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HomeMy WebLinkAboutMinutes 1988ECONOMIC DEVELOPMENT COMMITTEE ❑RAFT - NOT APP:=:OVED MINUTES Tuesday, February 16. 1988 Room 2403 - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson. Collens. Davis. Juliar, Korshak: David Mann. Al Belmonte, Greg Hummel MEMBERS ABSENT: Wayne McCoy STAFF: Aiello. Clarke OTHERS PRESENT: Phil Zera. Terry O'Hara. Norman Drummond, and Rick Michaels. all representing the Zera Development team: Ron Kysiak. Evanston Inventure: Tom Parkinson. EBIC SUMMARY I. CALL TO ORDER Aid. Nelson called the meeting to order at 7:50 P.M. IT. MINUTES David Mann made a motion to approve the minutes of ❑ecember 9, 1988 as submitted. Seconded by Aid. Juliar. Motion approved. III. COMMUNICATIONS Aid. Nelson noted receipt of numerous communications received in January and with this agenda. He asked if there were any comments, questions or discussion regarding this material. Hearing none, he moved to accept these transmittals. IV. INDUSTRIAL TASK FORCE Aid. Korshak introduced the proposed industrial Dark for the former Marquette Fuel site and Mavfair Rail spur. He summarized the Drolect and described the issues raised for City Darticipation. He stated that the Droposal would. in essence. relocate Pitner and :')e existinv truck route and create seven lots for industrial development. Aid. Korshak indicates that Mr. Phil Zera, who has proposed the development, was here tonight and would sneak in --}ore detail regarding the Droposal. Mr. Phil Zera introduced himself. Rick 1lichaels, his attorney. Nor-n Dr-irrmond a laird Manner. and Terry O'Hara of Grub .Sr Ellis. He summarized how he acquirec the Drooertv and came t�, Dut forth this Droposal. Norm Drummond explained the constraints which limit the type of development an the site. which would be efficient. rational and resolve some of the Citv's current land use �nnflicts in the area. He indicated a number of different configurations were studied and the cevelopment as proposed seems to be the best fit. Economic Development Committee Minutes - February 16. 1988 Page 2 David Mann asked what concerns Mr. Drummond had regarding the amount of employee parking being proposed. Mr. Drummond indicated that Evanston's zoning regulations require industrial properties to provide parking based on the number of employees. He stated actual parking needs will be generated by the type of industrial and manufacturing entities located in the Park. He said the Dian proposed appears to meet the very minimum zoning requirements. Ald. Davis followed by Aid. Collens asked questions about potential overflow parking and the provision for visitor parking. It was suggested that parking in the residential neighborhood and the Main Street Commons shopping center would be unattractive due to physical barriers and therefore any overflow parking would be self limiting and contained within the proposed park. Terry O'Hara. real estate broker with Grubb :k Ellis. explained his perceDtion of the demand within Evanston for light industrial space. He also explained the tax abatement programs available from Cook County. and the reasons for needing them for this project. Greg Hummel asked if the market for this project was there without these property tax abatements. Mr. O'Hara indicated he would seriously need to reconsider the demand for the proposed development without the tax abatement but that he would likely recommend against proceeding without the abatement. David .Mann questioned if after eight years of abatement it was likely the property would be sold and the new owner would then apply for another tax abatement. ,Mr. O'Hara stated the abatement program has not been in existence for the length of time to determine if this scenario would be commonplace. Discussion continued regarding tax increment financing and tax abatement and the difficulty with combining these mechanisms. Mr. Rick hlichaels indicated that their research indicated that their profit would be no more. but their risk would be greater. by proceeding with the Industrial Park. He indicated that they can sell off this land for outdoor storage at $4.15 per square foot and as industrial lots at no more then $5.00 per square foot minus the 1.4 acres needed for the roadway. Mr. Michaels indicated all the real benefits of the development flow to the City. He indicated that there is very little the developer can provide in additional revenue for the project or participation in the capital improvements. Committee members expressed their support for the project and indicated that their questions were put forward to understand the project better and to decide how to fund the project. Aid. Korshak called the Committee's attention to page 6 of the subcommittee memorandum and the subcommittee recommendations. He stated that the subcommittee has recommended that the Economic Development Committee recommend to the Council that an inducement resolution be adapted and negotiations initiated in good faith to reach a development agreement based upon certain parameters. David Mann explained that it would be very useful for Mr. Zera to bring to the table real estate contract buyers to guarantee the development. The Committee concurred that an inducement resolution was appropriate and that the language of this resolution should be delivered to Committee members for their review so that the Committee can be polled to approve the language of the resolution. Members continued by discussing their perceptions of the development, and the City's posture and commitment toward this development. Greg Hummel made a motion to approve the expenditure of up to $5.000 from the Economic Development Fund to pay for consultant services to provide an analysis of the financial aspects of the proposed development. Seconded by David %latin. Motion approved. V. COMMERCIAL AREA TASK FORCE Aid. Beth Davis summarized this task force's recommendations. She indicated that the task force has recommended that the City market the facade develoarrient program in the Chicago/Main, Noves. and Howard Street areas. She indicated that the Committee expressed a desire to see formed a merchants association along Howard and in the Noves district. She noted the Committee had concurred that the C&NW and CTA rail lines were in disrepair and a negative influence aesthetically on the commercial areas. She further noted the perceived III �I�- - 11 Il " 11 11 I'III m 11 Jill I III III ^IJIII II IIIII'I 11111FI!IIIIIII ri-Illlill III ',,III III, Ill 11119 1 11'1 1 � III 1111 rI Ir ' 1 1 ill 1 11 1 .Economic Development Committee Minutes - February 16. 1988 Page 3 parking problems and the efforts of the Mayor's Special- Parking Fund. She indicated that the subcommittee did not want to duplicate the work of other committees. Finally. Aid. Davis noted the recommendation for the City/Chamber Committee and the perception that there is a divisio,, between Downtown and the neighborhood commercial districts. it was the consensus of the Committee to go forward with these recommendations. VI. ADJOURNMENT Adjournment was by consensus at 10:10 P.M. DRAFT - NOT APPROVED f f : lip Sta Date: �•c� f! ___� 5Y15117 1 ECONOMIC DEVELOPMENT COMMITTEE MINUTES DRAFT - NOT APPROVED Tuesday, April 19, 1988 Room 2403 - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson, Collens, Korshak, Davis, 3uliar; and A] Belmonte MEMBERS ABSENT: Mann, McCoy, Hummel STAFF: Aiello, Asprooth, Clarke SUMMARY I. CALL TO ORDER Aid. Nelson called the meeting to order at 7:55 P.M. H. MINUTES Aid. Collens made a motion to approve the minutes of February Ib, 1988 as submitted. Seconded by Al Belmonte. ,Notion approved. III. COMMUNICATIONS Aid. Nelson noted receipt of numerous communications which were transmitted in the March Committee packet and with tonight's agenda. He noted these communications included a memorandum from Aid. Korshak regarding local options for additional revenue. Aid. Korshak stated that it was an intriguing issue as to when user fees should be imposed by a city and he hoped Evanston would investigate this issue. Both he and Aid. Nelson indicated that this item would be taken up in Budget Policy Committee. Discussion continued regarding tite proposed 17era Industrial Park for the southwest side. Staff indicated a meeting took place with fir. ?era since the last Committee meeting. An issue regarding the need for :ax abatement has emerged and could conflict with any proposal for a TIF district for the area. Otherwise planning for the project is proceeding and it is anticipated that this item will be a major discussion topic for the next Committee meeting. At this time Ward %Jfg. continues to negotiate with Mr. 2era for space in the proposed park. Al Belmonte noted that the Plan Commission is very interested in improving the southwest side and is very supportive of this project. The Committee continued discussion of communications by noting the receipt of Development .activities Report 1115. Aid. Collens detailed the excitement of having a major motion picture filmed in her ward. Hearing no other discussion or comments, Aid. Nelson moved to accept tll- trarisrnittais of March and April. IV. AMENDMENT TO RESCORP DEVELOPMENT AGREEMENT Aid. Nelson noted the major item for action this evening was proposed amendments to the RESCORP agreement for the development of the Church/Chicago surface parking lot. Aid. Nelson noted that he has become aware of very recent changes to the proposed amendments and requested staff to discuss the status of the amendments and proposes changes. Economic Development Committee Minutes - AprIl 19, 1988 .f'gge.2 City Manager Joel Asprooth apologized for the lateness of the most recent changes and the absence from the meeting of RESCORP officials and counsel, but stated that these most recent changes had been discussed and finalized just this afternoon. He explained that based on the afternoon meeting, he is recommending withdrawal of the proposed changes as transmitted to the Committee and the substitution with a different change he believed to be more advantageous to the City and the developer. The City Manager summarized the activities which have occurred since the development agreement was executed in February, 1988. He indicated that since this time, the developer was seeking permanent financing for the project. He noted that RESCORP has received a great deal of lender concern over the potential large Air Right rental increases which are provided for in the executed development agreement. He stated that these rental increases are being viewed as unknown costs and have provided lenders with a great deal of uncertainty over their actual exposure and the cost of the project. Mr. Asprooth noted that based on this response from lenders, RESCORP had requested that this unknown cost of future rent be further defined and efforts made to determine a more definitive amount. Asprooth stated that it was based on this request that staff was to recommend the proposed changes as transmitted. ".Sr. Asprooth indicated that since the packet material had been transmitted RESCORP was closer to obtaining permanent financing from the Boston Company. He indicated that this lender had reservations regarding the air rights rent which would be charged after the Ilth year. In order to resolve these reservations satisfactorily, RESCORI" has requested that instead of amending the rent provisions of the agreement, the purchase provisions be amended. fir. Asprooth stated that he is now prepared to recommend that the air rights purchase provisions be amended to allow the developer to purchase the air rights on the second anniversary of development completion at its current appraised value of $1.3 million plus a 7.5ry increase for each of the 2 years, and to allow a second option to purchase the air right,, at 2 l r'2 years if conditions do not permit acquisition on the second anniversary. The conditions of the air rights purchase are that the construction is completed and the residential units are 25% occuppied. Committee members questioned the City Manager on the likely revenue which would be generated under the existing provisions relative to the new amendments being proposed. Discussion continued as to the expectation that RESCORP will purchase the air rights at two years under the new amendments and under the existing provisions they would likely purchase the air rights after 10 years. ,Members commented that the new provisions x•ere more beneficial to the City. Ald. Korshak moved approval for a substitute motion to be presented to the Council which would recommend the new purchase amendments as discussed. St,conued by Ald. Collens. ,Motion approved 6-0. It was noted that an explanatory memorandum would be sent to the Council recommending this substitute motion. V. ADJOURNMENT Hearing no other business, Aid. Nelson adjourned the meeting at 8:35 P.M. DRAFT - NOT APPROVED Staff: J- a, DaTV: 5)'20121 N ECONOMIC DEVELOPMENT COMMITTEE MINUTES DRAFT - NOT APPROVED Tuesday, August 23, 1988 Room 2403 - 7:45 P.�LI. CIVIC CENTER .MEMBERS PRESENT: Aid. Nelson, Collens, Korshak, Davis, Belmonte, Hummel, McCoy MEMBERS ABSENT: Aid. ]uliar STAFF PRESENT: Aiello, Clarke 1. CALL TO ORDER Aid. Nelson called the meeting to order at 7:55 P.M. 11. MINUTES Alderman Collens made a motion to approve the minutes of the April 19, 1988 meeting as submitted. Motion approved by consensus. III. COMMUNICATIONS Aid. Nelson noted receipt of 6 issues of the Downtown Idea Exchange newsletter, the May, 1988 Sales Tax Collection report, and the --oning Commission fleeting schedule, all of which were transmitted in the Committee's August meeting packet. Aiderman %elson asked if there were any Questions or comments. alderman Collens noted that the Downto�%(i idea Exchange had several articles which may be of interest to the Chamber of Commerce. She asked if the director of the Chamber received a copy of the Committee's full packet. It was noted that he did. Aid. Collens noted one article in the May I, 1988 issue of the Downtown Idea Exchange regarding Palm Beach Florida which published a book called The Donations Guide to Communitv livin . She asked if a similar donations list could be identified for E�anstonians wishing to donate to their Cite. Committee discussion ensued. Judr Aiello ;rc,c:ted that 5orre staff discussion on this idea has occurred. She stated that a states report a c'onations guiee for Evanston will be provided for the Committee's next meeting. Hearing - ether comments. Ald. `nelson rno%ed to accept the communications. IV. NEW BUSINESS: SOUTHWEST INDUSTRIAL AREA EXECUTIVE SESSION Al Belmonte made a motion seconded by Aid. Collens to convene the Cor-^--ittee into executive session for purposes of discussing land acquisition. Roll call vote: %elstDr., �Ps; Korsha�,. ves; Collens, ves: Davis, Les; Belmonte, ves; Hummel, ves: McCoy, ves. Motion approved 7 ves, j no. Economic Development Committee Minutes - August 23, 1988 Page Two Regular Meeting Reconvened Aid. Korshak provided the full Committee a report on the work that his subcommittee has undertaken regarding the City's southwest industrial area. He noted that after much consideration, his subcommittee is recommending that the City pursue the study of creating a TIF district on the City's southwest side and based on this recommendation, staff has obtained two consultant proposals to undertake this study. Judy Aiello stated that the proposed study would be three -fold; 1) a study would be made evaluating the conditions of the area relative to TIF eligibility; 2) a market feasibility study would be made; and 3) a redevelopment plan would be created. Aiello stated that two firms have provided proposals to do this work: Kane, ,McKenna and Associates, Inc. of Chicago for $23,500; and Trkla, Pettigrew, Allen do Payne, Inc. of Chicago for $25,000. She noted that the Trkla proposal provide somewhat less service and product than did Kane, McKenna. It was also noted that Kane, McKenna appeared more willing to provide personal service to the City. Aid. Korshak stated it was staff's recommendation to award the work to Kane, .McKenna and his subcommittee concurred. Aid. Korshak made a motion that the full Committee accept this recommendation, and to further recommend that the City Council award the Southwest Industrial Area TIF study to Kane, McKenna and Associates for $23,500. Seconded by Aid. Coilens. Motion approved 7-0. V. COMMENTS Aid. Collens noted that the next Economic Development Committee meeting is scheduled for September 20, 1988 and out of consideration for the Jewish Holiday asked that it be moved back a week. By consensus it was agreed the September meeting of the Economic Development Committee meeting would be held on Tuesday, September 27, 1988 at its regular time. Vf. ADJOURNMENT Adjournment was by consensus at 8:55 p.m. STAFF: "�' �s�!. ,ll �� 1' ,.✓ 0005Y26/27 ECONOMIC DEVELOPMENT COMMITTEE MINUTES DRAFT NOT APROVED Tuesday, October 18, 1988 Room 2403 - 6:30 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. 'nelson; Korshak: Davis; Al Belmonte. Greg Hummel: Wayne McCoy YEMBERS ABSENT: Aldermen Collens; Juliar; David Mann STAFF PRESENT: Aiello, Carter; Clarke 1. CALL TO ORDER Alderman Nelson called the meeting if) order at 6:35 p.m. IT. MINUTES The minutes of the August 23, 1988 meeting were approved bo� consensus of the Committee. ITT. COMMUNICATIONS Alderman %elson noted Committer receipt of the •�up'rlat I,: :^.c ftn i--,slaes as well as the Septernber I;t and 15th issues of the ntou•n Ir'.ea Ex-' `-iz -. r'timments were rrlaClt` i)I)t C'o--m)tt-'e T t"1�5t'f5 l }dlt':�t•_"a tt''t'1tali] ptrhiicationr since thet found it both intere-,tinF Lind infor' :t IV. TRANSPORTATION CENTER PRESENTATION Dirk C,ar:ef, lirt'i'l,)r of Planning trio Cu-rrritt!'t- d='C,r^t?:il)( -)n the ')f t`)i T, 1nw,•^.�)rtltio'n Cent,"r tll[' (li>- : _ 7—n,= t r'r1tNr ..r -. 't. �1' �'. �!'I. '� ttl• ''.If:"rt't'�t s'�' '1 7,'fir_. .. ., • �t "i ['� :}�-. t'ir' r')jr_'-'. .I�,t A.�� 11:1,1t•'C} �11 I `"�. 140 t�la' : f^.'. _.,t _ ":•'r.11 t:''T thin r'rU'": 3nli t1.11't' it rOa', Y'' i"c 71?�t1 l e,r tht_• It wi., rlarif Iec that -1,-ark all the JC']ii'rl ar'C; (-)n,trJ(-:i.)f "'T' i r3C>i).":.tti')r) Center r)roir" -t %, ill he !paid "� t(lr.r fC(-'C'ra! i!id t:.it• t''r�r• i �!..or' ')f ;and arouion '-k),t� '}t 1ni p3i[i f,)f `)\ ;')t C11it. 1[ '.t._f, - 7''),r auth,)riZYt f).' flinr;inv a ? re t))r.' (It"t';'W Chicago Ind r',e trirsf•'r ,)f tlrYtic' tan Economic Development Committee Minutes - October 18, 1988 Page Two Dick Carter continued his presentation by identifying the specific Clements of the Transportation Center plan: the new CTA Transit Station and pass -through walkway; the Kiss N'Ride and Taxi Cab Cut -De -Sac; the Benson Avenue improvements for Nortran Buses; and the future development parcel which is not specifically part of this project. Alderman Nelson asked about the link between the Chicago and Northwestern Station and the CTA Station. Carter responded by indicating it will be through and open plaza between the two stations. Discussion continued regarding an initial proposal to connect the stations by way of skywalks. Dick Carter indicated this early proposal was abandoned because of CTA's added labor costs in manning and securing an additional transit access point. Alderman Davis made a motion to approve the concept plans for the design of the Transportation Center as presented. Seconded by Al Belmonte. Motion approved 6-0-1 with Wayne McCoy abstaining because his employer has as a client the CTA, and his vote could be construed as a conflict of interest. V. TRIENNIAL REVIEW Alderman Davis requested that the words "and finance" be added after the work "development" in the 2nd line of the proposed response to the ?rd question on the last page. She noted that the finance expertise of the Committee should be identified. it was also noted that Wayne McCoy's attendance record had a typographical error and that Meetings Absent should read "4". With these changes the Committee by consensus approved the Triennial Revit!%%, report as ;Zjbrnitted. VI. OTHER BUSINESS Alderman Korshak briefly discussed the status of efforts to improve the Southwest industrial Area. VII. ADJOURNMENT \letting was adjourned at 7:2; p.m. by consensus. S T A F F:I;s� DATE: I I — 9- 0 5 Y29 '?r,