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HomeMy WebLinkAbout10 - May 26, 2010 COW COMMITTEE OF THE WHOLE MEETING May 26, 2010 The regular Committee of the Whole meeting was called to order by Mayor Schock at 5:10 p.m. in the Heritage Ballroom, located at 100 Symphony Drive in Elgin. Present: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Absent: None. Approval of Minutes Councilmember Warren made a motion, seconded by Councilmember Dunne, to approve the minutes of the May 12, 2010, regular meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Overview of the Components Concerning the Strategic Planning Process City Manager Stegall stated that a proposed, unified, community-driven strategic plan will be presented to the council in the near future. Components of this plan will include: Who are we as a city? This component will be addressed at the regular council meeting during the City of Elgin Branding/Community Conversation presentation. Where are we going? This will be a review of the council/community goals. Where do we want to be? This will determine the vision and strategic direction. How are we going to get there? This step will be defined by various strategies and specific activities. How do we measure our progress? Progress will be measured by a monitoring and evaluation process that reviews outcome, output, and budget on a weekly or monthly basis. Mr. Stegall mentioned that the city is in the unique position of being able to unify the Five Year Financial Plan, the Capital Improvement Plan, the Comprehensive Land Use Plan, and the Sustainable City Master Plan into a single, cohesive strategy and document. This strategy/document would be based on broad community input and would be more accountable. It would be a connection between Council goals and the citizen’s wants and needs which would provide a direct and focused course of direction for staff. Mr. Stegall outlined a timeline for the next year and said that the first performance report would be presented in 2011. Committee of the Whole May 26, 2010 Page 2 Update Concerning the City’s 311 Project Dan Ault and Dan Rich gave an update on the 311 project. The advantages of the system would include enhancing the relationship between citizens and their local government (creating a One Stop Shop) and alleviating uncertainty by allowing quick access to non-emergency government services and information. The program should begin in June, 2010, in Public Services with full implementation in 2013. The call center will be located at the Holmes Road location. Several of the council members thought this would help reduce citizen frustration. Councilmember Steffen asked if this would be linked to I-phones or e-mail. Mr. Rich said that it would eventually. Councilmember Steffen said this should also help the city better allocate resources. Sustainability Working Groups Semi-Annual Report Aaron Cosentino provided an update on the Sustainability Master Plan efforts. He noted that the AECOM Report contained policy recommendations, but that it was not a planning framework. The recommendations contained in the report fall within the areas of Policies, Education, Programs, and Research. Mr. Cosentino said the next step is to determine how to move forward. If it is decided to partner with a coaching organization, they could provide a planning structure, tools, resources, and technical assistance. Then “sustainability” will have to be defined as to what it means to Elgin. At that point, the various work groups will become more focused and develop their own goals and objectives. Mr. Cosentino said that it is important to develop the sustainability goals in conjunction with other strategic planning. Thus they would complement other policy decisions. Councilmember Kaptain thanked the approximately one hundred people who have worked on the Sustainability Committee over the past year. Sustainable Street Design Presentation by Dr. Norman Garrick Dr. Norman Garrick gave a presentation on Sustainable Street Design. He noted that the role of transportation is to add vitality to a city and to provide access, not necessarily mobility. Dr. Garrick is a proponent of a connected (grid) street system and feels that Elgin is well positioned to provide choices for vehicular, bicycle, and pedestrian means of transportation. Councilmember Kaptain mentioned that Elgin had a pedestrian mall twenty years ago and it was eventually torn out. He wondered if anything had changed. Dr. Garrick said that he would not necessarily support or advocate such a mall for Elgin. Councilmember Gilliam asked if Dr. Garrick was in favor of parking decks and more biking. Dr Garrick said that he was in favor of more biking and that parking decks take up too much space. Cities should provide methods of getting to work, not more parking. Committee of the Whole May 26, 2010 Page 3 Comprehensive Plan Update Sarosh Saher and David Wade from the City’s Community Development Department provided an update on the Comprehensive Plan. They noted that the Thoroughfare Plan would bring back the grid pattern to the city especially in the area west of Randall Road. They also showed proposed improvements to the Route 20 and Nesler Road intersection and improved entrances and exits to the shopping center located at that intersection. Possible connecting roads between those neighborhoods north and south of Route 20 were also shown. Review and Consideration of the City Council Rules of Procedure Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to table the review and consideration of the City Council Rules of Procedure. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Recess At this time, 7:00 p.m., the meeting was temporarily suspended by consensus to meet in Executive Session for the following purposes: Collective Bargaining Issues or Deliberations Concerning Salary Schedules for One or More Classes of Employees - Exempt Under Section 120/2(c)(2) of the Open Meetings Act Selection of a Person to Fill a Vacant Office, Including a Vacancy in a Public Office, When the Public Body is Given Power to Appoint Under Law or Ordinance, or the Discipline, Performance or Removal of the Occupant of a Public Office, When the Public Body is Given Power to Remove the Occupant Under Law or Ordinance - Exempt Under Section 120/2(c) (3) of the Open Meetings Act The meeting was resumed at 8:40 p.m. Consideration of Proposed Amendments to Zoning Ordinance Sarosh Saher, Planning Manager, reviewed the two amendments. The proposed amendment to the street graphics ordinance will provide for the following: 1. Projecting signs will be permitted in the NB Neighborhood Business District and AB Area Business District districts only on properties containing structures built to within 10 feet of the street lot line. The maximum surface area of a projecting graphic will be increased from a maximum of 10 square feet to 12 square feet. Projecting signs will be permitted to take the form of a fabric or flexible membrane supported on at least two sides by rigid supports used to mount the sign on the face of the building on which it is located. Committee of the Whole May 26, 2010 Page 4 2. Gas Station Electronic LED Signage: The proposed amendment to the graphics ordinance will provide for and regulate LED signage for gas stations and be limited to the display of the price of gasoline. All street graphics proposing the use of LED signage for the display of the price of gasoline will need to be brought into conformance with the city’s sign ordinance. Councilmember Dunne made a motion, seconded by Councilmember Warren, to authorize staff to proceed with the filing of a petition proposing amendments to the text of Title 19, entitled “Zoning” of the Elgin Municipal Code. The proposed amendments are summarized in the memo provided to Council. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Proposed Second Amendment to Intergovernmental Agreement with the Village of South Elgin for Interceptor Sewer Access Councilmember Gilliam made a motion, seconded by Councilmember Steffen, to approve the proposed second amendment agreement with the Village of South Elgin regarding the Bowes Road Interceptor Sewer (BRIS) access. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Proposed Agreement with Wyndham Deerpoint Homes regarding Acceptance of Certain Public Improvements in Tall Oaks Subdivision Units 1, 2 and 4 Councilmember Kaptain made a motion, seconded by Councilmember Dunne, to approve the proposed agreement with Wyndham Deerpoint Homes regarding the acceptance of certain public improvements in the Tall Oaks Subdivision Units 1, 2, and 4. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Consideration of Proposed Designation of Bluff City Quarry Area as a Tax Increment Financing Redevelopment Project Area and Consideration of a Proposed Development Agreement Providing for the Redevelopment of Such Area Councilmember Kaptain made a motion, seconded by Councilmember Warren, to authorize staff to proceed with further procedures to provide for the eventual designation of the Bluff City quarry area as a Tax Increment Financing Redevelopment Project Area and to prepare a development agreement for future City Council consideration regarding the redevelopment of such area. Corporation Counsel William Cogley reviewed the Tax Increment Financing process and noted that a representative from Kane, McKenna, and Associates, the city’s consultant, was available for any questions. Mr. Cogley explained that the Bluff City TIF study area extends from Bluff City Boulevard on the north to Gasket Drive on the south, and from Gifford Road on the west to the EJ&E Railroad on the east. An east/west portion of the study area extends from the northwest corner of the main portion of the study area westerly along Bluff City Boulevard, and the properties to the Committee of the Whole May 26, 2010 Page 5 north and to the east boundary of the existing Route 20 TIF District, which is located just east of St. Charles Street. Section 11-74.4-4.1(q) of the Illinois Tax Increment Allocation Redevelopment Act authorizes a municipality to use revenues, other than State sales tax increment revenues, received under the TIF Act from one redevelopment area for eligible costs in another redevelopment project area that is contiguous to the redevelopment project area from which the revenues are received. Based upon its analysis, Kane, McKenna and Associates identified potential TIF qualification for portions of the study area as follows: The vacant land within the proposed TIF District qualifies as a “blighted-vacated area” pursuant to Section 11-74.4-3(a)(3) of the TIF Act. The vacant land would qualify under Subsection (A) thereof due to its classification as an “unused quarry.” This area consists of approximately 300 acres, and approximately 206 would be allocated to the TIF based on cessation of mining operations and final parcel divisions. The improved land within the proposed TIF District qualifies as a “conservation area” pursuant to Section 11-74.4-3(b) of the TIF Act. Overall, the improved land within the proposed TIF District is found to be in a condition as defined in the TIF Act that prevents, or threatens to prevent, the economic and physical development of properties in a manner that the community deems essential to its overall economic health. This area consists of approximately 172 tax parcels and 92 buildings. Factors considered by Kane, McKenna and Associates for the improved area included first considering the age of the buildings in the area, lag in equalized assessed valuation growth, inadequate utilities, deleterious land use/layout, lack of community planning and deterioration of structures and site improvements. The outline of the proposed Development Agreement is summarized as follows: 1. Following the City’s designation of the area as a TIF District, the City and the Developer would enter into a development agreement. 2. The Developer would redevelop its property by reclaiming and remediating as necessary such property, and constructing on its property the required public infrastructure (including, without limitation, public utilities and streets), and private building improvements to be able to sell completed and improved commercial and industrial lots to users or other developers (the “Project”). As noted above, the Developer’s current Concept Plan for the redevelopment of its property is attached hereto. TIF eligible project costs are defined in Section 11-74.4-3(q) of the TIF Act and include, among other matters, costs of studies, development of plans and implementation and administration of a redevelopment plan including, but not limited to, professional service costs, property assembly costs (including, but not limited to, acquisition of land, demolition and site preparation), costs of the Committee of the Whole May 26, 2010 Page 6 construction of public works or improvements, certain financing costs and certain interest costs of a redeveloper. 3. To assist the Developer with the Project, the City would reimburse to the Developer specified amounts of TIF increment for a portion of the Developer’s TIF eligible project costs. 4. The City’s obligations to reimburse the Developer TIF increment for the Developer’s TIF eligible project costs will be evidenced by what is referred to in the Term Sheet as Notes, and specifically, the Senior Gifford 300 Note and the Subordinate Gifford 300 Note. The City would initially agree to reimburse to the Developer 50% of the available TIF increment generated by the Project to reimburse the Developer for TIF eligible project costs not to exceed the amount of $13,500,000. This TIF increment reimbursement by the City to the Developer will be evidenced by what is defined as the Senior Gifford 300 Note. Based upon a future determination of the Developer’s rate of return for the Project, the City would agree to reimburse the Developer up to an additional 30% of the available TIF increment generated by the Project not to exceed an additional $8,100,000. This additional TIF increment reimbursement is referred to as the Subordinate Gifford 300 Note. If the projected unleveraged rate of return for the Developer for the Project at the time of the issuance of the Subordinate Gifford 300 Note is projected to be 10% or less, the Subordinate Gifford 300 Note will be issued for the maximum amount of $8.1 million. If the projected rate of return for the Developer is greater than a 10% unleveraged rate of return, the amount of the Subordinate Gifford 300 Note will be reduced dollar-for-dollar until the 10% unleveraged rate of return is reached. Taken together the Senior Gifford 300 Note and the Subordinate Giffort 300 Note would provide for the City to reimburse to the Developer not to exceed 80% of the available TIF increment generated by the Project in the total amount not to exceed $21,600,000. Such $21,600,000 represents 80% of $27,000,000 which is the present value of the total estimated TIF increment for a 23 year term TIF district estimated to be $64,918,000. 5. The City would also agree to pay, out of TIF increment generated by the Project, interest to the Developer on its TIF eligible project costs as approved by the City until such eligible project costs were repaid through the reimbursement of TIF increment. The interest rate would be calculated pursuant to the formula as set forth in Section 60 of the Term Sheet. Calculated today, such interest rate would calculate to a tax exempt note interest rate of 6.83% and a taxable note interest rate of 7.455%. The interest will accrue and be calculated as simple interest and will begin to accrue for eligible project costs upon issuance by the City of an approved certificate of expenditure with respect to such eligible project costs. 6. In the event sufficient TIF increment is being generated by the Project to service TIF bonds, the City would agree to sell TIF bonds in the amount of the Senior Gifford 300 Note and the Subordinate Gifford 300 Note, with the bond proceeds thereof to be Committee of the Whole May 26, 2010 Page 7 paid to the Developer. 7. The payments for the Notes or the subsequent TIF bonds and any interest with respect thereto would be made by the City solely and only from TIF increment generated by the Developer’s Project. There would be no recourse against the City and no liability to the City to pay the Notes, the TIF bonds or any interest, except from the TIF increment generated by the Project. In the event the Developer does not proceed with the Project, or in the event there is insufficient TIF increment to pay the Notes, the subsequent TIF bonds or any interest, the City would have no liability to pay same. 8. To establish its right to reimbursement for TIF eligible Project costs, the Developer will be required to periodically submit to the City documentation as may be reasonably requested by the City verifying the TIF eligible Project costs. 9. The Developer has commenced with reclamation of the site in 2008. The current estimate for the remainder of the Project is for seven years, through the end of 2017. The Developer is to use all commercially reasonable efforts to complete the construction of the Project by 2017, market conditions permitting. Mr. Cogley noted that if the development does not proceed or if sufficient funds are not generated, the developer will not be paid. Councilmember Dunne asked why a particular piece of property had not been included and the consultant responded that it had to do with their equalized assessed valuation. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. Announcements from Council Councilmember Prigge acknowledged the efforts of Elgin Police Department in solving a recent homicide. Councilmember Dunne thanked the Community Relations Division of the Police Department for their efforts in notifying the community regarding unlicensed solicitors. He also asked staff to advise him of how many solicitor licenses have been issued. Councilmember Warren announced an upcoming community renovation project and luncheon. Councilmember Kaptain announced an upcoming clean up project in conjunction with NENA. Councilmember Steffen announced the upcoming Kiwanis pancake breakfast. Committee of the Whole May 26, 2010 Page 8 Announcements from Staff Public Information Officer, Sue Olafson, announced upcoming city events. Adjournment Councilmember Kaptain made a motion, seconded by Councilmember Dunne, to adjourn the meeting. Upon a roll call vote: Yeas: Councilmembers Dunne, Gilliam, Kaptain, Prigge, Steffen, Warren, and Mayor Schock. Nays: None. The meeting adjourned at 9:15 p.m. s/ Diane Robertson June 9, 2010 Diane Robertson, City Clerk Date Approved