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Home My WebLink About2011 Bluff City Blvd. Quarry TIF JOINT REVIEW BOARD MEETING PROPOSED BLUFF CITY BOULEVARD/QUARRY TIF DISTRICT CITY OF ELGIN 150 Dexter Court Elgin, Illinois January 12, 2011 —3:00 p.n . Meeting Agenda I. Call to Order(City) IL Introduction of Representatives III. Selection of Public Member IV. Selection of Chairperson V. Review of Joint Review Board Procedures and Duties VI. TIF Plan and Eligibility Criteria- Review VII. Review of Draft TIF Ordinances VIII. Questions/Comments (Chairperson) IX. Consideration of Recommendation to City Council (911airperson) X. Review of Timetable and Next Steps XI. Adjournment S:\Client Folders\Elgin\Bluff City Quarry arca\Correspondence\Taxing District Demo 12.22.10.doc JOINT REVIEW BOARD MEETING PROPOSED BLUFF CITY BOULEVARD/QUARRY TIF DISTRICT CITY OF ELGIN 150 Dexter Court Elgin, Illinois Second Floor South Conference Room January 12, 2011 —3:00 p.m. Meeting Agenda I. Call to Order(City) II. Introduction of Representatives III. Selection of Public Member IV. Selection of Chairperson V. Review of Joint Review Board Procedures and Duties VI. TIF Plan and Eligibility Criteria - Review VII. Review of Draft TIF Ordinances VIII. Questions/Comments (Chairperson) IX. Consideration of Recommendation to City Council (Hhairperson) X. Review of Timetable and Next Steps XI. Adjournment CADocuments and Sertings\robertson_d\Local Settings\Temporary Internet Files ContentOutlook\9269VTNP\Taxing District Memo 12 22 10.doc 4' RESOLUTION AND RECOMMENDATION OF JOINT REVIEW BOARD CREATED AND CONVEYED PURSUANT TO ILLINOIS TAX INCREMENT ALLOCATION REDEVELOPMENT ACT 65 ILCS 5/1 -74.4-1 et. seq. (THE "ACT") To: Mayor and City Council City of Elgin 150 Dexter Court Elgin, Illinois 60120 WHEREAS, the Joint Review Board convened pursunt to the Act did meet on January 12, 2011, in the Second Floor South Conference Room, 150 Dexter Court, Elgin, Illinois, and was attended by and comprised of representatives of affeced taxing jurisdictions within the proposed redevelopment project area, a representative of the City of Elgin and a public member pursuant to the Act; and WHEREAS, a public member of the Joint Review Board was nominated to serve and was duly selected by a majority vote of all Joint Review Board members present, and a chairperson was duly selected by the Joint Review Board by majority vote of all other Joint Review Board members present; and WHEREAS, the Joint Review Board did carefully review and consider the public record, planning documents and the following draft ordinances: (i) Designating the City of Elgin — Bluff City/Quarry Redevelopment Project Area, (ii) Adopting the Bluff City/Quarry Redevelopment Plan and Redevelopment Project, and (iii) Adopting Tax Increment Allocation Financing for the aforesaid area. The Joint Review Board also reviewed the City of Elgin Bluff City/Quarry TIF Plan and Project, City of Elgin, Illinois, including the TIF Eligibility Study for the Redevelopment Project and Plan, prepared by Kane, McKenna and Associates, Inc. After considering all of said matters did agree by a vote of the members of the Joint Review Board that the proposed City of Elgin Bluff City/Quarry Redevelopment Plan and Project, City of Elgin, • • . . 111 Illinois be approved. It was also determined that the City of Elgin Bluff City/Quarry Redevelopment Project Area satisfies the eligibility criteria defined in the TIF Act. Further, the Redevelopment Project and Plan as presented are confonnant with the requirements of the TIF Act. As such, the majority of the Joint Review Board did direct the chairperson of the Joint Review Board to prepare and submit to the City Council of the City of Elgin, Illinois, its recommendation so finding. NOW THEREFORE, BE IT RESOLVED the Joint Review Board does hereby submit its advisory, non-binding recommendation to the City of Elgin, Illinois that the proposed Bluff City/Quarry Redevelopment Plan and Redevelopment Project, be approved and that the City of Elgin Bluff City/Quarry Redevelopment Project Area satisfies the requirements of the Plan and fulfills the objectives of the Act. DATED this th day of January, 2011 \_ .. Representative of *flovte-r- -,,;,,,,nli -_, J Signature ice _ ---,,,�s�ar'� Representative• �'- - t ` C Signature i, ---c-Ni Representa 've of ;- -r•1' clir„eau-4 Signature r''lIa Representative of 111 Signature Representative of Signature Representative of Signature Representative of Signature Representative of Signature Representative of Signature C:\Documents and Settings\mcguire_c\Local Settings\Temporary Internet Files\Content.Outlook\1 JHOE8XN\Resolution and Recommendation of JRB 12 30 10.doc Joint Review Board Meeting Minutes January 12, 2011 I. The meeting was called to order at 3:10 pm by Marc Mylott. II. The introduction of representatives included James Bair, Hanover Township Administration and Marc Mylott, Elgin Community Development Director. No other representatives were present. III. Mr. Mylott made a motion, seconded by Mr. Bair, to appoint Leo Nelson as public representative. The vote was unanimous. IV. Mr. Nelson made a motion, seconded by Mr. Bair, to appoint Mr. Mylott as chair. The vote was unanimous V. Procedures and duties were reviewed by Robert Rychicki, of Kane, McKenna and Associates. Mr. Rychicki noted that the TIF Act provides that a quorum constitutes those members present. Mr. Mylott made a motion, seconded by Mr. Nelson, to continue with the agenda. The vote was unanimous. VI. Mr. Rychicki reviewed the TIF Plan and eligible diteria. He also gave the attached presentation. (Attachment A) There were no question . VII. The TIF ordinances were reviewed and there were no questions. VIII. Mr. Bair stated he felt this was an appropriate use of a TIF. Mr. Mylott said that absent this type of financing, the city would be looking at the conditions in this area remaining the same. He noted that this did not call for massiv private property improvements or residential density. IX. Mr. Mylott made a motion, seconded by Mr. Bair, o submit its advisory, non-binding recommendation to the City of Elgin that the propose Bluff City/Quarry Redevelopment Plan and Redevelopment Project be approved a d that the City of Elgin Bluff City/Quarry Redevelopment Project Area satisfies the requirements of the Plan and fulfills the objectives of the Act. The vote was unTimous. A copy of resolution was circulated and signed by the members present. X. It was then suggested that a public hearing be held oi March 9, 2011. It was noted that the TIF ordinance may be introduced fourteen (14) o ninety (90) days after the public hearing. If approved, the resolutions are then filed with the clerks of Cook and Kane Counties. Page 1 Xl. Mr. Bair made a motion, seconded by Mr. Nelson to adjourn the meting. The vote was unanimous. The meeting was adjourned at 4:00 p.m. Respectfully submitted, Diane Robertson Recording Secretary Page 2 • INILAIH3V!IV City of Elgin Proposed Bluff City/Quarry TIF District Joint Review Board Meeting January 12 , 2011 City of Elgin Proposed Bluff City/ Quarry TIF District • Key Questions - I . Where does the TIF District fit into regarding the City's economic development and long term planning? - II . What factors qualify area as a TIF District? - Ill . What are key aspects of TIF Plan germane to JRB? BACKGROUND OIMIIIIMIIIIMIMEMIIMENNIMMIMI Proposed TIF District • Potentially underutilized area • Due to need for infrastructure, condition of existing improvements, and quarry/mining properties • But it has assets to leverage future redevelopment: • Large redevelopment parcels — key to long term economic development • Potential to reclaim underutilized quarry land. • Coordinate redevelopment of existing uses along Bluff City Boulevard • Could solidify and add to the City's tax base ultimately to other taxing districts - Growth trends difficult to predict in Cook County for commercial and industrial uses - Cities will be competing in tighter economic climate - Opportunity to leverage redevelopment with new public investments and private investments Diverse Land Uses Present 111111111111•111111111111111■11111111111111111111111•11111111111111".„7„ , li,,, ,, „..% -1;1'111';:ti _ .,......,..: ......1 .. ... _ ,..... .. , •., _.7 ... -__ _- in .. -. _ _ _ :.,„:„..,..., ,. _ ‘... ._, , 4 ...0 ,•,:z-r , •',•,•4.*:.,,,,,,,,,.%.,•••,••n,L "" —44 , .. . . , se,I " k11.,... 4Pillidi '''‘.*** • : 1 I ' .. , 1 1..--•-,-..1 ‘ 1.7.2r '"' ,, , 1- '• •---'1 ‘111111111n111 ! ' ,!I'll k l' ; Z 1 '! z , -Ouponwitirme , 1 ' 4, jiff ! , lidi iil , 3 ' ..,, • . 1 Sette: , ,r, . 4,,•; • , V:,...Vot:f#. ,A'- ,'''k'.,,,, - :."-e-, i 4 . , „,,,,k''',,,e ,'''', \'CV' c's' %.",.'Or.":.''•‘-`-,,•0, , ' • ' ktY'‘',1';';•1:::;Z'';41.,'?:;\:::•,".%\'',.%•:'•-•:‘:',‘:,:,':'''''''''''‘';•?,t''-..,;ZI•1.:47;1/4'":LN • 0 ‘s•-•• 'iel W•4•14g*t.?1,V `;;:`.:i'iti:',..':'''',i,;'•`,''''''''':g,';'•'-'''''',e'-'42:1 , , ,,,, '( : tro- 461 P.451 - S $, ' SSS .. ,r. , ,o, , ''t' , tli ' ', .,.. 0,'''i.-'; City of Elgin Proposed Bluff City Quarry TIF District 4MMMMMMMMOWMMNMMMMMMMM I . Strategy City of Elgin Proposed Bluff City Quarry TIF District • The City of Elgin is • Key to land use proposing the strategy redevelopment of a • Key to long-term strategically valuation increases impoftant area or • Key to economic designation as a development TIF District strategy Long Term Finance Implications • Industrial and commercial redevelopment south of Bluff City Boulevard and east of Gifford and immediately adjacent areas (e.g. , west along Bluff City Boulevard) offers the City an opportunity to enhance or increase current property tax receipts based on redevelopment potentials. • The quarry/mining properties would be converted from current under-utilized uses into modern industrial facilities - Opportunity for new development that does not add to school-age population City of Elgin Proposed Bluff City Quarry TIF District aiMMMIMMIMMMMMMI • Proposed Land Uses - Continue existing uses along Bluff City Boulevard , redevelop former quarry properties for primarily industrial uses with ancillary commercial-uses - But any plan, inevitably, will be market-driven • Typically, most resources for any TIF projects are provided by private sector • Most risks borne by private sector City of Elgin Proposed Bluff City Quarry TIF District IMMEMIIMINIMMIMINIMMIIMIEN111 II . Factors Qualifying the Proposed Area as a TIF District City of Elgin Proposed Bluff City Quarry TIF District The proposed TIF District is found to qualify under the following criteria • Improved property as a "conservation area", based upon the findings that a combination of 3 or more of the 13 factors set forth in the TIF Act (Illinois State Statute) are -__ • - - i ' i . - . - . and 50% or more of the structures are 35 years old or greater. • Vacant area qualifies as "vacant-blighted" based on stand alone factor — "unused quarries or mines". Conservation Area Factors Included in the TIF Act - 3 Factors Must Be Present MINIMMENNUMMEMIMMIll 1 ) Dilapidation 8) Inadequate utilities 2) Obsolescence 9) Excessive land coverage 3) Deterioration 10) Deleterious Layout 4) Presence of structures 11 ) Environmental clean up below code 12) Lack of community 5) trregaruses _ pfarrrrirrg s> Excessive Vacancies 13) Lag or decline in 7) Lack of ventilation and equalized assessed sanitary facilities valuation (EAV) Conservation Area Qualification Factors for Proposed TIF Summary of TIF Factors Present: 1 ) Lag in EAV Growth • The minimum 3 factors 2) Inadequate Utilities are present as required 4) Lack of Community additional factors Planning • Threshold factor — 73% 5) Deterioration of the structures are 35 years old or greater. Lag in EAV : TIF District Compared to Balance of City • The Equalized Assessed Valuation (EAV) of the proposed TIF District lagged behind the balance of the City's EAV - For four of the last five years • e A c requires a minimum in. i • . - - • last five years Lagin EAV : TIF District Compared to Balance of City (improved area) Total EAV for Improved Area within Proposed TIF $7,586,079 $8,183,140 $8,188,256 $6,944,641 $6,831,749 $6,541,301 Annual Change(%) (6.97)% (0.61)% 17.91% 1.65% 4.44% — — -Total City EAV —(Minus EAV in TIF Sub-Arca 1) $2,621,217,173 $2,624,269,432 $2,460,924,627 $2,155,818,715 $1,932,631,922 $1,799,124,705 Annual Change(%) (.012)% 6.64% 14.15% 11.55% 7.42% Inadequate Utilities • The TIF Act defines "utilities" as public sector or private sector utilities, such as water, wastewater and stormwater facilities Based upon a City Engineering Department evaluation of the condition of the existing infrastructure, including roadways, the following improvements are required to address inadequate utilities: • Reconstruct all of Bluff City Boulevard with improved drainage (i.e. curb and gutter and storm sewer). •---R€-constru the bridge_over_Po ptar_Cree-k BuUUUn_ 1909). • Reconstruct Spaulding Road with improved drainage (i.e. curb and gutter and storm sewer), water main and sanitary sewer. • Reconstructed streets would need sidewalks, lighting, landscaping, heavy duty pavements (due to truck traffic usage) and signage. Deleterious Layout In general, poor parcel layout and lack of buffering in Sub-Area 1 (improved area) accounts for deleterious land use/layout. Regarding the parcel layout, certain commercial and light industrial/warehouses facilities are not configured to easily accommodate the movement and loading of truck traffic. Residential parcels are interspersed with commercial/industrial uses and there is lack of buffering between uses. Land Uses — Buffering, Access/Egress, Compatibility • Transportation layout is not optimal. Ingress and egress to businesses onto the two lane Bluff City Boulevard is accomplished through individual drive ways and curb cuts; for multiple uses including commercial, institutional (at the east end), and residential (to the west and interspersed with industrial/commercial uses in the center portion). • There is a lack of internal roads (such as service roads or frontage roa• s a wo • • - • : - _ - . ' - motorists have to enter and exit Bluff City Boulevard to get to adjacent businesses. • Lack of buffering is a deficiency observed through the sub-area. As mentioned, on Bluff City Boulevard there exist non- conforming single-family uses. Lack of Community Planning • The area's lack of community planning is evidenced by (a) its incompatible land uses (e.g., the proximity of commercial/industrial uses to residential uses and institutional uses), (b) inadequate parcel layout (e.g., irregular lot sizes and coordination of ingress and egress), (c) he lack of commercial loading and adequate transportation route provisions within the area, as discussed above, and (d) requirements for coordinated par ing . • ' - . : ' 0 - . • The majority of improved parcels were developed prior to the City's updates of its comprehensive plan in 1983 and 2005. • Redevelopment of the improved areas within the TIF District should discourage the mixing of conflicting land-uses with sufficient community planning and provide buffers between uses. Deterioration 1 • The area evidences deterioration • Improvements: - Distressed and damaged frames (windows/doors) and siding/exterior trim - Surface cracking of driveway pavement, sidewalks, and parking lots - Potholes and depressions in driveways and parking lots Site Improvements — Deterioration , ' '-' '' '7 i . '.'.. ''. -. , .,...:.- :- \ 4k+k ,M1 l M t k iI ta. 1 y sn sRq[^1@ye _ 'ti • ... .o-w l� • to° t ""'g"u � �. ,^1,t.,,,,41:','` G ��tv-4 lit 4,tb 1E #4h f fay '`N` ��.�7wvgr. - c '�",''`!.,;3"hU' �rj :`,i Y kx '�" `ap�.t .: t v Y4is " �,, " ,l ,1��a' 7 moi' a 3j'✓t, `;i r' 5£ -fib i'f A t,rM" -6 !': ; �T ,,,I, 4',i,-.„ o 'I M, Ail� A 4,,, srr-j4ei s k";,' ',!bs a�3n� t,� , ..,..„0, ....,t. . .. . .,.,,.„. 1. 14' ,4 d . . .. .. _______ Lr l� r..�l�+ 'i. 1. fes` y" s • 4! '- FA' \'''A.",: •:''S' F�:sig ii ® :; .# rte` . F ”" a .Sya� �, + ,� a�. � d,uCX,�;+G�sw"f..E"rLs 2 dnvn u ,� � Y ,bsn. d,,;'.7,:3:::':',4i, , SacrYs, .E5` % a.:-.1 - K_ • • •At ' Fes, �yyr I -=s :r jr c Y. 2 gtrtY .wr,. ..wwr N S .n t ecir .,,t, �'. . Blighted -Vacant Qualification Factors for Proposed TIF The TIF Act provides that if an area consists of "one or more unused quarries, mines, or strip mine ponds" the area would be qualified as "blighted vacant." Mining operations were undertaken in the north portion of the sub-area from at least as early as 1962 until approximately 2001 . The operations included surface excavations and mining of sand and gravel. Mining operations in the south portion of the sub area were discontinued in approximately summer of 2008. Portions of the sub-area that are not included in the TIF district are currently mined, and as a result, are excluded from the TIF boundaries. City of Elgin Proposed Bluff City/Quarry TIF District III . TIF Plan Redevelopment Objectives pecifi TIF Objectives, Strategies, &Measures General Economic Development Goals Comprehensive Plan Land Use Goals/Objectives/Actions Redevelopment Objectives - From City Comprehensive Plan The City encourages redevelopment of vacant areas and infill areas, as documented in its 2005 Comprehensive Plan. The Comprehensive Plan identifies the following goals: "Goal RR-1 - Maintain a sustainable urban environment in the City's existing core neighborhoods. Objective RR- 1 .1 - Promote a concentrated, cohesive relationship among compatible land uses. Policy RR-1 .1b. - Carefully evaluate redevelopmentarea-bounciaries-to-maintain-the_social stability of existing neighborhoods. Policy RR-1 .1c. - Conserve the assets and resources of mature residential neighborhoods. Policy RR-1 .1e. Work with property owners to remove constraints on vacant or underutilized parcels to encourage infill development or redevelopment. Policy RR-1 .1f. Provide for neighborhood, corridor and special area plans. TIF Plan Summary • Base EAV: $10,804,216 (2009 EAV) • Projected EAV: Upon completion of redevelopment activities, $75,000,000 to $80,000,000 - This is predicated on a number of assumptions, including market factors. • Proposed TIF Budget: $85,000,000 - The TIF Budget is a maximum amount which does not obligate the City to -expend-such-amounts - Budget sized to accommodate potential development requirements • Proposed Land Uses: Mixed use, residential,industrial,commercial and institutional • "But for" finding -- redevelopment will not go forward without the TIF assistance Proposed TIF Plan Budget Items Program Actions/Improvements Estimated Costs Land Acquisition and Relocation $10,000,000 Site Preparation $30,000,000 Utility and Public Improvements(Including Water, Storm, Sanitary Sewer, Service of Public Facilities, Parking Facilities, and Road Improvements) $30,000,000 Rehabilitation of Existing Structures/Taxing District Capital Improvements — $6,000,000 Interest Costs Pursuant to the Act $2,000,000 Professional Service Costs (Including Planning, Legal, Engineering, Administrative, Annual Reporting, and Marketing) $6,000,000 Job Training $500,000 School and Library District Reimbursements per TIF Act $500,000 TOTAL ESTIMATED TIF BUDGET $85,000,000 Proposed TIF Plan Budget Items Budget Guidelines - Overall budget covers 23 years: NOT an annual budget - Line-items in budget are flexible (e.g., if site preparation costs exceeded the line item estimate, than City has authority to -rea7rocate addit-lena+ftrnds from oiherILF budget line-items - Budget expenditures subject to City approvals and/or review of - - - redevelopment proposals in order to demonstrate payment of TIF expenditures Next Steps 411111111111111111111111111111111111111111111111111111111111111111111 • Public Hearing — March 9, 2011 - City elected and appointed officials review public input • TIF ordinances may be introduced 14 to 90 days after the Public Hearing - If the TIF ordinances are approved, they are then filed with e ou • _ . - - . • ! _ • • . • unties