HomeMy WebLinkAboutG82-06 (4) Ordinance No. G82-06
AN ORDINANCE
PROVIDING FOR FEASIBILITY STUDY FOR PROPOSED GROVE AVENUE/LINCOLN
AVENUE TAX INCREMENT FINANCING (TIF) DISTRICT
WHEREAS, the City of Elgin ("City") is a duly organized and existing municipality of
the State of Illinois, and pursuant to Section 6 of Article VII of the 1970 Constitution of the State
of Illinois, the City is a home rule unit and as such may exercise any power incidental to its
government and affairs; and
WHEREAS, the City is authorized to take certain actions pertaining to redevelopment
activities; and
WHEREAS, the Mayor and City Council have determined that it is in the best interests of
the City that certain property, generally described in Exhibit A attached hereto and incorporated
herein by this reference (the "Area") be redeveloped; and
WHEREAS, the Area contains a number of impediments to private investment and
development and it is not reasonably anticipated to be developed without certain public
assistance by the City; and
WHEREAS, in order to redevelop the Area, it may be necessary to undertake certain
public improvements and to pay certain site preparation and related costs; and
WHEREAS, the Mayor and City Council are desirous of having the Area redeveloped,
and believe that it is not economically feasible to do so given the impediments to redevelopment
which characterize the Area; and
WHEREAS, the following redevelopment goals and objectives are being contemplated
for the Area:
• Strengthen the economic well-being of the Area.
• Maintain and enhance the economic diversity throughout the Area.
• Improve and upgrade existing surface infrastructure, including streets, curbs, gutters,
sidewalks, lighting, alleys and other public facilities.
• Removal and redevelopment of sites with existing inappropriate land uses and encourage
the redevelopment of properties at appropriate densities.
• Assemble or encourage the assembly of land into parcels of appropriate shape and
sufficient size for redevelopment.
• Create an environment that stimulates private investment in residential development.
egmk • Provide needed improvements and facilities in proper relationship to the projected
demand for such facilities and in accordance with present-day design standards for such
facilities.
• Create new job opportunities for City residents through new developments, and utilizing
existing hiring programs and appropriate job training programs.
WHEREAS, the Mayor and City Council have reviewed the conditions of the Area and
have reason to believe that the cost of the necessary public improvements, site acquisition and
preparation costs, and certain other costs to be incurred may qualify for tax increment financing
(TIF) pursuant to the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4-1, et
seq.) (the "Act"), provided the Mayor and City Council, within their sole discretion, approve a
formal agreement for tax increment financing in accordance with the Act; and
WHEREAS, the Act provides a means for municipalities, to finance eligible
redevelopment project costs with incremental property tax revenues, a tax increment being the
difference between the amount of property tax revenue generated before TIF district designation
and the amount of property tax revenue generated after TIF designation; and
WHEREAS, the establishment of a TIF does not reduce property tax revenues available
to the overlapping taxing bodies because the property taxes collected on properties included in
the TIF at the time of its designation continue to be distributed to the school districts, county,
community college and all other taxing districts in the same manner as if the TIF did not exist
and the only property taxes generated by the incremental increase in the value of these properties
after that time are available for use by the TIF; and
WHEREAS, the Mayor and City Council have determined that it is in its best interests of
the city to initiate a feasibility study regarding the creation of a TIF District for the Area pursuant
to the Act; and
WHEREAS, the Mayor and City Council reasonably expect to issue obligations in
connection with the redevelopment of the Area in an amount not to exceed $20 million, a portion
of which will be used to reimburse the City for the expenditures contemplated herein; and
WHEREAS, the City has designated Raymond H. Moller, the City's Director of
Economic Development and Business Services, as the person to contact for additional
information about the creation of a TIF District for the Area and as the person who should
receive all comments and suggestions regarding the redevelopment of the proposed TIF District
for the Area.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS, AS FOLLOWS:
1. The foregoing recitals shall be and are hereby incorporated in this paragraph one as if
said recitals were fully set forth herein.
2. The Mayor and City Council have determined that the City shall initiate a feasibility
study to determine the viability of creating a TIF District for the Area under the
provisions of the Act.
3. The Mayor and City Council will engage in planning related to the redevelopment of the
Area and will take such actions and incur such costs as they deem appropriate and
necessary relative to the planning related to the redevelopment of the Area under the Act.
4. All undertakings of the Mayor and City Council set forth herein are specifically
contingent upon the ability of the Mayor and City Council to determine, within their
discretion, that the development or redevelopment of the Area includes costs that would
qualify for tax increment financing under the Act.
5. There is no anticipated purpose that would result in the displacement of residents from
ten(10) or more inhabited residential units at the Site.
6. The Mayor and City Council reasonably expect to issue obligations in connection with
the Site in an amount not to exceed $20 million, a portion of which will be used to
reimburse the City for the expenditures contemplated herein.
7. There is hereby established an interested parties registry pursuant to section 11-74.4-4.2
of the Act which shall be governed as follows:
i. The city clerk shall maintain registration forms.
ii. Parties interested in registering pursuant to this section shall complete the
registration form maintained by the city clerk and file such form with the city
clerk.
iii. Each registration shall be effective for three years from the date of issue; notice of
renewal shall be mailed by the city clerk to the name of the organization or
individual and address listed on the completed registration form not more than
ninety (90) days nor less than thirty (30) days prior to the expiration of the
registration. All registrations shall be provided with an expiration date
corresponding to the next end of quarter according to the City's fiscal year.
8. Raymond H. Moller, the City's Director of Economic Development and Business
Services, is hereby designated as the person to contact for additional information about
the creation of a TIF District for the Area and as the person who should receive all
comments and suggestions regarding the redevelopment of the proposed TIF District for
the Area. Additional information, comments and suggestions regarding the Area should
be addressed to: Raymond H. Moller, Director of Economic Development and Business
Services, City of Elgin 150 Dexter Court, Elgin, IL 60120-5555; (847) 931-6749.
9. If any section, paragraph clause or provision of this ordinance shall be held invalid, said
invalidity shall not affect any other provision of this ordinance.
10. This ordinance shall be in full force and effect from and after its passage and approval in
the manner provided by law.
Ed Schock, Mayor
Presented: November 29, 2006
Passed: November 29, 2006
Omnibus Vote: Yeas: 7 Nays: 0
Recorded: November 30, 2006
Published:
Attest:
Dolonna Mecum, City Cler
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EXHIBIT A
The area described as follows:
Commencing at the intersection of the North line of Slade Avenue and the East line of North
Grove Avenue, thence Southerly along the East line of North Grove Avenue to the intersection
of the South line of Lincoln Avenue, thence Westerly along the South line of Lincoln Avenue to
the intersection of the West line of the former Union Pacific Railway Line, thence Northeasterly
along the West line of the former Union Pacific Railway Line to the intersection of the North
line of Slade Avenue, thence Easterly along the North line of Slade Avenue to the point of
beginning at the intersection of the North line of Slade Avenue and the East line of North Grove
Avenue.
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EXHIBIT A
The area described as follows:
Commencing at the intersection of the North line of Slade Avenue and the East line of North
Grove Avenue, thence Southerly along the East line of North Grove Avenue to the intersection
of the South line of Lincoln Avenue, thence Westerly along the South line of Lincoln Avenue to
the intersection of the West line of the former Union Pacific Railway Line, thence Northeasterly
along the West line of the former Union Pacific Railway Line to the intersection of the North
line of Slade Avenue, thence Easterly along the North line of Slade Avenue to the point of
beginning at the intersection of the North line of Slade Avenue and the East line of North Grove
Avenue.
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City of Elgin
T.I.F. District - Proposed Grove Ave/Lincoln Ave 0 Proposed Grove/Lincoln TIF District
Map prepared by City of Elgin t0oo m0o 2000 Feet
Department of Community Development November 2006
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June 9, 2006 `` t NORTHWEST 7
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, City Manager
Raymond H. Moller, Director of Economic Development and Business Services
SUBJECT: TIF Analysis Consulting Services for Existing South Grove TIF and a Potential
Grove/Lincoln TIF District
PURPOSE
The purpose of this memorandum is to share with the City Council a proposal from Ehlers &
Associates, Inc. to provide consulting services for the analysis related to the extension of the
term of the South Grove Tax Increment Financing (TIF) District and the eligibility of a Grove
Avenue/Lincoln Avenue TIF Study Area.
RECOMMENDATION
It is recommended that the City Council authorize staff to enter into a professional service
agreement with Ehlers & Associates in the amount of$50,000 for consulting services related to
the extension of the South Grove TIF and the analysis of a TIF district in the area of:
Douglas/Lincoln Avenues.
BACKGROUND
I. South Grove TIF Extension
The South Grove TIF District was created in 1986 and the term of the district will expire in
2009. The services proposed by Ehlers relates to the extension of the life of the district. The
extension of the term of a Tax Increment Financing District in the State requires the approval of
the Illinois General Assembly. The Illinois General Assembly has established a process for
reviewing and approving TIF term extensions. At a minimum, the municipality must have the
support of the impacted school district(s) and the State legislators representing the community.
Ideally, a majority of the joint review board members will also support the term extension, which
might include a narrative description of the TIF's progress to date and identification of projects
contemplated within the TIF that would not reasonably be anticipated to be completed without
the extension of the term of the TIF. If this foundation is established, the redevelopment project
and plan may require a "major amendment" due to such triggers as a significant change in the
redevelopment project budget, the redevelopment project scope or intended land use.
The following steps are proposed for this phase of the consulting services:
TIF Analysis Consulting Services
June 9, 2006
Page 2
• Review of the existing redevelopment project and plan and any other relevant documents
such as a redevelopment agreement(s) or official statement(s);
• A field survey of the South Grove TIF to determine status of redevelopment project
activities;
• Key person interviews with City staff regarding outstanding financial commitments or
obligations;
• Review of the City's TIF annual reports;
• One or more meetings with the City's key state legislator(s) or legislative lobbyist(s);
• Analyze and estimate incremental revenue potential with and without a term extension;
• Draft amendments to the redevelopment project and plan; and
• Presentations to taxing districts, City Council or the public.
II. Grove/Lincoln TIF Study Area
Ehlers, in cooperation with representatives of the City of Elgin, will provide technical and
professional assistance in the management of the tax increment financing process, including
completion of reports documenting eligibility of the Grove/Lincoln TIF Study Area, preliminary
analysis of tax increment review potential and the writing of the redevelopment plan. In
addition, Ehlers will participate in presenting project study findings and plans in public meetings
with representatives of the City of Elgin, the public and other taxing districts.
The analysis will include the following steps:
• Start up meeting;
• Eligibility surveys and analysis;
• Listing of the required public improvements and facilities and alternative proposals
covering requisitions, site preparation and new development;
• Preliminary tax increment financing analysis;
• Draft project eligibility report;
• Public hearing preparation;
• Final report;
• Joint review board meeting and public hearing; and
• Final action on ordinances
Ehlers is being recommended as the consultant on this project because their staff representative,
Ms. Lisa Lyon, served as the City's TIF consultant for the Central Area TIF project. Ms. Lyon's
knowledge of the City and her familiarity with the staff will help expedite the analysis for the
two study areas in question. Work related to the South Grove TIF extension analysis should
begin as soon as possible due to the time that may be required to complete the legislative
TIF Analysis Consulting Services
June 9, 2006
Page 3
process. It is important to begin the Grove/Lincoln TIF analysis in a timely fashion in order to
meet the project timing scheduling identified by the developer(December 2006).
Pricing:
➢ South Grove TIF Analysis Not to exceed $25,000
➢ Grove/Lincoln TIF Study Area $25,000
Schedule:
➢ South Grove TIF Analysis June 21, 2006
➢ Grove/Lincoln TIF Study Area July 1, 2006
(Complete within 4— 6 months)
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
This initiative was not included in the 2006 Budget. The cost of the professional services for the
TIF analysis by Ehlers & Associates is $50,000. The Riverboat Fund Contingency Account 275-
0000-791.84-01 ($565,074 has been budgeted and $564,604 is available for appropriation) is
recommended to fund the project. This is an appropriate use of contingency funds as it is an
unanticipated expenditure. A budget transfer from 275-000-791.84-01 (Contingency) to 275-
000-791.30-99 (Miscellaneous Professional Services) will be made to appropriately account for
the expenditure.
LEGAL IMPACT
A professional services agreement with the consultant is required. The approval of the
agreement requires an exception to the procurement ordinance. •
TIF Analysis Consulting Services
June 9, 2006
Page 4
ALTERNATIVES
1. Authorize the preparation of a professional services agreement with Ehlers & Associates for
TIF related services.
2. Choose not to authorize an agreement with Ehlers & Associates for TIF related services.
Respectfully submitted for Council consideration.
RHM/j r
Attachment