HomeMy WebLinkAbout09.16.19
CITY COUNCIL REGULAR MEETING
CITY OF EVANSTON, ILLINOIS
LORRAINE H. MORTON CIVIC CENTER
JAMES C. LYTLE COUNCIL CHAMBERS
Monday, September 16, 2019
6:00 p.m.
ORDER OF BUSINESS
(I) Roll Call – Begin with Alderman Wynne
(II) Mayor Public Announcements
Hispanic Heritage Month – September 15, 2019 – October 15, 2019
(III) City Manager Public Announcements
Robert Crown Update
(IV) Communications: City Clerk
(V) Public Comment
Members of the public are welcome to speak at City Council meetings. As part of the Council
agenda, a period for public comments shall be offered at the commencement of each regular
Council meeting. Public comments will be noted in the City Council Minutes and become part of
the official record. Those wishing to speak should sign their name and the agenda item or non-
agenda topic to be addressed on a designated participation sheet. If there are five or fewer
speakers, fifteen minutes shall be provided for Public Comment. If there are more than five
speakers, a period of forty-five minutes shall be provided for all comment, and no individual shall
speak longer than three minutes. The Mayor will allocate time among the speakers to ensure that
Public Comment does not exceed forty-five minutes. The business of the City Council shall
commence forty-five minutes after the beginning of Public Comment. Aldermen do not respond
during Public Comment. Public Comment is intended to foster dialogue in a respectful and civil
manner. Public comments are requested to be made with these guidelines in mind.
(VI) Special Orders of Business
1 of 49
City Council Agenda September 16, 2019 Page 2 of 3
SPECIAL ORDERS OF BUSINESS
(SP1) Evanston Development Cooperative Accessible Dwelling Unit Pilot Proposal
The Housing and Homelessness Commission and staff recommend approval of a
loan of up to $220,000 from the Affordable Housing Fund to an Evanston
homeowner to finance the building of an Accessory Dwelling Unit (ADU)/coach
house by Evanston Development Cooperative (EDC). The homeowner will rent
the ADU at 80% AMI for 20 years to households from the City’s centralized waitlist
managed by Community Partners for Affordable Housing. This pilot project will
inform the development of programs to construct and finance ADUs for residents,
community members, private investors and future financial partners with the goal
of integrating additional affordable housing, particularly in single family
neighborhoods. Funding is from the City's Affordable Housing Fund,
250.21.5465.65535, Rehab Loans. This line item has a budgeted amount of
$500,000 for 2019. The Affordable Housing Fund has a cash balance of
approximately $900,000.
For Action
(SP2) Affordable Housing Work Plan Progress Update
Staff recommends that the City Council accept and place on file the affordable
housing work plan progress update.
For Action: Accept and Place on File
(SP3) Zoning, Regulation, and Licensing of Cannabis Businesses for Adult Use
Staff requests direction regarding the zoning, regulation and licensing of cannabis
businesses for adult use in the City of Evanston.
For Discussion
(SP4) Resolution 88-R-19, Regarding the Zoning, Regulation, and Licensing of
Cannabis Businesses for Adult Use
Staff recommends that City Council adopt Resolution 88-R-19 “Regarding the
Zoning, Regulation, and Licensing of Cannabis Businesses for Adult Use” to
provide direction to the Plan Commission and Notice to the Public and Cannabis
Businesses of future consideration and a public hearing on future zoning
regulations for adult use cannabis businesses seeking to locate in Evanston,
taxation, and personnel.
For Action
2 of 49
City Council Agenda September 16, 2019 Page 3 of 3
(SP5) Lorraine H. Morton Civic Center Discussion
Staff recommends City Council move forward with a space planning study for City
Hall functions in lieu of moving forward with the planning and design of the Civic
Center HVAC, Electrical and Security Improvements project. Staff also
recommends moving forward with a site identification study to determine potential
options for new space (this study would need to lag the space planning study by
several months in order to incorporate findings from the space planning). Staff
also seeks direction from City Council on whether a space planning study should
be limited to only City Hall functions or if it makes sense to look at other
buildings/functions where City buildings are in need of significant capital
investment. Additionally, staff recommends evaluating options for the repurposing
of the current facility is conducted separately from the process of moving forward
on a new Civic Center. Staff will return at a future meeting to discuss the options
available to the City Council regarding the existing facility.
For Discussion
(VII) Call of the Wards
(Aldermen shall be called upon by the Mayor to announce or provide information
about any Ward or City matter which an Alderman desires to bring before the
Council.) {Council Rule 2.1(10)}
(VIII) Executive Session
(IX) Adjournment
MEETINGS SCHEDULED THROUGH SEPTEMBER 2019
Upcoming Aldermanic Committee Meetings
9/17/2019 7:00 PM Joint Meeting: Housing & Community Development Act Committee and Mental
Health Board
9/18/2019 6:30 PM M/W/EBE Committee - CANCELLED
9/19/2019 7:00 PM Equity & Empowerment Committee
9/23/2019 6:00 PM Administration & Public Works, Planning & Development, City Council
9/25/2019 6:00 PM Transportation & Parking Committee
9/25/2019 7:30 PM Economic Development Committee
Information is available about Evanston City Council meetings at: www.cityofevanston.org/citycouncil.
Questions can be directed to the City Manager’s Office at 847-866-2936. The City is committed to
ensuring accessibility for all citizens. If an accommodation is needed to participate in this meeting, please
contact the City Manager’s Office 48 hours in advance so that arrangements can be made for the
accommodation if possible.
3 of 49
For City Council Meeting of September 16, 2019 Item SP1
Evanston Development Cooperative ADU Pilot Proposal
For Action
To: Honorable Mayor and Members of the City Council
From: Johanna Leonard, Community Development Director
Sarah Flax, Housing and Grants Manager
Savannah Clement, Housing Policy and Planning Analyst
Marion Johnson, Housing and Grants Intern
Subject: Evanston Development Cooperative ADU Pilot Proposal
Date: September 6, 2019
Recommended Action
The Housing and Homelessness Commission and staff recommend approval of a loan
of up to $220,000 from the Affordable Housing Fund to an Evanston homeowner to
finance the building of an Accessory Dwelling Unit (ADU)/coach house by Evanston
Development Cooperative (EDC). The homeowner will rent the ADU at 80% AMI for 20
years to households from the City’s centralized waitlist managed by C ommunity
Partners for Affordable Housing. This pilot project will inform the development of
programs to construct and finance ADUs for residents, community members, private
investors and future financial partners with the goal of integrating additional affordable
housing, particularly in single family neighborhoods.
Funding Source:
Funding is from the City's Affordable Housing Fund, 250.21.5465.65535, Rehab Loans.
This line item has a budgeted amount of $500,000 for 2019. The Affordable Housing
Fund has a cash balance of approximately $900,000.
Livability Benefits:
Built Environment: Support housing affordability;
Equity & Empowerment: Ensure equitable access to community benefits, and support
poverty prevention and alleviation.
Climate & Energy: Improve energy and water efficiency, reduce greenhouse gas
emissions
Economy & Jobs: Expand job opportunities, develop workforce, and support green jobs
and businesses
Discussion:
ADUs have been identified as a strategy that can address multiple affordable housing
needs in Evanston, including increasing the supply of affordable housing units,
particularly in single-family neighborhoods where rental is limited, as well as help
Memorandum
4 of 49
address displacement of lower income residents by providing them with rental income
and increased equity, and enabling seniors to age in place. ADUs can increase housing
supply and density while maintaining the character of existing neighborhoods. The
addition of ADUs addresses the City Council goal to expand affordable housing options
and will further Evanston’s capacity to remain an economically and racially/ethnically
integrated community.
Currently financing of ADUs is reliant on the financial capacity of the property owner in
the form of savings, equity loans or refinancing of their property. Establishing additional
financing options will ensure a broader and more equitable access to building ADUs to
address different needs. This pilot loan will also provide an opportunity for EDC to build
its first ADU in Evanston using its sustainable panelized construction materials and
showcase the opportunities available to private investors and financial partners to
finance future ADU projects, as well as illustrate ADUs’ potential to homeowners and
residents. The pilot would also help establish and confirm all processes necessary
between all parties (property owner, EDC, building contractors, City departments, etc.)
for the building and renting of an affordable ADU.
The property owners at 1118 Sherman Avenue reached out to EDC after hearing about
its community dialogue on affordable housing, with the intention of constructing an
affordable, 2-bedroom ADU that could house up to four people. The property owners do
not qualify as low- or moderate-income residents (LMI), but they do not have the
resources to privately finance ADU construction.
The property owners’ commitment to use their private property for a public good also
helps demonstrate how residents can use their property creatively to finance and
expand affordable housing options for other residents, and collaborate in the
development of economically integrated neighborhoods in our city. This pilot can help
develop programs to incentivize the creation of additional affordable, healthy homes on
private land, particularly in single-family neighborhoods.
The loan amount will be $150,000 at minimum but not exceed $220,000, with an
interest rate of 1% for a 20 year term. The ADU will be rented at 80% AMI to income
eligible households from the centralized waitlist for the duration of the loan term. The
loan and land use restrictions will be recorded on the property. See draft agreement
attached.
As noted above, this is a pilot project that will help inform the development of financing
programs for ADUs for individual home owners who lack cash resources to undertake
the construction of an ADU. Other pilots are being developed to help low-income
homeowners avoid displacement by providing them additional income to help pay
property taxes, etc., and to enable seniors to age in place. In addition to detached
coach house ADUs, revising City zoning to allow internal and attached ADUs is being
considered in the development of the City’s comprehensive Affordable Housing Plan.
Other local governments already offer ADU financing through various programs.
Boston, MA, and Denver, CO, provide interest-free deferred loans (due at the time of
sale of the property) to eligible homeowners. L.A. County, CA, is piloting a program that
provides forgivable loans to homeowners building ADUs for residents transitioning out
5 of 49
of homelessness. And, Santa Cruz, CA, provides loans for affordable ADUs in
collaboration with a local credit union. While many of these programs have lower loan
amounts, the majority are for attached or internal units which are considerably less
expensive to create. Given that Evanston’s zoning does not allow attached or internal
ADUs, there is a need to develop viable financing of detached ADUs, preferably through
private financing or public-private partnerships. This loan provides a first step in this
direction.
Additionally, this loan will enable EDC to begin hiring and training LMI residents to work
in sustainable construction by building homes that are 90% more energy efficient than
the average single-family home.
Legislative History:
The Housing and Homelessness Commission voted 5-0 with two abstentions to approve
the Evanston Development Cooperative ADU Pilot Proposal, and recommend its
approval to City Council, at its meeting on September 5, 2019.
Attachments
Draft Loan Agreement
EDC pro forma for 1118 Sherman Avenue
Summary of other local governments financing programs
Evanston Development Cooperative executive summary
6 of 49
DRAFT OF LENDING TERMS
Project: 2-Bedroom ADU at 1118 Sherman Avenue (“Project”)
Partners: Stuart Jessup and Elizabeth Jackson (“Owner,” 1118 Sherman Avenue)
City of Evanston (“Lender”)
This non-binding document (“Document”) aims to establish the lending agreement (“Loan”)
between Owner and Lender to construct the coach house (“Project”) at 1118 Sherman Avenue.
Owner and Lender have both expressed interest in executing an agreement to construct
affordable, sustainable housing in Evanston through a local workforce.
1. Amount
Owner shall receive a line of credit totaling no more than $220,000 to be used for site work,
construction, fees (architectural, engineering, permit, etc.), maintenance, and all project-related
costs. The final amount will be issued as a second mortgage on the property.
2. Terms
Initial minimum draw: $150,000 ($30,000 at zoning approval + $120,000 after building permit)
Maximum draw: $220,000
Period of time: 1 year draw up to 30 days after issuance of Certificate of Occupancy (COO), and
20 years repayment (beginning at 90 days after COO or receiving rental income, whichever
comes first)
Interest rate: Fixed 1% on principal balance (beginning at 90 days after COO or receiving rental
income, whichever comes first)
Monthly payments: Principal plus interest
Interest-only payments: If facing unforeseen financial difficulties, Owner may request making
interest-only payments for a specific period of time to be agreed upon by Lender.
3. Project Affordability
Owner shall agree to rent the Project at 80% of the Area Median Income (AMI) as determined in
the Illinois Housing Development Authority’s Schedule of Maximum Monthly Gross Rents in
Chicago (Cook, Du Page, Lake, Kane McHenry, and Will Counties). The 80% AMI rental rate
shall be determined and published by IHDA on an annual basis.
4. Owner Financial Verification
Prior to issuance of the Loan, Lender shall carry out a credit check and income verification of
Owner to ensure their capacity to meet the financial requirements of the Loan. Additionally,
Lender shall ensure that Owner is current with all City of Evanston and property accounts,
including property taxes, water bills, mortgages, and property insurance.
5. Evanston Development Cooperative’s Role as General Contractor
7 of 49
Issuance of the Loan shall be contingent upon Owner’s decision to hire Evanston Development
Cooperative (“General Contractor”) to complete construction of the Project.
6. Loan Issuance Terms
Upon approval of the Project’s plans and specifications through the completion of a Zoning
Analysis form, as approved by the City of Evanston’s Zoning Office, $30,000 of the loan amount
shall be distributed to the Owner to cover project-related costs. This date starts the 1-year draw
period.
Upon submission of all relevant documents and issuance of a building permit to the General
Contractor, the Owner shall submit verification of the building permit, signed construction
invoice, and other relevant documents required by the Lender. Upon receipt of certification of
the building permit, the Lender shall begin distribution of funds to the General Contractor
(totaling a minimum of $120,000 and maximum of $220,000), with each draw to be approved by
the Owner.
No additional funds can be drawn after 30 days after the issuance of the Certificate of Occupancy
or 1 year after the issuance of the loan, whichever comes first. The final principal balance will
constitute the “loan amount.”
City will issue a note on the property to record said “loan amount.”
7. Loan Payment Period
Owner’s monthly payments shall commence in the first month (“Month 1”) in which the Owner
receives rental income from the Project or 90 days after issuance of Certificate of Occupancy,
whichever comes first. Monthly payments are due to the City of Evanston by the last business
day of the month.
8. Renter Outreach, Identification, Screening, and Administration
Owner shall follow the “Policies and Procedures” for Affordable Rental Housing established in
the City of Evanston’s Inclusionary Housing Ordinance. Therefore, Owner shall provide
Community Partners with Affordable Housing (CPAH) with the rights and responsibilities to
carry out tenant outreach, income verification, and screening for qualified applicants on the City
of Evanston’s Centralized Waitlist.
As the “Policies and Procedures” states, the Owner shall be responsible for offering the rental
lease to identified and screened tenant applicants. Additionally, as the “Policies and Procedures”
indicate, it is possible that not all income-qualified applicants will receive an offer of a lease
from the Owner.
8 of 49
9. Definition of “Opting Out”
For the Owner, the following actions shall be defined as “opting out”:
a. Selling the property on which the Project exists.
b. Transferring ownership of the property on which the Project exists.
c. Subdividing the property on which the Project exists.
d. Carrying out a cash-out refinance on the property on which the Project exists.
e. Renting the Project at a rate higher than that established in this Document.
f. Renting the Project in a manner that fails to align with the “Policies and Procedures” of the
City of Evanston’s Inclusionary Housing Ordinance.
g. Renting the Project on Airbnb or other short-term rental services.
10. “Opting Out” Fee in First Five Years
From the time period of Month 1 to five years thereafter, the Owner shall be responsible for the
following payment if the Owner opts out:
a. Payment of the principal balance due
b. A flat sum payment equating to 5% annual interest rate of the “loan amount” during the time
period.
For example, if the Owner opted out 3 years after Month 1 with $179,000 in principal balance on
a $200,000 “loan amount,” they would pay the Lender $179,000 (Item a) with an additional
$30,000 ($200,000 x 5% x 3 years) payment (Item b).
11. “Opting Out” in Remaining Years of Loan Term
From five years after Month 1 to the conclusion of the 20-year repayment term, the Owner shall
be responsible for payment of the remaining principal balance due on the total loan amount.
12. A New Property Owner
If a person or entity different from the Owner attains ownership of the property on which the
Project is located, the owner of the property (“New Owner”) may, if they meet the financial
verification requirements defined in Clause 4, assume the loan amount, terms, and affordable
rental agreement. Otherwise, the loan would be repaid at time of transfer.
9 of 49
Financial Pro Forma for 1118 Sherman Coach House Project
SQFT $/SQFT
Cost of Coach House + Fees $210,000
Permit Value of Coach House $140,000
Funds
Cash $10,000
Community Support $0
City Assistance (Grant)$0
Loan $200,000
Term Loan
Loan Amount $200,000
Annual Interest Rate 1.000%
Periodic Interest Rate 0.083%
Years 20
Number of Monthly Payments 240 28920
Monthly Principal Payment $833.33
1st Interest Payment $166.67
Last Interest Payment $1
Total Interest Paid $19,916.67
Monthly Cost of Coach House Annual Building Value Assessment Level State Equalizer Local Tax Rate Exemption*
Property Tax Increase $319.64 $3,835.63 =$140,000 10%2.9109 9.41%1
Property Insurance Increase $25.00 $300
Utilities (Electricity + Water)$50.00
Maintenance $83.33 $1,000
Vacancy (0.5 month / year)$66.88 $802.50
CapEx Reserve $83.33 $1,000
Total:$628.18
Monthly Income 80% AMI Illinois Housing Development Authority (April 2019)
Gross Rent $1,605 2 Bedroom 100% AMI 80% AMI 60% AMI
City Subsidy $0 Gross Rent $2,005 $1,605 $1,203
Total:$1,605 Rent $1,955.00 $1,555.00 $1,153.00
1 Bedroom
First Monthly Balance 80% AMI Gross Rent $1,671 $1,337 $1,002
Loan Payment -$1,000 Rent $1,621.00 $1,287.00 $952.00
Operating Costs -$628
Income $1,605
Total:-$23 Homeowner
Years:20
Last Monthly Balance 80% AMI Total Interest Paid -$19,916.67
Loan Payment -$834 Total Operating Costs -$150,763
Operating Costs -$628 Loan Repayment -$200,000
Income $1,605 Total Rent Collected $385,200
Total:$143 Net:$14,521
City of Evanston
Terminate 20 yrs 4 yrs Voucher*
Loan -$200,000 -$200,000
Loan Repayment $200,000 $200,000
Interest Collected $19,916.67 $40,000
Montly Outlay -$400.00
Net:$19,916.67 $40,000 -$96,000.00
*Subsidy to bridge gap between 80% and 100% AMI, for 20 years
This Proposal
10 of 49
Summary of Local Government ADU Financing Programs
City of Denver
• Established in May of 2019.
• Allocated $500,000 from Denver’s Affordable Housing Fund.
• Forgivable loan if homeowners meet affordability requirements:
o Homeowners or secondary tenant must earn less than 80% AMI.
o ADU or primary house rent cannot exceed 80% AMI for 25 years.
• Program is offered to households earning up to 120% AMI.
• Deed restrictions are placed on the property of participating households.
County of Santa Cruz
• Established in 2003.
• Allocated $540,000 in 2018.
• Provides homeowners with a forgivable, 3% interest loan.
o Loan is forgiven if homeowners rent at or below 70% AMI for 20 years.
o Homeowners pay full loan amount plus interest if they do not rent affordably.
• Deed restrictions placed on the property.
City of Boston
• Established in April of 2019.
• Allocated $650,000.
• Zero-interest, deferred loans to homeowners.
o No monthly loan payments – loan is due when homeowner sells property, transfers ownership,
or undertakes a cash-out refinance.
• Program is offered to households earning up to 135% AMI.
• Must be current with all City of Boston and property debts.
Los Angeles County
• Established in August of 2017.
• Allocated $550,00 for an 18-month pilot program.
• Provides homeowners with a forgivable loan:
o Loan is forgiven if homeowners rent to formerly homeless tenants for 10 years.
o Interest stops accruing after 5 years.
• Homeowners receive rental income through Section 8 or other vouchers.
• Program aims to streamline ADU permitting process.
City of Evanston
• Proposed in September of 2019
• Allocating a maximum of $220,000 for a pilot project.
• Provides homeowners with a 1% loan if:
o Homeowners rent the ADU at or below 80% AMI for 20 years.
• If homeowners sell the property, transfer ownership, or violate loan term agreements:
o Homeowners pay full amount of the loan plus 5% interest.
• Deed restrictions are placed on the property.
• Homeowners must be current with all City of Evanston and property debts.
11 of 49
Executive Summary
The Evanston Development Cooperative (EDC) builds environmentally sustainable,
affordable homes by and for our town’s residents. Our for-profit cooperative is democratically
owned and governed by local workers and residents because EDC believes that Evanston possesses
the human capital, financial capital, and moral goodwill to build an equitable city. Our airtight
construction technologies create homes that are far more energy efficient than the average house,
aligning with the City of Evanston’s Climate Action and Resilience Plan (CARP) goals. By allowing our
residents to collaborate as the builder and developer of our town’s homes, we provide a business
mechanism for our entire community to address citywide issues of affordable housing, workforce
development, racial equity, and environmental sustainability.
EDC offers ownership to two types of shareholders: Worker-members (Class A) who are
employed by EDC and Evanston community members (Class B) who invest in EDC. Class A
shareholders must be Evanston residents and EDC employees that direct business operations and build
EDC homes. Class B shareholders contribute their lived and professional expertise and introduce EDC to
their Evanston network. Our cooperative model caps all shareholder investments at $10,000, and all
shareholders have one vote regardless of investment size. Because all employees and resident members
have an equal vote in our business, we provide the Evanston community with the power to decide the
shape, color, and cost of housing in our city.
We are initially focused on constructing coach houses, or accessory dwelling units (ADU’s). ADU’s
are detached, independent housing units on the property of a single-family home. ADU’s generate
rental income for the existing homeowner, provide housing to elderly parents and other relatives, or
help current homeowners downsize from their primary home. Under current Evanston zoning,
approximately 4,700 coach houses that are 600 square feet or larger could be built today. Through
partnerships between large national banks, regional community development financial institutions
(CDFI’s), and local governments, cities are implementing programs to ensure affordability on properties
with ADU’s. Learning from cities such as Portland, OR and Los Angeles, CA that build hundreds of
ADU’s annually, EDC aims to develop similar public-private partnerships to make our homes livable,
cost-effective, and healthy for all Evanston residents.
Incorporated on December 12, 2018, EDC plans to begin the construction of 1 pilot project in the Fall of
2019. We currently have 5 homeowners under contract for pre-construction services, aiming to build 4
ADU’s in 2020 to reach $900,000 to $1,000,000 in construction revenue. We currently have 27
cooperative members whose collective investment totals $125,000, and we plan to raise an additional
$70,000 through shareholder memberships by the end of 2019. EDC has received a $60,000 grant from
the City of Evanston, as well as a $50,000 grant from Cook County, to provide jobs in sustainable
construction to low or moderate-income (LMI) residents. We aim to achieve profitability by 2021,
gradually developing our community’s capacity to finance and build affordable, resilient homes for our
residents.
EDC President Dick Co began full-time work with EDC in January of 2019 after directing
“House by Northwestern” at Northwestern University, where he was on the faculty for 10 years.
Cofounder and Vice President Robinson Markus began full-time work in late June. Eric Dingle, a local
general contractor, EDC Class A shareholder and Board of Directors member, will oversee day-to-day
construction for EDC’s pilot project. EDC’s inaugural cooperative meeting was June of 2019, with our
next shareholders’ meeting slated for December of 2019.
12 of 49
For City Council Meeting of September 16, 2019 Item SP2
Affordable Housing Work Plan Update
For Action: Accept and Place on File
To: Honorable Mayor and Members of the City Council
From: Johanna Leonard, Community Development Director
Sarah Flax, Housing and Grants Manager
Savannah Clement, Housing Policy and Planning Analyst
Quentin Crane, VISTA Housing Associate
Marion Johnson, Housing Intern
Subject: Affordable Housing Work Plan Progress Update
Date: September 16, 2019
Recommended Action:
Staff recommends that the City Council accept and place on file the affordable housing
work plan progress update.
Livability Benefits:
Built Environment: Support housing affordability; provide compact and complete streets
and neighborhoods; and
Equity & Empowerment: Ensure equitable access to community benefits, and support
poverty prevention and alleviation.
Summary:
This memorandum and the summary chart attached provide the City Council an update
on the projects and activities to address the City Council goal of expanding affordable
housing options in Evanston that have been undertaken since the Affordable Housing
Update on April 29, 2019.
Create New Housing Opportunities
Pilot ADU Project by Evanston Development Cooperative
The Housing and Homelessness Commission reviewed a proposal to fund the
construction of a 2-bedroom ADU on privately owned property with a single-family home
with a below market rate loan from the Affordable Housing Fund. The ADU would be
restricted for households with incomes that do not exceed 80% of the area median
income for 20 years. This item is on tonight’s agenda.
Expand Revenues for Affordable Housing
The City’s Demolition Tax was increased to $15,000 per single-family home and 2-flats,
and to $5,000 per unit for properties with three or more units following approval by City
Council.
Memorandum
13 of 49
City staff expects to receive a fee-in-lieu payment of $2,400,000 to the Affordable
Housing Fund from the developer of 811 Emerson Street in the near future; payment is
required before issuance of any certificate(s) of occupancy for the property.
Create Pathways to Homeownership
Geometry In Construction
1824 Emerson Street lot that was acquired through the No Cash Bid program was
transferred to Evanston Township High School as the site for the 2019-2020 Geometry
In Construction (GIC) home following City Council approval on 4/29/2019. In addition,
the house constructed by students in GIC 2018-2019 was moved to its permanent site
at 1729 Dodge Avenue in June for completion and sale to an income eligible household.
Expand Development of Income Restricted Rental Units
The Housing Authority of Cook County has submitted a planned development for zoning
review to construct a new mixed-income development on the site of the Perlman
Apartments at 1900 Sherman Avenue. This project was proposed and discussed at City
Council on April 29, 2019.
Evergreen Real Estate Group received an award of Low Income Housing Tax Credits
from the Illinois Housing Development Authority in May for its 60-unit senior housing
development at 1015 Howard Street. Work to rezone the property and expand the
Howard Street TIF is underway. Construction is projected to start in spring of 2020.
The City acquired 1805 Church Street through a deed in lieu of foreclosure following
Council approval of that action on April 29, 2019. Alderman Rue Simmons held a
meeting to begin discussion about its redevelopment on July 29, 2019.
Maintain and Expand Rent Subsidies for Low-Income Households
Renewal funding of $300,000 to Connections for the Homeless for Tenant-Based rental
Assistance for McKinney-Vento homeless families with children in Evanston school
districts was approved by HHC at its meeting on August 1, 2019 and is on the
September 9, 2019 P&D/Council agenda for approval.
Expand Programs to Overcome Barriers to Rental for Low Income Residents
Landlord-Tenant Services
Renewal funding of up to $70,000 for Metropolitan Tenants Organization and Lawyers
Committee for Better Housing to continue landlord-tenant services was approved by the
Housing and homelessness Commission at its 9/5/19 meeting; the request will be on
the P&D/Council agenda on 9/23/19.
Inclusionary Housing Ordinance Waitlist Update
Community Partners for Affordable Housing (CPAH) and staff met with the Albion’s
management staff in August to begin preparation for rent up of the 15 inclusionary units
in that development. Occupancy is anticipated in the first half of 2020.
14 of 49
Assessment of Fair Housing
Staff is working with Enterprise Community Partners, the Chicago Metropolitan Agency
for Planning, Chicago Area Fair Housing Alliance, Cook County, and others on the Cook
County wide Assessment of Fair Housing. Data collection is underway; community
outreach will be undertaken this fall.
Comprehensive Housing Plan
Affordable Housing Plan Steering Committee
The Affordable Housing Plan Steering Committee (AHPSC) concluded a series of
meetings to frame the need for affordable housing and identified key stakeholders for
outreach at its meeting in June. The City contracted with Millennia Consulting to
facilitate the community outreach phase of the plan in early August. AHPSC and
Millennia Consulting will finalize the community outreach process which consists of one-
on-one interviews with community stakeholders, and small group discussions that will
be undertaken in October-November 2019, and one or more community meetings that
will take place in early 2020. Millennia Consulting will provide a report summarizing
community priorities following the outreach activities in 2020.
Attachments:
Affordable Housing Activities Summary chart
15 of 49
Goal Activity 10/30/17
Meeting
01/29/18
Meeting
4/30/18
Meeting
07/30/18
Meeting
10/29/18
Meeting
2/04/19
Meeting
4/29/19
Meeting
9/16/19
Meeting Status
Allow rental of existing coach houses to
non-family members X X X X X X X Amnesty period for rental registration of existing ADUs was
March 1 - May 31, 2019.
Evanston Development Cooperative Pilot
ADU Proposal X HHC recommends approval of a Pilot ADU Project by the
Evanston Development Cooperative at tonight's meeting.
Comprehensive review of zoning code to
allow for the creation and rental of new
accessory dwelling units
X X X X
Develop strategies to expand ADUs to address housing needs
as part of comprehensive plan. Zoning changes would be
recommended by HPSC and HHC to Plan Commission
Text amendment to Zoning Bonuses in
IHO to allow addition of an affordable unit
to existing residential properties
X
Council referred a text amendment to the Zoning Bonuses in
the Inclusionary Housing Ordinance to allow the addition of
affordable units within the footprint of an existing residential
building at its 4/29 meeting.
Text amendment to Unique Use in Zoning
Code to allow test of small lot housing at
2122 Darrow Avenue
X
Council referred using the Unique Use in zoning code to test
small lot housing at 2122 Darrow Avenue, property owned by
the City at its meeting on 4/29/19.
Amend occupancy standards (3-
Unrelated)X X Discussed at P&D on 5/14/18. Staff seeks direction from
Council on next steps
Support new initiatives in housing
construction and funding X Presentation by Evanston Development Cooperative on
10/29/18 City Council agenda.
Explore expansion of alternate housing
forms including rooming houses and co-
housing
X X X
Memo on different types of shared housing included in
10/29/18 City Council packet. Staff seeks direction from
Council on next steps
Increase affordable
units in market rate
developments
Amend the Inclusionary Housing
Ordinance to incentivize onsite units more
effectively
X X X Subcommittee proposed ordinance revisions introduced on
10/8/18 and adopted on 10/29/18, effective 1/1/19.
Increase the IHO fee-in-lieu X X X Included in revised IHO effective 1/1/2019.
Increase the demolition tax X X
Demolition Tax was increased to $15,000 per single-family
home and 2-flats, and to $5,000 per unit for properties with 3 or
more units.
Fee in lieu of affordable units onsite for
811 Emerson St development
Developer fee-in-lieu payment of $2,400,000 to the Affordable
Housing Fund is expected; payment is required before
issuance of any certificate(s) of occupancy.
New revenue sources: fee based on
building permit value on non-IHO covered
development, portion of RETT for
affordable housing
X Staff seeks direction from Council on next steps
ETHS Geometry in Construction X X X
1824 Emerson Street lot acquired through the No Cash Bid
program was transferred to Evanston Township High School
for the 2019-2020 Geometry in Construction home following
approval by City Council. In addition, the 2018-29 GIC home
was moved to its lot at 1729 Dodge Avenue in June for
completion and sale to an incoem eligible household.
Leverage external resources for
homebuyer assistance X X X
Economic Development staff working with Evanston banks,
credit unions, Center for Financial Services Innovation, non-
profits, and other personal finance organizations and
professionals on a private sector driven financial wellness
initiative
Expand revenues for
affordable housing
Create pathways to
homeownership
Updates on City Council Goal: Expand Affordable Housing Options in Evanston
Create new housing
opportunities
16 of 49
Goal Activity 10/30/17
Meeting
01/29/18
Meeting
4/30/18
Meeting
07/30/18
Meeting
10/29/18
Meeting
2/04/19
Meeting
4/29/19
Meeting
9/16/19
Meeting Status
Create new housing
opportunities
Leverage external resources to develop
housing for low income and special needs
residents
X X X
Housing Authority of Cook County submitted PD application for
a mixed income development on the Perlman site at 1900
Sherman Avenue.
Leverage external resources to develop
housing for low income and special needs
residents
X X
Evergreen Real Estate Group expects to hear if 1015 Howard
Street development is approved for Low Income Housing Tax
Credits by the Illinois Housing Development Authority in May.
Leverage City-owned land for affordable
housing development X X X X
Two neighbhorhood meetings were held to discuss the
redevelopment of 506 South Blvd and adjacent HACC-owned
parcel to the west.
Leverage City-owned land for affordable
or mixed income housing development X
City acquired 1805 Church Street through a deed in lieu of
foreclosure. Alderman Rue Simmons held a meeting to begin
discussion about its redevelopment on 7/29/19.
Landlord Rehabilitation Assistance
Program X X X X
Additional research into rental rehab needs that are not
addressed by CDBG rehab program is needed to refine and
implement an effective program.
Handyman Program X Renewed funding from AHF in the amount of $35,000
approved on 6/25/18
Evanston Rental Assistance Program X X Next steps pending based on generating ongoing source of
revenues for Affordable Housing Fund
HOME Tenant-Based Rental Assistance X X X
Renewal funding of $300,000 to Connections for the Homeless
was approved by HHC and is on the 9/9/19 P&D/Council
agenda for approval.
Review changes to General and
Emergency Assistance Programs
Landlord-Tenant education and
assistance X X X
Renewal funding of up to $70,000 for MTO/LCBH to continue
landlord-tenant services was approved by HHC at its 9/5/19
meeting, and will be on the P&D/Council agenda on 9/23/19.
Inclusionary Housing Ordinance Waitlist X See Work Plan memo for a summary of CPAH's activities to
expand and update the waitlist
Pilot Landlord Mitigation Fund X
Assessment of Fair Housing X X Data collection to assesss existing conditions is underway;
community outreach efforts will be undertaken in fall 2019.
Tenant Relocation Assistance Policy X Tenant Relocation Assistance Policy is being considered in the
comprehensive Affordable Housing Plan.
Scope of work for Housing and
Homelessness Commission X X X Draft scope of work proposed on 7/30/18. Next steps pending
to be developed workiing with Steering Committee
Steering Committee to oversee
development of the plan X X
AHFSC concluded a series of meetings to frame the need for
affordable housing and identified key stakeholders for
outreach. The City contracted with Millennia Consulting to
facilitate the community outreach phase of the plan.
Community Outreach and Education
AHPSC and Millennia Consulting will finalize the community
outreach process which consists of one-on-one interviews with
community stakeholders, and small group discussions that will
be undertaken in October-November 2019, and one or more
community meetings that will take place in early 2020.
Millennia Consulting will provide a report summarizing
community priorities following the outreach activities in 2020.
Comprehensive
Housing Plan
Expand programs to
overcome barriers to
rental for low income
households
Preserve affordable
housing
Maintain and expand
rent subsidies for
low-income
households
Expand development
of income-restricted
rental units
17 of 49
For City Council Meeting of September 16, 2019 Item SP4
Resolution 88-R-19, Regarding the Zoning, Regulation, and Licensing of Cannabis
Businesses for Adult Use
For Action
To: Honorable Mayor and Members of the City Council
Members of the Administration and Public Works Committee
From: Erika Storlie, Assistant City Manager
Michelle L. Masoncup, Corporation Counsel
Subject: 88-R-19, A Resolution Regarding the Zoning, Regulation, and Licensing of
Cannabis Businesses for Adult Use
Date: September 12, 2019
Recommended Action:
Staff recommends City Council adoption of Resolution 88-R-19 “Regarding the Zoning,
Regulation, and Licensing of Cannabis Businesses for Adult Use” to provide direction to
the Plan Commission and Notice to the Public and Cannabis Businesses of future
consideration and a public hearing on future zoning regulations for adult use cannabis
businesses seeking to locate in Evanston, taxation, and personnel.
Livability Benefits:
Innovation & Process: Support local government best practices and processes
Summary:
The Illinois General Assembly passed the Cannabis Regulation and Tax Act (the
“Act”) on May 31, 2019. The Act allows state residents over the age of 21 to possess
up to 30 grams of cannabis beginning January 1, 2020. Personal cannabis use will be
allowed in most private residences, but not in prohibited areas including any public
place or in close physical proximity to underage p ersons. An earlier proposal allowed
households to grow up to five cannabis plants, but this new law would limit home
cultivation to medical cannabis patients. The resolution provides direction from the
Council to the Plan Commission on the issues that need to be addressed at a public
hearing.
A. Zoning:
1. Permitting of Cannabis Businesses: One of the most pressing issues for the
Council to address now is whether Evanston seeks to allow cannabis businesses to
locate in Evanston. The bill allows local governments to ban or significantly limit
cannabis businesses in their jurisdiction, including dispensaries, cultivation centers,
craft growers, processing organizations, and transportation organizations.
Memorandum
18 of 49
2. Zoning Restrictions: The bill allows local governments to adopt (1) reasonable
zoning ordinances that do not conflict with the Act; and (2) ordinances and rules
governing the time, place, manner, and number of cannabis businesses consistent with
the Act. Meaning, the City could address issues such as: distancing requirements, make
the use a special use, hours of operation, and cap on the number of dispensaries. The
Act sets the maximum hours of operation at 6:00 a.m. to 10:00 p.m.
3. On-Site Consumption and Smoking Lounges:
The bill grants local governments broad authority to authorize and regulate privately-
owned facilities where cannabis and cannabis products may be consumed on -site (i.e.,
“cannabis lounges”) similar to hookah lounges. The Council needs to consider if on-site
consumption and smoking lounges will be permitted.
C. Taxation
The Act allows a municipality, both home rule and non-home rule, to adopt ordinances
to impose a local tax on the operation of a cannabis dispensary. The rate of tax cannot
exceed 3% of the dispensary's gross receipts from the sale of non-medical cannabis. If
imposed, the tax may only be imposed in 0.25% increments. The tax will be collected
and enforced by the Department of Revenue, which will retain 1.5% of the amount
distributed to each municipality as an administrative fee.
The total taxation through various taxes, including the municipal tax, is 40 -45% of the
purchase price. Summary of taxes assessed:
Cultivation – 7% on wholesale (State tax) and applies to cultivators, craft
growers, or processors who sell to dispensing organizations
Dispensaries – Cannabis Purchaser Excise Tax (State)
1. 10% on raw cannabis
2. 20% on all cannabis infused products
3. 25% on raw cannabis with THC above 35%
Municipal Tax: up to 3% of retail purchase price
County Cannabis Tax: 3% incorporated areas and 3.75% unincorporated areas
Existing state, county, and local sales taxes will also apply
D. Possession and Consumption:
Adult (21+) use possession of cannabis is permitted for up to 30g flower/raw, 5 g
concentrated, 500 mg of infused products. While local ordinances cannot prohibit home
cultivation for medical use or unreasonably prohibit personal cannabis use for adults,
the City can regulate these activities consistent with the Act and should consider
adopting ordinances enforceable through municipal prosecutions. Several sections of
the City Code will need to be amended to allow possession of cannabis.
What is prohibited:
Consumption in public places: defined as “any place where a person could
reasonably be expected to be observed by others.” Does not include residences
or cannabis establishments locally authorized for on-site consumption
Consumption on school grounds
Consumption “in close proximity” to persons under 21
Consumption by smoking anywhere it is prohibited by Smoke Free Illinois Act
Home delivery
19 of 49
E. Expungements: Expungements will now take place in three different processes:
petitions (for Class 4 felonies), pardons from the Governor, and automatic
expungements (for offenses of simple possess ion of no more than 30 grams, in certain
circumstances). Many of the records will relate to City code violations, which will be
required to be expunged according to a schedule described in the bill that will give
municipalities until January 1, 2025 to expunge records that precede January 1, 2000.
The Illinois State Police Department and the Circuit Courts will take the lead on
expungements per statute.
F. Adult Cannabis Use and Employees
The City has the authority to adopt zero tolerance policies or ot her policies concerning
drug testing, smoking, consumption, storage, or use of cannabis in the workplace
provided that the policy is applied in a nondiscriminatory manner. In addition, employers
will have the power to discipline or terminate an employee fo r violating an employer’s
employment policies or workplace drug policy, subject to an appeals process. An
employer may consider an employee to be impaired or under the influence of cannabis
if the employer has a good faith belief that the employee manifests specific, articulable
symptoms while working that decrease or lessen the employee’s performance of the
duties or tasks. Additionally, the law prohibits discrimination against employees for use
of “lawful products” like cannabis during nonworking and non-call hours.
Primary questions for the Council:
Determine whether to allow or prohibit cannabis use outside the workplace
If adult cannabis use is allowed outside the workplace:
1. Identify any positions for which adult cannabis use will be prohibited outside of
the workplace (i.e. positions requiring CDL, sworn personnel with the Police and
Fire Departments)
2. Evaluate pre-employment drug testing policy
3. Research available testing methods to identify impairment in the workplace
4. Evaluate disciplinary policy as it applies to positive test results
Attachments:
Resolution 88-R-19
Power Point
20 of 49
9/12/2019
88-R-19
A RESOLUTION
Regarding the Zoning, Regulation, and Licensing of Cannabis Businesses for Adult
Use
WHEREAS, on June 25, 2019, Governor J.B. Pritzker signed into law the
"Cannabis Regulation and Tax Act" (the "Act"), which legalizes the sale, possession,
and use of cannabis sativa and its derivatives and subspecies (“Cannabis”) for
recreational purposes by adults over age 21 starting January 1, 2020; and
WHEREAS, the Act establishes five different types of businesses
associated with the sale of Cannabis, cultivation centers, craft growers, dispensaries,
processors, and infusers (“Cannabis Businesses”); and
WHEREAS, the Act authorizes municipalities to completely prohibit the
location and operation of Cannabis Businesses, restrict the Cannabis businesses to
specific zoning districts, require Cannabis Businesses to obtain special use permits to
operate, and condition the grant of a special use permit on compliance with certain
regulatory restrictions; and
WHEREAS, the Act also allows municipalities to impose: (i) a local retailer
occupation tax of up to 3.0% of the retail purchase price of Cannabis; and (ii) determine
whether and under what conditions Cannabis Businesses may allow for on-premises
consumption of Cannabis; and
WHEREAS, the City of Evanston ("City") has a long tradition of utilizing
its zoning and planning authority to ensure that compatible uses are maintained in its
various neighborhoods; and
21 of 49
88-R-19
- 2 -
WHEREAS, the “City of Evanston Zoning Ordinance” as amended
("Zoning Code"), does not plainly address uses that would encompass Cannabis
Businesses; and
WHEREAS, the City Council has determined that it is in the best interest
of the City and its residents to direct the City’s Plan Commission to evaluate the
classification of Cannabis Businesses and recommend to the City Council whether any,
some, or all types of Cannabis Businesses should be allowed by permitted use or
special use permit under the Zoning Code, as well as such other regulations as may be
necessary, important, or beneficial to the City and its residents, including, without
limitation, whether and under what conditions should on-premises consumption of
Cannabis for adult use be allowed,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: Recitals. The foregoing recitals are incorporated into,
and made a part of, this Resolution as findings of the City Council.
SECTION 2: Direction to Plan Commission and Public Hearing. The
Plan Commission is hereby directed to hold a public hearing on the following
questions:
A. Whether all or some Cannabis Businesses should be prohibited in the
City; and
B. If allowed in the City, what zoning districts should Cannabis
Businesses be allowed to operate in and add zoning definitions for the different
cannabis businesses and uses; and
22 of 49
88-R-19
- 3 -
C. If allowed in a particular zoning district, should Cannabis
Businesses be classified as a permitted or special use; and
D. What specific operating conditions should be applied to Cannabis
Businesses as a condition of receiving a special use; and
E. Whether, and under what conditions, should on-premises consumption
or social use space businesses be allowed in the City for consumption of adult use
cannabis.
SECTION 3: The City Council provides this Resolution as Notice that
future City legislation and regulations will be considered and put in place for Cannabis
businesses.
SECTION 4: Effective Date. This Resolution will be in full force and
effect upon its passage and approval by a majority of the members of the City Council.
________________________________
Stephen H. Hagerty, Mayor
Attest: Approved as to form:
___________________________ ___________________________ _____
Devon Reid, City Clerk Michelle L. Masoncup, Corporation Counsel
Adopted: __________________, 2019
23 of 49
Regulating
Recreational
Cannabis
in Evanston
SEPTEMBER 16, 2019
24 of 49
Overview
o Compassionate Use of Medical Cannabis Pilot Program Act
o The Illinois Cannabis Regulation and Tax Act (HB 1438)
o Zoning Regulations Available to Municipalities
o Taxation
o City Code Changes
o Personnel
25 of 49
Illinois Compassionate Use of Medical
Cannabis Pilot Program Act
The Compassionate Use of Medical Cannabis Pilot
Program Act (410 ILCS 130/1) was signed into law by the
Illinois Governor in August 2013 with an effective date of
January 1, 2014. The statute allows for the establishment
of medical cannabis dispensaries and cultivation centers
and the prescribing of medical cannabis to qualified
patients throughout Illinois. The Act addresses a wide
range of topics, most notably:
o employment regulations;
o law enforcement provisions;
o state facility licensing requirements;
o production standards for medical cannabis;
o prescriber and patient requirements; and
o local facility siting.
26 of 49
Illinois Medical Cannabis Act Highlights
Cultivation Centers
Up to twenty two (22) medical cannabis cultivation centers, no more than one per Illinois State
Police District, may be registered in the State for operation by the Illinois Department of
Agriculture. 410 ILCS 130/85.
A cultivation center cannot be located within 2,500 feet of the property line from a pre-existing
public or private preschool or elementary or secondary school or day care center, group day care
home, or part day child care facility and prohibited in areas zoned for residential use. 410 ILCS
130/105.
Only registered cultivation centers are authorized
to grow cannabis.
Must comply with all federal, state and local building,
zoning and fire codes and all local ordinances.
27 of 49
Illinois Medical Cannabis Act Highlights
Dispensaries
Up to sixty (60) dispensaries
A dispensary cannot be located within 1,000
feet of the property line of pre-existing public
or private preschool, elementary, or secondary
school, day care center, day care home, group
day care home or part-day child care facility,
and prohibited in an area zoned for residential
use. 410 ILCS 130/130.
Cannabis can be sold to patients and caregivers.
Must comply with all federal, state and local
building, zoning and fire codes and all local
ordinances.
28 of 49
Illinois Medical Cannabis Municipal
Regulations – Summary of Evanston
o Zoning Regulations – Classified as a medical office and a permitted use in districts that permit
medical offices
o Enacted a Sales Tax on the cultivation center sales at 6% of the sale price per ounce (24-O-15)
o Entered into a lease agreement with a licensed dispensary, PharmaCann LLC, for a City owned
property at 1804 Maple Avenue (expiration date December 31, 2021) and discussing a
potential new lease agreement for the same space with the tenant.
o PharmaCann has 5 medical dispensaries: Arlington Heights, Evanston, North Aurora, Ottawa,
and Romeoville
29 of 49
Illinois Medical
Cannabis
Municipal
Regulations –
Evanston, IL
30 of 49
Illinois Cannabis Regulation and Tax Act
o Effective Date is January 1, 2020; passed 5/31/19 and signed by Governor on 6/25/19
o The Act legalizes the possession and private use of cannabis for Illinois residents over 21 from
licensed dispensaries across the State of Illinois.
o Municipalities may not restrict the private consumption that is authorized in the Act.
However, the Act prohibits the use of cannabis in public places, schools, child care facilities,
and other locations.
o This Act does not alter the state’s medical cannabis pilot program regulations. If the State
were to change the distancing requirements for medical cannabis dispensaries, this would
open up additional locations in Evanston for the businesses to locate.
31 of 49
Key Components to Regulation
oLegalization of adult (21+) possession and use of cannabis for recreational purposes
oRapid but controlled expansion of cultivation center and dispensaries
oNew Cannabis businesses – craft growers, processors, and delivery
oState and Local Taxation
oExpungement of minor violations of Cannabis Control act
oSocial Equity Programs
32 of 49
Types of Cannabis Businesses
oCultivation Center: large scale industrial growing facility
oCraft Grower (New): smaller cultivation center (5,000 – 14,000 sq feet). Can be co-located with
a dispensary or other licensed cannabis business
oDispensary: retail business licensed by IDFPR to sell cannabis
oProcessor (New): light industrial/manufacturing facility that extracts constituent chemicals or
compounds to produce cannabis concentrate in oil, resin, or other forms for sale to dispensaries
and infusers
oInfuser (New): Facility that produces cannabis-infused products (e.g. edibles).
33 of 49
Cannabis Business Licenses
o Effective Date: First legal sales and consumption starts right away – January 1, 2020
o Existing Businesses: medical cannabis cultivation centers (20) and medical cannabis dispensaries (56)
eligible for:
o Both businesses can open by 1/1/2020 and start selling recreational cannabis, with State approval and
proper zoning approvals.
o Second location: Open a second retail storefront with proof of zoning compliance within a certain
region (based on Bureau of Labor Statistics).
o Potential total dispensaries to open on January 1st: 112
34 of 49
Cannabis – New Businesses
New applicants to adult use cannabis market: cultivation centers, craft growers, infusers,
transporting organizations, and dispensing organizations
oWave 1:
o Dept of Financial & Professional Reg: By 5/1/2020 – agency awards up to 75 new dispensary licenses
o Dept of Agriculture: By 7/1/2020 - up to 40 licenses to infusers, 40 licenses to craft growers, and
licenses to transporting organizations
oWave 2:
o Dept of Financial & Professional Reg: By 12/21/2021 – awards up to 110 new dispensary licenses
o Dept of Agriculture: By 12/21/2021 – 60 new licenses to infusers,
35 of 49
Use & Sale Restrictions
oAdult Recreational Possession and Use – 21 and up
o Possession up to 30g flower/raw, 5g concentrated, 500 mg of infused products
o Non-Illinois residents are permitted to have half these amounts
oSales:
o Existing dispensaries will address the early demand for the product
o Staggered expansion through 2021
o Maximum number of dispensaries in State of Illinois: 500
oOn-Premises Consumption: subject to City permission and regulation
o Smoking lounges
o Dispensary consumption
36 of 49
Zoning
oLocal government regulations must be related to time, place, manner, and number of cannabis
businesses consistent with the Act. Meaning: hours of operation, distancing requirements,
special use permits, and cap on number of businesses.
oPlan Commission notice posted:
Noticed Text Amendment- Accessory Recreational Cannabis Use 19PLND-0078
A Zoning Ordinance Text Amendment pursuant to City Code Title 6, Zoning, to create definitions
for recreational and medical cannabis related uses, establish any applicable general provisions for
such uses, establish any applicable parking requirements for such uses, and amend the permitted
and special uses in the Business, Commercial, Downtown, Research Park, Transitional
Manufacturing, Industrial, and Special Purpose and Overlay zoning districts.
oPlan Commission discussion to begin following City Council input, likely September 25th.
37 of 49
Zoning
Primary considerations for the Plan Commission/City Council:
oDetermine whether to allow or prohibit cannabis businesses; and if allowed:
oAdd definitions for medical and recreational cannabis uses;
oDetermine zoning districts for recreational dispensaries (prioritized), craft growers, cultivation
centers, processing organizations, and infusers;
oEvaluate permitted use or special use and/or establish distancing and cap requirements;
o Statute requires any cannabis dispensary cannot be located within 1,500 feet of another pre-existing
dispensary or medical cannabis dispensary. Add additional distancing requirements from sensitive uses such
as residential zoning districts or schools and child care facilities?
o Cap on the maximum number of dispensaries
oConsider whether (a) on-premises consumption will be permitted; or (b) social use spaces (smoking
establishments such as a hookah bar or cigar bar, not currently allowed in Zoning Ordinance).
38 of 49
Zoning –Chicago & Suburbs Update
Trending to Allow Trending to Prohibit To be Considered
Arlington Heights Des Plaines Deerfield
Buffalo Grove Glenview (to revisit in future) Wilmette – end of the year make
a decision
Chicago Highland Park (informal
consensus)
Winnetka
Niles Lake Forest (informal consensus)
Northbrook Libertyville
Oak Park Morton Grove (voted ban 7/1)
Skokie (Plan Commission Rec 8/1,
Village Board 9/3 and potential
action 9/16)
Naperville
39 of 49
Taxation
oOn April 13, 2015, the City Council adopted Ordinance 24-O-15 – Enactment of “Medical
Cannabis Privilege Tax” establishing a 6% tax on all sales of medical cannabis or medical infused
products to a dispensary.
oThe Municipal Cannabis Retailers’ Occupation Tax (65 ILCS 5/8-11-22) – Starting 1/1/2020, the
City may impose a tax on all persons engaged in the business of selling cannabis at retail
locations
oIf the City opts to impose a tax, it may be imposed by .25% increments up to 3% of the gross
receipts from the sales
oStaff seeks confirmation that the Council seeks to set a sales tax for recreational sales and we
will return with an Ordinance.
40 of 49
Cannabis Offenses
oMinor Cannabis Offenses will begin expungement starting January 1, 2021
oIllinois State Police and the Circuit Courts will be handling the expungements
oPossession sections in the City Code which need to be amended:
◦Title 8, Chapter 13, “Marijuana” of the City Code will be amended to allow possession of cannabis
within the City limits;
◦Title 8, Chapter 14 “Drug Paraphernalia Control” will be amended to remove cannabis; and
◦Title 9, Chapter 5, Section 10, “Alcoholic Beverages; Consumption/ Possession Public Property” will be
amended to include cannabis pursuant to the Illinois Cannabis Regulation and Tax Act (HB 1438).
41 of 49
Personnel
oEmployers have the authority to adopt reasonable and nondiscriminatory employment policies
concerning drug testing, smoking, consumption, storage or use of cannabis in the workplace. This
includes the authority to adopt a zero tolerance policy on recreational cannabis use.
Primary considerations for the City Council:
oDetermine whether to allow or prohibit recreational cannabis outside the workplace;
o Cannabis remains prohibited under federal law—adopting a cannabis-friendly employment policy has the
potential to affect federal funding
oIf recreational cannabis is allowed outside the workplace:
o Identify any positions for which recreational cannabis use will be prohibited outside of the workplace (i.e.
positions requiring CDL, sworn personnel with the Police and Fire Departments)
o Evaluate pre-employment drug testing policy
o Research available testing methods to identify impairment in the workplace
o Evaluate disciplinary policy as it applies to positive test results
42 of 49
Personnel
oEvaluate pre-employment drug testing policy
o Presently applicants for all City positions are to be tested for evidence of drug and alcohol use
o Consider revising the policy to conduct pre-employment testing for only those positions for which
recreational cannabis use will be prohibited
oResearch available testing methods to identify impairment in the workplace
o Identifying whether a positive drug test for cannabis is the result of use during work hours is extremely
difficult
o Review available options for testing for cannabis, particularly their ability to identify when it was used
o Evaluate potential costs and other expenses of available tests (i.e. cost of urine test v. cost of saliva test)
oEvaluate disciplinary policy as it applies to positive test results
o Incorporate amendments to the Right to Privacy in the Workplace Act requiring employer’s to provide
an employee a reasonable opportunity to contest a determination that the employee was impaired at
work
43 of 49
Personnel
oStaff recommends:
o Proceed initially—and temporarily—with a zero tolerance policy
o Research employee policies of municipalities in states where cannabis is already legalized
o Engage in a dialogue with neighboring communities regarding costs and benefits of having a cannabis-
friendly employee use policy
o Analyze potential for liability and other exposure to the City in adopting—as well as failing to adopt—a
revised drug and alcohol policy
o Return in November/December 2019 with alternate proposals
44 of 49
Next Steps
September
•Continued Plan Commission Discussion/public hearing on recreational and medical
dispensary regulations
•City Council Initial Discussion
October -
December
•Zoning Ordinance – Regulations on recreational and medical dispensary regulations
•City Code revisions for possession and Taxation Ordinance to be considered
•Revision to City Lease Agreement for 1804 Maple for co-location space/PharmaCann
January 2020
and beyond
•Plan Commission to consider craft growers, infusers, and other cannabis related businesses
•Additional research and any other Code updates
•Evaluate in 6 months after implementation any Personnel Manual updates
45 of 49
Questions?
46 of 49
For City Council Meeting of September 16, 2019 Item SP5
Lorraine H. Morton Civic Center Discussion
For Discussion
To: Honorable Mayor and Members of the City Council
Administration and Public Works Committee
From: Erika Storlie, Assistant City Manager
Lara Biggs, Bureau Chief – Capital Planning / City Engineer
Subject: Lorraine H. Morton Civic Center Discussion
Date: September 16, 2019
Recommended Action:
Staff recommends City Council move forward with a space planning study for City Hall
functions in lieu of moving forward with the planning and design of the Civic Center
HVAC, Electrical and Security Improvements project. Staff also recommends moving
forward with a site identification study to determine potential options for new space (this
study would need to lag the space planning study by several months in order to
incorporate findings from the space planning). Staff also seeks direction from City
Council on whether a space planning study should be limited to only City Hall functions
or if it makes sense to look at other buildings/functions where City buildings are in need
of significant capital investment.
Additionally, staff recommends evaluating options for the repurposing of the current
facility is conducted separately from the process of moving forward on a new Civic
Center. Staff will return at a future meeting to discuss the options available to the City
Council regarding the existing facility.
Background:
Constructed in 1901 as a catholic parish boarding school, the City of Evanston acquired
the building that is currently serving as the Lorraine H. Morton Civic Center in the late
1970’s. At that time, the building sat unused for almost a decade. In 1978, the City
invested significant resources into adapting the building for use as a City Hall and health
clinic, including the installation of air conditioning via a heat pump system. The boilers
and other elements that provide heating are a combination of items that predate the
building acquisition (including the boilers, which were installed in 1966) as well as some
parts of the system that were installed in 1978.
In 1998, the Civic Center 2000+ report by Doyle and Associates evaluated the existing
condition of the Civic Center and its various systems. At that time, the report indicated
Memorandum
47 of 49
that the heating and cooling were at the end of their useful life, and the two systems,
especially the cooling system, would need to be replaced in entirety.
On July 18, 2018, the City Council awarded the Civic Center HVAC Architectural and
Engineering Services (RFQ 18-07) to Grumman-Butkus Associates to determine the
best option to move forward on the Civic Center HVAC. The most long-term, cost-
effective option included refurbishing the existing boilers and replacing the majority of
the heating and cooling systems (including much of the piping and ductwork), at an
estimated capital cost of $7.1 million.
During the HVAC study, it became apparent that substantial modifications to the
electrical system would be needed to support the new HVAC and to address building
code issues. Simultaneously, staff working on Civic Center security issues realized that
additional modifications, if they were made, would need to completed prior to or in
conjunction with the HVAC and electrical modifications. These items were not included
in the scope of the study by Grumman-Butkus; budget estimates are provided by staff
based on similar work completed at other City facilities.
Item Budget Cost
HVAC System (Heating and
Cooling)
$7.1 million
Electrical System $3 million
Architectural/Security
Modifications
$2 - $7 million
Total $12 - $17 million
Because of the existing condition of the HVAC, staff is recommending that this work be
scheduled as soon as possible. If this work is to be completed, the following schedule
is recommended:
Issue RFP for Architectural/Engineering Svcs November 2019
Council Award of Architectural/Engineering Svcs January 2020
Planning and Design 2020
Construction 2021 - 2022
Analysis:
During the budget presentation on August 5, 2019, staff discussed the need to upgrade
these systems. Several aldermen provided feedback that indicated staff should consider
the possibility of relocating City Hall functions out of the existing Civic Center building.
A number of studies were completed from 1998 – 2008 that investigated this possibility,
but these are over 20 years out-of-date at this point. If this option is of interest to the
City Council, the first step would be to complete a space planning study. This study
would provide estimates on the amount and type of space that would be required to
house the different City Hall functions, including office space (by department), Council
Chambers and other various support facilities (e.g. conference rooms, restrooms,
hallways, etc.).
48 of 49
Either simultaneously or following the completion of the space planning study, an
investigation of appropriate locations would begin, which could include a range of
options, such as renting office space and/or construction of a new building on the
existing site or in a different location.
Funding:
The 2019 Capital Improvement Program has $250,000 in 2019 General Obligation
Bonds allocated to begin the planning and design of the Civic Center HVAC and
Electrical Improvements. If a decision to relocate out of the existing Civic Center is
preferred, this funding could be reallocated to beginning the space planning study now.
Below is a schedule for the space planning/site identification effort.
Issue RFP for Space Planning Study November 2019
Council Award of Space Planning Study January 2020
Study Completion May 2020
Site Evaluation and Investigation (separate study) Jan – October 2020
Other City Facilities:
The City has a large number of buildings requiring significant investment. If a decision
is made to move forward with relocation of the civic center function, it may be of interest
to determine if there are any other facilities that should be relocated in combination with
the civic center functions. If so, these could be investigated as separate options in the
space planning and site investigation studies.
49 of 49