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Home My WebLink About09.18.17 CITY COUNCIL REGULAR MEETING CITY OF EVANSTON, ILLINOIS LORRAINE H. MORTON CIVIC CENTER JAMES C. LYTLE COUNCIL CHAMBERS Monday, September 18, 2017 7:00 p.m. ORDER OF BUSINESS (I) Roll Call – Begin with Alderman Fleming (II) Mayor Public Announcements and Proclamations National Suicide Prevention Awareness Month (III) City Manager Public Announcements 4th of July Association President’s Freedom Awards Summer Program Overview by the Parks, Recreation & Community Services Department (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. 1 of 56 City Council Agenda September 18, 2017 Page 2 of 2 (VI) Special Orders of Business SPECIAL ORDERS OF BUSINESS (SP1) Affordable Housing and Economic Development Budget Issues It is recommended that the City Council receive presentations from staff on current plans as well as future challenges in the areas of affordable housing and economic development and provide direction to staff for next steps. For Action (SP2) For Reappointment to: Board of Ethics - Jennifer Billingsley For Action (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 2017 Upcoming Aldermanic Committee Meetings 9/19/2017 7:00 PM Housing & Comm Develop Act 9/19/2017 7:00 PM Northwestern/City Committee 9/20/2017 6:30 PM M/W/EBE Develop. 9/25/2017 6:00 PM Administration & Public Works, Planning & Development, City Council 9/26/2017 7:00 PM Housing & Comm Develop Act 9/27/2017 6:00 PM Transportation/Parking Commission 9/27/2017 7:00 PM Economic Development 9/28/2017 5:30 PM City-School Liaison Committee 9/28/2017 5:30 PM Emergency Telephone System 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. 2 of 56 For the City Council Meeting of May 10, 2010 Item # For City Council meeting of September 18, 2017 Item SP1 Special Order of Business: Affordable Housing and Economic Development Budget For Action To: Honorable Mayor and Members of the City Council From: Wally Bobkiewicz, City Manager Paul Zalmezak, Economic Development Manager Johanna Leonard, Community Development Director Subject: Affordable Housing and Economic Development Budget Issues Date: September 15, 2017 Recommended Action: It is recommended that the City Council receive presentations from staff on current plans as well as future challenges in the areas of affordable housing and economic development and provide direction to staff for next steps. Attachments: Affordable Housing Overview Economic Development Update Memorandum 3 of 56 Community Development CITY OF EVANSTON Affordable Housing Overview Johanna Leonard, Community Development Director Sarah Flax, Housing & Grants Administrator Savannah Clement, Housing Policy & Planning Analyst Evonda Thomas-Smith, Health & Human Services Director Audrey Thompson, Long-Term Care Ombudsman September 18, 2017 1 4 of 56 Community Development AGENDA: AFFORDABLE HOUSING OVERVIEW 1)The City’s Work 2)Evanston’s Supply & Demand 3)Strategies for Evanston’s Affordable Housing Future 2 5 of 56 Community Development WHO WE SERVE At -risk families and individuals Low- to moderate-income households o People with disabilities o Older adults o People earning below living wages 3 6 of 56 Community Development 4 7 of 56 Community Development HOW WE SERVE FUNDING SOURCES DIRECT SERVICES CDBG HOME ESG AHF MHB CDBG Housing Rehab GA EA Property Standards Resident Assistance 5 8 of 56 Community Development HOW WE SERVE Funding Sources Community Development Block Grant •Public facilities •Public services •Housing Rehab Program HOME Investment Partnerships Program •Develop new housing units •Preserve existing units •Tenant-based rental assistance Emergency Solutions Grant •Homeless prevention •Rapid re- housing •Shelter support •Street outreach Affordable Housing Fund •Housing programs •Develop new housing units •Preserve existing units Mental Health Board •Social services 6 9 of 56 Community Development HOW WE SERVE Direct Services General Assistance •Entitlement benefits Emergency Assistance •Maintain housing stability •Prevent homelessness •Utilities Resident Assistance •Case management •Referrals •Housing locating Housing Rehab •Owner-occupied & rental rehab •0% interest loan 7 10 of 56 Community Development REGIONAL HOUSING SUPPLY & DEMAND 8 11 of 56 Community Development “COST OF SEGREGATION” REPORT If reduced economic & racial segregation in the Chicago region to national median: •Increase access to opportunity areas •Decline in income inequalities •Create a stronger economy for the region 9 12 of 56 Community Development EVANSTON IN THE HOUSING MARKET Source: https://www.regionalhousingsolutions.org / 10 13 of 56 Community Development INCOME & HOUSING COSTS MISMATCH Cook County Fair Market Rent for a 2BR apartment: $1,232 Evanston Average rent for a 2BR apartment: $2,454 11 115 229 0 50 100 150 200 250 Hours at Min. Wage Cook Co. Evanston $49,280 $98,160 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 Salary Cook Co. Evanston 168 hours in a week 40 hour work week 14 of 56 Community Development RISING HOUSING COSTS & WAGE STAGNATION 12 15 of 56 Community Development FIXED INCOME CHALLENGES 13 •Property taxes •Maintenance and repairs •Landlord tenant selection criteria 16 of 56 Community Development HOUSING SURVEY RESULTS 14 Developed by Age Friendly Evanston! Task Force •Goal: identify current & future housing needs for residents as they age Survey highlights •Evanston housing affordability perceptions o Housing is too expensive o Young people can’t afford to buy a home o Limited options for affordable housing •Factors contributing to moving out of Evanston o Lack of financial resources o Amount of home upkeep required o Taxes becoming unaffordable 17 of 56 Community Development PROPOSED HOUSING ACTION PLAN 15 1.Revise City code to create new options 2.Increase affordable units in market rate developments 3.Expand revenue for affordable housing 4.Create paths to homeownership 5.Preserve affordable housing 6.Expand programs to overcome barriers 7.Promote healthy housing & neighborhoods 18 of 56 Community Development PROPOSED HOUSING ACTION PLAN 1. Revise City code to allow: •Rental of accessory dwelling units to non-family at affordable rents •New accessory dwelling units built with universal design, alley access •More flexibility in home sharing Source: https://intentionallysmall.com/tag/accessory-dwelling-unit/ 16 19 of 56 Community Development PROPOSED HOUSING ACTION PLAN 2. Increase affordable units in market rate development •Raise IHO fee-in-lieu; partial payment due at receipt of building permit •Market benefits of on-site affordable units, including centralized waitlist •Yes, in my back yard! 17 20 of 56 Community Development PROPOSED HOUSING ACTION PLAN 3. Expand revenue for affordable housing •IHO fee-in-lieu •Demo tax (currently $10,000) •Impact fee on new construction (additions, etc.) •Leverage additional funding & resources •Provide gap funding for developments with layered funding that target HHs ≤ 30% 18 City Gap Funding Nonprofit Developer (e.g. HODC, HOW) Primary Funder (e.g. IHDA) 21 of 56 Community Development PROPOSED HOUSING ACTION PLAN 4. Create paths to homeownership •ETHS Geometry in Construction •1st time homebuyer programs in partnership with banks •Land trust to maintain affordability 19 22 of 56 Community Development PROPOSED HOUSING ACTION PLAN 5. Preserve affordable housing •CDBG Housing Rehab •Handyman Program •Fund rehab & repairs for nonprofit developers •Explore rehab program for owner-occupied 2-flats & small rental buildings 20 23 of 56 Community Development PROPOSED HOUSING ACTION PLAN 6. Expand programs to overcome barriers •Pilot a Landlord Mitigation Fund •Continue to fund social service/housing programs •Maintain direct assistance programs •Supportive housing 21 24 of 56 Community Development PROPOSED HOUSING ACTION PLAN 7. Promote healthy housing & neighborhoods •Property Maintenance •Lead paint remediation •Mold & other health hazards •Rental Registration Program •Vacant building registry •CDBG-funded capital improvements in low/mod neighborhoods 22 25 of 56 Community Development PROPOSED HOUSING ACTION PLAN 23 1.Revise City code to create new options 2.Increase affordable units in market rate developments 3.Expand revenue for affordable housing 4.Create paths to homeownership 5.Preserve affordable housing 6.Expand programs to overcome barriers 7.Promote healthy housing & neighborhoods 26 of 56 Economic Development EVANSTON ILLINOIS Economic Development Update Paul Zalmezak, Economic Development Division Manager Cindy Plante, Economic Development Coordinator Paulina Martinez, Economic Development Specialist September 18, 2017 27 of 56 Economic Development COUNCIL’S STRATEGY RESULTING IN DEVELOPMENT CITYWIDE 28 of 56 Economic Development PROACTIVE RETENTION AND BUSINESS DISTRICT VITALITY STRATEGY Evolved from City Council 2010 Vision, 2012 Work Plan and 2015 update. • • • • • • 29 of 56 Economic Development COMPANY # OF JOBS Few Spirits 6 Little Beans 26 Autobarn Fiat 25 Autobarn Tech Center 28 Kabul House 20 Trader Joe's 36 ZS 450 Accuity 294 Ward 8 4 Peckish Pig 47 Valli Produce 200 Ward Manufacturing 42 Nomad Dreams (heartwood ctr)46 Music Institute of Chicago 30 Total 1254 COMPANY # OF JOBS Few Spirits 6 Little Beans 26 Autobarn Fiat 25 Autobarn Tech Center 28 Kabul House 20 Trader Joe’s 36 ZS Associates 450 Accuity 294 Ward 8 4 Peckish Pig 47 Valli Produce 200 Ward Manufacturing 42 Heartwood Center 46 Music Institute of Chicago 30 Total 1,254 HELPED CREATE OR RETAIN OVER 1,200 JOBS 30 of 56 Economic Development COMPANY # OF JOBS Few Spirits 6 Little Beans 26 Autobarn Fiat 25 Autobarn Tech Center 28 Kabul House 20 Trader Joe's 36 ZS 450 Accuity 294 Ward 8 4 Peckish Pig 47 Valli Produce 200 Ward Manufacturing 42 Nomad Dreams (heartwood ctr)46 Music Institute of Chicago 30 Total 1254 DECREASING UNEMPLOYMENT - BETTER THAN IL, USA, AND REGION 31 of 56 Economic Development COMPANY # OF JOBS Few Spirits 6 Little Beans 26 Autobarn Fiat 25 Autobarn Tech Center 28 Kabul House 20 Trader Joe's 36 ZS 450 Accuity 294 Ward 8 4 Peckish Pig 47 Valli Produce 200 Ward Manufacturing 42 Nomad Dreams (heartwood ctr)46 Music Institute of Chicago 30 Total 1254 SALES TAX REVENUES GROWING 32 of 56 Economic Development DECLINING VACANCIES INDICATOR OF STABILIZATION AND INCREASING DEMAND 33 of 56 Economic Development COMPANY # OF JOBS Few Spirits 6 Little Beans 26 Autobarn Fiat 25 Autobarn Tech Center 28 Kabul House 20 Trader Joe's 36 ZS 450 Accuity 294 Ward 8 4 Peckish Pig 47 Valli Produce 200 Ward Manufacturing 42 Nomad Dreams (heartwood ctr)46 Music Institute of Chicago 30 Total 1254 TIF EAV GROWTH • 34 of 56 Economic Development INITIATIVES WITH HIGH IMPACT AND MINIMAL INVESTMENT • • • • • 35 of 56 Economic Development 2010 2011 2012 2013 2014 2015 2016 2017 Grand Total Central Street Citywide Downtown Hill Arts Howard Street Main Dempster Mile Noyes Southwest West End West Side West Village Grand Total $14 MILLION INVESTMENT THROUGHOUT EVANSTON (with TIF) 36 of 56 Economic Development INVESTMENT THROUGHOUT EVANSTON’S BUSINESS DISTRICTS 37 of 56 Economic Development $3 MILLION TOTAL NON-TIF INVESTMENT 2010-to date CDBG loan Facade Great Merchant Grant Partnership Storefront Modernization Targeted Attraction / Retention Workforce Dev.Total Central Street $17,400 $65,267 $38,027 $21,000 $141,694 Downtown $120,760 $290,000 $60,258 $930,000 $1,401,018 Hill Arts $58,667 $95,983 $10,000 $164,650 Howard Street $50,000 $19,330 $40,691 $54,468 $50,000 $214,489 Main Dempster Mile $26,044 $83,203 $52,867 $281,500 $443,614 Noyes $9,000 $9,000 Southwest $30,000 $10,648 $95,000 $135,648 West End $36,871 $52,085 $50,000 $50,000 $188,956 West Side $26,400 $80,000 $50,000 $156,400 West Village $46,079 $50,000 $140,000 $236,079 Total $50,000 $276,805 $354,992 $515,983 $326,268 $1,546,500 $21,000 $3,091,547 38 of 56 Economic Development E.D. INVESTMENT (NON-TIF) DISTRIBUTED THROUGHOUT EVANSTON 39 of 56 Economic Development PROGRAM INVESTMENT (NON-TIF) DISTRIBUTED THROUGHOUT EVANSTON 40 of 56 Economic Development STRATEGIES APPLIED THROUGHOUT EVANSTON’S BUSINESS DISTRICTS 41 of 56 Economic Development CENTRAL STREET Central Street Station Leonidas Key Activities •Streetscape Improvements to support healthy retail environment •Encourage leasing of new retail and restaurants east of Metra tracks •Support existing merchant group capacity building Key Developments: •Central Street Station, 1620 Central, Backlot Coffee, Divvy, Bike Corral, Beth’s Little Bake Shop, Soapies 42 of 56 Economic Development DOWNTOWN 1007 Church – Accuity HQ Church Street Plaza New Owner Key Activities •Coordination of Downtown Performing Arts Center •Coordinate sale of parking lot for office development •Coordinate with Downtown Evanston and broker community on retention & attraction efforts •Retain growth oriented companies in downtown office Key Developments: •Hyatt House, 1571 Maple, E2, The Merion, ZS, Accuity, Albion Residential, Farpoint/Northlight, 1714 Chicago Ave, Target 43 of 56 Economic Development HOWARD STREET Peckish Pig Key Activities •Howard Street Theater •Redevelopment of City-owned properties •Support Howard Street Business Association • 130 Chicago Ave - Peterson Garden/Harrington Brown Ward 8 Key Developments: •Peckish Pig, Ward 8, Patisserie Coralie, Theo Ubique, Good to Go 44 of 56 Economic Development MAIN / DEMPSTER MILE Key Activities •Special Service Area Designation •Encourage leasing of retail spaces throughout district •Implement infrastructure projects in Main/Chicago TIF district Key Developments: •Chicago + Main, AMLI, Trader Joe's, Autobarn, Hewn Expansion, Sketchbook Expansion, Cultivate, Dave’s Rock Shop, La Principal, Frio Gelato, Union Squared, Parklet, Divvy, Amanecer Tacos, Stumble & Relish 45 of 56 Economic Development NOYES Caption: Caption Copy here. Noyes Street Key Activities •Develop and support business district organization •Capital investment in Noyes Cultural Arts Center •Signage & Plantings Recent Activity: •Tomate Fresh, D&D Renovations, Coffee Lab Relocation, 824-828 Noyes residential, Dave’s New Kitchen 46 of 56 Economic Development SOUTHWEST Key Activities •Attract complementary tenants to develop on undeveloped parcels •Redevelopment of Recycling Center •Support business district organization for west Main Street/Dodge areas • Autobarn Hartrey Key Developments: •Autobarn 222 Hartrey, Sports Dome, Smylie Brothers, Dream to Product 222 Hartrey Rebirth Gordon Food Service 47 of 56 Economic Development WEST END Ward Manufacturing Key Activities •Support of West End Business Org. •Support innovation and modernization of industrial uses •Support workforce development opportunities •Manufacturing Day Key Developments: •Erie Health, Ward, Goldfish Swim School, Team Evanston, Temperance, Evanston Rebuilding Warehouse, IRMCO 48 of 56 Economic Development WEST SIDE Church and Dodge Improvements Key Activities •Continued support of Central Evanston Business Association •Pursue redevelopment Church / Darrow •Proactively seek out storefront improvement opportunities • Encourage GIbbs Morrison programming Key Developments: •Gibbs Morrison, C&W Market, 1817 Church, YOU Headquarters, NWC Church & Darrow Environmental, 1630 Darrow/1806 Church Ebony Barbershop 49 of 56 Economic Development WEST VILLAGE Valli Produce opened August 2015 Key Activities •Pursue retail tenants for Evanston Plaza •Support revitalization of Florence and Greenleaf district – Arts District •Evanston Auto Glass - Greenleaf/Dodge intersection Heartwood Center’s Skylight Conference Space Key Developments: •Valli Produce, Goodwill, Play it Again, Dollar Tree, Dance Center, Starbucks, Heartwood Center, Starbucks, Andy Spatz, Curt’s South, Sharp Edge Crossfit 50 of 56 Economic Development QUALITY OF PLACE IS EVANSTON’S COMPETITIVE ADVANTAGE •Built and Natural Environment •Stimulating Setting for Creatives •Diversity •Street life, cafes, arts and music •Visible, active creative “going-ons” 51 of 56 Economic Development 2018 FOCUSED ON RETENTION/EXPANSION, BUSINESS DISTRICT VITALITY, AND WORKFORCE Funding Source Project Description Budget Workforce Development Blue 1647 • Coding Initiative $100,000 Business District Improvements Great Merchants Grant • CEBA, Central, Howard, West Village, West End, Hill Arts - $60k ($10K each) • Tech Assistance $40k $100,000 Business District Improvements Additional Business District Improvements • UP Bridge(s) • Public Art • Streetscape $100,000 Business Attraction / Retention / Expansion Entrepreneurship Support Program • Up to $3,500 for startup expenses for eligible applicants $50,000 Business Attraction / Retention / Expansion Storefront Modernization Program a. NSP Area Facade Program 100% facade b. Facade Exterior Only 50/50 program • Pay 100% business facades in NSP area (Howard and Church/Dodge). • Drop interiors component of storefront modernization • 50/50 match for facades citywide (outside NSP areas) $100,000 Total $450,000 52 of 56 Economic Development WORKFORCE DEVELOPMENT Key Activities •Blue1647 Coding Education •Workforce Needs Assessment - data/strategy •Workforce Partners Coordination Budget: $100,000 ● One year agreement serving 100 students $100k ● Partnership coordination and needs assessment $0 - staff time 53 of 56 Economic Development BUSINESS DISTRICT VITALITY / IMPROVEMENTS Key Activities •UP Bridges •Public Art •Streetscape •Great Merchants Grant • Experience Making/ Vitality •Public Arts Coordination •SSA Coordination Budget: $200,000 ● CEBA, Central, Howard, West Village, West End, Hill Arts - $60k ($10K each) ● Tech Assistance $40k ● Other Improvements - $100k 54 of 56 Economic Development BUSINESS RETENTION/EXPANSION AND ATTRACTION Key Activities •Business Attraction / Retention / Expansion •Storefront Modernization Program a. Pay 100% business facades in NSP area b. Drop interiors component of storefront modernization c. 50/50 match for facades citywide (outside NSP areas) •Entrepreneurship Support Program Budget: $150,000 • Up to $3,500 for startup expenses for eligible applicants - $50K •$100K for facades / NSP facades 55 of 56 Economic Development ● Previous efforts have set the stage for upcoming development ● 2018 Focus on Retention/Expansion ● Quality of Place is Our Competitive Advantage ● Support Evanston’s Unique Business Districts ● Neighborhood Business District Vitality ● Focused Budget of $450,000 2018 FOCUS ON RETENTION, EXPANSION AND VITALITY Albion Residential Gateway - 130 Chicago Theo Ubique Northlight Theater 56 of 56