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HomeMy WebLinkAbout2003 Riverfront Project Mgmt Team .. 7. Loni Mecum, City Clerk OFE ti Riverfront PROJECT MANAGEMENT TEAM • Minutes Project Management Team Meeting February 25, 2003 3:00 P.M. Members Present: Mayor Ed Schock, Chairman Patrick cAtee, Senior Director, METRA Jack Cook, Kane County Board John Ste fen, President, DNA Norma Meiss, Executive Director, DNA Mike T p, Owner, Promac Ken Moran, Vice President, State Financial Bank Stuart asilowski, City Councilman Leo Nelson, President, E A Chamber of Commerce Members Absent: Lynn Corrao, METRA Community Affairs Ruth Munson, State Representative Bruce Dahlquist, Architect Steve Rauschenberger, State Senator Patricia Reid Lindner, State Representative Randy Roberts, Gen. Mgr, Grand Victoria Casino Mike McCoy, Kane County Board Staff/Guests: 'Femi Folarin, Interim City Manager Becky Sietten, Public Information Officer Mark Biernacki, Community Development Mgr. Barbara Iverson, Economic Development Asst. Ray Moller, Economic Development Director Scott Chesney, Chesney & Associates, Sean Stegall, Assistant City Manager affiliated with Vandewalle&Associates Dave Lawry, General Services Manager Rich Hirschberg Members of the Press: Anne Marie Apollo, Courier News Tom O'Konowitz,Daily Herald I. Call to Order Mayor Ed Schock welcomed all present, and called the meeting to order. II. Approval of the January 28, 2003 Meetin2 Minutes The minutes of the January 28 meeting were approved as written. III. Announcements There were no announcements. IV. NBD Site—Discussion and recommendations on RFO presentations Ray announced the purpose of the meeting, to discuss the (presentations made at the previous meeting, evaluate the two proposed projects, and determine a recommendation. Scott announced that both development teams are deemed to be interested in the project and capable of completing it, and if not selected for the NBD site, each should still be considered an excellent choice for future development projects in Elgin. Scott distributed copies of two evaluation matrix documents for use by the PMT in assigning numeric values to aspects of the proposed projects, one titled Qualifications, taken from pages 7-9 of the RFQ, and one titled Objectives, from pages 5-6 of the RFQ. PMT Meeting Minutes February 25, 2003 rPage Two Scott discussed each of the criteria and advised that weighting values assigned to the criteria by his firm could be adjusted up or down by the PMT. Criticil criteria include Team Structure, Capitalization, Team Marketing, and Architecture and Context. In general, the PMT is seeking the project that offers the best balance of vision and capabilit}'. In most categories, the two development teams were evaluated as being fairly equal. Where differences were perceived, key considerations included a joint venture vs. a wholly-owned development team structure; the importance of being able to complete the project in phases, rather than being totally dependent on a market analysis to determine marketability; retaining the urban character of the particular section of the downtown by retaining existing buildings; conformity to Master Plan guidelines; and a development concept based on the existing, available site, vs. a concept based on acquisition of additional property. Using a scale of -5 to +5 for each of the criteria, voting members of the PMT recorded their evaluations of the proposed projects. Scott indicated that his office would calculate the weighted scores, and forward results to Ray the next day. A motion was made and passed authorizing staff to begin negotiation with the top-rated team immediately updn receipt of the evaluation results. Leo questioned how parking needs will be addressed when parking is no longer available at the NBD site. Ray indicated the planned time frame for the South Grove Parking Deck currently calls for partial completion of the deck in 2005, and that in structuring the development agreement for the NBD site,parking needs would have to be addressed. Scott recalled that more than one solution has been proposed, including temporary parking on the Festival Park site, and re-striping Grove Ave. to allow for diagonal parking. Scott concluded by commenting that before the development proposal reaches the City Council, the various boards and commissions and other interested parties will be given an opportunity for review and comment. Scott also noted that the concept plan could change during the process of negotiating the development agreement. V. Other Business John Steffen commented on heightened public awarencss of development activity in the downtown, and the expectation that it may result in tearing down existing buildings in order to create development parcels. Ray indicated the City has no control over private real estate transactions, but in enforcing Code and Zoning ordinances, will have some input on the style of projects, which can serve to preserve existing architecture. Mark indicated that unless property is located in a historic district, no means exists to stop demo ition, provided environmental issues have been addressed. Another potential for exerting some nternal control exists due to the fact that all demolition must be approved by Jerry Deering; thi can serve to delay demolition while alternative solutions to economic infeasibility are considered. However, it was affirmed that nothing can be done to actually prevent a private property owner from tearing down a structure. VI. Adjourn There being no further business, the meeting adjourned at 4100 P.M. VII. Next Regular Meeting Date: March 25, 2003 r Res ectfully submitted, Barbara Iverson, Recording Secretary C- //� ,,3fo3 -4 .- .77"."---7.47-7z6- 7f6 -.ceyl% OF •(-4 C Riverfront r , PROJECT MANAGEMENT TEAM Minutes Project Management Team Meeting January 28,2003 2:30 P.M. Members Present: Mayor Ed Schock, Chairman Leo Nel on, President Elgin Area Jack Cook, Kane County Board Chamber of Commerce Norma Meiss, Executive Director DNA Patrick McAtee, Senior Director METRA Ken Moran, Vice President State Financial Bank Stuart Wasilowski, City Councilman Members Absent: Lynn Corrao, METRA Community Affairs John Ste fen, Attorney Bruce Dahlquist, Architect Mike Trimp, Owner Promac Mike McCoy, Kane County Board Member Steve R uschenberger, State Senator Patricia Reid Lindner, State Representative Randy 1oberts, General Manager Ruth Munson, State Representative 9rand Victoria Casino Staff/Guests: 'Femi Folarin, Interim City Manager Barbara Iverson, City of Elgin Mark Biernacki, City of Elgin Scott Chesney, Vandewalle &Associates Ray Moller, City of Elgin I. Call to Order Mayor Ed Schock welcomed all present, and called the meeting to order. II. Announcements There were no announcements. III. Presentations 3:00 P.M. The Gammonley Group/PPKS Architects/Staubach Presenters: Dick Gammonley, David Kennedy, Rick Gammonley, Carrie Gammonley, Ron Bild, Bill Staubach The Gammonley Group has been in business for 15 years, and has completed $300 M in retail/residential development, specializing in high-density mixed-use development. The firm if selected will tailor the development at the NBD site to the clommunity's needs. Ron Bild and Bill Staubach discussed the retail component of the project, citing their prior experience with retail developments in Roselle, Downers Grove, and LaGrange. IPKS, in business since 1951, specializes in mixed use development in the suburban Chicago area, and also has an international component. Presenters reviewed Schedule A—the developMent site; Schedule B—the expanded site; and Schedule C—Division of condominium units into two buildings, which could also include an office component. -- PMT• Meeting Minutes January 28, 2003 Page Two Gammonley Group presentation continued: Comments and Questions: Q. What basis does the firm have for understanding urban waterfront marketing and the target market? A. Gamonnley understands the target market to be yo4ng professionals,perhaps with one child, and empty nesters. 65%of buyers will be Elgin resIdents. Steve Hovang/Tracy Cross could conduct a market study. Bringing people to the downtown supports the retail and other commercial activity. Q. Is Schedule A a viable project by itself? A. It depends on what type of partnership is formed'With the City. 4:00 P.M. Gallagher & Henry/Richard Hoffman Corporation/Pappageorge/Haymes LTD/Hitchcock Design Group Presenters: George Pappageorge, John Gallagher, Orchard Hill Building Corp., Joe Cohen, Hoffman Corp., Larry Biederman,Dave Frigo, Bill Hennesey Gallagher & Henry was founded in 1954, is self-financed, performs all masonry construction. Hoffman Corp. has been working with high rise construction since 1974; past projects have been completed in Chicago's River North and Gold Coast areas. Marketing strategy would be based on price points 2% - 5%below the rnarket, thus achieving fast sell-outs. Market points include the location, the use of functional units (the "Wow" factor), light, open entrance, and no floor lines visible on the exterior of the building. The Hoffinan/Gallagher& Henry team has been a leider in the construction of high rises. Day to day management of the project would be handled by -Ioffman. The presenter sees the proposed development asl serving to enliven the area, and envisions a proud building located at Chicago St. and S. Grove. Each building has a front door on the street. Their plans incline to the development of on -bedroom units because they can be absorbed by the market quickly. Plans are for 200 residential units, with 400 units of parking, 24 to 26 months construction. Marketing and advertising cost will be significant. A market study will be done that looks forward, to take into account projected future demand. Noise transference will be solved. The presenter considers the project to be Viable at the existing site. Joe Cohen would prefer taller buildings, incorporating 300 residential nits. IV. Other Business There was no other business. V. Next Regular Meeting Date: February 25, 2003 VI. Adjourn There being no further business, the meeting adjourned at 515 P.M. Respectfully submitted, Barbara Iverson Recording Secretary OF F4c, Riverfront 47. 11111 1111 PROJECT MANAGEMENT TEAM Minutes Project Management Team Meeting January 21, 2003 3:00 P.M. Members Present: Mayor Ed Schock, Committee Chairman Leo Nelsbn, President Elgin Area Jack Cook, Kane County Board Chamber of Commerce Patrick McAtee, Senior Director METRA John Ste fen, Attorney Norma Meiss, Executive Director DNA Mike Tnimp. Owner, Promac Ken Moran, Vice President State Financial Bank Stuart Wasilowski, City Councilman Ruth Munson, State Representative Members Absent: Lynn Corrao, METRA Community Affairs Patricia eid Lindner, State Representative Bruce Dahlquist, Architect Randy 1oberts, General Manager Mike McCoy, Kane County Board Member rand Victoria Casino Steve Rauschenberger, State Senator eh. Staff/Guests: 'Femi Folarin, Interim City Manager Becky letten, City of Elgin Mark Biernacki, City of Elgin Barbara Iverson, City of Elgin Ray Moller, City of Elgin Scott CIrsney, Vandewalle &Associates I. Call to Order Mayor Ed Schock welcomed all present, and called the meeyng to order. II. Approval of the October 22, 2002 Meeting Minutes The minutes of the October 22 meeting were approved as written. III. Annoucements There were no announcements. IV. 2003 Meeting Schedule The proposed schedule was reviewed and accepted by the committee as written. V. Welcome New Member Mayor Schock welcomed, Ruth Munson, newly appointed State Representative filling the vacant seat of the late Rep. Doug Hoeft,to membership on the PM1T. VI. Update on South Grove Residential and Festival Park The City is in the final stages of obtaining the Conditional Letter of MAP Revision for the flood plain issues and is assembling final information required regarding environmental issues. Zoning PMT Meeting Minutes January 21,2003 rik Page Two was approved by the Planning and Development Commission and is on the agenda of the February 12 City Council Meeting. The project is nearing the start of construction. VII. Update on North Fox/Kimball Project Status of land acquisition The City has talked with Mr. Roth jand his attorney. Mr. Roth is aware of the value of the land in the appraisal done by the City, and is having his own appraisal done, after which further discussion will take place. Tax issues are expected to be resolved in negotiation, once agreement has been reached on price. In aI separate process, business owners, who have leases that expire in March/April 2004, have indicated willingness to vacate earlier. The City has been working with business owners; a potential iew location has been found. Boundaries/content of current project area The Public Works property south of Ann Street will be traded to the library in exchange for a strip of riverfront property. The Public Works property north of Ann Street, together with the Elgin Salvage site and the former McBride/Seigle site which the City now owns, comprise the 20+ acre project area. This project can be considered Phase I of redevelopment of the area north of Kimball street. Environmental issues The City received an IEPA grant for the Public Works and Seigle sites, and has applied for an $800,000 USEPA Brownfield grant that if approved will provide $200,00 in additional funds for testing and assessment, and $600,000 for clean-up. These funds are in addition to the $4.85 M grant previously received to buy, remediate and redevelop the properties. rFuture development It is time to begin to think about longer term plans for the need to develop property adjacent to the Phase I project area. • The Master Plan specifies that non-residential uses north of Kimball will be relocated over time,with the exception of a limited amount of retail to serve area residents. • Neighboring businesses should be given a heads up regarding the City's plans once they are fully determined. o For later stages of redevelopment, which could be phased over 5 - 7 - 10 years, give businesses time to make plans o Allow time for the City to negotiate relocation forestalling a possible battle over eminent domain. • Phase I developers will want to know what to expect rearding clean up/future development of surrounding sites. Plans need to be made for properties that can have a negative impact on new development, affecting its quality. • As the project proceeds, more people will become aware of it, and more and more questions will be asked of the City. Planning should begin now in order to have answers. • A decision will need to be made whether to offer future parcels as is to developers who will resolve environmental issues, or whether the City will gp through the environmental clean-up process and offer clean sites for development. • The City has no budgeted funds for land acquisition in the area in the next 5 years; private sector development of smaller parcels is expected to follow the Phase I large scale project. • The process of translating the public values adopted in the Master Plan could be started with rneighborhood meetings to talk about how Ilan concepts will take shape. • PMT Meeting Minutes emk January 21, 2003 Page Three VIII. Update on Downtown Parking Appraisals have been done on South Grove and Fulton; conversations with Mr. Cope indicate he is having his own appraisal done. He has signed a contract to jurchase the Professional Building and plans to redevelop it. The City 2003 budget has funds forll design and land acquisition of the south parking deck. Construction could begin in 2004 with complete in spring of 2005. A pre design by Walker will be reviewed by the PMT at a future meeting. IX. Update on NBD Site Development Concept proposals were received from two development teams from a total list of 42 firms. Chesney& Associates made periodic phone calls to firms on the list to assess/solicit interest,but the downturn in the national economy has had a negative impact on development projects. Both concept proposals will be presented to the PMT by the development teams on January 28.Final selection and recommendation to the City Council will be made at a later date. Summary Gammonley Group: Expressed early interest in the project, attended the November Open House. Concept is a total replacement, one-storey project, differs from PMT expectations, but design could be modified. Fairly young team, trying to grow into urban projects. Have done a nice job on suburban projects, also 1111 S. Wabash and the Orleans in Chicago, more similar to PMT concept for NBD. Could be adequate for project, have Shown initiative. Concerns: 1) Lack of experience. But they are able to get financing, and their architects are talented and have worked with them for some time. 2) Their vision for the site is not an urban development. 3) How well capitalized are they to function as a developer for 4 project of this size. Could be great developer for other projects in Elgin that fit their past profile linore closely. Summary Gallagher&Henry Concept is the same as presented to the PMT previously. Addressed previous concerns, lack of detail about financing and no experience with urban high rise, by providing information and a strong financial guarantee, and adding Hoffman Corp., Which has achieved extremely rapid absorption of several multiple unit buildings in Chicago. Have indicated they will be entirely self-financed, a big plus if true. Pappageorge/Haymes ha4 a much deeper and broader track record as architects than PPKS , the Gammonley Group architect. A concern is similarity of the Pappageorge/Haymes design with the design of the PAR development; design changes can be negotiated. Has experience and resources to complete the project, poses less risk. PMT is comfortable with Hitchcock Design Group as landscape architect. X. Other Business There was no other business XI. Next Regular Meeting Date: February 25, 2003 XII. Adjourn There being no further business, the meeting adjourned at 5 o0 P.M. Respectfully submitted, Barbara Iverson, Recording Secretary .