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HomeMy WebLinkAboutMinutes 1987MEMBERS PRESENT: MEMBERS ABSENT: STAFF: OTHERS PRESENT: PRESIDING OFFICIAL: SUMMARY 1. CALL TO ORDER ECONOMIC DEVELOPMENT COMMITTEE -MINUTES Wednesday, January 28, 1987 City Council Chambers - 7:43 P.M. CIVIC CENTER Aldermen Nelson, Davis. Jullar, Korshak, Collens; Mann, Hummel, and McCoy Belmonte Aiello. Clarke Ira Golan. Jack Wing. Charlotte Walker, Tom Parkinson, Bob Brettsheiner, Jackie McGuire Alderman Nelson. Chair The meeting was called to order at 7:30 P.M. If. MINUTES Alderman Collens made a motion to approve the minutes, seconded by Aid. Korshak. Alderman Davis requested the minutes be amended on page 3, Other Business. line 4. first full sentence, to read: "Alderman Davis indicated that the Council had the opportunity to give direction to the City Manager's office when it approved the developer's proposal and would be giving final approval to the development agreement as well as to any interim letter of intent. She indicated that the negotiations are scheduled and as long as the Council and the Economic Development Committee are kept informed as to the status of negotiations, particularly problem areas or sticky points. that it was not necessary or practical to involve a few elected officials in negotiating sessions with the developer." Minutes to continue on line 7, first full sentence.. "Aid. Korshak...." Greg Hummel requested that the minutes be amended to correct his name as listed under members present. The minutes were approved as amended. III. COMMUNICATIONS Alderman Nelson noted the Committee's receipt of the three most recent issues of the Downtown Idea Exchange. Alderman Nelson noted that in the January 15. 1997 issue. Alderman Korshak is given credit for an idea to reduce downtown parker annoyance and arguments. This idea is to identify, on each parking meter, five minutes as an extra courtesy free time. Although a car would be illeRally parked during this time. parking enforcement personnel would be instructed not to ticket a car until the courtesy time had elapsed. motion was made to have City staff investigate this idea for implementation in Downtown Evanston. Motion approved. Economic Development Committee Minutes - January 28. 1987 Page 2 Alderman "Nelson noted receipt of the City Manager's Church/Chicago Redevelopment Status Report which was previously submitted to the City Council. Alderman Korshak commented that the current negotiations are predicated on Northlight's ability to finance their portion of the development. He questioned what the City's position shall be with RESCORP should Northlight be unable to procure financing by the March I. 1987 deadline. Alderman Nelson responded that should this situation occur. the development of Church/Chicago could again be referred to the Economic Development Committee for further consideration and recommendation. Alderman Korshak summarized his concerns: 1) the City should do nothing to delav construction of the much needed garage, 2) City staff should not mislead any developer and. 3) the City should make a good faith effort to incorporate Northlight into the development. Alderman Nelson concurred. Alderman Nelson noted, for information purposes, that Rescorp currently has proposed construction of an 18-story twin tower mixed -use development in downtown LaGrange adjacent to a residential neighborhood. Staff then provided the Committee with an additional update on the project. RESCORP has funded a theatre architect for Northlight. This consultant has been working with RESCORP's architect for the project and the parking consultants. City staff and RESCORP and Northlight have met in order to understand Northlight's funding capabilities. Northlight understands that by March 1. 1987. they will need to have a commitment for funding from a major donor. They have been meeting with potential donors and believe that they will be able to meet the City's deadline. Staff reported that by the first week of February there would be a meeting, at which time. RESCORP would present a preliminary site plan that would identify Northlight's location and highlight the zoning issues created by the design alternatives. In response to Aid. Korshak's inquiry as to the possibility of Committee members attending the staff meeting, staff indicated that these were preliminary site plans but that at the appropriate time the plans would be presented to the Committee. IV. NEW BUSINESS Proposed Budget for Research Park, Inc. Alderman Nelson provided a status report on Research Park, Inc„ since its formation last spring. He reviewed the members of the board who were appointed by the University and the City (see attached list) and indicated that the board has set up the following working committees of R PI: 1) Development, 2) Finance, 3) Program and Marketing, 4) Environment and Safety, and 5) Minority Business Enterprise. Alderman Nelson stated that the Development Committee and Board have been investigating the best method of promoting and obtaining development in the park. He indicated that two alternatives. which have been investigated. included the City, University. and R PI becoming its own developer, and the possibility of entering into a contract with a private developer to coordinate development in the Dark. Alderman Nelson reported that the R PI Board is currently favoring the use of a private developer and has discussed the project with many developers and have interviewed potential developers. Aid. ',Nelson announced that the RPI Board has recently determined that the Chicago firm of Charles Shaw and Company would be the best private developer for Research Park. Nelson noted that currently negotiations with this firm are underway and although there was no written contract at this time. it appears that the negotiations will be successful. He indicated that it is expected that a contract will be entered into with this developer in the not too distant future. Ald. Nelson continued that the Finance Committee, chaired by Jack Wing, had been reviewing the preliminary budget and that .Mr. Wing would discuss it further tonight. Economic Development Committee Minutes - January 28, 1987 Page 3 The Program and Marketing Committee. chaired by Robert Carnahan. has been developing the plan as to how to best market the Research Park and will be continuing that effort in the coming months as the new developer come on board. The Committee has also been discussing the University amenities that would be included in the marketing Package. The job training aspect of the research will be under the direction of the Program and Marketing Committee. The Environment and Safety Committee. chaired by Elizabeth Hefti. has been reviewing a variety of reports and studies as they develop their recommended program to the Board. The Committee will be responding to the Mayor's Special Committee report and a subsequent report of the Environmental Control Board. The Minority Business Committee. chaired by Hecky Powell, has been investigating the best way in which RPI can achieve the minority business commitment in the governing document. The Committee has met with Evanston minority contractors, consultants, general contractors and Evanston Community Development Corporation as they prepare their plan which will be completed in the months to come. Aid. Nelson completed his summary of RPI activities by indicating that during this first year of operation, RPI funds from the City and University have been used exclusively for legal expenses. In addition, substantial time and services have been provided by the City, the University and Evanston Inventure. He indicated that the RPI Board has invested a great amount of effort in structuring the organization and planning its future. He noted that a current issue facing the RPI Board is the question of staffing for the organization. Aid. ,'Nelson stated there are two items to be discussed by the Committee tonight: 1) recommendation of an RPI budget, and 2) recommendation of a source of funds for the City's share of the budget. With this, Alderman Nelson introduced Jack Wing of the Finance Committee of the RPI Board to discuss the proposed RPI budget. lack Wing explained the process by which the proposed R PI budget had developed. He indicated that initially the RPI Finance Committee formulated a budget based on the University-City-RPI being its own developer. He stated this was an immense task, that it is somewhat difficult to determine expected costs, and should the University-City-RPI become its own developer, a bureaucracy would need to be created to manage all aspects of Research Park's development. He noted that when the RPI Board began to investigate the feasibility of involving a private developer, it became clear that this avenue would be less costly. An additional memorandum, prepared by Tom Parkinson of Evanston Inventure, was distributed analyzing the difference in costs which would be needed with developer participation and the costs without developer participation. Tom Parkinson addressed the Committee and summarized the budget proiections. He stated that without developer participation, R Pl's 1987-88 proposed budget is S990,000, and with developer participation. the proposed budget is $500,000. He indicated that the difference between these two budgets is the result of the developer's expected participation in paying 75% of the planning and marketing expenses. Aid. Korshak requested to know why the developer was willing to Day 75% of these costs. Aid. ;Nelson responded that the RPI Board was looking for up front dollars from the developer and that the developer, in return, would receive certain concessions on the deferral of lease payments but should the developer purchase the land, the land would be sold at fair market value. A motion was made by XianN seconded by Hummel. to approve the budget as submitted by RPI with developer participation as proposed. Economic Development Committee Minutes - January 28, 1987 Page 4 Discussion proceeded by Committee members regarding the two budgets proposed and clarification of the line items. Alderman Collens requested clarification of the five signs which were estimated to cost $9,000 each. Tom Parkinson responded that these signs were meant to be gateway entrance signs to the Park to help identify its boundaries. Collens also requested clarification of the site maintenance line item. Jack Wing responded that such funds would be used to improve the appearance of the vacant land to assist the developer in marketing the Park. One of the items contemplated in this line item is seeding the vacant land with grass. Several members requested clarification regarding direct sales cost outlined on the without developer budget. Jack Wing responded that this cost represents some of the expected out-of-pocket costs such as Real Estate Broker Sales Commissions which can be foreseen should RPI proceed to act as their own developer. Mr. McCoy commented that he hopes the City will move without delay on the RPI budget to send a message of the City's goodwill and intent. Aid. Korshak stated his vote was not a reflection on the proposed budget but due to his reservations on the Research Park and the burdens it may cuase for the residents of Evanston. A vote on the motion was called. Motion approved 7 ayes and I nay. Mr. Mann left the meeting to attend to other commitments. Proposed increase in Transfer Tax Chairman Nelson stated that now that the Committee has recommended a City expenditure of $250,000 for the RPI Board, it was appropriate for the Committee to recommend a source to pay for this expenditure. He noted that he initially recommended as a funding source for the Research Park the Real Estate Transfer Tax and referred to the City Manager's memorandum of January 22, 1987 proposing an increase in this tax from 1 /4 of 1 % to 1/2 of 1 % to pay for the City's obligation to RPi. Mr. McCoy made a motion to recommend an increase in the Real Estate Transfer Tax to 1/2 of I% to fund the recommended RPI expenditure. Seconded by Aid. Collens. Aid. Davis noted that the estimated revenue from this increase would exceed the amount necessary to fund the RPI budget. She indicated that there has been a need to fund additional economic development activities in the neighborhoods of Evanston but there has not been any money available to fund these projects. Davis mentioned specifically the need for the City to address the issue of job training, a crucial element in the future well being of the City. She recalled that there were several redevelopment projects that have been discussed but no action has ever been taken because the City's budget has been extremely tight. She noted there have been efforts made to find funds to carry out these projects, but to date these efforts have been unsuccessful. She noted that the property tax burden was heavy enough and the City has been looking for ways to reduce this burden. Alderman Davis stated that the City's commitment to economic development should be larger than just Research Park and the additional funds which would be raised by the proposed increase in the transfer tax provides the opportunity to fund this commitment. She stated that she therefore recommends that the additional funds be earmarked for economic development activities outside of Research Park, job training and property tax relief. Aid. :Nelson read the comments of David Mann, who had to leave the meeting. Mann recommended use of the Transfer Tax but only with an increase of 1 /8 of I % which was more in line with the recommended budget. Economic Development Committee Minutes - January 28. 1987 Page 5 A letter from Cyrus Realtors was distributed. Aid. Korshak stated he agreed with the flavor of this letter and that the transfer tax is an exit tax and it obscures the true cost of government. He stated that he voted against the original transfer tax and was going to vote against any increase in it. Mr. Hummel concurred with Korshak. Aid. Collens stated that we are not kidding anyone regarding the true cost of government. She stated the argument raised by Cyrus would lead us to using the Property tax as the only tax. Mr. Hummel stated that the transfer tax was politically expedient but questioned whether it was the best source of funds since we are talking about seed capital. He wondered if borrowing was a better alternative. Mr. ,McCoy responded by saving the question of borrowing is hollow, that there is no security to dedicate to the borrowed funds and the City would need to identify and create a tax to back up any funds borrowed. Aid. Juliar commented that he didn't see the transfer tax as an exit tax and indicated he is now in this third house in Evanston. He stated he does not consider the tax evil and it would be better than borrowing the funds. Aid. Collens stated she was fascinated with Aid. Davis' recommendation earmarking the additional increase for economic development projects. Aid. Davis amended the motion to recommend that the additional revenue raised by the increase in the real estate transfer tax. be allocated for R PI as budgeted and the balance of the revenue be earmarked for other development projects outside the Research Park area. for City wide Job training and for property tax relief. It was further discussed and it was the consensus of the Committee that the Economic Development Committee will present to the Council specific projects for funding at a later date. Aid. Korshak stated that this is a politically attractive way of raising taxes and he predicted that this tax will become an easier and easier method of raising taxes in the future since it is only hurting those leaving the City. Mr. McCoy questioned further whether the Real Estate Transfer Tax was an entrance or exit tax. Ira Golan provided comments opposing the increase in the transfer tax. He suggested that the City establish an enterprise fund solely for R PI and stated that what is being proposed are drummed up additional economic development programs because there is now additional revenue. He stated that if it wasn't for RPI. the City would not now be considering raising taxes for job training or other economic development projects. Aid. Collens responded by stating that these are not drummed up needs. Aid. Davis noted that the City continues to have development projects whether they be additional parking for neighborhood business areas, industrial development or financial incentives which we are unable to fund due to lack of revenue. She further noted that Ira Golan has spoken before the City ❑reviously indicating the need for a job training prograrn. A vote on the motion as amended was called. Motion approved 5 to 2. V. REPORTS The Committee received oral reports from Charlotte Walker representing ECDC and Tom Parkinson representing Inventure/EBIC. Charlotte Walker indicated that ECDC was on target with the goals identified for the organization under the CDBG program. She stated that she had met with the R P1 Minority Business Committee and has submitted a proposal to R PI to assist them with the minority business commitment. Through this proposal a staff member could be added to her organization to meet this need. Tom Parkinson noted that Inventure has been and will continue to be involved in the Downtown Plan and the industrial park. Economic Development Committee Minutes - January 28. 1987 Page 6 He indicated that Inventure was looking at assisting or coordinating a downtown office marketing effort and they have continued their efforts with attracting venture capital. VI. ADJOURNMENT A motion by Aid. Collens to adjourn was made. Motion approved. Meeting adjourned at 10:25. iPSIQ. Statf.. ���`ti�� �� Date: I- L9-3 7 3Y4-7 ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, February 25, 1987 City Council Chambers - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Alderman Juliar, Alderman Korshak, Alderman Collens, Alderman Davis, Belmonte, and 41cCoy MEMBERS ABSENT: Alderman Nelson, Mann STAFF: Aiello, Clarice PRESIDING OFFICIAL: Alderman Davis OTHERS PRESENT: Alderman Rudy, Ist Ward; Norman Katz, President, RFSCORP Development, Inc.; Henry Zuba, Executive Vice President, RESCORP Development, Inc.; John Macsai, John Macsai do Associates (architects); and Dale Strub, Executive Vice President, Arnold dt O'Sheridan (structural engineers) SUMMARY L CALL TO ORDER The meeting was called to order by Alderman Davis at 8:50 P.M. IL MINUTES The minutes were approved as submitted. IIL COMMUNICATIONS Alderman Davis noted the Committee's receipt of the Downtown Idea Exchange, Budget Memo #22, Sales Tax Acceleration Bill, and the Economic Development Activities Report #13. Aid. Davis asked if any members had questions or comments regarding these communications. Aid. Korshak indicated that there was an error on the Economic Development Report, page 2, under the Dempster Street/Dodge Avenue project. Aid. Korshak noted that this report indicates that the Aldermen of the 4th ward have been meeting with the developer, high school, and the Dewey Community Conference. Ald. Korshak indicated that the aldermen of the 4th ward have not been meeting with this group. Staff responded by stating that Niderman Rainey of the 4th ward had met with this group. Aid. Korshak clarified that he had been invited to one meeting of this group, but was given only 3 hours notice and could not attend. Staff responded that there have not been any recent meetings of this group but would endeavor to advise the Alderman of these meetings as promptly as possible to avoid scheduling conflicts. IV. REPORTS Aid. Davis stated that in order for the Committee to devote the entire meeting to the Church/Chicago project, the Committee would hear reports at this time. Aid. Davis indicated that there was no report tonight from Evanston Inventure/Evanston Business Development Corporation (EBIC) but that Ms. Pam Walker, Deputy Director of the Evanston Community Development Corporation (ECDC) was present to provide her organization's monthly report. Pam Walker indicated that ECDC was exceeding its monthly technical assistance goals of 4-5 Economic Development Committee " Minutes - Febmary 25, 1987 Page 2 clients assisted, by assisting 9 clients this past month. She indicated that ECDC has consistently surpassed its goals for providing technical assistance. She indicated that the bulk of clients are referred to ECDC through either word-of-mouth or through the ECDC Church/Dodge Newsletter. Pam Walker also indicated that ECDC has helped 5 clienta in February with business plans and helped these clients apply for the ECDC Revolving Business Loan program. She also indicated that ECDC has approved 2 more grants for facade improvements on Emerson Street. This brings the total storefront improvement on Emerson Street to 13. Pam Walker indicated that her organization had targeted a total of 14 storefronts in need of repair on Emerson so that with these recent awards, only I storefront improvement is remaining. She indicated that the _ Facade Program for Church/Dodge was approximately 85% complete with a total of 25 storefronts targeted. Pam Walker indicated that they have received many requests from clients regarding the new tax act and, as a result, ECDC held a Tax Seminar at the Holiday Inn. She also indicated that ECDC had recently rented space in their Church Street facility to another business and expected the Evanston Police to rent space in this facility also. V. CHURCH/CHICAGO REDEVELOPMENT PROJECT Alderman Davis introduced Norman Katz of RESCORP and requested Mr. Katz to provide a summary of activity to date and to detail and present the different design options which have been studied. 11r. Katz indicated during the past 2 months since last appearing before this Committee, RESCORP and the City have made much progress toward completing the details which would lead to a development agreement. He indicated that this period has been demanding but productive. Mr. Katz indicated that City staff had requested his firm to study different architectural designs because of the potential inclusion of the North Light Theatre in the development. Mr. Katz indicated that RESCORP had done this and that the development negotiations were now at a point where the architectural design was crucial in establishing a development agreement which could be presented to the Economic Development Committee and, ultimately, City Council. Mr. Katz indicated that RESCORP has hired an architectural firm which specializes in theater design for North Light and has worked very closely with North Light in developing the design options. Mr. Katz then introduced Mr. Hank Zuba, Executive Vice President of RESCORP, to present the different design options which were studied. Mr. Hank Zuba began his presentation by noting the 3 key elements involved in this project which affect the design. These are: the theater, the residential structure (approximately 175 units), and the parking garage (800 spaces total; 600 for public use). Al Alternative - .Mr. Zuba indicated one of the design options studied included placing I level of parking below grade. He indicated that under this option, the height of the project would be 94 feet but it would have minimal setbacks on Clark Street, Church Street, and the alley. He also indicated that while under this option there would be a 20 ft setback along Chicago Avenue for the garage/residential structure, because of the requirements of the theater, there would be virtually not setbacks for the theater itself. He also indicated that another consideration of this alternative is cost since the construction of below -grade parking would add approximately $960,000 to the cost of the project. This additional amount would be a city incurred cost since it related to the public garage portion of the project. Mr. Zuba also noted that there would be approximately $5,500 in added annual maintenance costs for below grade parking. The cost per space for Al is $10,000. Economic Development Committee Minutes - February 25, 1987 Page 3 A2 Alternative - Mr. Zuba indicated that another option, alternative A2, was studied. it is essentially identical to the Al alternative except it does not include below grade parking. This, he noted, changed the height of the building to 103 feet, 9 feet higher than alternative Al, and would include 3 levels of parking and 6 levels of apartments. Because there would be no underground parking, this alternative would be less costly to the City. Mr. Zuba estimated the cost per parking space under this option at $8,800, whereas under option Al the cost would be approximately 10,000 per space. B Alternative - Mr. Zuba indicated that a creative design alternative had been been developed which would place apartment units along the entire Chicago Avenue facade. This alternative, he noted, was substantially different than the A alternative which essentially, except for the theater portion, have 4-3 levels of parking on the entire site with the residential buildings sitting on top of this parking structure. He noted that in addition to providing an improved facade for Chicago Avenue, this alternative has the added benefit of a reduced height over the A alternatives with a height of 88 feet. Mr. Zuba indicated that the drawback of this option is virtually no or minimal setbacks. Mr. ,tuba indicated that the Chicago Avenue facade (building face) would be set back ten feet from the property line but would include an arcade at street level for the residential portion of an additional ten feet. As with the A alternatives, there would be no setback for the theater portion of the building. Mr. Zuba indicated that this alternative, as compared to the other alternatives studied, actually produced the least cost for construction of the parking garage. He stated that the estimated cost per parking space under this proposal was $7,800. C Proposal - ,Mr. Zuba indicated that proposal C was actually the original proposal which had been presented to this Committee and the City Council. He reviewed the parameters of this proposal indicating its height at 94 feet with 20 foot setbacks off Chicago and the alley and 27 feet setbacks off of Church and Clark. He noted this proposal did not include a theater. The cost per parking space under this proposal is estimated at $8,400. Mr. Zuba completed his presentation and invited questions regarding the different design alternatives. COMMITTEE QUESTIONS Ald. Korshak asked if the footprint of the theater had changed since design alternatives had been investigated. Mr. Zuba indicated that the footprint had been expanded somewhat because of the space barrier needed between the theater and the garage but more importantly, the theater design consultant has recommended the full width of the lot as a minimum to accommodate the requirements of Northlight. Wayne McCoy asked how loading/unloading from the theater was to occur since the theater building is planned for the entire width of the property. Mr. Zuba and John .Macsai, architect for the project, responded that the alley was 20 feet which would allow access to the theater and that the theater itself had a loading dock accessible from this alley. Mr. Macsai indicated that the size of the loading dock proposed, which would be recessed into the building, was not in conformance with the zoning code but that this issue was fully discussed with Northlight which indicated that the size of the loading dock required under the zoning ordinance was excessive for their needs and the smaller dock proposed fully met their requirements. Aid. Collens asked what a pedestrian would see as they walked along Chicago avenue on the arcade. Mr. Zuba indicated that the ground level of the apartment building would likely contain the common areas of the building, including such items as an exercise room, or community rooms. Aid. Collens further questioned if this would be a brick wall or if there would be windows. Mr. Zuba responded that it would not be just a plain brick wall but would include windows but since this was not a commercial building, it would not have large expanses of glass as would be found in retail stores. Economic Development Committee Minutes - February 25, 1987 Page 4 Aid. Davis requested clarification regarding the design of the B alternative. Mr. Zuba indicated that, at street level, the building setback on Chicago Avenue would be 20 feet (10 fret of which would be an arcade). Mr. Zuba indicated that under the B proposal, the Chicago facade would contain apartments and to do this the building would have a total of 190 units as compared to 178 units under the A alternatives. Aid. Davis asked for a comparison of the height of the B proposal with the Condominium building situated across Church Street from the site. Mr. Zuba stated that the B proposal is 88 ft. in height and the condominium building is approximately 85 feet, and, given the difference in ground level elevation, there would be about a 6 foot difference between the B proposal and the condominium. Aid. Rudy noted that the original proposal included landscaped terracing along Chicago Avenue and questioned if any of the alternative proposals include this feature. Mr. Macsai indicated that none of the alternatives have this feature. RESCORP officials noted that this feature could be incorporated into the A alternatives in front of the residential sections but not in front of the theater because the theater is on the building line. It was noted that the terrace feature was proposed to screen the parking ramp and would not be necessary under the B design. Mr. Macsai indicated he thought the arcade was actually a better design for the site because of the more urban setting. Wayne McCoy stated that thus far we have discussed zoning considerations. Mr. McCoy asked if there has been an analysis of the cost to the City under the various alternatives. Staff responded that there has not been a detailed analysis of the different proposals because of the time, effort and status of negotiations. It was stated that, depending on which alternatives seemed acceptable from a design standpoint, staff could clarify and then estimate the cost to the City. It was noted that an estimate has been made of the cost of the garage as follows: A 1 - $8,800 per space 37,040,000 total); A2, $10,000 per space ($8,000,000 total); B $7,800 per space ($6,357,000 total); and C, $3,400 per space ($6,300.000 total). It was noted that under the A alternatives, there would be 800 spaces, under B 815 spaces, and under C, 750 spaces. Aid. Juliar requested clarification of the theater layout. Mr. Macsai responded that the theater is planned with 290 seats on the main floor and 100 seats in a staired balcony. Aid. Collens followed by asking is there was any internal connection between the garage and theater. Mr. 4uba said that there is no connection directly. W. Katz added that if this was an important consideration, it could be designed that way. Wayne McCoy asked if the theater will be built as a single -purpose building. Mr. 4uba stated that this was a good question and that the building probably could be considered single -purpose. !Mr.Macsai responded that only the portion of the building that housed the seating would always be limited to theater use unless substantial rehabilitation occurred, but that the rest of the building could be readapted rather easily. He noted the rehabilitation of the Century Theater in Chicago. Mr. Belmonte asked what the estimated cost of the theater was. Mr. klacsai responded about $3 million for construction. Aid. Korshak asked for clarification of the loading docks for the apartment building under scheme A. RESCORP officials responded that the loading area would be off the alley by way of a freight elevator in the back of the theater which would take freight to the top of the parking deck where the freight would need to be transferred to the apartment elevators. It was indicated that this was indeed a shortcoming, was cumbersome, but workable. COMMITTEE REACTION Aid. Davis stated that unless there were additional questions, Committee reaction to the alternatives would be appropriate. Aid. Davis stated that she was quite concerned, initially, regarding the implications of incorporating the theater into the development when Council was told of the ramifications this would have on setback height. She stated that the alternatives presented tonight responded to these concerns. Aid. Davis stated that scheme B seemed to add many positives which were not in the original proposal including the arcade, the improved Chicago Avenue facade, the lowered height, the lowered cost, and what appears to be a more functional building. Economic Development Committee Minutes - February 25, 1987 Page S Aid. Davis asked the RESCORP officials if they had any preference regarding the alternatives. Mr. Katz stated he felt that RESCORP would prefer B as the best but that this preference did not mean that RESCORP felt that other alternatives were not workable. Aid. Juliar stated that he has concerns regarding B because of the lack of setbacks and the provision of loading and entrance and exit curb cuts on Church and Clark. Aid, Rudy stated that he was concerned about alternative B because of its sheer volume and because there were no setbacks. He felt this proposal ruined the residential character of the area. He suggested depressing the parking lot. Wayne McCoy stated that it was impossible to incorporate underground parking with Plan B. Discussion continued as to the possibility of depressing parking under plan B. Aid. Rudy continued by stating that he felt setback was more a factor than height but that volume of the building was also a concern. He continued that the design problem with these proposals is not because of the inclusion of the theater but was because of all the parking and he stated he felt that all these proposals contained too much parking. He indicated that the neighborhood doesn't need all this parking and it is the adjacent downtown that needs all the parking. He continued by stating that he felt the concept of the mix of uses - residential, cultural, and parking - is beneficial. Discussion followed regarding the history of this redevelopment concept and how originally it was only proposed as a parking deck. Aid. Korshak recalled that when other developers proposed development of this site they indicated 600 parking spaces were too many at this site. He asked the RESCORP officials if a reduction in the parking spaces could resolve some of the concerns which have been voiced. Mr. Norman Katz said that his firm had estimated that a reduction of about 80 spaces could restore much of the required setback on Church and Clark. RESCORP noted that the Request for Proposals and their charge was to accommodate 600 public spaces on the site. Al Belmonte responded that he felt the architects have done their job and have come up with a solution which, while it has its compromises, speaks to the requirements and concerns of the City. He stated that it was now time for the City to start making decisions. Committee member discussion followed regarding the timing of a" commitment from tiorthlight and the different possible decisions which would be made if tiorthlight is in the development or if they aren't in the development. Aid. Collens asked if this meeting was the first time the different alternatives have been presented in a public hearing. It was stated that this was true. Staff commented that while it currently was unknown if tiorthlight would participate in this project they will be responding to the City by March 1, 1987. It was indicated, however, that a consensus of the Committee, especially as it relates to setback and height, was desired so that staff could zero in on the costs of the project and the development negotiations could be furthered with additional information provided at the Committee's next meeting. Mr. McCoy stated that, of the alternatives presented tonight, he thought scheme B satisfied most of the concerns and issues which have been voiced. Aid. Juliar indicated he wanted Northlight downtown but didn't want the City to pay for their portion of the development. He questioned if we were forcing tiorthlight into this development and recalled the original RESCORP presentation in which RESCORP recommended that the theater be sited across the street rather than as part of this redevelopment. He stated that the Committee should rethink this whole redevelopment since we are losing setbacks and may be facing a more costly parking structure. Aid. Collens stated she was not at this point willing to throw the towel in on these proposals. She indicated that she felt a 10 foot difference in Setback from the alley would probably not make much difference visually and is certainly not worth $1 million. She indicated that the illustrations shown for the different alternatives are not from a pedestrian's perspective and therefore it was more difficult for her to determine the impact of height on the project. Economic Development Committee Minutes - February 25, 1987 Page 6 Aid. Korshak stated that this development is being driven by the necessity of having Northlight. He stated that the library across the street was having a design competition for the development of a parking lot and asked if there was any consideration of Including Northlight into that development rather than RESCORP's. Staff responded that to date there has not been any discussion of this idea with the library. Aid. Korshak stated that this may be a viable alternative. He indicated that he was not enchanted with the new RESCORP alternatives that provide little setback. He stated that he was not convinced that 600 parking spaces on this site were necessary and a reduction of the spaces to 550 did not appear critical. He stated that setback was more important than reduction in height of ten feet or so. Aid. Davis stated that we should not back off from the City's earlier decision to place a 600-car garage on this site and to do so would put us way back in the development process. Staff requested reaction to the costs involved in sinking one level of parking even if Northlight is not part of the project and the setbacks were restored. Ald. Collens responded that she could not imagine spending $1 million just to reduce the height by 9 feet. Messrs. Belmonte, McCoy, Jullar, and Korshak concurred when asked by Aid. Davis if this was the consensus of the Committee. PUBLIC COMMENT Aid. Davis asked if the member of the audience had any questions regarding the alternatives presented tonight. The following questions were asked: Where is the entrance and exit to the garage? Mr. Macsai stated that under all solutions, the entrances and exits will be off Church and Clark and not off the alley. Where is the setback from the alley determined? Will it be from the existing alley parking? Mr. Katz stated the property line is at the rear of the cars which are parked in the alley and therefore, the setback would be from this point (the alley parking is within the project site). How many residents are expected to live in the proposed development? Mr. Katz responded that there will be approximately I80 units containing approximately 250 people. What is the unit mix and apartment sizes? Mr. Zuba provided this information. What is the estimated property taxes from the development? RESCORP responded that it is estimated at $250,000. What is the rent estimated at? :Mr. Zuba responded that the rents are currently estimated to be between $650/month for an efficiency up to $1,200/month for the largest unit. Hearing no other questions, Aid. Davis stated that a special meeting of this Committee would be called within the next few weeks to take up the issues discussed tonight and to make a recommendation of this development to Council. It was noted that by this meeting, Northiight's participation in the development would be known. Aid. Davis polled the Committee to establish a tentative date for this meeting either on Tuesday, March 10th or March 17th. It was noted that staff would provide notice of the actual date. Economic Development Committee Minutes - February 25, 1987 Page 7 Aid. Davis thanked RESCORP for their presentation and the amount of work and cooperation given by them. V1. ADJOURNMENT Ald. Coliens seconded by McCoy made a motion to adjourn. Motion accepted at 900 P.M. Stan: Date: %t& q I iq 3Y11/17 MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: OTHERS PRESENT: SUMMARY OF ACTION L CALL TO ORDER ECONOMIC DEVELOPMENT COMMITTEE MINUTES Tuesday, .'March 17, 1987 Room 2401 - 7:45 P.M. CIVIC CENTER Aldermen Nelson, Davis, Collens, Korshak, Jullar; Hummel Mann, Belmonte Asprooth. Aiello, Clarke Henry Zuba, Executive Vice President, RESCORP; Norman Katz, President, RESCORP; and Dale Strub, Executive Vice President, Arnold & O'Sheridan Structural Engineers The meeting was called to order by Aid. Nelson at 8:00 P.M. IL MINUTES Aid. Davis, seconded by Aid. Collens, made a motion to approve the minutes with the following changes: paragraph 2 under "Communications" line 6 should read, "Aid. Raden, of the 4th Ward, rather than Aid. Rainey"; page 6, third line should read. "development at the parking lot rather than development of a parking lot"; and the addition of a sentence in the "Committee Reaction" section to read, "The Committee further concurred that RESCORP be directed to omit underground parking as an option." Motion to approve the minutes with the suggested changes was approved. HL COMMUNICATIONS Aid. Nelson acknowledged receipt and acceptance of the Downtown Idea Exchange newsletters, the Chicago Enterprise and the news article on "EBIC Computer Network". Ald. Nelson also acknowledged receipt of an additional letter from Northlight, dated March 17, 1987, indicating Northlight's formal removal from the Church/Chicago project. IV. REPORTS Aid. Nelson indicated that the Committee would hear reports at this time in order to leave the entire night available for discussion of the Church/Chicago project. Aid. Nelson indicated receipt of a written report from ECDC. He noted that Evanston Inventure and EBIC will not be presenting a report tonight and that they will be presenting reports on a more periodic basis; the next one is scheduled for May. V. CHURCH/CHICACO REDEVELOPMENT PROJECT Aid. Nelson acknowledged receipt in the Committee's packet of a memorandum from the City Manager's office which accompanied a proposed letter of intent with RESCORP based on a scheme "D" design. Aid. 'Nelson asked the City Manager to review the proposed letter of intent and to highlight the key provisions contained therein. Economic Development Committee Minutes • March 17, 1987 Page 2 Joel Asprooth, City Manager, began his review by indicating that there were two key typographical errors in the letter of intent. He noted that on page 1, item 2, line 4, should read: "not less than 175 and not more than 190 rental units". The second error was on page 3, item 4B, line 12 and 13, which should read. "But shall in no event produce a higher rent than 120% of the initial rent." Mr. Asprooth indicated that the letter of intent was not finalized until late Friday evening, and that the EDC Committee packets were delayed to include this letter of intent. He apologized for the typographical errors that were contained therein. Mr. Asprooth introduced the proposed letter of intent by indicating that he felt the letter was in accordance with direction given by the City Council in approving RESCORP as the developer late last year. He noted that the letter of intent was the preliminary first step to a final development agreement. Mr. Asprooth indicated that the letter of intent outlines the parameters of the proposed project. These parameters include the following: 600 public parking spaces; 173-190 rental apartments with sufficient additional parking spaces to meet zoning requirements. He noted that the design has been modified somewhat since the Economic Development Committee last reviewed this proposal. He noted that these modifications were required because of the removal of Northlight from the project and the Committee's desire to include apartments on the face of the Chicago Avenue facade. He noted that the current proposed design requires certain setback variations but that the letter of intent does not require that the City provide those variations. In the event that the City does not provide these variations, he noted that R ESCOR P would be released from the provisions of the development proposal. Mr. Asprooth identified and reviewed the following provisions that are included in the proposed letter of intent. 1. RESCORP will build the garage for the City under a turnkey arrangement. 2. The City will retain ownership of the land. 3. Once the garage is built and accepted by the City, the City will purchase the garage from R ESCOR P at a predetermined price. 4. Management and operation of the garage will be the responsibility of the City. ?. The developer will lease the air rights above the garage for construction of the residential portion of the project. During construction of the garage. the developer will hold a lease on the land. 6. Under the proposed letter of intent, the City is obligated to sell bonds to finance construction and to escrow proceeds of these bonds, prior to construction, to provide security to the construction lender. 7. If RESCORP defaults, the lender has rights to construct and complete the garage under the same conditions with the City. 8. The proposed letter of intent establishes the land value of the subject property at $1,980,000. The developer has agreed to pay 10% per year of the value of the air rights which initially will be equal to $ 130,000 per ,year. The proposed letter of intent includes provisions which will increase this rent in later years and includes a provision In which the developer is provided the option of purchasing these rights after ten years. 9. The City is given the right to review and approve plans and to inspect the construction Of the garage. It also requires the City to endorse and sign -off on the progress of payments to the contractor. Economic Development Committee Minutes -March 17, 1987 Page 3 10. It provides for a split in the landscaping costs with the City bearing 1/3 of costs up to 5300,000 with any additional costs shared equally between the City and the developer. It. In concert with the approval of the development agreement, it provides for the City and developer to enter into reciprocal maintenance and operation agreements for the common elements and the necessary easements which shall be required for the development. 12. The letter of intent provides for a timetable to complete the remaining work needed to be done prior to construction. 13. It provides that during the time frame, the City will not enter into a letter of intent with any other developer for this project. Mr. Asprooth completed his summary of the letter of intent by noting that attached to it was a diagram of a Scheme D footprint for the site. He invited any questions that Committee members may have. Aid. Korshak responded by indicating that he had a concern regarding the default provisions. He stated that according to his understanding of a letter of intent, in the event of a default the City would either buy the garage at a higher cost from the lender or be in a position in which it would split the net profit with the lender. Aid. Korshak stated that he was concerned that the City would be Splitting the net profit with the lender and vet have no control over how that net was determined, Aid. Davis responded by saying that it was her understanding that splitting gross profit was a common arrangement with parking garages. Norman Katz, of RESCORP, indicated that the subject of gross profit sharing could be worked out between his company and the City. Aid. Korshak also indicated his concern regarding the 4% cost of the letter of credit. Discussion ensued regarding the letter of credit provision and additional provisions regarding default. Aid. Korshak noted the language in the letter of intent which requires that the letter of credit be in a form acceptable to the City. He suggested that City staff scrutinize the terms of the letter of credit so that such terms are favorable to the City. He further indicated that the letter of credit should provide proceeds to the City under certain circumstances. Aid. Davis asked a question regarding the appraisal process and how land value was determined. It was indicated that 'and value for vacant sites is deriendent upon the highest and best use of that site. This usually represents the greatest density allowed under the zonir* codes. It was noted that under the zoning code the subject property is large enough to accommodate aporoximately 245 units. 180 units was utilized. however. in determining land value because RESCORP has proposed a lower density residential development. Taking the $1 1,000 unit land value amount multiplied by 180 results in the land value of $1,980,000. Hearing no further questions, Aid. Nelson requested that Norman Katz, of RESCORP. present a review and summary of the proposed design for the development. Mr. Katz began his summary by indicating that 3 issues were highlighted at the last Economic Development Committee meeting{ and that these issues affected the ultimate design of the project. These three issues are: 1) whether the theater was to participate in the project; 2) the desire of the Committee to find a way to restore building setbacks; and 3) to do this without sinking the garage. With this, Mr. Katz introduced Hank Zuba, of RESCORP, to describe in more detail the current proposed design of the development. Mr. Zuba reviewed the alternative design proposals which had been developed (Al, A2, B, C) and a history of the design development to date. tor. Zuba indicated that the original proposal, C, had as hart of its design features, terraced landscaping to hide the parking deck. In answering a question posed by Ald. Korshak, Mr. ::uba indicated that this landscaped terracirtht element was not part of the new scheme "D" because there was no longer a need to hide the parking deck. Rather, the new scheme D has as its facade residential apartments on the Chicago Economic Development Committee Minutes - ,March 17. 1987 Page 4 Avenue side. Mr. Zuba indicated that the scheme D design included four levels of apartments, four levels of garage with the top of the deck proposed for recreational use for the residential portion of the development. The total height of the development under scheme D would be 88 feet. Mr. Zuba indicated that the loss of Northiight from the development and a change in the angle of parking in the garage allowed the developer to increase the setbacks that were previously proposed. Under Scheme D, the following setbacks exist: 12 feet setback off of Chicago, with an additional 10 feet to the building face which will be used as an arcade; 27 feet setbacks off of Church and Clark Street property line; and 20 feet setbacks off the rear alleyway. Discussion ensued regarding these setbacks and how they related to the original RESCORP proposal. It was indicated that the new proposal provided the same setbacks except for the Chicago Avenue facade which was 8' closer to the property line, not accounting for the 10' arcade proposed for the street level. Aid. Juliar asked what zoning variations would be sought by the developer for this project under the Scheme D design. It was stated that, depending on which side of the lot was determined to be the front yard, that a 3-foot variation would be required on both the Church and Chicago lot lines or a 5-foot variation would be required off the allev. A variation on the Chicago Avenue side would likely also be required unless the arcade was considered in computing this setback. Aid. Collens expressed her difficulty with perceiving the project on the site. She asked the developer to indicate what a pedestrian would see as they walked down Chicago Avenue on the arcade. She indicated that she was concerned about the arcade and the streetscape and the fear that it would be nothing but a brick wall. Hank Zuba indicated that, in all honesty. this aspect of the project had not yet been studied. He indicated that the walk would serve a functional use for both residents and packers in the garage, and that his firm was sensitive to the visual impact a solid brick wall would have. He noted that currently, RESCORP is planning to place common elements of the residential buildings on the first floor. Norman Katz indicated that this aspect of the project will be studied, and that potential display windows for businesses are currently under discussion. It was noted that RESCORP was sensitive to the need of creating lively space in the arcade and that this issue would be addressed and design solutions found. It was further noted that RESCORP had a large stake in making the arcade work since the residential portion of the project fronted on Chicago Avenue. Citv Manager Asorooth indicated that Aid. Rudy was unable to attend tonight's Committee meeting but wished to provide comments to the Committee. Mr. Asprooth then read the concerns of Ald. Rudy which centered on two major issues: 1) to increase the setbacks of the project; and 2) to reduce the area of parking that is proposed in the project. In the comments provided by Mr. 4sprooth, Ald. Rudv indicated tMZ the reduction in parking could be attained by providing valet parking rather than self parking. Committer discussion occurred regarding the valet parking option. It was noted that valet parking is generally more costly. and that design of the project would need to be radically altered. Mr. Asprooth indicated that the issue of valet parking had not been discussed previously with the developer. He indicated that a change to valet parking would place this development back at step one in the development phase. It was the consensus of the Committee that due to the cost and limited benefits of valet parking and to the major disruption in the development process that valet parking at this site would not be pursued. Committee Member Hummel indicated that the landscaping budget called for by the letter of intent seemed quite high. City Manager Asprooth responded that the projected landscaping costs of this project are higher than usual for public buildings but that extensive landscaping and screening were desirable. Ald. Davis asked what the estimated cost per parking space for building the garage had been projected for the Scheme D plan. It was noted that the garage Is expected to cost $9,010 per parking space. With no additional Questions or comments from the Committee members, Ald. Nelson indicated that the Committee would now hear public comments regarding the Chicago/Church redevelopment proposal. The following questions were asked and the following responses provided: Economic Development Committee Minutes - March 17, 1987 Pali e 3 Question: is the back of the garage proposed to be open and if so, will It be illuminated and visible in the evening and will automobile exhaust be evident? Response: The proposed is planned to be open in the rear and there will be some light that will be visible from the exterior. While the garage will be open and some exhaust will obviously depart from the rear of the garage it is expected not to present any health hazard. Question: What is the lot coverage for Scheme D? Response: About 70-80% coverage. It was noted that a variation in the coverage would be required but that this variation was part of all the RESCORP proposals from the beginning. Ald. Davis responded that there is some trade-off between green space and a mixed -use development but that the City had felt that a mixed -use development worked on the site very well and was more beneficial to the neighborhood than building only a public parking garage. A member of the audience commented that he felt the City was giving away the green space. RESCORP responded that their plan is actually less dense than the highest allowable under the zoning law. Another member from the audience commented that she was extremely concemed that the Economic Development Committee was voiding zoning codes of the City of Evanston. She felt that the Committee should not even be reviewing a proposal that did not meet the zoning requirements. She asked if the reason for this was that a parking garage was a money making venture for the City. Aid. 'Nelson commented that variations are not breaking the zoning code but, in fact. are part of the zoning code. He indicated that he felt that Scheme D met a multitude of concerns that the City had; that these were: 1) to provide housing. 2) to provide needed Downtown parking, 3) to provide revenue in the form of real estate taxes, and 4) to improve the site visually. City Manager Asprooth responded that indeed the vast majority of zoning requirements were met by this proposed project. He further noted that the public parking garage was not a money making venture for the City. He indicated, in fact, that the City expects to subsidize the parking garage with parking revenue funds generated elsewhere. Question: What is the alternative for parking during construction? Response: The City is in the process of developing a temporary parking plan which would put into use. on a temporary basis, part of the City yards to alleviate the expected parking shortage due to construction. Several members of the audience ended the public comment period by commenting that they were concerned over the granting, by the City, of several variations at this site. They felt that this was inappropriate. Hearing no other comments, Aid. Nelson closed the public comment portion of the meeting. Aid. Nelson stated that prior to ending tonight's meeting, he wished to provide direction to the Citv Manager regarding the Chicago/Church redevelopment project as presented tonight. He requested Aid. Korshak to review his concerns regarding the letter of intent. Aid. Korshak provided these clarifications. A motion made by Aid. Collens, seconded by Aid. Davis, to recommend Council approval of the letter of intent as drafted with certain modifications to the default provisions to provide for the City's share of gross, rather than net profit, and certain modifications to the letter of credit provision to provide for Citv review and approval of the terms of the letter of credit. Said motion made with recommendation to Council of design scheme D as presented. Motion carried; 6 yeas, no nays. ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, April 29, 1987 Room 2403 - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aldermen Nelson, Davis, Collens; Belmonte, Mann, Hummel MEMBERS ABSENT: Aid. Juliar, Korshak; McCoy STAFF PRESENT: Aiello, Clarke OTHERS PRESENT: Ernest Greenberger, Greenberger, Krauss do Jacobs; Ron Kyslak, Evanston Inventure; Pam Walker, Evanston Community Development Corporation SUMMARY I. CALL TO ORDER The meeting was called to order by Aid. Nelson at 7:55 P.M. IL MINUTES A motion by Ald. Collens, seconded by Aid. Davis, was made to approve the minutes of the March 17, 1987 as submitted. Motion approved. III. COMMUNICATIONS Aid. Nelson acknowledged receipt of the following communications: Certified City news release and resolution; Downtown Idea Exchange (March 15 and April 1 issues); Chicago Enterprise (April issue); ECDC's Church/Dodge Merchant Association Newsletter; E81C Quarterly Report (12/1/86 - 2/28/87); and news articles on Evanston's Research Park and other high tech research centers. Hearing no questions or comments, Aid. Nelson moved the Committee's acceptance of the communications. IV. OLD BUSINESS Church/Chicago Redevelopment Project Aid. Nelson stated that the major topic of the evening was the Church/Chicago redevelopment project. He noted that an issue has been raised regarding the manner in which the City will purchase the public garage portion of the project. He indicated the purpose of this meeting was to address this issue and to recommend to the Council a course of action. He acknowledged receipt of a staff report discussing the benefits and costs of a turnkey arrangement versus the employment of a periodic payment method. Assistant City Manager Aiello noted that a topographical error existed on the attachment to the staff report. She indicated that the $410,000 amount ie-ntified as the City's debt service for the first year under a turnkey approach should be $490,000. Its. Aiello reviewed the memo and stated staf f's recommendation that the use of a turnkey approach be taken because it offers the best protection and control for the City. Ms. Aiello introduced Ernest Greenberger, partner in the firm of Greenberger, Krauss & Jacobs, who is serving the City as legal counsel on this matter. Economic Development Committee Minutes - April 29, 1997 Page 2 Mr. Greenberger summarized the advantages of turnkey versus the alternative installment method of payment. He indicated that with turnkey a very important benefit is the ability to scrutinize the finished product prior to acceptance. He also stated that use of an installment method of payment by the City would require the City to act like a construction lender which has numerous potential risks. These risks relate to potential construction delays due to unforeseen labor problems, supply shortages or company bankruptcies. Mr. Greenberger noted that any delay is costly to a construction lender. He indicated that these risks do not exist with a turnkey approach. He stated that the additional $97,000 cost for using the turnkey approach appeared reasonable given the risk of construction delays which under the installment method could cost the City a great deal more. He indicated that while under an installment payment method the City would require a performance and payment bond he noted that in reality collection even with this protection can prove difficult. Therefore, he said he also recommends the use of a turnkey approach. Assistant City Manager Aiello noted that the letter of intent provides the City with the right to review construction anu approve periodic payments even under a turnkey approach. Committee discussion followed clarifying how the actual cost of the garage would be determined under a turnkey approach. it was noted that under the turnkey method, the garage cost would be agreed to prior to any construction and would not include the cost of any construction delay. Additional Committee questions and comments were raised regarding the City's inspection costs under both of these payment approaches. Ms. Aiello indicated that the City is not expecting substantial savings in City inspection costs under a turnkey approach because the City would expect to employ a specialized consultant to oversee inspection during construction under either scenario. Aid. Davis asked Mr. Greenberger under what circumstances would he recommend the use of the progress payment method. Mr. Greenberger responded that he would recommend progress payments only to companies who were in the business of making construction loans and were being compensated for the greater risks involved. Aid. Collens asked why there wasn't an arbitrage problem with the City earning interest off the bonds until the funds were needed. Judy Aiello responded that the City bond experts now believe the bonds will be tax exempt but that final determination on this won't be made until the development agreement has been finalized. Ron Kysiak responded that he believed any arbitrage amount probably would need to be returned to the federal government. Aid. Nelson asked Mr. Greenberger if a turnkey approach provides any additional safety in terms of liability for the City. Mr. Greenberger stated he felt the City would be safe under either method but that the turnkey approach would likely provide more safety for the City. Hearing no other questions or comments, David Mann made a motion to recommend the turnkey approach for the Church/Chicago parking garage. Seconded by Aid. Collens. Motion approved, 5 ayes, no nays. Economic Development Committee Minutes - April 29, 1987 Page 3 VI. REPORTS Pam Walker provided an oral report regarding ECDC's monthly activities. Ms. Walker Indicated her organization held a business recruitment and enhancement seminar during the month. She also indicated that through ECDC's Facade Improvement Program, three storefront renovations were begun on Emerson Street. Ron Kysiak reported that Evanston Inventure has been working on both the Research Park and Industrial Park projects. He indicated his organization was trying to crack into the Chicago broker network to create a flow of demand from Chicago to Evanston for office space. He Indicated that the current system is rather closed. It was also reported that EBIC has been working with a number of businesses and that Tom Parkinson will provide details of these endeavors at a future meeting. Aid. Nelson commented that he felt that quarterly reports from Evanston Inventure/EBIC and ECDC may be more productive and informative. He suggested that staff investigate this possibility. VI. NEW BUSINESS Aid. Nelson indicated that there is a new City Council. He reviewed the Committee's efforts and actions of the last two years and noted that actions taken unfortunately took longer than expected. He noted that the Committee previously established priorities and that it was time to review these priorities and establish an agenda for the Committee's work for the next two years. He noted that Evanston's property taxes are high and that there are still forces creating pressure to increase the tax burden for residential properties. He indicated that economic development is critical to Evanston's future. He stated that the Committee priorities for the next two years would be the major item for discussion at next month's meeting. AD30URNMENT The Committee adjourned, by agreement, at 8:33 P.M. CStaff. / Date: S -dP17 SY24/26 ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, May 27, 1987 Room 2403 - 7:43 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson, Davis, Korshak, 3uliar, Collens; Belmonte, McCoy, Hummel MEMBERS ABSENT: Mann STAFF: Aiello, Clarke OTHERS PRESENT: Mary B. McWilliams, Chair, Steven Knutson, Evanston Preservation Commission; Ruth Thiel, Koenig do Strey, Inc.; Raymond Chou, R.H. Chou Company (developer); Gwen Sommers Yant, Preservation Coordinator SUMMARY OF EVENTS L CALL TO ORDER The meeting was called to order by Aid. Nelson at 9:00 P.M. IL MINUTES A motion by Aid. 7uiiar was made to approve the minutes of the APril 299 1987 meeting as submitted. Motion approved. III. COMMUNICATIONS Aid. Nelson noted receipt and acceptance of the communications transmitted to the Committee by staff. These communications were: Downtown Idea £xchanste (April 15, May 1, issues), and two news articles on Research Park. iV. PRESENTATION: EVANSTON PRESERVATION COMMISSION Aid. Nelson welcomed the members of the Preservation Commission and turned the floor over to the Commission for their presentation on the redevelopment of Cove School, also known as the Wilson Estate. Mary B. McWilliams, Chair of the Evanston Preservation Commission, introduced the Cove School project by indicating that preservation and economic development can go hand in hand and can be especially important in a community like Evanston. She indicated that preservation Is Important to Evanston's neighborhoods and that preservation doesn't mean "no development". She noted that Evanston is a community of various architectural styles which continues with new development and indicated that the Preservation Commission concerns itself with assuring that new development complements the City's existing urban fabric and that there is no Inherent reason why new development can not respect and enhance the existing environment. Gwen Sommers Yant, City Preservation Coordinator, was introduced. Ms. Yant provided a slide presentation of the Cove School estate showing both interior and exterior views of the estate Including views of the extensive grounds. She indicated that ender the present zoning code, the Cove School parcel could be subdivided into I I single-family lots. She noted that the estate was located in the middle of the Lake Shore Historic District and was surrounded by very significant architecture. Economic Development Committee Minutes -May 27, 1987 Page 2 Stephen Knutson of the Commission continued discussion of the Cove School project. He indicated that the Commission felt It had to take a positive step rather than wait for development to be proposed and then be required to take a reactionary step to protect the Importance of the Wilson Estate. He Indicated that the Commission funded a feasibility study to determine the best reuse of the Cove School property. The feasibility study was funded by the Commission with funds raised via a house walk and a grant from the National Trust for Historic Preservation. Raymond Chou, the developer of the Cove School project, provided insight into the redevelopment project from a developer's perspective. He noted that this was his first project In Evanston and prior to undertaking this project, had heard stones of the difficulties which could be expected In Evanston. He stated that his experience has actually been very pleasant with City staff being especially helpful. He noted that because of this experience, he is actively looking for other property in Evanston which has development potential. He also stated that the Preservation Commission rather than being obstructionist, proved very useful as a means to organize and rationally enunciate neighbor concerns and to put forward reasonable modifications to enhance the project. Asir. Chou reviewed the designs of the redevelopment project and some of the modifications which were suggested and incorporated into the final plans. He noted that the project contains 9 units, four of which will be located in existing structures on the site and i units of new construction. He stated the project is expected to be completed by this winter and all units have been sold. Ruth Thiel reviewed the project's economic development Impact for the City. She noted that the total project cost Is $3,938,000 with the average selling price of the units at $437,555. She indicated that this project will yield yearly real estate taxes of $l 36,739 on property previously tax exempt. She further indicated that the initial sale of the units will provide $11,814 in transfer tax for the City. She commented that many of Mr. Chou's vendors operate in Evanston and therefore, there is an additional benefit to Evanston's economy. Aid. Nelson opened the meeting to questions from the Committee. The following questions were asked and answers provided: Q) Are there other sites like this which have similar redevelopment potential? A) Yes, about 23 similar sites Q) What is the percent of these sites which are now tax exempt? A) There are a few potential sites which are now tax exempt. Q) Is there a way to Improve the development process? A) When this development Is complete, the Preservation Commission will be reporting to the Planning and Development Committee on ways to improve the process. Q) What happens where a developer is not as cooperative as Mr. Chou? A) This is one reason in favor of strengthening the preservation ordinance. Hearing no other questions, Aid. Nelson thanked the preservation Commission for their presentation and requested that the Preservation Commission provide the Economic Development Committee with a report when completed on how the development process can be improved. V: NEW BUSINESS Aid. Nelson turned the Committee's attention to new business and the need to establish Committee priorities. Aid. Nelson handed out a memorandum suggesting possible priorities for the Committee and reviewed past priorities of the Economic Development Committee. Economic Development Committee MInutes - May 27, 1987 Page 3 Committee members discussed several areas and topics which may be useful for the Committee to Involve itself. Discussion occurred regarding what market rate housing meant and the role, if any, the Committee should take with this Issue. Further discussion by Committee members centered on the degree to which the establishment of priorities was theoretical and the corresponding need to be specific and task oriented. Wayne McCoy indicated that It was his opinion that the Committee has been passive and reacting to what the outside world brought to the Committee. He suggested that maybe the Committee should identify one Issue and become pro -active about it. Responding to discussion, Aid. Nelson suggested that the Committee choose the general priorities tonight which would be followed at a later meeting where specific projects/programs would be identified to address the chosen priorities. Through further discussion, by consensus, the following priorities and activities were established by the Committee: 1. Development of an appropriate comprehensive strategy for economic development policy for the City of Evanston. Priority A Development of proposals for light Industrial/manufacturing districts particularly for Evanston's Southwest side. Priority B Preparation of proposals to enhance neighborhood and underdeveloped Commercial Business Districts. Priority C Consideration of techniques for enhancing employment opportunities and providing job training in Evanston through economic development. Priority D Enhancement of infrastructure, including but not limited to, traffic flow, transportation facilities, parking facilities, and community appearance. L Periodic update on efforts of Evanston Inventure, Evanston Business Investment Corporation, and Evanston Community Development Corporation activities. 3. Continued efforts for Research Park development and reporting thereon. 4. ,Monitoring rezoning considerations as a means to enhance the property tax base. 3. Periodic review of strategic plan. Staff emphasized the importance of a comprehensive review of the City's Southwest side for its potential for Industrial redevelopment. The current efforts of a private land owner to develop an Industrial park were reviewed highlighting the possible Involvement of the City. A brief discussion was held regarding the possibility of securing CDBG funding for infrastructure Improvements and the possible update of an industrial area study completed several years ago. Aid. Nelson noted that preparation of a development guide for Evanston could be undertaken by staff with little Committee involvement. He directed staff to develop such a guide if It determined a need for such a guide existed. Economic Development Committee Minutes - May 27, 1987 Page 4 Aid. Nelson indicated that to focus the Committee he will request that the Committee divide Into two separate task forces at Its next meeting; one directing its energies toward the Industrial Park, identified as the Committee's highest priority; and the other task force directing its attention toward neighborhood business districts, the second highest priority Identified by the Committee. V. OTHER BUSINESS Member Hummel briefly reflected on the difficulty he has with the Committee's meeting day of Wednesday and requested that consideration be given to a different day when establishing next year's calendar. It was suggested by others that in the event a different day could not be chosen, consideration be given to meeting at a later time. VL AD30URNMF-NT Hearing no other business, Aid. Nelson adjourned the meeting. 1 Staff: r Date: 6 fo 17 3Y28/31 ECONOMIC DEVELOPMENT COMMITTEE MEMBERS PRESENT. - MEMBERS ABSENT: PRESENTING OFFICIALS: MINUTES Wednesday, June 17, 1987 Council Chambers - 7:45 P.M. CIVIC CENTER Aid. Nelson, Collens, Davis, Korshak, Julian, Belmonte Mann, Hummel Charles Shaw, Bob Winter, Cheryl Holmes, John Driscoll, all of Charles H. Shaw Company; John LaMotte of Perkins & Will OTHERS PRESENT: Aid. Rainey, Rudy, Feldman, Warshaw, Wold, Raden, Larson, Brady; Ira Golan, Director of the Evanston Chamber of Commerce; Jim Curry, Director of the Research Park Incubator; Tom Parkinson, Director of the Evanston Business Investment Corporation (EBIC); William Ihlanfeldt, Vice President of Northwestern University SUMMARY OF ACTION I CALL TO ORDER The meeting was called to order by Aid. Nelson at 7:48 P.M. IL MINUTES A motion by McCoy was made to approve the minutes of the May 27, 1987 meeting. Aid. Collens requested a change of words in the minutes on page 4, line 3, to read "Industrial Area" rather than "Industrial Park" to clarify the Committee's Intended scope. Minutes were approved as amended. III. COMMUNICATIONS Aid. Nelson noted receipt and acceptance of the communications transmitted to the Committee. These communications were: Downtown Idea Exchange (May 13 and June 1 issues) and the ECDC Church/Dodge Merchants Association Newsletter. IV. NEW BUSINESS A. Presentation: Revised Research Park Master Plan Ald. Nelson provided a history of the redevelopment efforts of the City yards noting efforts to redevelop this area were initiated by the City in 1940, and since then, have gone through several different redevelopment concepts resulting in the current scheme of a Research Park. Aid. Nelson indicated that the Charles Shaw Company was selected by the RPI Board after considering several different developers for the development of Research Park. Economic Development Committee Minutes - June 17, 1987 Page 2 Aid. Nelson introduced the officials from Charles H. Shaw Company and Perkins & Will. He indicated that after the presentation, Committee members would be invited to ask questions or comment, followed by any Alderman in attendance. Aid. Nelson noted that this presentation was at the request and for the benefit of the Economic Development Committee and was not a public hearing on Research Park. Aid. Nelson introduced Bob Winter, of Charles H. Shaw, who began the presentation on the revised Master Plan for Research Park. Mr. Winter indicated that prior to his company involving itself with Evanston's Research Park, a master plan for the park had been established. On reviewing this plan and the concept of Research Park, the Shaw Company visited several existing parks including urban research parks. He indicated that these urban parks would likely be Evanston's competition in the marketplace. He noted that this review of research parks Indicated to Shaw that a research park in Evanston could be successful and that the basic master plan that had been established was sound and workable. He noted, however, that his company's review indicated two items where the Plan needed refinement and adjustment. These items are: 1) strengthening the visual entrances to the park with the primary entrance at Maple and Emerson; and 2) the Flan needs to be market flexible. Mr. Winter stated that this first adjustment has resulted in shifting of some of the initially proposed uses so that research uses will occupy the :Nlaple/Ernerson corner. This adjustment will result in the construction of the next building at this corner. Mr. Winter indicated that the master plan has been made market flexible by allowing for a variety of space requirements and building densities to be met as needed. Mr. Winter introduced John LaMotte, Director of Planning for Perkins do Will, who are the land planners for the master plan. John LaNlotte discussed the details of the revised master plan. lie indicated that the major change was the targeting of research for the corner of %iaple/Emerson. He stated that the original plan had mixed uses all along Emerson. These uses, under the revised plan, have been shifted to the northwest corner of the park as well as to the transportation triangle at the southern end of the park. He noted that at the center of the park buildings of 6-7 stories are planned. Buildings of 3-4 stories are planned for the perimeter. Mr. LaMotte indicated that 2 parking decks are still planned but their locations have been shifted somewhat. He indicated that a review of parking requirements and open space targets have suggested a somewhat lover building density than what was originally projected. It was stated that the original plan contained 1,841,300 sq. it. while the refined plan has 1,466,437 square feet for all uses. However, there is the felxibility within the Plan for a minimum of 1,221,294 sq. ft. and/or a maximum of 1,714,803 sq. ft., depending upon the market. Mr. LaMotte indicated that site planning for the park has been premised on creating a special place which is in keeping with the rest of Evanston. He reviewed the streetscape plans which contain a tree bank in the middle of Maple Avenue possibly for flowering trees with a double row of shade trees on either side. He indicated that a circular theme has been created for the entrances as well as for a center court which possibly could contain a fountain. As part of the site work, embankment improvements to both sides of the CTA right-of-way are planned which will be dressed up with landscaping and a decorative fence. Mr. LaMotte completed his presentation by noting that street furniture and more modern lighting are currently being discussed as well as specialized signage which will incorporate a logo and color scheme for the park. Economic Development Committee Minutes - June 17, 1987 Page 3 Bob Winter summarized the current plans for which Shaw has made a commitment. He Indicated that his firm is planning construction beginning this fall on a 30,000-40,000 square foot building at the southwest corner of Maple and Emerson. He stated that while this is a speculative building and his company is assuming a $4-3 million risk, Shaw believes in Evanston as the right place of a research park. He stated that the design of this building is underway by the architectural firm A. M. Kinney, an Evanston firm. He summarized the density planned for the park and noted that the plan calls for a maximum density if there is a market of 1.7 million square feet which is nearly the 1.8 million square feet projected under the original plan. With that, Bob Winter Introduced Charles Shaw. Mr. Shaw indicated his appreciation for the opportunity provided for presenting the refined master plan for Research Park. He summarized his company's experience and interest in undertaking urban projects. He stated that he is a member of the Urban Land Institute and that he is desirous of creating good, responsible urban development. Mr. Shaw continued by noting that one must design to a market rather than market a design. He stated the market is subject to regional influences and therefore thought has to be given to this. He stated that one has to think of how Evanston fits within the Chicagoland market, and how this market fits within the Midwest and how the Midwest T relates to other parts of the country. He indicated with the emergence of worldwide markets, thought must now be given to where America fits within the world. Mr. Shaw stated that the actual market for Evanston's Research Park was currently unknown but that he has faith in the Chicago region and Evanston. He noted that with all its debate, Evanston seems dedicated to the future. He continued by stating that the cooperation which has been expressed between the University and the City has not gone unnoticed. It is for these reasons that he has committed his firm to the Evanston -University Research Park. Ald. Nelson thanked the Charles Shaw Company and Perkins do Will for their presentation. He then invited questions and comments from the Committee. The following questions were asked and answers provided. Q. Why is there a greater reduction in the amount of mixed -use development over that set aside for research? A. The reduction in mixed -use is nearly proportional to the overall reduction planned and there has been no conscious effort to do otherwise. However, it should be noted that most research parks stand on their own, but here in Evanston we have a tremendous advantage of being situated adjacent to downtown. We wish to support the economic base of downtown Evanston. We do not wish to compete with it. That is why we haven't planned more mixed development. Q. It appears that the mixed -use element is segregated to two corners of the Park. Is Maple Avenue set aside only for research? A. It is designated Research on Maple but we won't just have dead buildings. There will be green spaces and possibly a restaurant or commercial activity in the center. Q. Has there been any consideration given to mixed -use development along Church Street? A. One item that is being recommended is commercial space at the base of the parking deck planned on Church and the transportation center site has been reserved for mixed development. Economic Development Committee Minutes - June 17, 1997 Page 4 Q. What is the tenant strategy for building #1 and has there been Interest generated in the building? A. A multi -tenant building is planned. We have had over 100 inquiries from firms who were contacted through a small brochure. Several are serious. Our competition is mainly from developing suburbs where there is land and new buildings being built. There may be some competition from the Chicago Technological Park but this should be minor. Q. Since the density of the park is being reduced, how will that affect the original job creation estimated at 4,000 jobs. A. We are now estimating about 3,300 jobs created within Research Park. Q. What affect does the density reduction have on the TIF revenues? A. The density reduction will reduce the yearly revenue by $679,000-$3,329,000 depending on the actual density built. The original projection was for annual receipts of $10,945,000. Q. Have other research parks been successful? A. Urban parks appear to be very successful. Q. Under the original plan, development at the core of Research :Dark was to occur first. We have EIRL Lab almost completed as a major anchor at the center. Why have you decided to build the first building at the perimeter of the park? A. Marketing of Research Park is especially important given the existing conditions of the site. A completed entrance to the park is essential in selling the park to companies. Also, the center of the park is reserved for more dense development and since this first building is planned at less density, it is logical to locate it on the perimeter. Q. How tall is building ft I ? A. Three stories in height. Q. Please walk down %laple and tell me what I would see. A. Beginning at Emerson and Maple, you would see smaller multi -tenant buildings, then additional research buildings, possibly corporate in nature. Then we come to the incubator building which could be expanded or replaced with a new structure or a corporate use. Next we have GIRL Lab and additional large corporate users. Further south are other buildings which could contain single or multi -tenant users. The parking deck would be off of Church Street. Q. Is there anything at ground level other than lobbies? A. We are walking a fine line between trying to get a lot of research into a small area. We are trying to encourage a center courtyard which will be a people place. Q. What is your estimate of build -out tune? A. Build -out will be market driven. Probably ten years. • Economic Development Committee ` Minutes - June 17, 1987 Page 3 Q. Since the main entrance to the park is now located on Emerson, have there been any studies done to assess the impact this may have on the Emerson/Green Bay intersection? A. The original density planned for the park was based on a Barton-Aschman traffic study of the impact of traf fic on the area surrounding the park. Q. What is a winter garden? A. An indoor sheltered plaza. Q. I understand that the construction of buildings for research will be market -driven. What are the plans for the housing element of the park? A. There is adequate housing surrounding the park and there is no need for housing in the park to support the research component of the park. It has been kept in the master plan and as the park is built -out, development of this component will proceed. We do not have specific plans as of yet, nut we can envision an important highly successful mixed -use development on the transportation center site which could contain upscale housing on the upper floors. Please bear in mind that development is a process and as this process unfolds we are all in this together. Q. What are the plans for the second building location? A. Development will be market driven and will be dependent on the space requirements of firms committing themselves to the park. As large users commit themselves, development at the center will proceed. Smaller space demands will be handled in the perimeter buildings. At this point, it is difficult to determine what will be demanded first. Development will occur on logical parcels taking into account infrastructure costs. The Committee having completed its questioning, Aid. Nelson opened the meeting to questions and comments from the aldermen present in the audience. Q. There appears to be very little Iand being reserved for housing. Evanston has a strong market demand for housing. A. Just because there is vacant land in Research park does not mean this is an appropriate place to locate housing. Housing should be built in environments conducive to living. We have planned some housing, but Evanston's housing issue may best be addressed by taking a comprehensive approach. Q. Our concern is that there is no mixed use within the park and that the park will shut down at S P.M. and that it will not be used by the residents of Evanston. A. We appreciate your concerns and we agree that Research Park should be open and used by Evanstonians. Q. What are your major and minor concerns which may cause failure of this project? A. The most major concern is what is outside our control and that has to do with the potential and strength of the midwest and Chicago market for this type of project. Economic Development Committee Minutes - June 17, 1987 Page 6 Q. What can the City and the City Council do to help you succeed? A. To help develop a sense of spirit so that when prospective clients visit Evanston they feel that this is a good place to do business and a positive place to undertake research. It is this attitude that is very important in attracting firms to the park. Q. Are there many zoning changes required under the refined plan? A. Very little and none required for the first building. Aid. nelson concluded this portion of the meeting and turned to the other new business on the Committee's agenda. S. Proposed Contract for Site Engineering Work Aid. Nelson asked if there was a motion to recommend approval of the proposed contract. Aid. Collins seconded by Aid. Juliar made a motion to recommend approval. Brief discussion ensured regarding the contract and the reasoning and need for this work. It was noted that a typographical error existed on page 3 last paragraph, first line, which should read "The City of Evanston" rather than the Charles Shaw Company. Wayne McCoy asked what was the intended source of funding. Staff responded the source recommended is TIi' revenues. Hearing no other questions, a vote on the motion was made: 6 ayes, no nays. Motion carried. V. ADJOURNMENT Hearing no other business, Aid. Nelson adjourned the meeting at 10:05 P.M. Staff: UM b Date: SY 36/41 ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, July 22, 1987 Room 2403 - 7:43 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson, Juliar, Collens; Hummel, Belmonte, Mann MEMBERS ABSENT: Aid. Korshak, Davis; McCoy STAFF PRESENT: Aiello, Clarke SUMMARY OF ACTION L CALL TO ORDER The meeting was called to order by A1d.Nelson at 7:33 P.M. IL MINUTES On a motion made by Aid. 7uliar, the minutes of the June 17, 1987 meeting were approved as submitted. III. COMMUNICATIONS Aid. Nelson noted receipt and acceptance of the communications transmitted to the Committee. These communications were Downtown Idea Exchange (June 13 and July t, issues) and 2 newspaper articles regarding Research Park. IV. NEW BUSINESS A. Committee Priorities The Committee moved to accept industrial redevelopment and neighborhood commercial revitalization as the two major priorities of the Economic Development Committee for the next year. Aid. Nelson appointed Aid. Korshak as the Chairman of the Industrial Redevelopment Task Force and Aid. Davis as the Chairman of the Neighborhood Commercial Revitalization Task Force. Aid. Juliar, Collens, and David Mann were appointed members of the Neighborhood Commercial Revitalization Task Force. Messrs. Hummel and Belmonte were appointed to the Industrial Redevelopment Task Force. B. Industrial Revenue Bond Aid. Nelson announced that the applicant for an Industrial Revenue Bond, the North Shore Country Day School, had withdrawn its application and therefore this item was being removed from the agenda. Aid. Collens indicated that she was intrigued with the Issuance of IRB's for projects outside of the City's corporate limits and wondered if the I % issuance fee was negotiable, so that the City could derive additional fees from such issuances. Staff indicated that this subject will be reviewed for further consideration by the Committee. ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, July 22, 1987 Room 2403 - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson, Juliar, Collens; Hummel, Belmonte, Mann MEMBERS ABSENT: Aid. Korshak, Davis; McCoy STAFF PRESENT: Aiello, Clarke SUMMARY OF ACTION L CALL TO ORDER The meeting was called to order by Ald.Nelson at 7:33 P.M. IL MINUTES On a motion made by Aid. Juliar, the minutes of the June 17, 1987 meeting were approved as submitted. Ill. COMMUNICATIONS Aid. Nelson noted receipt and acceptance of the communications transmitted to the Committee. These communications were Downtown Idea Exchange (June 15 and July 1, issues) and 2 newspaper articles regarding Research Park. IV. NEW BUSINESS A. Committee Priorities The Committee moved to accept industrial redevelopment and neighborhood commercial revitalization as the two major priorities of the Economic Development Committee for the next year. Aid. Nelson appointed Aid. Korshak as the Chairman of the Industrial Redevelopment Task Force and Aid. Davis as the Chairman of the Neighborhood Commercial Revitalization Task Force. Aid. Jullar, Collens, and David Mann were appointed members of the Neighborhood Commercial Revitalization Task Force. Messrs. Hummel and Belmonte were appointed to the Industrial Redevelopment Task Force. B. Industrial Revenue Bond Aid. Nelson announced that the applicant for an Industrial Revenue Bond, the North Shore Country Day School, had withdrawn its application and therefore this item was being removed from the agenda. Aid. Collens indicated that she was intrigued with the Issuance of IRB's for projects outside of the City's corporate limits and wondered if the I % issuance fee was negotiable, so that the City could derive additional fees from such Issuances. Staff indicated that this subject will be reviewed for further consideration by the Committee. Economic Development Committee ' Minutes - July 22, 1987 Page 2 C. Neighborhood Commercial Districts Aid. Nelson accepted staff's report on revitalization efforts for neighborhood commercial districts and referred the report to the new task force created for neighborhood business districts. D. Industrial Areas Ms. Aiello reviewed and summarized the written report provided the Committee on revitalizing Evanston's Industrial areas. She noted that since TPAP report was completed in 1980, the vacancy rate for industrial property has dropped significantly but parking issues and residential -industrial conflicts still persist. She referred to current efforts being made to organize an industrial park on redevelopment land which has great promise at addressing some of these issues. Committee members discussed Rustoleum and their recent decision to leave Evanston. It was indicated that approximately 40% of their production now occurs in Evanston but that it is no longer economically feasible to continue operations here an the firm Is looking to relocate outside of Illinois. his. Aiello noted that the Rustoleum site is being marketed for commercial re -use, as land for commercial use is in great demand and can command a much higher price than land for industrial use. It was stated that Rustoleum is expecting to vacate their premises sometime in 1988. Members expressed interest in establishing a tax increment financing (TIF) district for this area. It was indicated that this could be the focus of the Industrial Task Force. V. QUARTERLY REPORTS A. Evanston Community Development Corporation (ECDC) Pam Walker of ECDC presented her organization's quarterly report. As part of her presentation, she provided the Committee with a four -page written report. She noted that during the previous quarter 13 new clients were provided technical assistance through ECDC's Small Business Development Program. She indicated that the type of assistance provided includes: business plan development, research on market and industry trends, loan packaging, strategic planning and strengthening managerial techniques. She noted that ECDC enabled 2 clients to become eligible for ECDC's Revolving Loan Fund Program. Pam Walker advised the Committee that 16 storefronts in the Church/Dodge business district have completed facade improvements with 9 storefronts remaining. She also indicated that 3 storefronts on Emerson Street were entering the final stages of completion with an additional 12 storefronts on Emerson in the process of beginning facade improvements. Ms. Walker also indicated that her organization published a quarterly newsletter which was distributed to 700 area businesses, organizations and residents. She noted that her organization has available a minority contractor/laborer listing. At the conclusion of Ms. Walker's presentation, Committee members requested clarification of the type of technical assistance provided and the ultimate outcome of this assistance. Aid. Collens asked what was the business of the proposed "Youth Coordinator" business start-up. Ms. Walker responded that this was like a co-op placement service to help teenagers obtain employment. Al Belmonte asked about the technical assistance provided to a valet parking service. Nis. Walker indicated this was as existing business located in Chicago which wanted to expand into Evanston. It was stated that the jobs listed as retained would be located in Chicago. J Economic Development Committee Minutes - July 22, 1987 Page 3 B. Evanston Inventure/Evanston Business Investment Corporation (EBIC) Ron Kyslak, of Evanston Inventure, Indicated that during the last 3 months his organization has concentrated on: 1) Southwest Industrial Park; 2) Downtown office space marketing and; 3) Research Park. He noted that vacancy rates have dropped over the last quarter to less than 13% for lst class office space Downtown. It was noted that while this does not include secondary space (less than lst class or the former Rotary International Headquarters), it Is a lower vacancy rate than that found in downtown Chicago or the Edens corridor. Ron Kysiak and Tom Parkinson indicated that marketing of Research Park has been initiated. They noted that over 3,000 letters were mailed to targeted firms in the seven state midwest region and that responses to this letter have been received. Follow-up with these firms is now occurring. It was indicated that much of the time of Evanston Inventure is devoted to talking with businesses and people and through a variety of ways, marketing Evanston, downtown, and Research Park. Tom Parkinson noted that Evanston Business Investment Corporation (EBIC) has established Heartland Venture Capital Network. Mr. Parkinson provided the Committee with written material on Heartland as well as EBIC's guidelines for loans. He indicated that the Heartland Venture Capital Network was an extremely exciting undertaking. Its purpose is to connect entrepreneurs with private investors and is modeled upon a successful network established in New England. This network has the potential for making Evanston the center for business formation in the midwest. VL OTHER BUSINESS It was agreed that the August meeting would begin at 6:30 P.M. and consist of a bus tour of the City's industrial areas and some of City's Neighborhood Commercial Districts. VIL ADJOURNMENT Hearing no other business, Aid. Nelson adjourned the meeting at 9:30 P.M. Staff: 1 i Date: 3Y17/19 ECONOMIC DEVELOPMENT COMMITTEE MINUTES Wednesday, October 29, 1987 Room 2403 - 7:45 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson, Davis, Collens; Belmonte, Hummel MEMBERS ABSENT: Aid. Korshak, Juliar; McCoy STAFF PRESENT: Aiello, Clarke SUMMARY OF ACTION L CALL TO ORDER The meeting was called to order by Ald.Nelson at 7:33 P.M. II. MINUTES Alderman Collens moved approval of the July 22, 1997 minutes as submitted. Motion approved. III. COMMUNICATIONS Alderman Nelson noted receipt of communications transmitted to the Committee. These communications included 4 issues of the Downtown Idea Exchange (July 15 - September 15), a summary of sales tax collections; a letter from the Northshore Country Day School withdrawing their IRA application; an Urban Land article on development agreements; a Crain's article on the economic development aspects of arts in Evanston; a summary of tenant firms in Research Park's Technology Innovation Center; a status report on the Howard/Paulina Transit Center; and material for selecting a 1988 Committee meeting schedule. Hearing no questions or comments, Chairman ;Nelson moved to accept these transmittals. IV. NEW BUSINESS A. Industrial Revitalization Videotape Presentation In lieu of the Committee bus tour, which had been twice scheduled but cancelled due to inclement weather, staff presented a videotape presentation of the Southwest Industrial area. The presentation highlighted: the new Banbury Shopping Center which was built on former industrial property; traffic barriers between industrial and residential areas; current conditions along the former ':Mayfair Railroad spur; the Marquette Fuel site; the Pitner Avenue truck route; and the Rustoleum and Bell and Howell properties. The presentation lasted approximately 15 minutes. Judy Aiello summarized the presentation and indicated the Industrial Task Force would begin looking at the various issues and problems faced in the industrial areas. As impetus to initiating this work. staff suggested that the Committee authorize staff to draft an RFP to update an industrial revitalization study which the City had commissioned in the late 1970's. Discussion followed regarding the merits of such a study. It was the consensus of the Committee that the decision to authorize an RFP should be made by the Industrial Task Force and that the Committee authorize the task force to make such a decision. Ald. Nelson also suggested that the task force create an agenda with time frames of what it hopes to accomplish and identification of objectives leading to a work plan for the task force. Economic Development Committee Minutes - October 28, 1987 Page 2 B. Commercial Revitalization Slide Presentation Tim Clarice introduced the slide presentation by summarizing City efforts to date for revitalizing commercial areas. These efforts have been: the provision of public parking Including the creation of public parking lots; the improvement of the public right-of-way by creating attractive streetscapes through new curbs, sidewalks, trees, and street furniture; and the improvement of private exteriors of commercial buildings through technical and financial incentives. Tim Clarke indicated that under the Facade Improvement Program, 43 storefronts have been completed with an additional 48 now in design or in construction. It was noted that City records show that for every $1 in City funds spent, approximately $2 in private funds have been directly invested in improving the exterior of commercial buildings. A summary of buildings improved and in the process of being improved was provided the Committee. It was noted that this program is solely funded by the Community Development Block Grant Program and, as of this date, only $9,897 was available for additional facade improvements. A slide presentation of the improvement program was made highlighting: the Protex building; the Chicago/Main Newsstand; the 1234-36 Sherman Avenue building; 704 Main Street; and the North Suburban Auto Supply building on Howard Street. It was noted that design was an important aspect of the program to assure that improvements made would complement the original architecture and streetscape. Aid. Nelson requested to know the administrative cost to the City in administering this facade improvement program. It was stated that the cost is equal to approximately l /3 the Development Analyst's salary and that the actual figure would be provided the Committee. Aid. Nelson indicated that parking in commercial areas has long been a problem and suggested that the Commercial Task Force may wish to study the feasibility of creating employee parking for the Chicago/Main Business District in the area between the CTA and C&NW Railroad tracks. C. Evaluation of CDBG Proposals for Economic Development Aid. Nelson indicated that the Community Development Act Committee has requested the Economic Development Committee review, evaluate and respond to economic development proposals which have been received for possible CDBG funding. He noted that staff has prepared an evaluation form to assist the Committee in identifying high priority proposals for funding. He suggested that the Committee now review each proposal, ask questions, and provide comments; after which, each member should rate the proposal. He suggested that individual ratings could be tabulated together by staff and the composite ratings presented to the Community Development Act Committee for their assistance in selecting economic development proposals. Committee members concurred in this suggested process. Commercial Facade Improvement Program Tim Clarke summarized that this proposal was a request to continue the City's facade improvement program. He indicated that no major changes in the program were proposed and that it would remain a matching grant program. He noted that an outreach of fort for the Foster, Davis and Howard Street target areas has been proposed and that the line item for architectural services was increased in anticipation of this marketing effort. He noted that the request was considered modest for a program which has had an important positive impact on the City's commercial areas. Economic Development Committee Minutes - October 28, 1987 Page 3 Aid. Nelson asked how the target areas were established and if there was a reason for selecting certain commercial districts. Tim Clarke responded that the target areas were established by the Community Development Act Committee and are based on the income levels of the adjacent neighborhood. He noted that there were scattered commercial developments also located in low and moderate income areas but it was felt that this program should initially operate in commercial districts which are very visible and identifiable. It was noted that this would provide the greatest return and impact for limited City resources. Site Clearance for Industrial Development Judy Aiello summarized this proposal by stating that the abandoned industrial structures now on the site impeded development and has resulted In an eyesore for the neighborhood. She noted that staff has been working with the new owner of the site who has also acquired other nearby properties including the Mayfair rail spur. Sha indicated that the owner has hired a land planner and preliminary plans for a light industrial park have been made. These plans call for relocation of the Pitner Avenue truck route which would substantially benefit the neighborhood. She noted that further talks with the owner were needed regarding capital improvements in the area which were expected to cost over $1.6 million. As currently planned, the project would result in over seven new buildings employing 300-400 persons. Ms. Aiello noted that this proposal calls for the clearance of the existing abandoned buildings and is meant to entice the owner into development. Evanston Inventure Staff noted that at the Community Development Act Committee, some members of this Committee suggested that this proposal be funded from the Economic Development fund created when the real estate transfer tax .was raised. Aid. Davis stated that we should be careful in recommending funding of an existing program from the newly created economic development fund, as this fund was created to Implement new economic development initiatives with particular attention to the neighborhoods. She noted that the Economic Development Committee has just established two task forces which will likely recommend projects for funding from this source. Aid. Collens concurred that as an advocate for economic development, it is not unreasonable to request funding of Evanston Inventure from CDBG, particularly since low and moderate income persons have much to gain from a healthy local economy. Other members concurred that it was appropriate to fund Evanston Inventure from the CDBG grant. Small Business Development Program (ECDC) and Simpson Street Facade Improvement Program (ECDC) Ms. Charlotte 'talker, Director of Evanston Community Developement Corporation (ECDC) introduced these two proposals by stating that ECDC's major focus is economic development for the City's west side. Ms. Walker summarized the Small Business Development Program by stating this program funds the administration of all of ECDC's facade improvement programs, pays for the administration cost of ECDC's Revolving loan Program and pays staffing to provide technical assistance as needed to small business. Ms. Walker summarized the Simpson Street Facade Improvement program by stating that her agency's best efforts have been in these programs. She stated many questions have been raised regarding the facade programs as operated by ECDC. She stated the purpose of ECDC's facade program was to uplift the area, reduce vacancy, and upgrade the type of tenant. She presented the Committee with supplemental information from a regent ECDC survey indicating that these facade programs have generated over $500,000 in private investment in the west side which equates to a 200% return on CDBG funds. Economic Development Committee Minutes - October 28, 1987 Page 4 Discussion followed regarding the amounts of unexpended funds which have been allocated to ECDC. Confusion occurred regarding these amounts as Charlotte Walker indicated her numbers differed from that provided by City staff. In reviewing material presented, Committee members concurred that there was about $200,000 remaining in the revolving Ioan fund and approximately $160,000 remaining for facades. Aid. Nelson asked Ms. Walker how much of these amounts were actually available to be administered. Discussion continued. Aid. Nelson summarized the discussion by stating that it seemed that there was 5290,000 currently unexpended by ECDC which required administration. Ms. Walker concurred with this analysis. Aid. Nelson stated that ECDC's current request of $94,143 in administration funds was to administer the $290,000 and any additional amount it may be granted this year in facade funds. Committee members continued by discussing the level of accomplishment which could be expected in a year's time and the yearly expenditure levels which would match these levels. Aid. Davis noted that the proposal for the Simpson Street Facade program was a request to fund the entire program. It was asked of Ms. Walker why the entire program was requested for funding in one year and what was the reasonable expectation for completing this project in a years time. Ms. Walker responded by stating that unless one knows if the entire program will be funded, planning for the program cannot proceed. She indicated that the merchants on Simpson haven't even been organized and won't be until funding is known. She stated that it was this group that would be making decisions on what to fund and it could be that this group may not want to fund facades but rather may decide that capital improvements are more important. It was again asked if there is a great deal of planning involved in addition to project management, how it could be expected that the project would be completed within 12 months. kis. Walker stated that she did not believe that her organization was suggesting anything which is different from any other program given the nature of the planning involved. She stated it is not as if the dollars are not used and there is nothing her organization is doing which HUD says is improper. She stated that she thought there were surpluses in other programs as well. She continued by stating that ECDC's programs take a lot of planning and a great deal of time to administer and it was hoped that ECDC's experiences on Church and Emerson would quicken work on Simpson but that no one has a crystal ball to determine how long a project would take. Discussion returned to the subject of ECDC's Administrative costs. Ms. Walker indicated that it seems that this is a continuing question for some people. She noted that over the life of the organization, the organization has raised over $400,000 in funds. Aid. Collens noted that ECDC's current budget appears to show that 100% of ECDC's administrative costs are paid for by the City and that this budget does not take into account funding from any other source. She asked Ms. Walker if this was accurate. Nis. Walker indicated it was. Al Belmonte noted that it may be appropriate for the CD Committee and ECDC to undertake a study of other non-profit community organizations and their funding sources and cost of administration. He noted that there were many such organizations not far away in Chicago. He stated it was his understanding that while these organizations received some CD funding, in large part, these organization's administrative costs were funded from private sources. Greg Hummel concurred and stated that he was very familiar with a community organization located in the very depressed West Garfield Park area of Chicago which leveraged federal grants with a substantial private commitment. He provided the name of Mary Nelson (phone: 826-3540) of the Bethel organization as a contact person. Economic Development Committee Minutes - October 28, 1987 Page S Al Belmonte suggested that ECDC consider making the facade program a matching grant rather than a 100% grant. He stated that as currently structured, the facade program does not allow for a commitment from the community. He further suggested that any capital improvements planned for the area be coordinated with the engineering department so as to reduce duplication and the cost of the project. He finally suggested that any funding for the improvements on Simpson be programmed over several years rather than one allocation. Aid. Nelson noted that in his review of ECDC's Board of Director's, it appeared that over i/3rd of the Board did not reside in Evanston. He asked GIs. Walker if this was accurate and if so, was there a rationale for placing non-residents on the Board. She indicated that it was accurate that over 1 /3rd of the board did not live in Evanston. She stated this was an attempt to key in on other programs that are operating like ECDC in other areas. Having concluded the review of economic development proposals, Aid. Nelson requested members to forward their evaluations to staff for tabulation and communication to the CD Committee. Ald. Collens requested that the minutes of this meeting be forwarded to the CD Committee for the deliberation even though the minutes will not have been formally approved by then. V. ANNOUNCEMENTS Judy Aiello announced that a special meeting of the Economic Development Committee may be necessary prior to the November 18, 1987 regularly scheduled meeting in order to take up business on the Church/Chicago project. She suggested that members submit to her the best times for a special meeting. Vl. ADJOURNMENT Hearing no other business, Aid. Nelson adjourned the meeting. Staf f: aal Date: 3Y22/26 MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: OTHERS PRESENT: SUMMARY L CALL TO ORDER ECONOMIC DEVELOPMENT COMMITTEE MINUTES Tuesday, November 24, 1997 Room 2403 - 7:45 P.M. CIVIC CENTER Aid. Nelson, Juliar, Davis, Collens, Korshak; David Mann4 Wayne McCoy Al Belmonte, Greg Hummel Asprooth, Aiello, Clarice Ron Kysiak, Jake Arnoff, Robert Berger, Charyi Holmes, Robert Winter, Patricia Needham, James Long, Jame Walchirk The meeting was called to order by Aid. Nelson at 7:55 P.M. U. MINUTES The minutes of the October 28, 1987 meeting were approved by consensus as submitted. III. COMMUNICATIONS Aid. Nelson noted receipt of communications transmitted to the Committee. These communications included 3 issues of the Downtown Exchange (October 1, 13, and November 1), 2 relevant articles from Chicago Crains newspaper, a copy of the Committee memorandum to the Housing and Community Development Act Committee transmitting Committee recommendations on CD funding, and the precis of the Development and Purchase Option Agreement and ground Cease between Research Park, Inc., and the Charles Shaw Company. It was noted that the October 15, 1987 issue of Downtown Idea Exchange contained an article highlighting the Church/Chicago project and the City/Rescorp partnership. Hearing no additional comments or questions, Chairman Nelson moved to accept these transmittals. IV. AMENDMENT TO GROUND LEASE AND MEMORANDUM OF AGREEMENT WITH SHERMAN PLACE ASSOCIATES (CARLEY CAPITAL GROUP) Aid. Nelson noted receipt of a copy of the proposed amendment to the Sherman Place Associates ground lease and the City Manager's memorandum identifying the reasons for this amendment and a recommendation to grant this amendment. Aid. Nelson called upon City Manager Asprooth to summarize and elaborate on the proposed amendment to the ground lease. City Manager Asprooth noted that for a variety of reasons Carley Capital Group is now seeking a second mortgage and under the existing agreement with the City this constitutes refinancing and triggers the repayment of all deferred rents due the City. Mr. Asprooth noted the purpose of the refinancing was to provide additional capital for use in undertaking improvements and incentives to lease the remaining 25% of the building. He indicated that Carley wanted to proceed with the completion of Phase I without the repayment of the deferred rents. Economic Development Committee Minutes - November 24, 1987 Page 2 Mr. Asprooth also noted that the existing agreement with Carley gives Carley the sole determination as to when Phase If will be developed and obligates the City to the development of a parking structure. He indicated that this aspect may not now be in the best interests of the City given the City's potential obligation to develop parking decks within Research Park. Mr. Asprooth summarized that the proposed amendment allows Carley to assume a second mortgage with Chemical Bank without triggering the repayment of deferred rents and now provides that the decision to initiate Phase 11 of the project will be a joint decision by Carley and the City rather than the existing sole determination by Carley. He stated that he believed the proposed changes were reasonable and fair and in the interest of the City and therefore he recommends adoption of the proposed amendment. Air. Asprooth indicated that representatives of the Carley Capital Group were here to answer questions. Rld. Nelson asked the Committee if they had any questions. Aid. Davis stated she had a question regarding the wording at 11 B and indicated she was confused regarding the word "should" and suggested that to clarity this section the words "even if" or similar language might be substituted. Wayne McCoy concurred that this paragraph could be clarified and suggested placing a period after "parking structure". Ald. Korshak noted that the remainder of the paragraph after "parking structure" was commentary and actually offered little substance. Aid. Nelson concurred. By consensus, members agreed to add a period on the third line of the paragraph after "parking structure", and then to strike the remainder of the paragraph. Representatives of Carley were asked if they had a problem striking this portion of the paragraph. They stated they did not. Mr. Dan McCarthy, Chief Financial Officer of the Carley Capital Group, offerd some additional comments for the Committee regarding their reasons for the current request. Aid. Nelson indicated he would entertain a motion regarding the proposed amendment. Wayne McCoy made a motion to recommend to the City Council adoption of the amendment to the ground lease and Memorandum of Agreement with Sherman Place Associates as amended by the Committee. Aid. 3uliar seconded. Motion passed 7-0. V. RESEARCH PARK AGREEMENTS Aid. ,'Nelson introduced the proposed Research Park agreement by indicating that this document contains detail provisions which are necessary for the development of the first parcel in Research Park. He noted that two major provisions were contained in this draft, one providing for the non -disturbance of the ground lease in the event the City ever regains title, and two, providing for a subordination process allowing construction and/or permanent loans to take precedence over the City's and University's purchase money mortgages. Aid. Nelson requested City Manager Asprooth to speak on this proposal. City Manager Asprooth noted the proposed agreement was between the City, Northwestern University and the Charles Shaw Company. He reiterated that the agreement contains 2 key provision: the non -disturbance of the ground lease and the subordination process. He indicated that the non -disturbance clause would be activated in the unlikely event that the City would foreclose on TOPCORP and become the landlord. The non -disturbance provision requires the City to respect the leases made by TOPCORP to Charles Shaw Co. Mr. Asprooth indicated that Shaw desires this assurance in order to reduce their risk in the project. He further noted that this agreement binds subsequent owners of the property to respect existing leases made by TOPCORP to the Shaw Company. Mr. Asprooth noted the subordination clause sets forth and clarifies the subordination process which was approved in the Purchase and Sale of Real Estate Agreement. He indicated that the Proposed agreement contains technical aspects of this process in the event that the developer made a request for subordination of the purchase money mortgage. Economic Development Committee +Minutes - November 24, 1987 Page 3 Aid. Nelson asked the Committee if there were any questions or comments regarding the proposed agreement. Aid. Korshak stated that the developer is seeking all the assurances a prudent developer would want, but he was uncertain if all these concessions are in the best interest of the City. He indicated that he was not yet prepared to say if these concessions were appropriate and would abstain from voting on the matter tonight. David Mann asked if the non -disturbance clause related to the ground lease with Shaw only or also to leases made by the ground leaee. Robert Berger, attorney for RPI, indicated that the agreement relates only to the ground lease. He indicated that a special arrangement will be made to protect the space tenants. Aid. Davis asked Mr. Berger the reasons for these two provisions. Mr. Berger indicated that the subordination provision provides security to the lender and without the provision, a lender would not grant a loan. He indicated that the non -disturbance provision provided similar security to the developer. Aid. Collens asked how this agreement would be executed and If approval was needed for each parcel at the time of its development. Mr. Berger stated that this is a blanket agreement which would cover all parcels and would authorize the City Manager to execute specific documents for each parcel. Discussion continued on the manner by which such documents would be processed. Hearing no other questions or comments, Aid. Nelson stated he would entertain a motion regarding this agreement. Wayne ,McCoy made a motion, seconded by Aid. Collens, to recommend to the City Council approval of this agreement as presented. Motion passed 6-0, with one abstention. VL 1998 COMMITTEE MEETING SCHEDULE Aid. Nelson noted that in the past we have had trouble accommodating all members' schedules. Members discussed potential conflicts with other commitments. It was noted that a meeting on a Thursday could prove difficult in expediting recommendations to Council. Discussion continued. By consensus, it was determined that the third Tuesday of the month would be a convenient time except when Council meets on the third Monday. It was indicated that this would only occur twice, once: in March and December. The time of the meeting would remain 7:45 P.M. VIL ANNOUNCEMENTS Staff announced that the special meeting of the Committee called for Wednesday, December 2, 1987, had been cancelled because RESCORP documents will not be ready by then. The review of the RESCORP project would be on the agenda at the Committee's December 9, 1997 meeting. The industrial Task Force would be meeting on Tuesday, December 1, 1987. VUL ADJOURN Adjournment was by consensus at 8:43 P.M. Staff: r Date: y4cj&A-' !, M-,7 5Y28/3a ECONOMIC DEVELOPMENT COMMITTEE MINUTES Tuesday, December 9, 1987 Room 2403 - 7:43 P.M. CIVIC CENTER MEMBERS PRESENT: Aid. Nelson, Jullar, Davis, Collens, Davis, Korshak; Al Belmonte, Wayne McCoy MEMBERS ABSENT: David Mann, Greg Hummel STAFF: Aiello, Asprooth, Clarke OTHERS PRESENT: Norman Katz, Henry Zuba of RESCORP; Ernest Greenberger special counsel to the City. SUMMARY L CALL TO ORDER The meeting was called to order by Aid. Nelson at 7:30 P.M. IL MINUTES Aid. Collens made a motion to approve the minutes of the November 24, 1987 meeting as submitted. Minutes approved. III. COMMUNICATIONS Aid. Nelson noted receipt of the following communications: the November 15, 1987 issue of Downtown Idea Exchange; a memorandum from the City Manager regarding sales tax collections as of August; a Chicago Enterprise article on the City of Chicago facade improvement program entitled "Facade Rebates Produce 'Fiore Than Fresh Paint"; and, the 1988 Economic Development Committee meeting schedule. Hearing no comments or discussion, Aid. Nelson moved Committee acceptance of these communications. VI. CHURCH/CHICAGO DEVELOPMENT Chairman Nelson requested City Manager Joel Asprooth to discuss the five documents and two proposed ordinances which have been placed before the Committee regarding the RESCORP Development at Church and Chicago Avenues. Mr. Asprooth noted that previously, the City Council adopted an ordinance which placed in motion the lease of ground and air rights to RESCORP. He indicated that these documents are in keeping with the City Council's letter of intent with RESCORP and except for the granting of mutual easements, completes the documents necessary to undertake this project. The following agreements were summarized: Development Agreement - It was noted that this document provides the overall plan for the development and construction of the Church/Chicago project, a description of the project, a timetable for the project, and an agreement to enter into other documents necessary to carry out the project. Ground Lease - Mr. Asprooth noted that the ground lease document provides for the lease of the ground to RESCORP in order for RESCORP to build the garage which, upon completion in accordance with City specifications, will be sold to the City at an agreed upon price. Mr. Asprooth noted that the ground lease would be extinguished upon sale of the garage to the City. Economic Development Committee Minutes - December 9, 1987 Page 2 Acquisition Contract - Mr. Asprooth indicated this document provides for the. terms and conditions under which the City will purchase the garage from the developer upon its completion. Mr. Asprooth noted that the purchase price will be Inserted upon the conclusion of final bids from contractors selected to undertake the project. Air Rights Lease - Mr. Asprooth Indicated this document provides for the lease of air rights to RESCORP In order for RESCORP to build and maintain the residential portion of the project. He indicated that the lease provides the City with rent payments beginning at W0,000 per year with adjustments made for Inflation In subsequent years. Mr. Asprooth noted this lease commences one year after construction of the garage begins and runs 23 years with two 23-year options to extend the lease. It was also noted that the developer shall have the option to purchase the air rights at the tenth year of the lease and every year thereafter. Mr. Asprooth noted the terms of this sale are contained and set forth In this agreement. Guaranty, - Mr. Asprooth Indicated this document provides for assurances and guarantees from the developer, that the project will be completed as specified, and provides for a letter of credit in favor of the City in the amount of $3,000,000. Mr. Asprooth introduced Mr. Ernest Greenberger, Special Legal Counsel to the CIty, and Mr. Norm Katz, of RESCORP, both present to answer any specific questions which the Committee may have. Aid. Nelson thanked Joel Asprooth for his summary and asked If the Committee had any comments or questions regarding the documents. Aid. Collens asked if the development timetable contained in these agreements could by summarized. Mr. Asprooth stated that the development agreement requires the developer to submit relevant material for approval of major contractors, the 'Minority Business Enterprise, and Affirmative Action Plan by January 2E, 198E and submittal of all complete and final plans by February 23, 1998. Mr. Asprooth stated that these agreements require the public garage to be completed by April 1, 1989 subject only to unavoidable delays and by December 31, 1999 even in the event of unavoidable delays. It was noted that the completion o: the air rights development is required by October 30, 1989 subject to unavoidable delays, and July 31, 1990 even in the event of unavoidable delays. Ald. Korshak asked a question regarding the terminology of references in the agreements to the required letter of credit and noted that these agreements require that the form of the letter of credit be approved by the City. Aid. Korshak wondered if this meant that the terms of the letter of credit must also be acceptable to the City. Mr. Ernest Greenberger responded that Ald. Korshak's concerns were valid. He suggested, however, that the present terminology was favorable to the City in that it requires an irrevocable and unconditional letter of credit. Mr. Greenberger indicated that this language provides merely for the City to present the letter. Mr. Greenberger suggested that adding additional language may actually cloud the CIty's requirement of an unconditional letter which is based on no condition or term. It was agreed to leave the language as drafted. Aid. Juliar requested that it be clarified at what point during construction the garage will be usable. It was noted that the garage should be useable by April 1, 1989, while construction Is occurring on the air rights above. Aid. Collens asked why the documents are worded, "not less than 190 dwelling units" and "not less the 600 parking spaces" and whether under these agreements it is possible that more parking or dwellings could be constructed. Mr. Norm Katz stated that zoning would not allow for more dwellings. He Indicated that this language was used to assure the City of a minimum number of dwellings in order to estimate a tax base. Economic Development Committee Minutes - December 9, 1987 Page 3 Wayne McCoy noted that reference to one additional agreement regarding mutual easements will be required and wondered the reasoning why this agreement is not part of the agreement package which has been presented. Mr. Greenberger responded that this development is very complicated and a great deal of technical work is required in order to sort out with precision the easements necessary. Mr. Greenberger stated that an attempt could be made now at drafting this easement agreement but it would need to be updated as drawings and technical material is produced and therefore, in a measure to keep costs dcwn, it was felt, that this agreement could wait until the technical information is available. Hearing no other questions, Aid. 3ullar made a motion, seconded by Aid. Collens to recommend to the City Council adoption of the proposed ordinances ( 130-0-87 and 131-0-97), Authorizing the Lease of City Property and the Lease of Air Rights for the Church/Chicago project. Motion approved 7-0. V. OTHER BUSINESS Aid. Nelson noted that the Special Zoning Review Committee has requested non-aldermanic representation from the Economic Development Committee. Aid. Nelson Indicated he would like member Al Belmonte to serve in this role. Al Belmonte consented. VL ADJOURNMENT Adjournment by consensus at 8:31 P.M. Staf f: Date: jZ - 1 I -o 7 3Y3Z/34