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HomeMy WebLinkAbout1985 Elgin Metropolitan Exposition Auditorium MINUTES e" ELGIN METROPOLITAN EXPOSITION AUDITORIUM AND OFFICE BUILDING AUTHORITY MARCH 4, 1985 The meeting was called to order at 7:35 p.m. by Chairman Delvin Johnston. Members Present: Ed Kelly, Ron Pavlik, Jack Childers, Del Johnston, Christian Schock Members Absent: Charles Kaltenbach, Walter Cordin Guests Present: Mayor Richard L. Verbic, Bob Malm, Interim City Manager, Betsy Armistead, Hemmens Promotional Coordinator, Ed Spurr, Hemmens Operations Manager, Diane Ramsay, Elgin Convention/Visitors Bureau, Roger Dahlstrom, City Planning Department Director, Marianne Nelson, Elgin Area Chamber of Commerce, Jan Phillips, Ramada Inn. Ron Pavlik made a motion, seconded by Jack Childers, to accept the minutes of the February 4, 1985 meeting as presented. Carried. Mayor Verbic opened the meeting by stating that the guests invited to speak to the group are here to present various ideas as to where money available through the Civic Center Authority Act could be put to the best use. Representatives of several community organizations addressed the Authority. Their comments are listed below. Roger Dahlstrom, Director of Planning, City of Elgin - Mr. Dahlstrom suggested looking at what other cities have done in using funds from the Act would be a good place to start. He felt a lot could be learned from the mistakes of others. Cities like Rockford, Aurora, DeKalb and Decatur used most of their funds to improve their downtown areas and a decision would have to be made as to whether Elgin would like to do the same. These cities are very much like Elgin, their being older cities with a central area but still having potential for growth. Elgin has the advantage of not being land locked. The City has earmarked several older areas for redevelopment and the Authority could spear- head efforts in any one of these locations. Two plans have been adopted by the City in the past year and one-half. The Central Business District Plan was adopted in 1984 and the Comprehensive Plan in 1983. Both divide the City into three areas of redevelopment. 1. Conservation Area - This includes the Civic Center Complex and other redeveloped areas. 2. Improvement Area I - In need of rehabilitation. Some level of deter- ioration has begun to set in. 3. Improvement Area II - Downtown or City at large that shows some advanced form of disenvestment. These tools could be valuable to this Authority in their effort to carry out a project. The Planning Department can be used as a resource for the group as they have pertinent data and could guide them as to the feasibility of a project. The entire City contains areas that are appropriate for redevelopment or rehabilitation. These areas are not limited to the Central Business District. '""'. Elgin Metropolitan Exposition Auditorium and Office Building Authority Minutes March 4, 1985 Page 2 of 5 Ed Spurr, Hemmens Operations Manager - Mr. Spurr offered ideas for improve- ment of the Hemmens Auditorium. He stated that in the Hemmens building, Elgin already has what other cities are presently building with monies pro- vided by the Civic Center Authority Act. He suggested the addition of a little theater to the Auditorium. The exhibition room is presently tied up for approximately 26 week-ends per year with community theater groups. A square atrium type building of approximately 9,000 square feet with perma- nent seating could be built either across from or in front of the present facility. The addition could accommodate 250-300 people, an ideal size for community theater groups, and could also be used as exhibition space. Mr. Kelly asked if the 1,200 seating capacity of the Hemmens Auditorium was determined because of design and acoustics or was the size a monetary factor. Mayor Verbic said the size was probably because of monetary restrictions and the population of the City at the time of construction. Mr. Schock added that the original bequest for the building was $750,000 but due to the stock being worth more than expected, the Hemmens was constructed. Otherwise, the auditorium would not have been built at all . Mr. Pavlik asked Mr. Spurr if he felt the facility is presently large enough. Mr. Spurr answered "Yes". Ms. Armistead said the next step beyond the Hemmens would be a Poplar Creek type facility. She feels the Auditorium itself is large enough but if an extension is to be done, Mr. Spurr's idea would be favorable. Mr. Spurr said that if the Authority decided on an addition to the Hemmens as a project, they would have to acquire title to the property from the City, because under the requirements of the Civic Center Authority Act, they must have legal title. The building presently gets its gas and electricity free through the City. If title were transferred, that benefit would be lost. Mr. Dahlstrom said the Hemmens Auditorium was built through an urban renewal project and the federal government would have to be contacted to determine if this type of addition can be done. Betsy Armistead - Hemmens Promotional Coordinator - Ms. Armistead asked the members of the Authority what they had in mind for the Hemmens Auditorium. They unanimously agreed that they are open to any suggestions. She basically supported Mr. Spurr's recommendations for a community theater addition but felt more parking would be needed. She also said that most conventions and meetings are self contained and the distance of the hotels in Elgin from the Auditorium make it less appealing. Elgin Metropolitan Exposition Auditorium and Office Building Authority Minutes March 4, 1985 Page 3 of 5 Mr. Kelly asked if any remodeling would be necessary to the Hemmens building in the near future. Mr. Spurr answered, "No". Diane Ramsay, Convention/Visitors Bureau - Ms. Ramsay feels that a lot of work needs to be done in the City. She would like to see a road through the mall , diagonal parking, a contract with about 15 stores to locate in the mall at one time, tax incentives and gas lamps to improve the appearance of the area. As an example, she said the City of Norfolk, Virginia had a downtown problem simi- lar to Elgin's. They have implemented some of the above suggestions and are slowly changing and improving the area. Ms. Ramsay would like to see more small meeting rooms at the Hemmens Auditorium as all the rooms presently available are too large for many groups. She also feels the City needs more hotel space. At present, there are 350 hotel rooms available and another 200-250 rooms could be made available near the Auditorium. Ms. Phillips of the Ramada Inn said that the type of facility that caters only to convention trade has not been successful in the past. Mr. Schock asked Ms. Ramsay what she considered the downtown area. She said the mall and South Grove could be considered as such. Mr. Schock said that he feels that gas lamps would be inconsistent with the nature of the Elgin community. He feels that downtown Elgin looks better now than it ever has but no one uses it. The City's problems are similar to those faced in other areas. Cultural attitudes have changed. He suggested asking City residents what they want done before proceeding with anything. Marianne Nelson, Elgin Area Chamber of Commerce - Ms. Nelson said a problem with increasing facilities at the Hemmens would be the lack of adequate park- ing in the area and the absence of support services in the immediate vicinity. She also suggested an increase in the flexibility of the Auditorium and more hotel space within walking distance of the building. In 1972, a site plan entitled Level XV was completed for the Hemmens area. Ms. Nelson said the Authority could get some very good ideas from this document. Mr. Malm stated that the plan was never implemented because at that time there was no market. Elgin Metropolitan Exposition Auditorium and Office Building Authority Minutes March 4, 1985 Page 4 of 5 Roger Dahlstrom supplied the Authority with some information regarding the proposed Borden Square project. The site is comprised of a three acre block bordered by the Civic Center complex on the south, Kimball Street on the north, Grove Avenue on the west and Brook Street on the east. Water Street would become a walkway through the area. Access would be oriented to the north and 250 parking spaces would be constructed. The name of the complex is derived from the old Borden milk condensing plant on the premises. The development group that is interested in this property hopes to secure a commitment of federal funds in the amount of $175,000 through block grant and tax incremental financing funds. The City could possibly construct the park- ing area for the private ownership. The developers are now taking a "wait and see attitude" to determine what Washington will do with the Economic Recovery Tax Act. The project would contain about 64,000 square feet of retail space- and 6,000 to 8,000 square feet of restaurant space. Jan Phillips, Ramada Inn - Ms. Phillips suggested the improvement of Route 31 , the route commonly used from area hotels to the Hemmens Auditorium. Ed Kelly, Executive Vice President, Elgin Area Chamber of Commerce - Mr. Kelly said the Hemmens Auditorium is a facility that is provided for the community and one of the strong points of the area. Parking could be improved in long and short range plans for the area. He felt the ideas presented tonight were the most logical in terms of short range plans. Right now, a project of $1,000,000 or less would enhance the chances of state approval . More funds could be requested at a later date. He said a good starting place would be improvements to the Hemmens Auditorium. Mr. Pavlik stated that the Hemmens Auditorium does not show a profit at the present time because of the low rates. He inquired as to how many days per year the facility is used. Ms. Armistead answered that the auditorium is used on an average of one and one-half times per day or about 500 times per year. Not-for-profit groups receive a 35 percent discount on the rental fee. This accounts for the lack of profit on rentals. Mayor Verbic said that if this discount was not made available, most groups would not use the facility and Mr. Schock added that the building may be a loss leader but it is constructive. Mr. Kelly stated that the Convention/Visitors Bureau was formed in part to promote the facilities at the Hemmens. Local use is increasing and some of the ideas proposed this evening would bring outsiders in at a higher rental rate. Mr. Spurr said that use of the Hemmens stimulates a certain amount of local business such as restaurant trade, etc. Elgin Metropolitan Exposition Auditorium and Office Building Authority March 4, 1985 Page 5 of 5 Mr. Spurr said the kitchen at the Hemmens is presently being refurbished, making it more appealing for wedding receptions, large dinners and other similar catered affairs. Mr. Childers asked Mr. Spurr about the probability of booking the Auditorium for the 26 weeks that would be left open if the various community theater groups moved into a small facility. Mr. Spurr felt there would be no problem renting the facility. Mr. Johnston inquired as to what kind of rate increase would be needed to break even on the building. Mr. Spurr replied a 40 percent across-the-board increase would be required. Mr. Johnston thanked all those who attended the meeting and said the Authority would be in contact with some of them to give them an opportunity to expand on their ideas. Mayor Verbic also thanked all the speakers and said that he felt all their rt. ideas were significant and they had given members of the Authority a lot to think about. He then suggested inviting someone from Springfield to attend the April meeting and address the group. He said he could arrange the details. The Authority will meet again in April 1. The establishment of a budget and further discussion of any additional ideas will be on the agenda. There being no further business before the Authority, the meeting was adjourned at 9:00 p.m. Respectfully submitted, )(14 ,,c,c)J9, _i _ Andrea M. Paetsch. eft MINUTES ELGIN METROPOLITAN EXPOSITION AUDITORIUM AND OFFICE BUILDING AUTHORITY APRIL 1, 1985 The meeting was called to order at 7:35 p.m. by Chairman Delvin Johnston. Members Present: Charles Kaltenbach, Ed Kelly, Ron Pavlik, Jack Childers, Walter Cordin, Delvin Johnston, Christian Schock Guest Present: Betty Hoxey, Program Director of Civic Centers, IDCCA, Springfield, IL APPROVAL OF MINUTES Ron Pavlik made a motion, seconded by Jack Childers, to accept the minutes of the March 4, 1985 meeting as presented. Approved. NEW BUSINESS DISCUSSION WITH BETTY HOXEY, PROGRAM DIRECTOR FOR CIVIC CENTERS, IDCCA, SPRINGFIELD Ms. Hoxey stated that since Elgin has organized a Civic Center Authority, the City is eligible to participate in the State Civic Center Authority. The State Authority's funds are made available from a 33.5 percent share of re- ceipts from taxes on horse racing. The Authority is by law limited to $75 million in bond principal outstanding at one time. They are presently at that cap but can recertify $5 million per year. Legislation has been proposed to establish a reserve fund for the Civic Center Support Program which will enable them to use the actual revenue from racing receipts. Also proposed has been a tighter handle on the program. Ms. Hoxey would like to see future projects developed in areas where they would be an economic as well as a cultural tool . To help insure this, an application must be accom- panied by an economic feasibility plan, a master building plan and a financial plan. If the funds are approved, the City will be reimbursed for the cost of these plans. Ms. Hoxey informed the Authority that right now there is a great demand for the available funds and there is now a bill in the legislature to increase the Authority's share of race track funds from 33.5 to 35.5 percent. At this time she does not know what the General Assembly will do with the program and the outcome will not be known until July 1st. If the legislation is passed $1.5 million in debt service would be provided, allowing the State Authority to Fund $10 million. r Elgin Metropolitan Exposition Auditorium and Office Building Authority April 1 , 1985 Page 2 of 3 Mr. Pavlik asked Ms. Hoxey if she felt it would be worthwhile for the Elgin Authority to continue with plans to request funds since money is tight. Ms. Hoxey answered that the group should continue in their efforts but to do so leisurely. Mr. Pavlik asked how long certification takes. Ms. Hoxey answered that it depends on how good the application is. Fourteen days are needed to determine if the application is correct. Another 60 days are required to evaluate an application. This evaluation will consider the worth of the project and what it will do for the community. The state does not want to build a lot of "white elephants" throughout the state. The pro- ject must be an asset to the community and operate in the black or at least on a break even basis. Ms. Hoxey informed the group that smaller projects have a better chance of being funded at this time. Mr. Johnston thanked Ms. Hoxey for coming to Elgin and told her the Authority would call upon her again in the future. Ms. Hoxey told the group that when they are ready to submit an application for funds, she would hold a pre-application meeting with them to straighten out any problems or errors in the application. ESTABLISHMENT OF A BUDGET The matter was tabled until the May meeting. OLD BUSINESS FURTHER DISCUSSION OF IDEAS PRESENTED AT THE MARCH 4th MEETING Mr. Johnston suggested the group look at the Crocker Theater in the down- town area as a possible project. If that building were used for small theater groups, functions could still be held at the Hemmens Auditorium at the same time. Mr. Pavlik suggested extending invitations to the various groups presently using the Hemmens Auditorium to come and speak to the Authority to give their input. The recording secretary was instructed to compile such a list and present it to the members of the Authority. After their review of the list, invitations will be sent to selected users of the Auditorium, asking them to appear at the May 6th meeting to present their ideas and answer any questions the members of the Authority may have. The Authority is interested in knowing Elgin Metropolitan Exposition Auditorium and Office Building Authority April 1, 1985 Page 3 of 3 how many people attend performances, what kind of backing they receive from the community, how many performances are held each year and the financial status of the groups. OTHER BUSINESS Mr. Pavlik said that he felt uncomfortable serving on the Civic. Center Authority because he is not a resident of Elgin. He offered to tender his resignation. The members of the Authority unanimously agreed that Mr. Pavlik was a very useful member of the group and is strongly identified with the community because of his business. Mr. Pavlik agreed to remain. Mr. Pavlik suggested inviting members of the City Council to a future meeting to get their ideas as to what is needed in the community. Mr. Johnston set the next meeting of the Authority for Monday, May 6th, at 7:30 p.m. k There being no further business before the Authority, the meeting was adjourned at 8:50 p.m. Respectfully submitted, *Oka— . fad tiTh Andrea M. Paetsch r r -. MINUTES ELGIN METROPOLITAN EXPOSITION AUDITORIUM AND OFFICE BUILDING AUTHORITY AUGUST 5, 1985 The meeting was called to order at 7: 30 a.m. by Chairman Delvin Johnston. Members Present: Charles Kaltenbach, Ed Kelly, Ron Pavlik, Walter Cordin, Delvin Johnston, Christian Schock Members Absent: Jack Childers Guests Present: Mayor Richard L. Verbic Robert 0. Malm, Interim City Manager, Roger Dahlstrom, Planning Director, Councilwoman Marlene Shales Dick Gromer, Greater Downtown Elgin Commission Jim Knowles, Greater Downtown Elgin Commission APPROVAL OF MINUTES Walter Cordin made a motion, seconded by Ron Pavlik, to accept elk the minutes of the July 1, 1985 meeting as presented. Motion was approved. OLD BUSINESS REVIEW OF MUTUAL THOUGHTS AND IDEAS WITH CITY OF ELGIN REPRESENTATIVES Chairman Johnston informed all those present that the purpose of the group was discussed at last month' s meeting. In the last several months of meetings they have not been able to come up with any solid projects to pursue. At this point they were hoping to get some input from City staff as to what was expected of the Commission. Bob Malm stated the reason for the organization of the Commission was to meet a state deadline for formation. Most communities who used these funds in the past had a project in mind before application. Roger Dahlstrom suggested looking into the Borden Square property because of the tax benefits. He felt that location would be ideal for a little theater. Chairman Johnston felt a little theater could not pay for itself and would not want to see any further burden placed on taxpayers. =7:169 V N. Elgin Metropolitan Exposition Auditorium and Office Building Authority August 5, 1985 Page 2 of 2 Mr. Dahlstrom said the Borden Square project is going nowhere at the present time but the property is available for Economic Recovery Tax Act funds because the structure is on the National Register for Historic Places. If a developer could be found this could be a viable project . It could possibly be developed in phases, working with about 10,000 square feet at a time. Structural repair to the building would amount to 2/3 of the total costs. Dick Gromer and Marlene Shales suggested bringing a movie theater to the area, but Walter Cordin said that movie theaters usually do not do well unless they are multi-screen and located near a mall. Chairman Johnston told Mayor Verbic that the Borden Square project might be a feasible project and the Mayor agreed to have all available material sent out to the Commission before their next meeting. Roger Dahlstrom will provide this material. OTHER BUSINESS Chairman Johnston informed the Commission that the meeting date for September falls on Labor Day. The Commission agreed to reschedule the meeting for the second Monday, September 9th, at 7:30 a.m. in the Board Room of First Federal Savings & Loan. There being no further business before the Commission, Walter Cordin made a motion, seconded by Ron Pavlik, to adjourn the meeting at 8: 25 a.m. The motion was approved. Respectfully submitted, )11AOhjeti ) .1thJ Andrea M. Paetsch Recording Secretary • r MINUTES ELGIN METROPOLITAN EXPOSITION AUDITORIUM AND OFFICE BUILDING AUTHORITY SEPTEMBER 9, 1985 The meeting was called to order by Chairman Delvin Johnston at 7:35 A.M. Members Present: Delvin Johnston, Walter Cordin, Ron Pavlik, Christian Schock, Ed Kelly, Charles Kaltenbach Members Absent: Jack Childers APPROVAL OF MINUTES Minutes of the July 5, 1985 meeting were accepted as presented. CONTINUED DISCUSSION OF PROJECT POSSIBILITIES Walter Cordin reported on the information he had gathered on the Borden Square site. Borden Square was one of the possible projects discussed at previous meetings. The Borden Square site is north of the Elgin City Hall, Appellate Court and Hemmens Auditorium and east of the Gail Borden Library. It is bounded by North Street on the south, Grove Avenue on the west, Kimball Street on the north and Brook Street on the east. It is the site of the old Borden Creamery Building and has recently been placed on the National Register of Historic Places. The property has an area of three acres overall, including the vacated right of way of Water Street. Existing buildings occupy approximately one-half of the site with 17,000 square feet of existing structures to the north of Water Street and 44,000 square feet to the south of Water Street. A possible project use for the property could be as follows: 1. Clear site of miscellaneous buildings. 2. Rehabilitate the remaining major structures for commercial use at an esti- mated cost of $70.00 per square foot. 3. Lease a portion of the cleared site to a prospective tenant for a compatible commercial use. 4. Construct a parking facility on the balance of the land to service the commercial uses and provide additional parking for the Hemmens Auditorium. A discussion followed on the financial feasibility of such a project. The possibility of benefits that might be gained from the Elgin Enterprize Zone, and tax incremental financing were mentioned. Assistance by the City of Elgin in providing off-site improvements would also be helpful. r Elgin Metropolitan Exposition Auditorium and Office Building Authority September 9, 1985 Page 2 of 2 The authority felt that a meeting should be held with the City Planning Department to continue discussions on the three acre Borden Square site. An invitation will be extended to them to attend our next meeting. The next meeting was set for 6:30 P.M. Tuesday, October 1, 1985, at First Federal Savings, 28 North Grove Avenue. A light supper will be served. There being no further business, the meeting was adjourned at 8:25 A.M. Respectfully submitted, Charles F. Kaltenbach r r ELGIN METROPOLITAN EXPOSITION AUTHORITY First Federal Savings & Loan Association of Elgin 7:30 a.m. , October 1, 1985 MINUTES PRESENT OTHERS PRESENT Charles Kaltenbach Mayor Richard Verbic Ed Kelly Roger Dahlstrom Ronald Pavlik Christian Schock Jack Childers CONTINUED DISCUSSION OF PROJECT POSSIBILITIES Roger Dahlstrom reported that the House Ways and Means Committee has reported out that TIF bonds are not tax deductible. Even though it has not been voted on by congress, a bond attorney would not give a favorable opinion. He stated a bill has been passed by both houses of the Illinois legislature that sales tax generated by the project could be returned to the TIF. This could be significant if the retail was a large part of a project. The legal department has not yet had an opportunity to issue an opinion on the Borden project as to whether or not it falls under the Elgin Metropolitan Exposition Authority and whether or not state guaranteed bonds could be issued. In the discussion that followed, the city was asked to check out the following regarding the Elgin Metropolitan Auditorium Authority. If an office complex was developed on Borden Square would it have to have a physical connection to Hemmens? Secondly, if "Borden Square" was a viable project, would the authority need proprietory interest in Hemmens Auditorium and would the authority have to own the Borden project buildings? Mayor Verbic felt the tax investment credit law would be a most viable tool to encourage a developer by setting up a limited partnership to recapture invest- ment credits on economic recovery tax act in relation to the extensive remo- deling of the existing buildings in Borden Square. ADJOURNMENT There being no further business, the meeting was adjourned. These minutes respectfully submitted, M hwrdK E a elly, C i) (3)