performing Arts community, if possible. She said that there is a possibility that there would be some State funding as of this date. Economic Development Committee Minutes - April 29. 199R VIII. EXECUTIVE SESSION Aid. Wynne moved to adjourn to Executive Session for purposes of discussion of matters of land acquisition. Marty Norkett seconded the motion. Voting Aye: Ald. Anarty , Ald. Feldman, Ald. Moran, Ald. Newman, Aid. Wynne, Percy Berger, Lucil Norkett, Greg Norwell. a The Committee returned to regular session at 10:48. There being no buther business, the Committee Respectfully submitted, Executive Secretary Planning Division Community Development ECONOMIC DEVELOPMENT COMMITTEE MINUTES MAY 24, 1998 Room 2404 - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Engelman, Aid. Moran, Aid. Newman, Aid. Wynne, Lucille Krasnow, Greg Norwell, Martin Norkett MEMBERS ABSENT: Percy Burger STAFF PRESENT: Judith Aiello. Dennis Marino OTHERS PRESENT: Terry Jenkins. Jonathan Perman, Tensley Garris RESEARCH PARK UPDATE The Meeting was convened at 8:00 P.M. by Aid. Feldman. Judith Aiello provided a brief update of the Research Park development projects including the proposed entertainment development south of University Place and the two proposed office buildings north of University Place Xvith an option for a third building in the future. Ms. Aiello stated that the entertainment development continues to feature an arts cinema and mainstream movie house as well as a hotel with conferencing capacity, a parking garage and retail. Also included is a new Levy Center and a Performing Arts Center, Ms. Aiello added that three distinct theater operators were under consideration for the entertainment development. each of which would include an arts theater component. She added that m o hotel operators were under consideration. each of which would include conferencing capacit%. The two proposed office buildings and a potential third building, all of which have been proposed to be located north of University in the core Research Park, would require additional parking beyond that required by the entertainment development although the theaters and office users should have complimentary peak demand cycles. Ms. Aiello suggested that the required parking for the three ne,.v office buildings could be financed from the existing Research Park TIF increment instead of the projected increment to be generated from the proposed entertainment development. Economic Development Committee Minutes - May 7.4 199R Pa&C2— Ms. Aiello cautioned that the proposed entertainment project is very complex and that the negotiations should not be rushed. She added that late July is a likely time for presenting a Redevelopment Agreement. She concluded by stating that this is the most complicated economic development project in which the City has been involved. EVANS TON CONVENTION AND VISITORS B UREA U Tensley Garris, the Director of the Evanston Convention and -Visitors Bureau, presented the accomplishments and marketing plan of the ECVB in support of a request for $50,000 in City funding for FY 1998-99. Ms. Garris added that a City commitment at this level would represent 22% of the Bureau's Budget. Other funding commitments include $25,000 from Northwestern University, $20,000 from existing hotel operators and $100,000 from the state provided that an equal amount of matching dollars are in place. Ms. Garris next presented the mission statement of the ECVB which is to bring economic benefits to the community by enhancing and promoting the Evanston tourism industry as defined by the following business categories: lodging, cultural and entertainment attractions, restaurants, retail, sports and recreation. Accomplishments of the ECVB have included; establishment of a website. production of Destination Evanston; placement of display ads in regional visitor guides and newspapers; press coverage in the Daily Herald; implementation of a summer events co- operative advertising campaign; distribution of 35,000 copies of Destination Evanston; respond to 8.000 tourism inquiries; completion of a survey of Evanston hospitality businesses; provision of Evanston event and tourism opportunity information to the Illinois Bureau of Tourism and; development of several leads for future meetings and events to be located in Evanston. Next P.ts. Garris summarized the 1998-99 marketing plan for the ECVB, beginning with the identification of three target markets: leisure travelers: conventions and meetings and; group tours. Ms. Garris stated that Evanston's greatest potential in the leisure market is within the Chicago metropolitan area, northwest suburbs stretching to Rockford and the Milwaukee metro area. These potential travelers to Evanston currently have access to Chicago and may be looking for nee% leisure experiences. This target market will bring both day trippers and overnight guests. The secondary audience is national and international travelers who have plans to visit Chicago land and desire additional experiences. A second significant target market is composed of conventions and meetings, especially state and regional associations with room requirements of less than 100. ECVB will work to build this business during the hotels' slow season, which is the months of Nov., Dec., Jan., Feb., March and Aug. A third target market recommended to ECVB by local hotels and cultural groups is the group tour business. Such tour groups create attractive filler business during both weekdays and weekends. ECVB will position Evanston as a "hub location" and an "add on" destination for Economic Development Committee Minutes -May 24. 1 RAR p3&E' i tours currently operating on the Notch Shore. This market will generate day trippers and overnight guests. Ms. Garris summarized key marketing objectives and marketing strategies within each of these markets. These are presented in detail in the document distributed to the Committee by the ECVB. Next Paul Giddings, the President of the Chamber of Commerce, spoke in support of the ECVB's request of the City, emphasizing the importance of tourism and meetings to local businesses, especially restaurants, stores and cultural groups. Lucille Krasnow requested clarification of the previous funding provided by the City. Dennis Marino responded that $20,000 was provided to the ECVB in 1997-98 (7-1-971/ 6-30-98) from the Economic Development Fund. Alderman Newman commented that he was pleased by the progress of the ECVB and the significance of such an entity was emphasized to him by a recent visit his family made to Peoria and Rockford for the Statewide Chess tournament for elementary children. The tournament was heavily attended by a large number of families . He added that Evanston has 10-15% of the teams in the state and could be a future venue for this tournament. The Rockford Visitors and Convention Bureau was described by Ald. Newman as instrumental in recruiting the tournament for its City. Alderman Feldman commented that he was pleased by how the ECVB had diversified its funding base with support from the hotels and the university as well as the City and state. Lucille Krasnow moved approval of the ECVB's funding request of $25,000 from the Economic Development Fund and $25,000 from the hotel tax per the method proposed in the memo included in the Committee's packet. Martin Norkett provided a second. The motion was approved unanimously (8-0). CITIZEN COMMENT CONCERNING RESEARCH PARK PROPOSALS Ald. Feldman invited citizens who had requested to speak on the Research Park to begin to address the Committee per the order of the sign up sheet. A citizen who is a user of the Levy Center. read a statement of concern about the proposed location of the new Levy Center, emphasizing; that he does not like the location because of its distance from the proposed parking garage. He concluded by stating that the City should leave the Levy Center where it is and bring the building up to code, with consideration of an addition. If this is not possible, he added, then relocate the Center north of the current proposal. Ralph Friedman quoted dialogue John Steinbeck's "Of Mice and Men. " featuring the character Lenny to display his opposition to the current proposal for the new Levy Center. Economic Development Committee Minutes - May 24. 199R PagcA. Rich Steinburg, an owner of a furniture store and an Evanston resident, opposed the proposed entertainment development based on his belief that no one entity should own so much land and property in Downtown Evanston. He added that he supported the hotel and the movie theaters. He concluded by requesting that the area be developed piecemeal to give local people a chance. Otherwise, he contended, the rents would be so high that only national retailers could afford to be present. Don Browne, the manager of the Clean Plate Club, stated that he was opposed to the development as proposed, especially the proposed retail which may include restaurants developed by national chains which would compete with existing restaurants. He added that he supported a new hotel, a conference center and more residential as excellent initiatives. Mr. Browne commented that he was concerned about the absence of a market study for the theaters. Michael Bernard, a local business owner and resident, stated that he was initially supportive of the proposed development, but has become concerned about the following issues: traffic congestion, competition and the connection to the existing downtown. He added that there were better development choices for the land and that the parking garage should be moved closer to the existing downtown. Bill Holloway, owner of Sir Speedy's print Shop on Davis, stated that he tried he attempted to purchase the former Hertz Rent a Car property within the proposed development site and was told that his plan would not be considered by the City because of the pending RFP for entertainment facilities and hotels. He added that he was opposed to the development as proposed although he supported the hotel, convention center and movies although he wasn't sure how many were appropriate. Mr. Holloway encouraged the Committee to push for more meeting space than the 4,000 s.f. proposed. He contended that a minimum of 20,000 s.f. was necessary. Daniel Kelch, owner of LuIu's Restaurant. criticized the lack of research in support of City sponsored projects. He contended that the Research Technology Park as well as the Recycling Center were failures and demonstrate the need for more research. Mr. Kelch was especially concerned about interconnectivity between the existing downtown and the proposed project given the location of the proposed parking garage at the north end. lie objected to the amount of proposed retail in the project and the addition of new restaurants which would compete with existing restaurants. Lucille Krasnow asked Nlr. Kelch to comment on her view that there was room for additional restaurants, adding that many restaurants have opened since Lulu's started yet Lulu's is doing well. Mr. Kelch responded that he agreed there was room for more independently owned restaurants in Evanston and that they represent a growth industry and destination for Evanston, but people were not going to drive from Deerfield to eat at a national restaurant chain which is already in Deerfield. He asked that Evanston's distinctive restaurant network be preserved and enhanced. Economic Development Committee Minutes - May 24 1 QQR PVC.5- Judy Pfteel, the owner of Wild Chicago, a children's's clothing store, expressed concern that the current proposal turns its back on the east side of downtown. She added that the Hill proposal creates a development that is all encompassing including opportunities to shop, eat, park and be entertained without Ieaving the Research Park. UPDATE ON DOWNTOWN RETAIL BY TERRY JENUNS Terry Jenkins, the Executive Director of Evmark, provided an overview of the condition of ground floor retail in the Downtown. He stated that his report was a mixture of aecompl4h ents, updates, continuing problems and recruitment efforts. Downtown, with the completion of the capital improvement plan, looks as good as it ever has. He added that 8,000 flowers would be planted in the next week and that crime was very low. Mr. Jenkins reported that new special events were planned for the John Huck Plaza, that new mixed use developments were a possibility and that projects like Buck have been extraordinarily successful. Reports of sales performance are mixed with some merchants reporting a 4-5% increase, other reporting a comparable decline and some reporting flat sales. Mr. Jenkins commented that there was a great interest in buying property and that many retailers have been considering Evanston. Overall, things are not as bad as some people think. Despite all the positives, there continues to be a chronically high retail vacancy rate which has been 10-11 % for the past 18 months according to Mr. Jenkins. Historically, for the past nine _ years, the retail vacancy rate has been 5-611/6. Overall, the market is experiencing an unusual dichotomy-- high vacancies, a high level of tenant contacts and a strong interest on the part of tenants. Mr Jenkins cited some of the reasons for this high level of vacancy: high price of available space; what tenants want doesn't match with configuration of space; the kind of tenants owners want doesn't match the market of interested tenants; national retailers are hesitant to commit to particular space until they know probable outcome of negotiations involving the Research Park; increased retail space in entire 2-3 mile market area raises questions about how many retail stores can be sustained; the former tenants in some cases continue to pay rent on outstanding leases, thereby lessening the need for owners to negotiate to capture new tenants at less than what the owners believes to be an appropriate rent. Mr. Jenkins concluded by stating that he has spent as much time on recruiting tenants in the last 18 months as he had in the previous 7 years. Concerning recruiting, Mr. Jenkins highlighted the following activities: brokers breakfasts, hiring brokers to attract tenants, direct marketing campaigns to speciality retailers located elsewhere in the region; 5-7 meetings per week with people who initiate contacts with him. Economic Development Committee Minutes - May 74. 144R Page Aid. Feldman asked what had happened to tenants that vacated space downtown. Mr. Jenkins responded that several have been national chains that downsized the number of stores in the region, others such as La Madeline closed nearly all their facilities and some simply decided not to stay in business and closed their single location. Mr. Jenkins commented that despite the chronic vacancies, the effective cost of space had become so high (approaching $30 psf in some cases) that start ups and even two year old businesses have a difficult time convincing landlords that they can pay $30 per square foot. Martin Norkett asked Mr. Jenkins to describe the three things he wishes for. Mr. Jenkins responded that the following issues were priorities: settle the development of the Research Park, and addressing broad based parking policy for the downtown, including employee parking and creating priority parking for retail customers. Mr. Jenkins added that he thought the proposed entertainment development would be good for the downtown, however, its fate is now hanging over the head of some locational decisions in the core downtown. Aid. Engelman commented that the time line for the entertainment development is an important issue. He added that it needed to be decided before now. Ald. Engelman asked Mr. Jenkins to comment on the potential impact of a pool hall on downtown. Mr. Jenkins responded that it would not be at the top of Evmark's priority list. A discussion ensued about the pricing of downtown retail space and the consequent sales required to make the numbers work for a typical retailer. At $26 psf effective rent, it was assumed that annual sales of $450,000 were required to maintain occupancy costs at I2% of sales. Mr. Jenkins added that when national retailers look at Downtown Evanston, they are not concerned about price. Mr. Jenkins made several comments about the resurgence of traditional downtowns and highlighted Highland Park's efforts to recruit tenants from Northbrook Court which is the reverse of «-hat had transpired previously between traditional downtown and malls. He added that traditional downtowns can be competitive with malls in the right niche. Lucille Krasnow asked Mr. Jenkins about the proposed placement of the parking garage in the Hill Development. Mr. Jenkins responded that he would like to see the new garage closer to the existing downtown and for there to be a policy discussion about all garages and the respective roles they will play. He added that we should not allow long term commuters to park in spaces that should be prime space for retail customers. Commuters should park in the more distant garages or the upper floors of existing garages. In conclusion, Mr. Jenkins stated that there were 289 retail spaces in the downtown occupied by 200 independent tenants and 80-90 regional or national tenants. He added that if you were designing a downtown today you would not design 289 spaces for retail with the current configuration. Mr. Jenkins commented that there is significant interest in residential development Economic Development Committee Minutes -May 24. 19AR Pqge7 downtown which would be a positive impact. In addition to adding more customers and a 24 hour presence, such development will likely cull out retail space that is difficult to make work. AId. Feldman thanked Mr. Jenkins for his interesting presentation and invited him to-retum to the Committee quarterly. The Minutes of the Meeting of April 22, 1998 were approved as drafted by unanimous vote. The meeting was adjourned at 10:25 P.M. Dennis Marino Assistant Director for Planning f DRAFT =NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE M]NUTES WEDNESDAY, DUNE 24, 1998 ROOM 240447:45 P.M. CMC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Engleman, Aid. Moran, A1d.Newman, Aid. Wynne, Greg Norwell, Martin Norkett, Percy Berger MEMBERS ABSENT: Lucille Krasnow STAFF PRESENT: Roger Crum, Judith Aiello, Dennis Marino, Morris Robinson, Stephanie Steen OTHERS PRESENT: Bob Home, Bruce Reid (Arthur Hill, Co.) Summary of Actions: The meeting was convened at 7:45 PM. by Alderman Feldman. The previous minutes of May 27 were approved as drafted unanimously. COMMUNICATIONS A number of newspaper articles were included in the meeting packet: the concerns of some merchants regarding the Hill proposal; the evanston Hospital expansion; the new quick take condemnation authority; World Savings Bank approval; required sidewalk cafe regulations and, the proposed demolition of the former Ward Manufacturing facility. There were no comments from the committee. RESEARCH PARK UPDATE Judith Aiello provided a substantial update of the Research Park development status. Most notable was the approval of resolution 36R98 which allows for an extension of negotiations with Arthur Hill, Co. Ms. Aiello highlighted that the Hill team continues to have multiple negotiations for the cinema and hotel, rather than just negotiating with a single entity at a time. They are currently negotiating with three hotel chains and four cinema operators. Eventually they will settle on one hotel and one cinema operator for exclusive negotiations. • DRAFT -NUT APPROVED Economic Development Committee Minutes -June 24 1998 P4=2 W. Aiello advised the committee that the opportunity for three proposed new office buildings north of University street in the Research Park has presented a new parking issue if these buildings are constructed. The number of parking spaces needed has increased beyond the 1200 spaces designed to serve the Hill development; U. S. Equities and Kane McKenna are working on financial performas for this and other aspects of the proposal and Hill is working on the parking design. On July 1, 1998 the parking committee will meet and continue to address the parking issues. Various iterations of the proforma for the public financing continue to be good. On August 20, the redevelopment agreement will be presented to the Economic Development Committee. A two month period will be set aside for thorough discussion and critique. On October 19, a special meeting with the City Council will occur. Next Ms. Aiello invited Mr. Bob Horne of the Hill Co. to present the latest information on the proposal. Mr. Horne displayed the revised renderings for the Art Center, the Senior Center and Church Street retail. The changes incorporated the input from the seniors and other concerns made at the council meeting of June 22, 1998. The new design depicts a much more open space and less density with an elevator to the second floor. There will be twenty designated parking spaces and a connected walkway. The Levy Center will have it's own entry, more glass and light with a better flow pattern than the previous plan. The Performing Arts Center has a separate entry and lobby and will accommodate 450 seats and a separate studio of 150 seat capacity connected by a passageway. There is also a second level with multiple flexible use options. There will be 9,000 square feet of retail space facing Church Street. The new plan was to be reviewed by the seniors on June 25, Next Mr. Horne invited Mr. Bruce Reid to discuss negotiation efforts with cinema and hotel entities. Mr. Reed advised that things were going well and that he is down to two viable candidates for a I80 room hotel. He is also negotiating with three theater entities: AMC, Century and Sundance. Ms. Aiello concluded by reporting on the one million dollar fine arts grant for the Performing Arts Center from the state of Illinois. She hopes this grant will be the foundation of a capital campaign by the arts community. Also of concern is how will six performing arts entities co -exist and produce a revenue stream. Alderman Moran stated that the proposed plans do not call for a true conference center which he believes should be included. A small to medium legitimate conference center of 20, 000 sq ft. i DRAFT -NOT APPROVED Economic Development Committee Minutes -June 24. 1998 Pqgcl should be considered. Ms. Aiello stated that one hotel agreed to 4-5000 sq ft. of meeting space. She added that since the hotel is planned for the north end and if a significant demand for conference space developed it could probably be added, but as of now there has not been sufficient demonstrated demand. Alderman Moran reiterated his view that a full fledged, state of the art conference center could be key to the overall development and interconnectivity to the existing downtown. Mr. Horne stated that interviews had been conducted with conference center managers who performed independent surveys and they also determined the demand level was not sufficient to make an investment worthwhile. He also noted that conference facilities are generally characterized by extensive green space and campus like settings. After continued discussion, Alderman Newman stated that although the idea of a conference center sounds desirable, building one is a huge investment and that a demonstrated demand would be required to justify the construction. Alderman Newman suggested that maybe the performing art center component be made for multiple use, integrating the conference space in the design. Continued discussion regarding fiber optic conferencing possibilities ensued. Alderman Feldman suggested looking at existing space such as the Rotary International Building, for conferences. This project update session was closed with Alderman Feldman acknowledging citizens in the audience who wished to comment and that they will each be given a four minute opportunity at the appropriate time. AMIN STREET NEWSSTAND UPDATE Ms. Aiello has been in contact with the newsstand vendor across the street from the Main Street Newsstand and has received a proposal from them and will be meeting with the attorney for the vendor during the next week. She will also meet with C.T.A. officials. Alderman Newman asked about the Davis Street Transportation Center and the new Chef Station Restaurant. Ms. Aiello commented that C.T.A. is looking at all of their spaces for possible leasing and advised that although the restaurant had a grand opening, a few minor glitches are being resolved and it will be officially opened within thirty days. Alderman Wynne asked Ms. Aiello if she heard further from the manager of the restaurant at the top of the Metro tracks. The answer was no, even though messages were left. Ms. Aiello said she would call again. DRAFT =NOT APPROVED Economic Development Committee Minutes -June 24 PABAA DEMPSTER DODGE UPDATE Dennis Marino introduced Morris Robinson as the new Economic Development Planner and proceeded with the Dempster Dodge update. He stated that staff continues to be in contact with the owners of the center. They are committed to redevelopment of the center while maintaining as many current tenants as possible. They recently submitted to the state their environmental cleanup plan. They have presented very preliminary plans to the Site Plan Committee indicating the placement of a proposed grocery store. Alderman Feldman asked if some demolition was planned, to which Mr. Marino responded affirmatively. The old Fedders appliance store which was acquired in bankruptcy court and the Toys R Us will be demolished. In response to a general question, Mr. Marino stated that the hope is that Toys R Us will be retained, but the company is repositioning itself nationally and re-evaluating existing locations. A general agreement was expressed that the retention of Toys R Us would be positive. Mr. Marino also advised the committee that funding for the Evanston Convention and Visitors Bureau was approved, and that the World Savings Bank special use was approved by the city council. The shopping center parking lot will be enhanced with landscaping and medians constructed to prevent cut through traffic. Alderman Feldman asked if their is any interest in the out lots at Home Depot? Mr Marino responded that their was continuing interest but nothing definite at this point. CITIZEN COMMENTS CONCERNING RESEARCH PARK PROPOSAL Alderman Feldman open the floor to three citizens wishing to comment on the Arthur Hill Proposal. Mr. Troy Thiel spoke as a member of the Coalition for Appropriate Development. He wanted to know if there was going to be opportunities for public discussion of the development prior to an approval vote and he recited several items which he felt the E.D.C. and the City Council should take under careful advisement, all of which were aired at the June 22 council meeting. Mr. Thiel also expressed concern that there is a perception that those who exercise their right to oppose parts or all of the plan will suffer "retribution" from public officials. Mr. Alan Barr spoke next, having specific questions on the process. He expressed disappointment that most of the members of the city council did not go on a tour of the redevelopment area conducted by Hans Friedman. Other concerns were the impression that the project review process was not a public venue open to discussion, and it was characterized by a lack of dialogue and lack DRAFT =NOT APPROVED Economic Development Committee Minutes -June 24 1998 PA&LI of response by officials to issues raised. Alderman Feldman responded that council members did not have the opportunity to respond to citizen comments until 2; AM at the end of the council meeting. Continents were made at this point, but most citizens who had commented earlier had gone home. He added that there have been informal discussions with merchants and citizens. Opportunities for dialogue will continue to be provided. Alderman Newman stated that continuous repeating of the same concerns about the project were not productive uses of everyone's time. He emphasized that he would continue to listen to such comments. Mr. Berger commented on the small size of the opposition group to this project compared to the vast majority of the rest of the citizenry who are not represented by this opposing group. Ms. Margie Newman was the last to speak. Her concern was that she has heard from several merchants who expressed opposition and are afraid of retaliation for coming forward. She wanted Alderman Newman to clarify what she perceived to be a parking enforcement threat directed at the Clean Plate Club, Alderman Newman responded by stating that there is no evidence that any member of the Council condones or conducts him/herself in an intimidating manner. He went on to say that the Clean Plate Club employees are habitual parking violators and like other employee parking problems downtown, these need to be addressed consistently by the staff. Alderman Engleman stated that everyone desires what is best for Evanston and that members of the committee want appropriate and productive dialogue. Alderman Feldman asked for and received a motion to enter into an executive session. The motion was seconded and approved. The committee reconvened the public meeting and adjourned the meeting at 10:20 P.M. Morris Robinson Econo'tic Development PI 4 .l DRAFT=NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MFgMS WEDNESDAY, .DULY 29, 1998 ROOM 2404-7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Engleman, Aid. Moran, Ald. Newman, Lucille Krasnow, Martin Norkett MEMBERS ABSENT: Aid. Wynne, Percy Berger, Greg Norwell STAFF PRESENT: Judith Aiello, Dennis Marino, Morris Robinson, Stephanie Steen CITY COUNCIL MEMBERS PRESENT: Mayor Lorraine Morton, Ald. Ann Rainey OTHERS PRESENT: Arthur Hill, Bob Home, Bruce Reid, G. Benjamin Ranney, Ruth Moschel, Eugene Reardon (Arthur Hill, Co.), Mark Yates (Sonnenschein Nath & Rosenthal) Richard E. Spinell, Stanley Nitzberg (MID-AMERICA), Robert Tesca (Testa & Associates), Marty Stem (U.S. Equities), Ira Golan (EVMARK) Summary of Actions: The meeting was convened at 7:55 P.M. by Alderman Feldman. The previous minutes of June 24, were unanimously approved as drafted. COMMUNICATIONS Memoranda and newspaper articles were included in the meeting packet: Evanston Review article, July 2, 1998 by guest essay writers Aldermen Feldman and Newman; Evanston Review Letter to the Editor, July 9, 1988 submitted by the Evanston City Manager, Roger Crum; Downtown II - Project Update Memorandum together with the Proposed development Schedule; news release "Wyndham Garden Picked for Evanston"; Proposed Evanston Performing Arts Center Memorandum and letters of interest responses from 5 performing companies; Revised Parking Analysis; Preliminary Parking Analysis Memorandum and an Evanston Review article regarding the grand opening of the Walgreens Drug Store at Main and Dodge. There were no comments from the committee. RESEARCH PARK UPDATE Alderman Feldman requested that we stop referring to the development as the Research Park, instead it should be described as The Proposed Downtown Entertainment Development Project. There was unanimous agreement. e. DRAFT NOTAPPROVED Economic Development Committee Minutes-JUly 9.1998 Paul Ms. Judith Aiello began by explaining how the presentation was going to proceed. Ms. Aiello advised the committee of the immediate schedule. She wanted to make it clear that on August 20, I998 stab will present the development agreement and the revised project proposal, and that there will be a two month period for public comment. There will be opportunities for a number of day, evening and weekends in which staff will be available for the public at certain locations to answer inquiries. The City Council and E.D.C. will consider the proposal at the August, September and October meetings. Mr. Arthur Hill of Hill & Co. interjected that the redevelopment agreement will only be one of a number of important steps to complete before work can start in the spring of 1999. Ms. Aiello reiterated the point that revisions of the proposal will probably continue up to the time ground is broken in 1999. Alderman Feldman asked if single theater company had been selected and if not will the selection be made by August 20th. Ms. Aiello and Mr. Hill stated that is the objective. Next, Mr. Hill stated that tonights' presentation will be in four parts starting with his updated overview of the "Church Street Plaza". After he completes a walk through of the new neighborhood, Mr. Bruce Reid will give an update on the hotel transaction, Mr. Bob Horne will give an update on the cinema negotiations and Mr. Stan Nitzberg, with MID-AMERICA will present the marketing aspects of the development. Mr. Hill displayed the latest, revised ground level site plan diagrams for the entire project. He pointed out the municipal garage will have 1160 spaces with 9,000 square feet of retail/service commercial space; the residential component will be three levels, have its own parking and 8,000 square feet of street Ievel retail space; the Levy Center will have 11,000 square feet of retail and will most likely be the site of the music component of the retail mix; the main pavilion, which will have the cinemas on the second level, will have 72,000 square feet of ground level retail space; south of Church will have approximately 7,000 square feet. In total there will be approximately 107,000 square feet of street Ievel retail commercial space. Mr. Hill next displayed the diagrams for the second level, pointing out the retail service space. Total retail/service commercial space for both levels combined is estimated at 136,000 square feet. Next Mr. Bruce Reid recapped the selection of the hotel component. The Wyndham Hotel is the operating unit of Patriot American Hospitality and was selected for a number of excellent reasons. It is the second largest hotelier in the country, with 5,000 hotels and 100,000 rooms, and they build and retain their hotels in their portfolio rather than sell. It is a full service hotel with room service and a restaurant and they will provide a 4,500 square foot meeting space. Particular note was made of their four person marketing team which will promote the use of the hotel and meeting venue. Next, Mr. Bob Horne gave a brief update on the cinema negotiations. He is still having discussions with the same four cinemas and he is confident that a final selection will be made by August 20. They are committed to providing the best cinema/art house on the North Shore. He stressed that the theater deal will not be subsidized by the City of Evanston or the developer. ,, DRAFT=NOT APPROVED Economic Development Committee Minutes -lulu 29. 199{ Pry Mr Stan Nitzberg of MID-AMERICA Asset Management is responsible for leasing the proposed project. He indicated that the process begins with telling the "Evanston story" to urban oriented merchants nationwide who should have an interest in Evanston. Mr. Nitzberg stated that he continues to analyze other urbardsuburban environments with similar projects: Pasadena; Reston, Va.; Berkeley; and Belleview, Washington. The orientation to any development will need lead type tenants who can validate the project and who are looked up to by others before smaller, entrepreneurial retail concerns will come on board. The focus is to attract 2 or 3 catalyst tenants across a category of 1.) music which goes very well with the entertainment theme, 2.) home furnishings, 3.) family oriented ready to wear clothing, and 4.) specialty prepared foods. They are diligently pitching the Evanston story to these potential tenants. Virgin Records was given as an example of the type of lead tenant being sought after. It is an international retailer, has a limited number of units and is an absolute urban oriented tenant with vast music inventories. Mr. Nitzberg stressed the point that although the development will have restaurants, the program will not focus on a restaurants as lead tenants. He went on to say that the retail lead tenant is most important and they are also talking to stores like Urban Outfitters, Old Navy and others. Mr. Nitzberg's vision of success for the project would be defined as a vibrant, bustling urban environment. Most of the tenants who are being approached are not mall or suburban mall oriented. By early fall, visits by potential tenants should be expected. Mr. Nitzberg stressed the importance that the environment should reflect municipal and community support when communicating the development to retail prospects. Alderman Feldman opened the proceedings to committee member questions. Lucille Krasnow questioned the inclusion of the smaller retail spaces, which are greater in number than she envisioned, competing with the current project which is the existing downtown. She stated that the existing downtown cannot afford any more desertions by existing tenants and her concern is that the new retail development could signal the failure of the current retail project which is the existing downtown. Mr. Nitzberg assured her that they have not and will not approach an existing downtown retailer and any who have approached them have been advised that the goal of the project is not to attract existing downtown retailers. Secondly, Mr. Hill stated that they are sensitive to this issue and cited previous experiences in other developments. DRAFT NOT APPROVED Economic Development Committee Minutes -July 29. 1998 PwaA Ms. Krasnow also commented on the lack of information regarding inter -connectivity noting that the overhead viaducts are part of the connectivity issues and that these issues need to be addressed in their entirety. Mr. Hill responded that the concern is valid, important and not forgotten. The focus has been on developing an acceptable plan. However, more information will be forthcoming at the next meeting because it is such a valid issue. The plan will work only if the entire downtown is successful and connectivity issues are being addressed even though they have not been communicated. Experience with other projects have shown that these plans work. Ms. Aiello interjected that the ultimate solution for the two viaducts rest with approval of the city's request from the federal government for funding up to $25 million dollars for total rebuilding. There are structural and safety concerns to contend with in addition to cosmetics of the viaducts. She stated that $250,000 has been budgeted for interim improvements and it would not be prudent to spend a great deal of money for temporary measures. She went on to say that hopefully before Congress adjourns, the request will be honored. Ms. Aiello also commented on the increased parking demands for the project to include the Sherman Avenue Garage requirements. She reported that the city can use T.I.F. funds to help rebuild that garage. She expressed the need to form a sub -committee comprised of members from the Parking Committee, E.D.C. and Plan Commission to start now to look at all options for the Sherman Avenue Garage. She thought it was a good idea to extend the actual boundaries of the T.I.F. because then funds would be available to pay for both the replacement parking and the incremental use spaces. Ms. Aiello asked for the names of two E.D.C. members for the sub -committee. She stressed that by rebuilding the Sherman Avenue Garage now would prove to be one of the best inter -connectivity measures to take. Mr. Marty Stern, U.S. Equities, presented views and efforts on the inter -connectivity issue. He stressed the project will not go forward without the essential part of the project of connecting it with the existing downtown. A lot of ideas have been generated from various sources and are awaiting implementation. Mr. Stern also stated that projects of this size can bring a million or more additional people to the downtown annually and as these people come they spread out all over and that helps everyone. Even if 75% of the people left immediately that would still leave three or four hundred thousand additional patrons annually to be absorbed into the existing downtown. Ms. Aiello also commented that existing merchants need to start thinking in a cohesive way such as uniform operating hour scheduling and to be open at night when customers need to shop. Ms. Krasnow again stated that no one has talked to merchants about cohesiveness. Ms. Aiello said DRAFT -NOT APPROVED Economic Development Committee Minutes -July 29. 1998 Pu'�'5 that the Chamber and EVMARK have and will continue to work on this objective and that all parties should work toward creating a 24 hour downtown community. Alderman Newman commented on the inter -connectivity issue by reminding everyone that the existing downtown has not been forgotten by the city in the past and will not be forgotten in this project. He went on to state that the following projects have been completed to save the existing downtown: a fourteen million dollar garage was built downtown as well as a twenty-two million dollar library; an eleven million dollar street scape was recently completed; a forty million dollar Buck residential/retail project was completed in 1996 with 3.5 million in city funding; the 192 apartments at Church and Chicago and the scheduled refurbishing of the Sherman Avenue Garage and increasing it from 650 to 1,200 spaces will be a tremendous benefit. This is a total downtown redevelopment project effort. Alderman EngIeman commented that the uniqueness of the stores in Evanston makes the city special and this uniqueness should be preserved. People will get in their cars and drive to the downtown area. He wanted assurances that the proper tenants are attracted to keep this important environment. Mr. Nitzberg responded by reiterating the lead retailing prospects which have been approached are urban oriented and occupy unique niches in their respective industries. Alderman Moran asked for and received an answer regarding the number of retail pieces and sizes for the project. Mr. Marty Norkett stated the plan is coming together very nicely. He said the site plan has been changed six or seven times to meet downtown concerns. He mentioned that national tenants are insecure and are followers. Once the hotel and entertainment components are signed on, it will be amazing how many others will follow. Alderman Feldman asked Mr. Hill to give his latest thoughts on the residential component. Mr. Hill stated that there will be 80 condominiums or a higher number of apartment units or a combination thereof. Their studies show that increases in residential components in downtown developments create more success and this holds true throughout the country. More information on the mix will be made available as time goes on. Alderman Feldman inquired about a plan to receive comments from the public. Ms. Aiello responded that there will be several forum opportunities in August and September for public responses. A number of general questions were posed by members of the audience and were responded to by the presenters. However, no citizens signed up to make formal comments on the project. Alderman Newman suggested the Hill representatives comment on cinema screen messages for DRAFT=NOT APPROVED Economic Development Committee Minutes -July 29. 1998 Page 6 downtown restaurants and other marketing efforts such as restaurant guides. Positive responses were given by the Hill team to include their other efforts to cross market businesses in the existing downtown and proposed project. Alderman Feldman asked Dennis Marino to give brief updates on any pertinent projects. Mr. Marino provided updates on the Dominicks redevelopment of the Dempster/Dodge Shopping Center; the 80 unit building proposed for Church and Maple by Cyrus Development; and a Meiserow, Stein office building proposal for the Research Park. He also stated that a mixed use development proposal from Great Bank for Chicago Ave. and Main St. appeared to be moving forward; a proposal for a food store (The Peoples Store) by Wild Oats on Chicago Ave. was about to commence building rehabilitation and a condo development at 1815 Sherman had been successful in selling 35% of its units before breaking ground. Alderman Feldman wanted to know if other tenants were going into the Dempster/Dodge Center. Mr. Marino responded that the developer believes that other tenants will be attracted once Dominicks is under construction. Ms. Aiello gave a brief update on the Main Street Newsstand, indicating that she had met with all concerned parties and she is waiting for a proposal from the interested vendor. Alderman Feldman entertained a motion for adjournment which was moved. The meeting was adjourned at 10:10 P.M. Next,JcPeduled Meeting; Wednes&c August 26, 1998 Morri Rd1Yns% Economic Development DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MRi WTES THURSDAY, AUGUST 26,1998 ROOM 2404-7:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid, Feldman, Aid. Moran, Aid. Newman, Aid. Wynne, Percy Berger, Lucille Krasnow, Greg Norwell MEMBERS ABSENT: Aid. Engleman, Marty Norkett STAFF PRESENT: Roger Crum, Judith Aiello, Dennis Marino, Morris Robinson, Stephanie Steen OTHERS PRESENT: Bob Horne, (Arthur Hill, Co.), Martin Stern (U.S. Equities) Phillip Mckenna (KANE, MCKENNA AND ASSOC., INC) Summary of Actions: The meeting was convened at 7:05 P.M. by Alderman Feldman. The previous minutes of June 24, reflected an incorrect address for a development project but were conditionally approved with the noted correction. DOWNTOWN ENTERTAINMENT DEVELOPMENT PROJECT UPDATE Judith Aiello stated that the objective of the meeting tonight was to give the EDC members the opportunity to further discuss the issues regarding the proposed development and that she and Marty Stern were there to provide clarification as needed. Mr. Percy Berger began a general discussion on the connectivity issues, particularly with regard to the possibility of providing a pedestrian entry to the plaza from the Benson Street facade to avoid a sense of being closed off on the west side of the development. Also, this elevation should appear less like the "back" of the plaza complex arfd more like a frontage. • Alderman Feldman also asked if there was an intention for a street entrance from the west, and in fact, west facing entrances for all of the retail locations. Mr. Marty Stern responded that it shouldn't be a problem to create an entrance, but one of the positive aspects of the proposed design is intended to direct people to the streets where the rest of the stores are, as opposed to channeling pedestrians directly into the development. Choosing the correct number of entryways, while not impeding the goal of creating a people place, will have to be closely considered by the marketing and architecture components of the development team. 0 4A .. , n- DRAFT =NOT APPROVED Economic Development Committee Minutes -August 26. 1998 PJgLZ Mr. Berger asked if a cumbersome process was anticipated with acquiring Chicago Transit Authority approval and funds for improving the viaduct underpass. Ms. Aiello advised him that the Clark Street underpass would require approximately $2.5 million dollars just for automobile needs, but to meet pedestrian access needs it would be a complex and more costly procedure. Alderman Feldman stated the plaza access suggestions should be passed on to Mr. Bob Horne. Ms. Aiello also said that the underpass concern would be reviewed by the city with the C.T.A. as part of the overall viaduct underpass issues requiring federal funds. Alderman Wynne asked Ms, Aiello if she knew the status of the Transportation Bill from which Evanston hopes to obtain the federal funds. City Manager Roger Crum responded that as of the previous week that there was still a chance that it will happen. We do have support from Congressman Porter and by September 30, we should pretty well know of our chances for success. Ms. Krasnow expressed her concern that thus far we have not heard much about how we intend to draw pedestrians under the viaducts and that some contingency thoughts should be dedicated to this concern. While she stated that the idea of the Church Street plaza is interesting, it may have the effect of drawing people away from the existing downtown. Ms. Krasnow wanted to know what some of the things are that can be done from an architectural and business point of view to pull pedestrians in the direction of the core downtown. Mr. Stern responded that one of the reasons the effort was made to have such a strong retail presence on both sides of Church Street was to attract pedestrians toward the desired direction. Also the viaducts will be cleaned up, painted and effective lighting will be installed. The other key parts will be that once pedestrians are accustomed to going back and forth under the viaduct it will no longer be a conscious barrier, particularly with the other improvements to the underpasses. Alderman Feldman commented that the science of motivating people to go from one place to another is advanced and wondered if we should have that kind of expertise made available to us. Mr. Stern responded that all concerned parties are sensitive to the connectivity issues and are committed to making the project a success. Both he and Mr. Hill are sensitive to the need to apply proven principals as they apply to the motivation and movement of people. Ms. Aiello commented that while we are waiting to obtain the federal monies, EVMARK, the Chamber of Commerce, merchants, city staff and all other interested parties should work on implementing the two pages of connectivity suggestions included in the recently released information packet. Ms. Krasnow commented on the success of Navy Pier in Chicago and the science used to attract people including using the outer drive as the staging area for the arrival of visitors. Ms. Krasnow also commented that the look of the current plan is overwhelming with the abundance of brick, with only a little relief provided in a rather small plaza. Ms. Krasnow also noted the lack of open milling and green space. Mr. Home responded by informing the committee of the street scape meeting held with Teska and Assoc. which has resulted in sketches illustrating sidewalk design elements, planters, trees and enhancements in the plaza area. The clear intention is to have a great deal of green in the DRAFT =NOT APPROVED Economic Development Committee Minutes -August 26. 1998 pUC3 context of an urban space. Ms. Krasnow expressed her concern that retail space availability is too much and there is even more included next to the Performing Arts/Sr. Citizen Center. Mr. Horne responded that there always was retail designated for that location and Mr. Stern added that it is two story retail with a lot of glass where a promenade is visible with open space. Mr. Stem went on to explain open space principals as they pertain to size and how pedestrians tend to group and use open spaces. Ms. Krasnow stated that the designed open space for the whole project was no greater than that offered by the existing Fountain Square. Ms. Aiello commented that the Performing Arts/Senior Citizen Center has open space incorporated. Alderman Newman commented that staff and the developers did a very good job in putting together two pages of connectivity suggestions and the development of the Sherman Avenue garage will have at least half of the people walk under the viaduct. Alderman Newman further stated that there are and will be more things to attract people in both directions and significant thought has been given to connectivity. Ms. Aiello added that by reducing retail space in front of the garage, more open space configurations could be considered at the expense of reduced revenue, although she would not recommend this action. Another consideration is to expand the foot print of the redeveloped Sherman Avenue garage to include more open space and a sub -committee will convene sometime after Labor Day to begin the evaluation process.. Alderman Feldman compared the difference between open space and dead space. Care has to be exercised about redesigning plans to avoid creating dead rather than used open spaces which create activity. Alderman Moran further addressed Ms. Krasnow's concern, stating that at one time thought was given to reserving the proposed retail space on the south side of Church as perhaps a civic area. An opportunity exist to create a piazza with a view of the library which will further act as a draw to the existing downtown. Alderman Feldman commented that something monumental, like a fountain or other feature should be considered as well as dressing up and lighting the viaducts. He also stated that ultimately it will be the stores and uses themselves which will attract pedestrians through the viaduct. Ms. Krasnow stated that Aldermen Feldman and Moran were restating her sentiments.: Marty Stem commented that these ideas were good and certainly the ideas are possible, but that it is not the architectural teams' intent to have the center of downtown shift to the new development. He further explained that the developer is consciously trying to avoid overshadowing the existing down town retail center. •� . R DRAFT -NOT APPROVED Economic Development Committee Minut - ttsrust 26- 1999 PUCA Alderman Newman commented that the Fountain Square open space has become a real headache with regards to vagrants and garbage and the city is now faced with a million dollar rehabilitation cost for this square. He added that open spaces without retail or space that isn't well tended for whatever reason becomes a place for vagrants in Evanston. Alderman Newman stated that he wants the idea of public space well thought out. Alderman Feldman commented that to replace revenue producing retail for questionable open space may not be desirable. Ms. Krasnow stated that her concern does not mean reducing retail so much as putting in a focal point such as a sculpture and with a little creativity, with less glass and brick an exciting visual could be created. Mr. Horne assured the committee that this issue is still under review and that these comments were good dialogue. Mr. Stern stated that one of the major principals of successful public space planning is making the frame more interesting. The best open spaces don't attract people, the things around them attract people and the space adds to the attraction. Alderman Feldman concurred. Alderman Newman asked Ms. Aiello for an explanation of whose responsibility it is to maintain the public spaces, side walks, planters, garbage cans etc., because it is not in the agreement. Ms. Aiello stated that this issue will be addressed. Mr. Horne stated that contractually with the city as well as with tenants this issue will be spelled out. Alderman Newman stated that there is and will be a need for police street patrol and that commitment has to be obtained from the police department. Mr. Stern said more people will create more safety. Alderman Feldman said a patrolman on foot will provide a sense of security. Alderman Newman pointed out that Old Orchard has a police out post as well as a very visible security force and that is comforting and reassuring. Alderman Feldman commented on the residential component as being so significant as part of our skyline, that it has to be a gem of architecture, better than what is Qn the drawing. Mr. Horne assured him that the building has not been designed and that it will meet high expectations. The drawing was conceptual in nature to provide an idea of how the project would be laid out. AIderman Moran focused on the idea of the new and improved plan for the Sherman Avenue garage and how it is a key contributor to the inter -connectivity of the project. Its role in achieving connectivity was not as apparent to him as it was assumed to be. Ms. Aiello stated that from a design aspect it serves as a connector when you consider where the entrance to the transportation center faces. .e DRAFT=NOT APPROVED Economic Development Committee Minutes-AUgUstst 26. 1998 P Also, the proposal to get Signage on the C.T.A. facility so as people exit the garage they will immediately see it as the primary garage for the Performing Arts Center and the cinema will contribute to connectivity. She further stated that from a policy standpoint that during the day, discounts for using this garage can be offered by merchants and senior citizen spaces can be designated on the ground level making it an obvious choice as their garage. Mr. Stern added that this garage virtually is on the other side of the tracks and this will help direct people through the viaduct. Further, in his opinion, the whole west side of Sherman is dead with no reason for people to go there. Part of the reconstruction of the garage is to change that whole block with retail and other attractions. It will have half the parking and it will be a new, safer facility connecting with the new retail development project and is a very important part of the overall development. Mr. Horne also added that the majority of the restaurants are in the existing down town and they are more oriented to the Sherman Avenue garage. One of the biggest draws as to why three cinemas were negotiating with the developer was because of the restaurants, and the probability of people coming to dine and then go to the cinema is appealing. In addition, since the garage will not be redeveloped until after the new project is complete, it offers an excellent opportunity for merchants who have witnessed the success of the new development but were not originally on board to now establish their concerns in the existing down town. It is clear that a driving point for connectivity is other retail and this will enhance that objectivity. The city will control who goes into the new retail spaces and will have the opportunity to select those entities which can draw people. Ms. Aiello stressed that a more active role by the city, EVMARK, the Chamber of Commerce and the small business group(s) to identify some strategic retail locations and go after some significant additional anchors to occupy those locations will be essential. Alderman Newman reminded the committee that they had made a conscience effort to reduce the size of the Hill garage by half and increase the capacity to 1,200 spaces for the existing garage to compensate. This measure will have the effect of forcing users to wrisider using the Sherman Avenue facility and it will be a major connectivity facilitator. Alderman Moran said the issue in his mind is not the redevelopment of the garage, that has to be done, rather it is still connectivity and cinema goers will not opt to use the Sherman Avenue garage. Mr. Home restated his points that the primary users will be the diners and shoppers and because of its central location it will act as a core facility for the existing down town. Mr. Stern mentioned that it also depends on the direction a user is coming from and those coming from the east or south will find this facility more convenient. Ms. Aiello concurred. Mr. Horne added that efforts will be made to incorporate new technologies in managing and directing garage usage. Alderman Moran finalized the dialogue by emphasizing that this issue must continue to be addressed. At which time Ms. Aiello advised him of the newly formed Sherman Avenue Garage DRAFT -NOT APPROVED Economic Development Committee Minutes-Augo 26 1999 P Strategic PlannWg Sub -Committee formed to fully deal with this issue, Alderman Newman emphasized the need for the city to do an excellent job in letting people know where the municipal garages are and new and improved Signage will be very important. Alderman Moran stated that he would like a time line for the completion of all negotiations. Mr. Horse responded that optimistically the objective will be within the next thirty days. Alderman Moran also asked if the financials would be ready by October 19, 1998 for the City Council vote. Mr. Phil McKenna answered affirmatively. Alderman Newman asked for and received an update on Daves' Italian Kitchen from Ms. Aiello. Next, Mr. Dennis Marino gave a brief update on Dominicks and Toys R Us. He informed the committee that future meetings will be required with the developers inasmuch as they are now seeking financial assistance from the city. He also confirmed the closing and relocation of the Toys R Us store. He stated that the developer attempted to retain Toys R Us in a different location within the shopping center but was unsuccessful in the effort. Other retailers are expected to express interest aver the new Dominicks anchor store is completed. Alderman Newman asked that at the next regularly scheduled meeting, the committee be given an update on the Chandlers Project and a report on the Carlson building. Alderman Feldman entertained a motion for adjournment. The meeting was adjourned at 9:08 P.M. New Scheduled Meeting: Thursday, October], 1998 at 7.•00 P.M. Morris Robinson Economic Development Planner DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES THURSDAY, OCTOBER 1,1998 ROOM 2404-7:00 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Moran, Aid. Engleman, Aid. Newman, Percy Berger, Lucille Krasnow, Martin Norkett, Greg Norwell MEMBERS ABSENT: Aid. Wynne PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER CITY COUNCIL MEMBERS PRESENT: Aid. Bernstein STAFF PRESENT: Roger Crum, Judith Aiello, Dennis Marino, Morris Robinson, OTHERS PRESENT: Bob Horne (Arthur Hill, Co.), Martin Stern (U.S. Equities) Phillip Mckenna and Robert Rychlicki (Kane, McKenna And Assoc.) Summary of Actions: The meeting was convened at 7:10 P.M. by Alderman Feldman. The previous minutes of August, 26 were unanimously approved. At 7:17 P.M. the Committee entered Executive Session on the basis of a unanimous call vote to discuss land acquisition. At 8:10 P.M. the Committee reconvened the public meeting. DOWNTOWN ENTERTAINMENT REDEVELOPMENT AGREEMENT CONSIDERATION Alderman Feldman asked for a motion to present the Downtown Entertainment Redevelopment Agreement for Committee discussion. Aid. Engleman commented on the financial assumptions which were presented by Kane Mckenna and Associates. In response, Mr. Rychlicki clarified some general questions regarding taxes on the real estate parcels. He stated based on current tax revenues, seven million dollars in tax revenues would be generated. Aid. Engleman asked Mr. Stern about the construction phases of the project and if any components of the development could be accelerated. Mr. Stern outlined the construction phases and the order in which the buildings would be erected. DRAFT -NOT APPROVED Economic Development Committee Minutes -October 1. 1998 P4gl Aid. Engleman had questions regarding parking capacity projections. Aid. Newman who serves as Chair of the Parking Committee, explained the methodology of how the capacity was determined. Aid. Engleman asked Mr. Stem if he was comfortable with the parking studies conducted. Mr. Stern responded affirmatively. Aid. Engleman next asked Ms. Krasnow and Mr. Norkett for their level of confidence in the studies inasmuch as they could provide a perspective as local business people. Both of them expressed their confidence in the studies. Aid. Newman assured the Committee that the consultant used for the studies was challenged and that due diligence was exhibited. Ald. Engleman wanted to know what will happen to the cars once construction begins, and what will happen to cars when the Sherman Avenue Garage redevelopment commences. Ms. Aiello stated that the Parking Committee is reviewing this issue and an interim parking plan will be developed with the help of a consultant. She further stated that every parking opportunity will be reviewed and that it was not an easily resolved problem. Aid. Engleman was concerned that the solution was not ready now. Ms Aiello reiterated previous ideas which were presented to help the decision making process for this difficult issue. Ms. Krasnow expressed her concern that the agreement does not contain language dealing with the process for handling maintenance issues and establishing responsibilities. As examples, she stated that the agreement doesn't define aspects of the development such as specifying who is responsible for addressing ongoing issues, to include but not limited to parking, the small sizes of the retail spaces, changing street directions and who pays for the street scape improvements and other maintenance services. She added that the agreement provides for macro or broad responsibilities, but it does not provide enough details to allay her concerns. Aid. Newman responded by emphasizing the point that a plan for parking was in place and he expanded on possible ideas as did Ms. Aiello. Ms. Aiello responded further to Ms. Krasnow's concerns by explaining the process for street scape funding, the possibility of obtaining funds from federal and state sources for viaduct improvement and the connectivity program. Mr. Horne stated that stringent maintenance details are incorporated in the lease agreements which exceed expectations. Mr. Stern added that all the participating parties are currently working out details on this issue, but the project should not be held up and that every issue will be addressed. Ms. Aiello reiterated the fact that the developer is obligated to undergo reviews by the normal regulatory bodies such as Zoning, the Site Plan and Appearance Review Committee, and Sign Review. Mr. Berger stated that if the Committee has confidence in the city staff to execute the broad issues than the Economic Development Committee should provide the oversight responsibility and allow the staff the opportunity to do their job. He advised that the Economic Development Committee could get bogged do«n in micro managing every detail when the right people, staff and City Manager should be allowed to perform their duties. DRAFT -NOT APPROVED Economic Development Committee Minutes -October 1,1998 ea e 3 Aid. Moran commented that he is concerned about how the development will look when completed and will the connectivity program work. In essence how can the city be assured that the project «ill work. Ms. Aiello and Mr. Stem reviewed the safeguards provided in the agreement and emphasized that there will be no land transfer until all safeguards are met. Ms. Aiello also stated that the architectural designs for each component will undergo review by the Site Plan and Appearance Review Committee. A general discussion on connectivity suggestions ensued. Aid. Engleman agreed with Mr. Berger's comments. He then spoke in general, stating that all are in agreement that the project is desired, emphasizing the need to feel confident that this project is the one that is wanted. Is it positive and affordable with minimal risk to the city and its citizens? Aid. Engleman asked Mr. Stern if the cost to acquire additional land around the Sherman Avenue Garage factored into the city's obligation. Mr. Rychliki provided a detailed clarification of all costs to the city for the project. his. Aiello informed the committee that the Sherman Avenue Garage was a separate redevelopment project altogether, but one that has a tremendous connectivity capability. Aid. Engleman asked if the cost to the city included the traffic improvements required for the Ridge Avenue and Church Street intersection. Ms. Aiello responded affirmatively and Mr. Rychlicki underscored the point. Aid. Engleman expressed his concern about connectivity. Mr. Stern reiterated his position that bringing more people downtown will help all businesses. Reference was made to the three pages of connectivity suggestions and the need for all parties to work to implement these and other ideas. Aid. Newman added that it would be wrong to dismiss the Sherman Avenue Garage as a major connectivity piece and went on to articulate why the project is needed. General comments were made concerning proactive resolutions for new traffic issues which will result from the redevelopment. Suggestions were made for better garage identification and improved street signage as well as the need to review the possibility of redirecting streets to minimize congestion. Ms. Aiello reminded the committee that all of the major traffic concerns cannot be addressed at this moment, but offered as a condition a six month and a one ycar analysis of traffic impact to be included in the council resolution of approval. Aid. Feldman added that if traffic problems arise, the Aldermen would know immediately. Mr. Norkett commented that the agreement is well drafted but wanted a clarification of the City's ability to renegotiate certain aspects. Mr. Stern said that some aspects will be fixed but the details are clearly open for review and approval. Aid. Feldman concurred by citing certain portions of the agreement. DRAFT -NOT APPROVED Economic Development Committee Min utes-October.1.1"R PucA Mr. Norkett asked if there was a sunset clause as to when the project should start and for completion of the components. Mr. Stern responded that there are established performance dates and that there are conditions for granting extensions. Aid. Feldman stated that the redevelopment of the Sherman Avenue Garage will be a tremendous connectivity piece. He underscored how serious the connectivity issues are and remarked that issues are being dealt with and will continue to be dealt with over time. There are many things which can be done and denial of the project based on this issue or the failure to get government funding for the viaducts is unwarranted. He stated that the City Council and the Economic Development Committee have a tremendous administrative responsibility to the project and will be involved with addressing issues as they occur. Alderman Feldman asked for a motion to recommend approval of the Agreement for the Downtown Entertainment Development Project. The motion to approve passed seven to one with Aid. Moran voting nay. Aid. Feldman entertained a motion to adjourn. The meeting adjourned at 10:00 P.M. Next Scheduled Meeting; Wednesday, October 28,1998 at 7:45 P.M. Moms Robinson Economic Development Planner ECONOMIC DEVELOPMENT COMMITTEE EXECUTIVE SESSION THURSDAY-OCTOBER 1,1998 The executive session convened at 7:25 P.M. Mr. Norkett had previously arranged to provide each member of the committee with a copy of a financial pro -forma pertaining to the development project. Mr. Norkett suggested that a review of the cost for the project was in order because he questioned the market. He stated that the price per square foot should be lowered because the market is not at $33.00 for gross leasable square foot, but maybe more like $25.00 gross. In light of this information, Aid. Feldman asked if there was a way to reduce the developers cost. Mr. Norkett suggested that it may not be possible to reduce cost and stated that he did not agree with Hill's pro -forma for attracting tenants at the quoted price. He then proceeded to illustrate a number of ways to make the project work. Ms. Aiello stated that she appreciated Mr. Norkett's comments and referenced the pro -forma prepared by Kane, Mckenna. She acknowledged that the city has to be flexible with pricing and that a comfort margin is factored into the pro -forma. Mr. Stern commented that Mr. Hill is negotiating in the market now and has confidence in his ability to attract tenants. Mr. Stern is also confident that the deal as negotiated with Hill and Associates allows for the city to have pricing flexibility in the future. Mr. Stern went on to make the following points: 1. In comparing the 1997 numbers with the 2002 numbers, what is missing is the influx of a million new people having an impact on sales in addition to improved merchants/retailers. 2. Hill is already in the market with cinemas, etc. and he makes reasonable assumptions, 3. The operative pro -forma is based on a conservative $6.00 tax as opposed to an $8.00 which increases the city's flexibility. and 4. There is no need to make monetary concessions now, rather we wait to see how Hill does. Ms. Aiello stated that Hill has indicated that retail is their least concern at this time. He is confident that they are on the right track for retail. She went on to comment on the Wall Street Journal article regarding the hotel glut and scale back. Patriot America may be a little slow in light of this development and this appears to be more of concem.Mr. Rychlicki concurred and reiterated the conservatively factored revenues built into the flexibility of the agreement. Mr. Norkett stated that the taxes and parking revenue is not enough flexibility and maybe the $4.5 million price for the land should be reduced. Ms. Aiello and Mr. Stern stated that now is not the time to make concessions with the land. Alderman Engleman asked for a clarification of the projected one million people visiting Evanston yearly. Mr. Stern stated that the number was derived from cinema goers, numbering from 1.1 million to 1.2 million with multiple staggered shows per day. EXECUTIVE SESSION QCTOBER 1. 1998 PACE 2 Mr. Norkett asked how one million viewers are derived from a market of only 450,000, with other theaters surrounding Evanston. Mr. Stern said that research supports the volume as well as the fact that the Old Orchard theaters will be tom down and not rebuilt. Additionally, the total experience of dining in 75 restaurants and shopping will be a powerful draw. Alderman Engleman next questioned Mr. Norkett as to how he arrived at his pro -forma. Mr. Norkett provided Aid. Engleman with a brief explanation of his rationale stating that he did not use conservative assumptions. Aid. Engleman then explained his views regarding the tax assessment assumptions and how future adjustments could be made by tenants, occupying a full residential component, by appealing for a reduction in their tax rate. Ald. Moran asked how the possibility for a future adjustment would be reflected in the agreement. Ms. Aiello said that in that situation the appeal would go back to the City Council for resolution. Mr. Norket asked if the Hill people were requesting aid from the city on a daily basis to help seal deals with retailers. Mr. Stem said not for retailers but perhaps for parking. However, he said that Hill should not loose a deal without first talking to the City. Both Mr. Stern and Ms. Aiello are confident that Mr. Hill will not be shy about requesting help if needed. Aid. Moran wanted to know how these contingencies will be addressed in the now very public agreement. Mr. Stern said that the necessary cushions are in the agreement to allow Hill to proceed with the document as is. If at some future point Hill should need a concession, he will bring it to the City for consideration. Mr. Newman stated that he is not contemplating Hill needing assistance per the agreement. Hill would need to bring any reservations to the table before October 19, 1998 when the City Council is scheduled to vote on the agreement. Mr. Hill's confidence is also apparent in that he has not expressed any concern about obtaining the rent and he has already invested over one million dollars in the project. Mr. Norkett wanted to know how the City was protected if Mr. Hill abandons the project or declares bankruptcy. Mr. Stem once again reviewed the guarantees and safeguards outlined in the agreement. In addition, he reminded the committee that the title to the land will not be transferred before certain bench marks are met by the developer. The Executive Session ended at 8:05 P.M. DRAFT -NOT APPROVED ECONOMIC DEVELOPMENT COMMITTEE MINUTES WEDNESDAY, October 28, 1998 ROOM 2404-7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Feldman, Aid. Moran, Aid. Newman, Martin Norkett, Greg Norwell ME&IBERS ABSENT: Aid. Engleman, Aid. Wynne, Percy Berger, Lucille Krasnow PRESIDING OFFICIAL: Aid. Feldman, Chair OTHER COUNCIL MEMBERS PRESENT: Aid. Steven Bernstein STAFF PRESENT: Dennis Marino, Morris Robinson OTHERS PRESENT: Cameel Halim (Wilmette Real Estate & Mgmt.) Ann Dienner (Plan Commission) Summary of Actions: The meeting was convened at 7:55 P.M. by Alderman Feldman, without a quorum. AId. Feldman introduced Mr. Cameel Halim, owner of the Carlson Building to the committee. Mr. Halim was asked to give an update on the redevelopment activities occurring on the premises. Ald. Newman commented that the "Opening Soon" sign on the restaurant component had been up for an inordinately Iong period, perhaps as long as eighteen months. Mr. Halim stated that one problem is that his tenant, Mr. Juan Carlos Montiel owner of the La Grotta restaurant was having a difficult time obtaining a liquor licence. There is a stipulation in the lease that if the tenant is not able to obtain the Iicence, he may be able to cancel the agreement. There was confusion as to whether or not the application had been approved or if the licence had been issued. Aid. Newman stated the he had not voted on this licence nor to his knowledge had any other council member. Aid. Feldman asked Dennis Marino to ascertain the status of the licence application. Mr. Halim stated that if all goes well the restaurant should open in approximately four weeks. Aid. Feldman asked how large the establishment was going to be and if it will be on two floors. Mr. Halim said the restaurant would be 6,000 square feet on two floors with approximately 200 seals. Mr. Halim then went on to comment on the substantial structural changes which will be made to the existing stores in the building as well as additional construction to include a twelve unit residential element. There will be no vacancies and no marketing will be required in the foreseeable future. A plan to disguise the current empty ground floor space will be devised in the interim. DRAFT -NOT APPROVED Economic Development Committee Nfinutes-October 28. 1998 Pag~ Mr. Halim asked for advise as to how he could obtain approval to build an extension on the second floor. Dennis Marino offered to arrange a meeting with the Zoning staff to discuss this request. Ald. Newman advised him that he may ultimately have to apply to the Zoning Board and go before the City Council. Nlr. Halim then gave his opinion on the esthetics of the condominiums that were constructed on Maple and Foster and Emerson and Maple in the Research Park. As of this date, it is believed that only eight of the thirty units have been sold in the latter building. Mr. Halim was thanked for his update and comments by Ald. Feldman During the foregoing discussion, a quorum was achieved and Ald. Feldman asked for a vote on the previous minutes. The minutes were unanimously approved. The Committee then discussed the communications included in their packets, with particular interest expressed in the Gateway project in Chicago. Dennis Marino was asked to comment on the Gateway project lack of progress. Ivlr. Marino had heard conflicting positions on the status of the redevelopment. He stated that the quotes from Joe Moore in the Reader article best sums up this unusually complicated project. At issue is the difficulty experienced in acquiring the Pivot Point building. He mentioned that Chicago did get authorization from the legislature to proceed with quick take procedures but that perhaps there are other complications which are preventing action. There are also some relocation issues adding to the slow down. The LaSalle Bank Building on Clark Street is almost finished. The Dominicks store foundation was started but apparently sealed up. Ald. Feldman asked why they would seal the foundation and not proceed. Mr. Martin Norkett responded that the capital market has declined. He stated that nine of the top fifteen funding institutions are basically in a holding pattern and some have actually canceled some commitments. Mr. Marino stated the Dominick's lack of progress is due in part to their expressed unwillingness to open a store as long as the Pivot Point building stands because it blocks their sight line at the intersection of Howard and Clark. Ald. Feldman asked about the status of the cinema component of that development. Ald. Bernstein stated that Joe Moore assured him that both the Dominick's project and the Multiplex plan were going forward. Mr. Marino was asked to comment on the Dempster/Dodge Plaza redevelopment. Mr. Marino provided the members with copies of the revised site plan for the Dominicks Plaza shopping center, indicating who is scheduled to leave and who is staying. He advised them that Joseph Freed & Co. Will be the developer who will acquire the property from Balcor once conditions are met and then updated the committee on a recent meeting held with them. He further stated that the acquisition of Dominick's by Safeway does not have any reported negative impact on the redevelopment plans. The current thinking is that smaller shops will ultimately occupy the current vacancies on the west side of the Center. One of the more difficult problems to overcome is completing the land acquisition because multiple entities own and control distinct parcels of the plaza which have complicated and prolonged negotiations. DRAFT NOT APPROVED Economic Development Committee Minutes -October 28. 1998 Pagu 14r. Marino added that Balcor has indicated that Office Depot, Payless Shoe Store and Frank's Nursery and Crafts will remain in the Center. Aid. Feldman asked about the status of a liquor licence. Mr. Marino stated that one would be requested and that he would check on the status when he investigates the licence for La Grotta restaurant. Finally, Mr. Marino expressed his belief that once the transactions are completed, Freed will ask for an appearance before the EDC to seek financial support for the reported extraordinary expenses they will incur, particularly as they pertain to environmental issues. Ald. Feldman asked about plans for the landscaping design. Mr. Marino displayed the architectural renderings approved by the Site Plan and Review Committee, which illustrates the landscaping enhancements, tree replacements and the positioning of planters in the parking area. Mr. ylarino also mentioned that the site plan for Office Depot had been approved as part of the development and that a rendering may be available for the next meeting. Ms. Ann Dienner asked about the traffic impact that will occur from the redevelopment. Mr. Marino advised that David Jennings has reviewed this issue carefully and he is confident the entries and exits are sufficient for this site. Ms. Dienner suggested that the southern most Dodge Avenue exit be made wider. Mr. Marino said her suggestion would be passed on to Mr. Jennings. The committee members made general comments on how the new Dominicks will benefit the area as did the new Walgreens a few blocks south. Aid. Feldman continued with the next item on the agenda which was a request from the EDC for a recommendation to approve an application for CDBG funding in the amount of $60,000.00 for the Neighborhood Storefront Improvement Program for the Fiscal Year 1999/2000. Mr. Marino explained that the tradition of the CDBG is to refer any request for proposals dealing with economic development to the EDC for the committee's recommendation. The storefront program has been quite successful for a number of years, especially during the past four years. The requested amount is needed to maintain the necessary fund balance. Aid. Newman asked if there was a list of recipients. Mr. Marino said that he would provide the committee with a list that was recently created. Aid. Newman went on to say that the committee should probably receive twice annually updates from the Housing and Community Development Act Committee. Mr. Marino then went on to inform the members of some completed storefront improvement locations as well as the status of others. DRAFT -NOT -APPROVED Economic Development Committee Minute-Qctober 28. l999 Pages Aid. Newman made a motion to recommend that the CDBG Committee approve the storefront application in the requested amount of $60,000. The motion was seconded by Mr. Norkett and the motion received unanimous approval by the EDC. Aid. Newman asked Mr. Marino why the request for $50,000.00 by the Southeast Evanston Economic Development Corporation wasn't presented to the EDC in similar fashion. Mr. Marino stated that the request was probably not classified as economic development, but that he would determine the reason and report back to the EDC. Mr. Marino also stated that he would determine if there are any summary notes on this organization and other similar organizations such as the CPC, to provide to the members of the EDC, particularly because so many activities are ongoing in the Howard Street area. Aid. Newman stated that the same kind of focus given to Howard Street is needed at Church and Dodge. He suggested an update on this area, and perhaps that Ald. Kent should be invited to appear before the EDC. Mr. Marino gave an update on the seven implemented Neighborhood Business District Improvement current projects. He informed the members of the banners and flags, seasonal lighting, planters and streetscaping and other initiatives scheduled for completion in the various business districts. Sidewalk improvements on Noyes will be held in abeyance because of the sewer project scheduled for next year. Aid. Feldman suggested that next year an effort needs to be made for uniformity of Iights and streetscaping in each of the districts. During the general discussion, Aid. Feldman asked if anyone had determined that the proliferation of signs of all descriptions along Howard Street are in violation of City ordinances. Mr. Marino stated that he would ask Ms. Carolyn about this subject. Aid. Feldman next gave a brief update on the Downtown Entertainment Redevelopment Project and noted that the Scribcor and Mieserow buildings are still scheduled for the Research Park. Mr. Norkett advised the EDC that the Next Plan Committee meeting was scheduled for November 11, 1998 and that the draft of the comprehensive plan is available. Mr. Norkett also mentioned the next meeting for the Sherman Avenue Garage Sub -Committee on November 11, 1998. Alderman Newman asked for an update on the status of the Chandlers Building at the next EDC meeting. Aid. Feldman entertained a motion to adjourn. The meeting adjourned at 9:00 P.M. Ne Scheduled Meeting: Wednesday, December 9, 1998 at 8.00 P.M. U/1�rris Elo binson ftconomic. Development Pranner