06-85 Recorded Resolution No. 06-85
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOP ENT AGREEMENT
WITH SENIOR LIFESTYLE CORP RATION
FOR 508 N. MC LEAN BOULEVARD AND 465 EAGLE ROAD
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock, Mayor, and Dolonna Mecum, City Clerk,be and are hereby authorized and directed to
execute a Development Agreement with Senior Lifestyle Corporation on behalf of the City of Elgin
for 508 N. McLean Boulevard and 1465 Eagle Road in connection with the Autumn Green Senior
Facility, a copy of which is attached hereto and made a part hereof by reference.
s/E Schock
Ed S hock, Mayor
Presented: April 12, 2006
Adopted: April 12, 2006
Vote: Yeas: 5 Nays: 2
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
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DEVELOPMENT AGREEMENT
This Development Agreement is made and entered into,this 12th day of April,2006,by and
between the City of Elgin, an Illinois municipal corporation, (hereinafter referred to as the"City"),
and Senior Lifestyle Corporation, an Illinois corporation, (hereinafter referred to as "Owner").
WITNESSETH:
WHEREAS, Owner is the owner of the real estate commonly known as 508 North McLean
Boulevard and 1465 Eagle Road, Elgin,Kane County, Illinois,such property being legally described
on Exhibit 1 attached hereto (hereinafter referred to as the "Sibject Property"); and
WHEREAS,Owner and the previous owner of the Subject Property have filed a development
application with the City for the Subject Property which was administratively assigned Petition No.
71-05 (hereinafter referred to as the "Petition"); and
WHEREAS, Owner has requested in the Petition that the Subject Property be reclassified
from the AB Area Business District, SFR1 Single Family Residence District and RC2 Residence
Conservation District to the PMFR Planned Multiple Family R[esidence District and the PCF Planned
Community Facility District; and
WHEREAS, the Subject Property fronts on McLean Boulevard, which is an arterial street
under the City's zoning ordinance and, as such, the provi ions relating to ARC-Arterial Road
Corridor Overlay Districts are applicable to the proposed redevelopment of the Subject Property; and
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WHEREAS, Owner proposes to redevelop the Subjet...1 Property by (1) demolishing the
existing structures thereon,(2)constructing a 136 unit senior incependent living market rate building
(the"Subject Age 62 Building")to be occupied by persons all of whom are 62 years of age and older
(hereinafter referred to as the "Age 62 Restrictions"); and(3)constructing 24 for sale condominium
units for persons 55 years of age and older (hereinafter referred to as the "Subject Age Restricted
Condominiums"); and
WHEREAS,the City is prepared to approve the Petition only on the condition,and with the
express written agreement of the Owner(as herein contained)that the Subject Age 62 Building and
the Subject Age Restricted Condominiums shall be used only for and with the age restrictions and
market rate restrictions as hereinafter set forth; and
WHEREAS, the City is a home rule unit authorized to exercise any power and perform any
function relating to its government and affairs; and
WHEREAS, the development of the Subject Propertyfor the purposes described herein,
subject to the restrictions herein, will benefit the Owner and te City.
NOW, THEREFORE, for and consideration of the mutual promises and undertakings
contained herein,and other good and valuable consideration, he receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. Incorporation of Recitals. The foregoing recitals are incorporated into this
Agreement in their entirety.
2. Restrictive Covenants. Owner hereby agree S on behalf of itself and its successors,
and grantees that without the prior written consent of the corporate authorities of the City(which
consent the City may withhold in its sole and absolute discretion) as follows:
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(a) All residents in the Subject Age 62 Building to b constructed on the Subject Property
must be age 62 or older and no person under 62 years of ae shall occupy or reside within a
residential unit in the Subject Age 62 Building;
(b) The rent or other costs imposed as a condition of residency in the Subject Age 62
Building(whether those residents be tenants or owners)shall n9t be subsidized by any governmental
or quasi-governmental or charitable entity.
(c)(i)Except as provided in Section 2(c)(ii),each occupied condominium unit in the Subject
Age Restricted Condominiums shall at all times have as a permanent occupant at least one person
who is 55 years of age or older. For the purposes of this agreement, an occupant shall not be
considered a "permanent occupant" unless such occupant considers the condominium unit to be his
or her legal residence and actually resides in the condominium unit for at least six(6)months during
every calendar year or such shorter period as the condominiim unit is actually occupied by any
person. No condominium unit in the Subject Age Restricted bondominiums shall be occupied by
any person under the age of 22. For the purpose of this agreement, a condominium unit shall be
deemed to be "occupied" by any person who stays overnight in the condominium unit more than
ninety(90) days in any twelve (12) month period.
(ii) Each occupied condominium unit in the Subject Age Restricted Condominiums shall at
all times have as a permanent occupant at least one person who is 55 years of age or older (the
"Qualifying Occupant"),except that in the event of the death 9r relocation to a long-term health care
facility for medical reasons of a person who was the sole Qualifying Occupant of a condominium
unit, persons age 22 or older who were occupying the condominium unit with such Qualifying
Occupant at the time of the death or relocation to a long-term health care facility for medical reasons
of the Qualifying Occupant may continue to occupy the èondominium unit provided that the
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provisions of the United States and State of Illinois Fair Housing Acts and the terms and conditions
of this Agreement are not otherwise violated by such occupancy. Notwithstanding the foregoing,at
all times, at least eighty percent (80%) of the condominium rits in the Subject Age Restricted
Condominiums shall at all times have as a permanent occupant t least one person who is 55 years of
age or older.
(d) The foregoing provisions of Section 2(c) shall be incorporated into a Declaration of
Condominium for the Subject Age Restricted Condominiums to be recorded against title to the
portion of the Subject Property improved with the Subject Age Restricted Condominiums. Such
Declaration of Condominium shall further provide that the Subject Age Restrictions may be enforced
by the Condominium Association and/or the City of Elgin rd in the event of any action by the
Condominium Association and/or the City of Elgin to enforce such age restrictions and the
Condominium Association and/or the City of Elgin is the prevailing party in such an action,that the
Condominium Association and/or the City of Elgin shall also be entitled to their attorney's fees and
costs. The proposed Declaration of Condominium for the Subject Age Restricted Condominiums
shall be submitted to the City's corporation counsel for the corporation counsel's review and approval
prior to recording.
3. Covenant Running with the Land. The covenants and agreements contained herein
shall be permanent in nature (except when modified, amendd or released as expressly provided
herein), shall run with the title to the Subject Property,and shall be binding upon the Developer and
the Owner and all parties in interest and successors in intprest to the Subject Property. This
Agreement shall be recorded by the City at Owner's expense with the Kane County Recorder.
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4. Miscellaneous.
(a) Notices. All notices and other communication hereunder shall be in writing and
shall be deemed given if delivered personally or mailed by registered or certified mail(return receipt
requested) to the parties at the following addresses (or such other addresses for a party as shall be
specified by like notice),and shall be deemed received on the dte on which so hand-delivered or on
the second (2nd)business day following the date on which so mailed:
To the City: City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
Attention: City Manager
With a copy to: City of Elgin
150 Dexter Court
Elgin, Illinois 60120-5555
Attention: Corporation Coin
To Owner: Senior Lifestyle Corporation
Attention: Jerrold H. Frumn, Executive Vice President
111 East Wacker Drive
Suite 2200
Chicago, Illinois 60601
With a copy to: Schnell, Bazos, Freeman, Iramer, Schuster& Vanek
Attention: Peter C. Bazos, Esq.
1250 Larkin Avenue
Elgin, Illinois 60123
(b) Severability. If any one or more of the provisions contained in this Agreement shall,
for any reason,be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions hereto,end this Agreement shall be construed
as if such invalid, illegal or unenforceable provision had not been contained herein; provided
however,that if permitted by applicable law,any invalid,illegal or unenforceable provision may be
considered in determining the intent of the parties with respe6t to the provisions of this Agreement.
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(c) Non-waiver. The failure by a party to enforc any provision of this Agreement
against the other party shall not be deemed to be a waiver of the right to do so thereafter.
(d) Modification of Agreement. This Agreement may be modified or amended only in a
writing signed by both of the parties hereto, or their successor or assigns, as the case may be.
(e) Captions. The paragraph captions are inserted for convenience of reference and are
in no way to be construed as a part of this Agreement or as a limitation on the scope of the
paragraphs to which they refer.
(f) Entire Agreement. This Development Agreement,together with the Petition and the
Ordinances adopted by the City pursuant to the Petition, contain the entire agreement and
understanding of the Owner and the City with respect to the subject matter set forth herein,all prior
agreements and understandings having been merged herein and extinguished hereby.
(g) Joint Preparation. This Agreement is and shall be deemed and construed to be the
joint and collective work product of the parties hereto, and, ts such, this Agreement shall not be
construed against any party, as the otherwise purported drafter of same, by any court of competent
jurisdiction in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, in the
terms or provisions contained herein.
(h) Law Governing. This Agreement shall be governed by and construed in accordance
with the laws of the State of Illinois. In any legal proceeding between the parties hereto,venue shall
exclusively lie in the Sixteenth Judicial Circuit of Kane County, Illinois. Each party hereby waives
any objection it may have to commencement or transfer of 4ny such proceeding to either of said
venues and hereby affii'natively consents to same.
(i) Successors. This Agreement shall inure to the benefit of, and shall be binding upon
the parties hereto and their respective successors, assign and grantees. Further, upon any
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conveyance of ownership of the Subject Property by Owner, ardor any of its successors (in either
case the "Grantor"), the party making such conveyance shall be relieved of any further liability or
obligation accruing hereunder from and after the date of such conveyance and the party receiving
such conveyance shall assume all rights and obligations of the Grantor.
Time of the Essence. Time shall be of the essence of this Agreement.
(k) No Joint Venture. This Agreement shall not be deemed or construed to evidence or
create an employment,joint venture, partnership or other agency relationship between the parties
hereto.
(1) Remedies. If the Owner, and/or any of its successors, assigns or grantees fails or
refuses to carry out any of the covenants or obligations hereunder,the City shall be entitled to pursue
any and all available remedies available at law,equity or otherwise,including,but not limited to,the
right to specifically enforce the terms of this Agreement. Veni.e for the resolution of any disputes or
the enforcement of any rights pursuant to this Agreement slJlall be in the Circuit Court of Kane
County, Illinois. In the event any lawsuit is brought by the City for the enforcement of any of the
obligations in this Agreement, and the City is the prevailing party in such action, the City shall be
entitled to recover against the defendants in such lawsuit reasonable attorney's fees and court costs.
Notwithstanding anything to the contrary in this Agreement, no action shall be commenced by the
Owner, and/or any of their successors, assigns and/or grantees against the City for monetary
damages. Owner on behalf of itself and its successors, tssigns and grantees further hereby
acknowledge the propriety, necessity and legality of this Agreement and all of the terms thereof,
including,without limitation,the restrictive covenants as set fqrth herein,and do further hereby agree
and do waive any and all rights to any and all legal or other ch4llenges or defenses to this Agreement
and the terms hereof and hereby agree and covenant on behalf of themselves and their successors,
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assigns and grantees not to sue the City or maintain any other leaf action or defense against the City
with respect to this Agreement and/or the telltis hereof.
CITY OF ELGIN, a municipal SENIOR LIF STYLE CORPORATION
corporation an Illinois co oration
Acrie
By By
ayor old H. Frumm, Executive Vice President
Attest:
crA
City Clerk
This document prepared by and
return to after recording to:
William A. Cogley
Corporation Counsel
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
F:\Legal Dept\Agreement\Development Agr-SeniorLifestyleCorp-V9-Final4-6-06.doc
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EXHIBIT 1
THAT PART OF THE EAST HALF OF THE SOUTHWEST QUARTER OF
SECTION 10, TOWNSHIP 41 NORTH, RANGE EAST OF THE THIRD
PRINCIPAL MERIDIAN, DESCRIBED AS FOLLO S: COMMENCING AT A
POINT ON THE WEST LINE OF SAID EAST HILF, 30 RODS, 1 FOOT 6
INCHES NORTH OF THE SOUTH LINE OF SA QUARTER SECTION;
THENCE CONTINUING NORTH ALONG SAID EST LINE, 20 RODS, 1
FOOT; THENCE EAST PARALLEL WITH THE SOUTH LINE OF SAID
QUARTER SECTION, 632 FEET TO THE POINT PF BEGINNING; THENCE
CONTINUING ALONG SAID PARALLEL LINE, 672.75 FEET TO THE WEST
LINE OF PUBLIC HIGHWAY;THENCE SOUTHONG THE WEST LINE OF
SAID HIGHWAY,20 RODS, 1 FOOT;THENCE WE TERLY AT AN ANGLE OF
91 DEGREES, 25 MINUTES 30 SECONDS TO TH LEFT FROM SAID LAST
COURSE, 664.52 FEET TO A LINE DRAWN AT RIGHT ANGLES TO THE
FIRST COURSE FROM THE POINT OF BEGINNING; THENCE NORTH
ALONG SAID LINE, 330.92 FEET TO THE POINT OF BEGINNING;
TOGETHER WITH THAT PART OF THE EAST HALF OF THE SOUTHWEST
QUARTER OF SECTION 10, AFORESAID, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT IN THE WEST LINE Op MCLEAN BOULEVARD
887.5 FEET NORTH OF THE SOUTH LINE OF SAID SECTION 10; THENCE
WEST PARALLEL WITH THE SOUTH LINE OF $AID SECTION, 150 FEET;
THENCE SOUTH PARALLEL WITH THE WEST LINE OF MCLEAN
BOULEVARD,60 FEET;THENCE EAST PARALLEL WITH THE SOUTH LINE
OF SECTION 10, AFORESAID, 150 FEET TO THE WEST LINE OF MCLEAN
BOULEVARD;THENCE NORTH ALONG SAID WEST LINE 60 FEET TO THE
POINT OF BEGINNING, CONTAINING 5.29 ACRES OF LAND, MORE OR
LESS, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS.
AND
THAT PART OF THE EAST HALF OF THE SO1JTHW EST QUARTER OF
SECTION 10, TOWNSHIP 41 NORTH, RANGE 8 EAST OF THE THIRD
PRINCIPAL MERIDIAN, DESCRIBED AS FOLL()WS: BEGINNING AT A
POINT ON THE WEST LINE OF SAID EAST HALF, 30 RODS, 1 FOOT 6
INCHES NORTH OF THE SOUTH LINE OF SAID QUARTER SECTION;
THENCE CONTINUING NORTH ALONG SAID WEST LINE, 20 RODS, 1
FOOT; THENCE EAST PARALLEL WITH TH SOUTH LINE OF SAID
QUARTER SECTION, 632 FEET; THENCE SOUTH AT RIGHT ANGLES TO
SAID LAST COURSE, 330.92 FEET; THENCE WEST AT AN ANGLE OF 90
DEGREES, 00 MINUTES 06 SECONDS TO THE LEFT FROM SAID LAST
COURSE, 638.68 FEET TO THE POINT OF BEGINNING, TOGETHER WITH
THE EASTERLY 80 FEET OF THE WESTERLY 467.5 FEET OF THAT PART
OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 10,
AFORESAID, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON
THE EAST LINE OF THE SOUTHWEST QUARTER OF SAID SECTION, 50
9 -{r,
RODS 2 1/2 FEET NORTH OF THE SOUTHEAST CORNER OF SAID
QUARTER; THENCE WEST PARALLEL WITH THE SOUTH LINE OF SAID
SECTION, 79 RODS 12 1/2 FEET TO THE WEST LINE OF THE EAST HALF OF
SAID SOUTHWEST QUARTER,THENCE NORTH ALONG SAID WEST LINE
10 RODS AND 6 INCHES TO THE CENTER OF KN PP AVENUE AS SHOWN
ON THE PLAT OF LOUIS BECKLINGER'S ADDIT ON TO THE TOWNSHIP
OF ELGIN; THENCE EAST ALONG THE CENTER F KNAPP AVENUE AND
PARALLEL WITH THE SOUTH LINE OF SAID S CTION, 79 RODS 12 1/2
FEET TO THE EAST LINE OF SAID SOUTHWE T QUARTER; THENCE
SOUTH ALONG SAID EAST LINE 10 RODS AND INCHES TO THE POINT
OF BEGINNING, CONTAINING 5.13 ACRES OF L ND, MORE OR LESS, IN
THE CITY OF ELGIN, KANE COUNTY, ILLINOIS.
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1 .4 OF E I.
City of Elgin 1 Mayor
0 gr
— ‘Iiir#4.1111.9, Ed Schock
. _
Council Members
Juan Figueroa
Robert Gilliam
David J.Kaptain
February 22, 2006 Brenda Rodgers
Thomas K.Sandor
John Walters
TO: Mayor and Members of the City Council City Manager
Olufemi Folarin
FROM: Olufemi Folarin, City Manager Jk
Denise Momodu, Associate Plainer
SUBJECT: Map Amendment Review (Petition 71-05)
Autumn Green
. .
PURPOSE
Consideration of Petition 71-05 Requesting a Map Amendment from AB Area Business District,
SFR I Single Family Residence District and RC2 Residence Conservation District to PMFR Planned
Multiple Family Residence District and PCF Planned Community Facility District Zoning,to Permit
the Construction of a New Building for a Senior Independent Li 'ing Facility in the ARC Arterial
Road Corridor Overlay District; Property located at 508 North MCLean Boulevard and 1465 Eagle
Road by Senior Lifestyle Corporation, as Applicant, and Schock Inc., as Owner.
RECOMMENDATION
The Planning and Development Commission recommended appro al of Petition 71-05. On a motion
to recommend approval, subject to the following conditions, the ote was four(4) yes and one(1)
ti
no:
1. Substantial conformance to the Statement of Purpose and dpnformance,submitted by Jerrold
H. Frumm, Executive Vice President, Senior Lifestyle Corporation; no date.
2. Substantial conformance to the Site Plan (A1.0), dated September 26, 2005, prepared by
Mann, Gin, Dubin & Frazier, Ltd. Architects, Landscape Plans (LI and L2), and Tree
Preservation Plans (TP1 and TP2), dated August 19, 200, prepared by Hitchcock Design
Group.
3. Substantial conformance to the Floor Plans(A2.1,A2.2 and A2.3)dated September 26,2005
and revised Building Elevation Plan(A3.1),dated January 18,2006,prepared by Mann,Gin,
Dubin& Frazier, Ltd. Architects.
em. 4. Compliance with all other applicable codes and ordinances.
150 Dexter Court• Elgin, IL 60120-5555 • Phone 847/931-6100• Fdx 847/931-5610 •TDD 847/931-5616
www.cityofelgin.org
* Printed on recycled paper
Mayor and Members of City Council
February 22, 2006 '4115
Page 2
Therefore,the motion to recommend approval of Petition 71-05 was adopted(please reference the
Findings of Fact and Transcripts dated November 21, 2005 that were previously distributed to the
City Council).
BACKGROUND
An application has been filed by Senior Lifestyle Corporation,requesting a map amendment from
AB Area Business District, SFR1 Single Family Residence District and RC2 Residence
Conservation District to PMFR Planned Multiple Family Residence District and PCF Planned
Community Facility District.The subject property is located at 508 N.McLean Boulevard and 1465
Eagle Road N. McLean Boulevard.
The applicant is proposing to demolish the existing commercial structures and construct two new
buildings for independent senior living one rental and one that will be owner occupied. The rental
units would be an aged restricted community for seniors age 62 and older. This four story rental
building would encompass approximately 10,000 square feet of community space in addition to the
136 apartments. The building's common area amenities include a dining room, lounge, library, '41111)
fitness center and other multi purpose activity rooms for the residents. The dwelling units range in
size from 720 square feet for a one bedroom to 1,040 square feet in floor area for a two bedroom.
The owner occupied condominium building would be age restricted for those people age 55 and
older. However, only one member of the household must be age 55 or older. No unit shall be
occupied by an individual 22 years of age or younger except as a guest, not to exceed 90 days per
calendar year. This proposed four story building will contain 24 condominium units and 26 enclosed
parking spaces. The dwelling units will contain two bedrooms within 1,210 square feet of floor area
(please reference the memo dated January 25, 2006 along with Findings of the Planning and
Development Commission dated November 21, 2005 with attachment that were previously
distributed to the City Council).
CHANGES SINCE THE PUBLIC HEARING
The applicant has agreed to increase the amount of masonry on each building elevation from
approximately 25% to approximately 75%. With this change and in view of the fact that the
proposed senior living facility will be available only to seniors at market rate, the conditions for
approval concerning density, setbacks,and turn lanes have been withdrawn. More specifically,the.
increase in the quality of the project has mitigated concerns regarding density and setbacks.
I
Mayor and Members of City Council
February 22, 2006
Page 3
FISCAL IMPACT ANALYSIS
Camiros,Ltd has prepared a fiscal impact analysis for this project dated February 14,2006. Camiros
is an independent consultant chosen by City staff. Camiros fou d that the proposed development
would result in an annual negative fiscal impact on the City and i a positive cumulative impact for
School District U-46 after project completion (reference the att;ched Fiscal Impact Study for the
Autumn Green Development from Camiros, Ltd., dated Febru. , 14, 2006).
SUMMARY OF FINDINGS,UNRESOLVED ISSUES,AN I ALTERNATIVES
The Planning and Development Commission has developed or identified the following findings,
unresolved issues, and alternatives:
A. Summary of Findings.
1. Zoning District. The subject property is located i the ARC Arterial Road Corridor
District.The purpose of the ARC District is to en re quality development along the
entryway corridors into the City of Elgin. The b ilding design should demonstrate
high quality architecture on all elevations. The m:jority of projects approved in the
ARC District contain primarily masonry materi.ls. Departures from the standard
requirements of the MFR District are being re.uested. The proposed departures
include density, minimum setbacks, and maximu floor area.
2. Internal Land Use. When reviewing the proposa for the existing building,the City
found that the land use is a hybrid use similar to b I th apartments and a nursing home.
The proposed net density of approximately one d elling unit per 982 square feet of
land area is substantially higher than other similar senior independent living facilities
the City has approved. Village Green of Elgi , located at 801 North McLean
Boulevard,was approved at a net density of one s welling unit per 2,871 square feet
of land area. Alden Senior Living, located at 765 Fletcher Drive,was approved at a
net density of one dwelling unit per 1,864 square -et of land area. It should be noted
that the density allowed within the MFR Multipl Family Residence District is one
dwelling unit per 5,000 square feet of land area and the density permitted by the
planned development provisions is one dwelling unit per 3,000 square feet of land
area.
B. Unresolved Issues.
rik There are no unresolved issues.
Mayor and Members of City Council
February 22, 2006
Page 4
C. Summary of Alternatives.
Other than an approval or a denial,there are no substantive alternatives.
A)
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PETITION 71-05
508 NORTH MCLEAN BOULEVARD AND 1465 EAGLE ROAD
FISCAL IMPACT ANALYSIS
PREPARED BY
CAMIROS, LTD.
DATED
FEBRUARY 14, 2006
r
Fiscal Impact Study for the
Autumn Green Development
Elgin, Illinois
Prepared for
City of Elgin
Prepared by
Camiros, Ltd.
February 14, 2006
r
i
r
EXECUTIVE SUMMARY
Camiros, Ltd. has been retained by the City of Elgin to pre are a fiscal impact analysis
for the proposed Autumn Green residential development. he primary purpose of this
analysis is to outline the fiscal and economic effects of the roposed development on the
City of Elgin and School District U-46. Fiscal impact anal ses are based on a series of
assumptions concerning future revenues and service demands of a particular development
on the units of local government that will provide services.
The proposed residential development project consists of 136 one- and two-bedroom-
multi-family rental units for seniors 62 years of age and older and 24 attached two-
bedroom condominium units with projected sales prices of$225,000 for adults 55 years
of age and older. Monthly service fees (including rent, utilities, housekeeping and other
amenities) for the rental units are projected at between $1,800 and $1,900 per month for
one-bedroom units and $2,400 to $2,600 per month for twlo-bedroom units. The 10.36-
acre site is located in Kane County and within the School District U-46 boundary.
According to information provided by the developer, units are expected to be completed
and occupied in 2006. The total taxable value the proposed development at build-out is
estimated at $6,274,020. The development is expected to generate 276 new residents. In
addition, between 12 and 15 employees are expected to jrovide site-based services to
residents. Since the development is an age restricted development, no new school aged
("1*. children are expected in the development.
The results of this fiscal impact analysis indicate that after project completion, the
proposed development would result in an annual negative fiscal impact for the City of
Elgin and positive a cumulative impact for School District U-46. The negative impact
projected for the City is largely due to the application of pppulation multipliers that may
overstate the future population of this senior-oriented residential development.
Annual revenues from property tax, resident spending and population-based revenues are
estimated at $173,812. Annual property taxes represent the largest revenue source, and
are estimated at$120,450.
Estimated service costs of the proposed residential devel pment were derived by "per
capital service cost" and "per employee service cost" meth dologies. Service costs of the
proposed development at project completion are expecte to equal $240,122 using the
"cost per capita method" and $236,716 using the "cost per employee method." The
annual impact of the proposed development after project completion is anticipated to be
negative, totaling $66,310 and $62,904 respectively for I each method of service cost
calculation.
School District U-46 is expected to experience a cumulative surplus from the proposed
development over the 10-year projection period. A projec ed annual surplus of$299,457
is expected in 2009 and a cumulative surplus of$2,686,25 will be expected at the end of
/i• the 10-year analysis period.
Prepared by Camiros, Ltd. 1 2/14/06
4)
INTRODUCTION
Camiros, Ltd. has been retained by the City of Elgin to prepare a fiscal impact analysis
for the proposed Autumn Green residential development. The primary purpose of this
analysis is to outline the fiscal and economic effects of the proposed residential and
commercial development on the City of Elgin and School District U-46.
The proposed senior residential development project consists of a four-story residence
building containing 136 multi-family rental units and a four-story condominium building
containing 24 attached 2-bedroom condominium units. The projected average sales price
of the condominium units is $225,000. Monthly service fees (including rent, utilities,
housekeeping and other amenities) for the rental units are projected at between $1,800
and $1,900 per month for one-bedroom units and $2,400 to $2,600 per month for two-
bedroom units.
The 10.36-acre site is located in Kane County and within the School District U-46
boundary. According to information provided by the developer, units are expected to be
completed and occupied in 2006. The total taxable value the proposed development at
build-out is estimated at $6,274,020. The development is expected to generate 276 new
residents and between 12 and 15 employees. Since the development is an age restricted
development, no new school aged children will be expected in the development.
The assumptions used in this fiscal impact analysis with respect to the City of Elgin were
developed in consultation with the City's Fiscal Services Director. These assumptions are
derived from carefully considered estimates of revenue and expenses based on regional
experience and analysis.
The City of Elgin will receive building permit, inspection and other fees associated with
development approval and construction. These one-time fees were not included in this
analysis because they will be offset by staff costs associated with the project. Similarly,
development impact fees are one-time revenues that are intended to off-set the cost of
providing new public facilities and have not been included in this analysis. As noted
above, the fiscal impact analysis which follows focuses on the recurring service costs and
revenues associated with this development project. The primary purpose is to determine
the relationship between these values.
Fiscal impact analyses are based on a series of assumptions concerning future revenues
and service demands of a particular development on the units of local government that
will provide services. Determination of future tax levies and other revenue sources are
often formula-based and require assumptions that are beyond the scope of this fiscal
impact analysis. Thus, the results of this analysis are illustrative only and should not be
Prepared by Camiros, Ltd. 2 2/14/06
relied upon exclusively in making decisions concerning the desirability of a particular
development.
Future dollar estimates are in expressed in current dollar t rms, with no allowance for
inflation. Current tax rates are held constant throughout the aalysis, although in fact they
will change annually. Similarly, typically in analyzing he potential impact of the
In
development on local schools, the per student General Stat Aid figure is held constant
even though it is calculated using a formula that is im acted by future changes in
property values within the district. Estimated expenses are based on the most recent
budget information as provided by the City of Elgin and are tlso held constant.
Adjustments call for speculation and are debatable, this distracting from the real
objective of the study. As noted above, the primary objective of this analysis is to show
the relationship between expected revenues and expenditures. The dollar amounts shown
in future years simply represent this relationship. In the case of the Autumn Green
development, no new student aged children are expected tb reside in the development.
Therefore, General State Aid and operating expenditures haN}e not been calculated.
DEVELOPMENT PROGRAM
The proposed Autumn Green development has the following development characteristics.
Housing units are expected to be completed and occupied in 2006 and will include 136
multi-family rental units and 24 condominium units.
Table 1: Proposed Dwelling Unit Mix
Unit Type Number of Bedroori Mix Average Market
Units Value
Rental Units 136 1-bedroom &2-bedroom $14,000,000
total
Multi-family condominiums 24 2-bedrPom $225,000
Total Units _:°:.�',,;.f: : .;� 6 ! r
160 ��_=':�:;:. +�' �<,. ;a�;a'.���,,,�,;,.3,y. r�, ,:�a
Source: Senior Lifestyle Corporation
Based on the projected unit type and bedroom mix, the proposed development is expected
to generate approximately 276 new Elgin residents or approximately 1.72 persons per
unit. In addition, the developer projects that between 12 and 15 employees will be needed
to provide services to residents. Because the population multipliers used in this analysis
are based on regional averages rather than on senior-only development projects, the
population estimate for this development may be overstated. The projected employees
have been excluded from the service cost analysis because they are not expected to place
significant service demands on the City of Elgin. Because this development is senior
lifestyle oriented, no school aged children are expected.
rik
Prepared by Camiros, Ltd. 3 2/14/06
Table 2: Population Projections at Build Out
High
Unit Type Number Preschool Total School Adults 18+ Total
of Units Children Grades Grades Years Population
0-4 K-8 9-12 per Unit
1-Bedroom
86 0 0 0 151 151
Apartment
2-Bedroom
50 0 0 0 85 85
Apartment
2-Bedroom
24 0 0 0 41 41
Condominium
Totals 160 0 0 0 276 276
Source: Illinois School Consulting Service(now Ehlers&Associates, Inc.), 1996"Table of
Estimated Ultimate Population Per Dwelling Unit"and Camiros, Ltd.
ASSUMPTIONS
To undertake this analysis,the following assumptions were considered and included:
• The City of Elgin's 2006 general fund operating budget was used as the basis for
municipal service cost and revenue calculations used in this analysis. Certain
adjustments have been made to exclude employee pension contributions and certain
fee revenues to arrive at a conservative and reasonable estimate of the property tax
supported portions of the City's budget.
• Development impact and building permit fees and fees for utilities and other permits
have not been estimated for this analysis because they are one-time charges that cover
administrative costs and offset the cost of providing new public facilities that may be
required by the development.
• All monetary figures are in constant 2006 dollars.No adjustments have been made for
inflation,changes in tax rates or property values.
• The total market value of the proposed development is estimated at $19,400,000 for
property assessment and property tax estimation purposes. This estimate is based on
data provided by the developer with respect to the average prices expected for the for-
sale housing units and the construction value of the rental component of the project. It
is assumed that these numbers are an accurate reflection of the sales prices the
developer expects to receive for the units and the market value of the rental building.
• Although the development is age restricted, it is assumed that rental apartments are
market rate rentals, with no senior discount applied. This is based on information
provided by the developer. If these rental units are to be subsidized, a revised fiscal
impact analysis should be considered.
4015
Prepared by Camiros, Ltd. 4 2/14/06
r • The equalized assessed value is established by applying Kane County's 33.33%
residential assessment rate and the current Kane County Multiplier of 1.0, to the
estimated assessor's market value.
• The homestead exemption available to owner occupants f new residential property is
$5,000. This analysis assumes that all condominium u1.it owners will be eligible to
receive the homestead exemption. It is also assumed t at all condominium owners
will be eligible for a$3,000 senior exemption.
• The expenditures and revenue figures in this analysis wee estimated based on current
data and trends. All summary financial numbers have be n rounded.
PROJECTED REVENUES
The proposed development would generate revenues for a number of governmental
taxing districts and agencies. Property taxes are a significant source of revenue for local
government agencies. In Elgin, it is the largest revenue soiree listed in the general fund
as reported in the City's operating budget. There are also certain other revenues that can
be expected as a result of the additional households and resident population. These
include sales tax revenues from local spending by new residents, telecommunications tax
and franchise fees, and motor fuel, state income and state uk taxes that are distributed to
local municipalities by the State of Illinois using popnlation-based formulas. It is
r important to note that the revenues distributed by the State of Illinois are based on the
official population as determined by the most recent census. Thus, the City will not
realize these revenues until after the 2010 U. S. Cens4s unless a special census is
conducted before 2010.
Property Tax Revenue
Property taxes are determined by multiplying the tax rate for each taxing district that
levies taxes on a particular piece of property by the equalized assessed value for that
property as adjusted by applicable exemptions. Since the same tax rates apply to all
property in a given service area, the key factor in estimating future real estate taxes is the
projection of assessed valuation.
In order to adjust for variances in assessment practices throughout Illinois, the State
establishes a multiplier designed to adjust assessed Values to ensure uniformity
throughout Illinois. In Kane County,the current multiplier is 1.0. This value is multiplied
by the assessed as detailed in Table 3: Estimated Equalized Assessed Valuation. As
noted previously, we have assumed that homeowners would be eligible for the homestead
exemption and senior homestead exemption.
r164
Prepared by Camiros, Ltd. 5 2/14/06
I _ _
ilk
Table 3: Estimated Assessed Valuation
&2-Bedroom 2-Bedroom
Residential Component Development
Attached Rental Attached Condo
Units Units Totals
Number of Units 136 24 160
Average Market Value $14,000,000(total) $225,000 $19,400,000
Assessed Value(33.33%) $4,666,200 $74,993 $6,466,020
Kane County Multiplier(1.0) $4,666,200 $74,993 $6,466,020
Less Homestead Exemption $0 ($5,000) ,($120,000)
Less Senior Exemption $0 ($3,000) ($72,000)
Residential Taxable Value $4,666,200 $66,993 $6,274,020
Total Taxable Value $6,274,020
Source: Senior Lifestyle Corporation,Camiros, Ltd.
Estimated property tax revenue from the proposed development was derived by applying
the tax rate for each tax district to the estimated total taxable valuation of the property
using the 2004 tax rates (the most recent available) for the applicable taxing district. The
result following the development period is shown in Table 4: Estimated Property Tax
Revenue.
Table 4: Estimated Property Tax Revenue at Buildout
Al)
Development Characteristics 2006
Cumulative New Units 160
Cumulative Taxable Value $6,274,020
Taxing District 2004 Tax Rate 2007 Tax Year
Kane County 0.3467 $21,751,
Kane County Forest Preserve 0.1432 $8,984
Elgin Township 0.0776 $4,871
Road and Bridge 0.0576 $3,616
School District U-46 4.7024 $295,031,
Elgin Community College 509 0.4154 $26,063
Gail Borden Library 0.3700 $23,217
Fox River Water Reclamation Dist 0.0300 $1,881
City of Elgin 1.9198 $120,450
Total 8.06283 $505,864
Source: Kane County Clerk, Camiros, Ltd.
Total annual property tax from the proposed Autumn Green development is estimated at
$120,450 for the City of Elgin after project completion.
Prepared by Camiros, Ltd. 6 2/14/06
The City can also expect to receive 'A of the Elgin Towns ip Road District levy, which
would total approximately $1,808 based on the current lev . However, as the City and
other municipalities assume jurisdiction over township road , this levy can be expected to
decline in the future. Consequently, in keeping with the conservative nature of this
analysis, this revenue source has not been included in this analysis.
Sales Tax
Sales tax will be generated by spending by new residents although probably not at the
same level or pattern as for other population groups living in Elgin.
Sales Tax Resulting from New Resident Spending
Based on an expected 276 new residents and 160 new houSeholds as a result of Autumn
Green development, new resident consumer spending is expected to total $2,136,000
following project completion. Total sales tax resulting from expenditures by new
residents is estimated at $7,482 annually based on the folloWing assumptions:
• Due to the unique nature of this development, the income for rental unit residents
was calculated separately from condominium residents. The rental unit price in
the Autumn Green development includes food, utilities, housekeeping and
transportation. Therefore, the monthly "rent" paid is likely to represent a higher
percentage of monthly income than is typical for other types of households.
• Household income for residents in rental units i estimated at $60,000. This
amount was determined by taking into consideration the monthly rent in this
development as provided by the developer and Department of Labor statistics for
seniors.
• Household income for condominium owners is estimated at $70,000. This amount
was determined based on commonly accepted rule of thumb that households
should spend no more than 30% of gross household income on housing costs
including mortgage principal, interest, property tax and insurance. In effort to
verify the household income used in this analysis, two independent mortgage
calculators were used to determine the annual household income needed to afford
units in the proposed development.
• Based on consumer expenditure data published by the U.S. Bureau of Labor
Statistics, approximately 30% of household income is spent on consumer goods
that are subject to state and local sales tax, with an estimated 20% of household
income spent on food, drugs and other convenience goods and 10% on
comparison goods such as apparel and furniture.
• Elgin is a home rule community and levies a 0.75% sales tax in addition to the
1.0% local share that is included in the base sales tax. Food and drug sales are not
subject to the 0.75% municipal rate. The 1.75% rate is applicable to all other
goods and services.
Prepared by Camiros, Ltd. 7 2/14/06
• Not all taxable purchases made by residents of this development will be made
within Elgin. For the purpose of this analysis we have assumed that 50% of
convenience goods including food and drugs are purchased in Elgin and would be
taxed at the 1.0% rate. Because shoppers tend to travel farther to shop for apparel
and other comparison purchases, we have assumed that 10% of comparison goods
are purchased in Elgin. These goods would be taxed at the full municipal rate of
1.75%. This estimate is a conservative assumption based on regional spending
patterns.
While the residents of Autumn Green may stimulate demand for additional businesses
and services expenditures, these are uncertain and difficult to speculate and have not been
included in this analysis.
State Income Tax
Additional revenue can be expected from the proposed development through state income
tax payments that are allocated to municipalities on a per capita basis. According to
figures published by the Illinois Municipal League for 2006 the estimated per capita
allotment of this revenue source is $75.80. The 276 projected new residents would
generate approximately $20,921 in state income tax revenue.
Motor Fuel Tax
Motor Fuel Taxes are also distributed to municipalities on a per capita basis. According 411)
to the Illinois Municipal League, the estimated 2006 per capita Motor Fuel Tax
distribution is $28.50. The proposed development is projected to result in approximately
$7,866 in additional Motor Fuel Tax revenues for the City of Elgin.
State Use Tax
The Illinois Municipal League estimates that for 2006, the per capita allotment of state
use tax will be $11.00. The City can expect to receive an additional $3,036 from this
revenue source.
Telecommunications Tax
Effective in July 2006, the City's simplified municipal telecommunications tax rate will
increase to 6%. The telecommunications tax covers both residential and commercial
users. Annual expenditures for telephone service were estimated at $971 per household
using consumer expenditure figures available from the U.S. Bureau of Labor Statistics,
resulting in an average household telecommunications tax of $58.26. Annual revenue
from this source for the 160 units in the proposed development is estimated at$9,322.
Fines and Penalties
The City of Elgin is expected to receive $1.24 million in fines revenue from court and
City fines in FY 2006. This amounts to $35.73 per household for the estimated 34,749
2006 Elgin households. However, this revenue source is much more closely tied to
4111)
Prepared by Camiros, Ltd. 8 2/14/06
(11...' Elgin's relationship to the regional road network, employment base and enforcement
efforts than the presence of new housing units. In this analysis, it is assumed that only
20% ($7.15 per household) of this revenue is related to t17 residents of the community.
For the 160 expected new households, $1,144 will be geneired.
Franchise Fees
The City expects to receive approximately $780,000 as a result of television franchise
fees in FY 2006. These fees equal $22.45 per household. The expected 160 new
households are expected to generate $3,592 in additional franchise fee revenue.
Interest Revenue
Interest income is a revenue source that applies to thivelopments where projected
revenues are expected to exceed estimated service costs. Commonly, property tax and
certain other revenues distributed as lump sums are not sent immediately and interest
revenue can be generated on the unused portion. An investment return ratio of 1.5% for
property tax revenue is appropriate based on information provided by Mr. James
Nowicki, Elgin's Fiscal Services Director. Because expenses are projected to exceed
revenues from this development, no interest income has been assumed in this analysis.
Other Expected Revenues
Although not quantified in this fiscal impact analysis, th City of Elgin can expect to
rreceive additional revenue from other sources attributble to the new residential
population. These may include licenses and permits and charges for fee based City
services. However, because such fees are highly speculative, represent relatively small
dollar amounts and will not materially change the results 8f this analysis, they have not
been considered.
Summary of Estimated Annual Revenues
As described above, there are several major sources of rev nue for the City of Elgin that
have been estimated for this fiscal impact analysis. The m st significant is property tax
which is estimated to equal $120,450 annually followi g project completion. The
expected revenues for the ten-year period beginning ii 2006 (the initial year of
occupancy) are summarized in Table 5: City of Elgin rojected Revenues. Because
property taxes are collected in the year after they are levied, there is a one year lag shown
with respect to property tax revenues.
It is also important to note that revenue from the State Lodi( Use Tax, Income Tax, and
Motor Fuel tax are distributed on a per capita basis based on most recent census data.
The next scheduled U.S. Census will occur in 2010. 13cause of an anticipated lag
distribution of funds using the new population totals, revendes from these sources are not
counted until 2012.
Prepared by Camiros, Ltd. 9 2/14/06
Table 5: City of Elgin Projected Revenues
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1 New Units
I
(cumulative) _
160 160 160 160 _
160 160
160 160 160 160
New Residents
276 276 276 276 276 276 276 276 276 276
(cumulative)
Revenue Sources
Property Tax $0 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450
Sales Tax $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482
State Income Tax $0 $0 $0 _ $0 $0 $0 $20,921 $20,921 $20,921 $20,921
Motor Fuel Tax $0 $0 $0 $0 $0 $0 $7,866 $7,866 $7,866 $7,866
State Use Tax $0 $0 $0 $0 $0 $0 $3,036 $3,036 $3,036 $3,036
e
Tlecommunication
$9,322 $9,322 $9,322 $9,322 $9,322 $9,322 $9,322. $9,322 $9,322 $9,322
Tax
Penalties -
Fines and
$1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144
Franchise Fees $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592
Subtotal $21,540 $141,989 $141,989 $141,989 $141,989 $141,989 $173,812 $173,812 $173,812 $173,812
-4
Interest, 1.5% . $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-Total- $21,540 $141989- -$141,9-8-9 -$141,989- $141,9139 $141,989 $173,812 $173,813 $173,813 $173,812
Source: Kane County, Illinois Municipal League, City of Elgin, Camiros, Ltd.
Prepared by Camiros, Ltd. 9 2/14/06
. .
I ,
.
ESTIMATED SERVICE COSTS
The proposed residential development can be expected t increase the demand for a
variety of public services. The costs of some services (s ch as water and sewer) are
covered by user charges, while others are financed directly through property tax and other
local revenue sources. These costs should be deducted from the estimate of revenues to
arrive at some sense of net fiscal impact. This analysis examines service costs and not
one-time capital costs that may be required by this or othei development that may occur
in the surrounding area. Data used to perform this analysis is derived from the City of
Elgin's approved 2006 budget and information provided by. 1gin's Finance Department.
Methodology
The service costs anticipated from the proposed developrhent were explored using the
"per capita service cost" and "per employee service cost' analysis methods, which are
described below. These estimation techniques are conservative in that they do not take
into account any excess capacity for accommodating new development within the current
operating budget which may be present in a given year and reasonable because they are
based on the community's accepted service levels.
The marginal cost methodology is typically used in cases where a proposed development
rek is large and may require significant new public investments such as a new fire station or
school. Typically, there is a certain amount of excess service capacity that can
accommodate smaller development projects without requiring the construction of new
support facilities or hiring additional staff. Impact fees are typically used to address the
issue of marginal costs associated with a particular development with respect to capital
facilities.
In addition to the service cost estimates associated with this development, additional
capital costs can be anticipated. Based on Elgin's experience these are estimated at 20%
of service costs. These costs have been calculated for each of the two methods described
below. It should be noted that while Elgin does not presently fund capital outlay through
the property tax, capital expenditures are typically funded with general funds. Including
capital outlay as an expense is needed to provide a complete picture of the service cost
implications of a particular development on local government.
Per Capita Service Cost Analysis
Per capita service cost analysis provides a sense of service cost impact by establishing a
dollar cost per resident for service within each municipall service considered. A similar
indicator is cost-per-call,which is used when service is measured on a per call basis, such
as in the case of police service. By comparing these costs with the revenues generated by
the project, the municipality can determine the scope of the potential impact. If the
revenues generated exceed the costs, then it can be assumed that the project will, in a
sense, pay for itself in terms of municipal services.
rik
Prepared by Camiros, Ltd. 10 2/14/06
Typically, residents place more service demands on a municipality than does the local
employment base. The Urban Land Institute has reported in a published study that four
employees are the equivalent of one resident in terms of municipal service costs. Using
this assumption, the cost of residential land uses can be combined with new commercial
land uses on a proportional basis. Using the 2006 projected number of residents
(102,163) and the number of workers in Elgin in 2005 (IDES) of 45,825, a weighted
resident equivalent total was calculated.
102,163 + (1/4*45,825)= 113,619 total resident equivalents
The current cost per each resident equivalent was calculated using City of Elgin's
operating budget adjusted to exclude employee pension contributions and 2006 non-
property tax fee revenues. The adjusted budget was then divided by estimated service
population to arrive at a cost per resident equivalent attributable to the new development.
$82,374,800/ 113,619= $725.01 per resident equivalent
The new development is expected to generate 276 new residents. These new residents are
projected to cost the City $200,102 plus an additional $40,020 for estimated capital
outlay costs for a total of$240,122 following project completion.
Per Employee Service Cost Analysis
This service cost estimation method is an average cost projection method that uses
11)
average staffing service levels to predict future expenses. A marginal staffing ratio is
used that estimates the number of new municipal employees needed per every additional
1,000 residents of population. The resulting ratio is multiplied by the estimated number
of new residents in the development (divided by 1,000) to derive an estimate of the
number of new employees that may be needed. The estimated operating cost per
employee is calculated by dividing the City's operating budget by the number of
employees.
Current Staff Ratio per 1,000 Residents
The City of Elgin has 831 full-time equivalent (FTE) employees, excluding 72 full-time
equivalent positions which are devoted to water, sewer and garage functions. Water and
Sewer Fund operations where excluded from this analysis because they are funded by
enterprise fund revenues and do not rely upon property tax support. Similarly the cost of
one garage employee is charged back to various enterprise funds on a prorated basis.
With an estimated 2006 population of 113,619 resident equivalents, the full time
employees result in a staffing ratio of about 7.31 employees per 1,000 residents.
However, the marginal increase in municipal employees will be less than the ratio of
current employees per 1,000 residents, in part because department heads are not
duplicated as the size of the municipal staff grows. Thus, department heads and other
supervisory positions should be excluded from the calculation under the assumption that
these positions would not be duplicated. Subtracting 13 non-duplicated employees results
in a marginal staffing ration of 7.20 per 1,000 residents.
Prepared by Camiros, Ltd. 11 2/14/06
•
•
Operating Expenses per Employee •
The City's operating expenditures, as reported in its 2006 budget and adjusted to exclude
employee pension contributions and certain user fees, Was divided by the number of
current full time employees to calculate an estimate of operating expense per employee.
The operating expense per employee is then multiplied by the estimated number of new
employees that will be needed to serve the development to arrive at an estimate of new
operating expenses attributable to the new development.
$82,374,800/ 831 = $99,127 per city employee
Estimated Service Cost
Based on a marginal staffing ratio of 7.20 per 1,000 residents and the estimated 276 new
residents, we estimate a need for approximately 1.99 new staff at project completion.
These new employees are projected to be added incrementally during project build out.
The projected new employees were multiplied by the estimated cost per employee to
estimate the annual service cost at project completion.
$99,127 * 1.99= $197,263
The projected annual capital outlay expense of this development is estimated at $39,453.
rThus, the total estimated service cost using this analysis Method is estimated at $236,716
( following project completion.
Summary of Estimated Annual Expenditures
The summary of annual costs over a ten-year period beginning with 2006, the initial
occupancy year is presented in Table 6: City of Elgin ProjCcted Service Costs.
Table 6: City of Elgin Projected Service Costs
ANNUAL SERVICE COST ESTIMATE
2006 _ 2007 2008 2009 2010 20111 2012 2013 2014 2015
Per Capital $200,102 $200,102 $200,102 $200,102 $200,102 $200,10P $200,102 $200,102 $200,102 $200,102
Service Cost
+20%Capital $40,020 $40,020 $40,020 $40,020 $40,020 $40,02d $40,020 $40,020 $40,020 $40,020
Outlay
Total $240,122 $240,122 $240,122 $240,122 $240,122 $240,12 $240,122 $240,122 $240,122 $240,122
Per Employee
$197,263 $197,263 $197,263 $197,263 $197,263 $197,26 $197,263 $197,263 $197,263 $197,263
Service Cost
+20%Capital $39,453 $39,453 $39,453 $39,453 $39,453 $39,453 $39,453 $39,453 $39,453 $39,453
Outlay
Total $236,716 $236,716 $236,716 $236,716 $236,716 $236,71 $236,716 $236,716 $236,716 $236,716
Source: City of Elgin, Camiros, Ltd.
Prepared by Camiros, Ltd. 12 2/14/06
NET IMPACT TO THE CITY OF ELGIN
As shown in Table 7: Summary of Estimated Revenues and Costs, both methods of
projecting municipal expenditures result in a negative impact on the City
upon project completion. An annual negative fiscal impact to the City of Elgin of
between $66,310 and $62,904 is projected at the end of the analysis period. Over the ten
year analysis period, a negative cumulative impact of between $974,489 and $940,425 is
projected.
As was noted previously in this analysis, the population multipliers used to project
population may overstate the number of seniors that will reside in the development and
consequently the negative impact due to anticipated municipal service cost demand.
However, the extent to which this may be the case cannot be determined based on the
information available for this analysis.
•
Prepared by Camiros, Ltd. 13 2/14/06
Table 7: Summary of Estimated Revenues and Costs
Revenue Source 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Property Tax $0 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450 $120,450
Sales Tax $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482 $7,482
State Income Tax $0 $0 $0 $0 $0 $0 $20,921 $20,921 $20,921 $20,921
Motor Fuel Tax $0 $0 $0 $0 $0 $0 $7,866 $7,866 $7,866 $7,866
State Use Tax $0 $0 $0 $0 $0 $0 $3,036 $3,036 $3,036 $3,036
Telecommunication $9,322 $9,322 $9,322 $9,322 $9,322 $9,322 $9,322 $9,322 $9,322 $9,322
Tax
Fines and Penalties $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144 $1,144
Franchise Fees $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592 $3,592
Subtotal $21,540 $141,989 $141,989 $141,989 $141,989 $141,989 $173,812 $173,812 $173,812 $173,812
Interest, 1,5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total $21,540 $141,989 $141,989 $141,989 $141,989 $141,989 $173,812 $173,812 $173,812 $173,812
Expenditures
Per Capita Service Cost Analysis Method .
Cost per Capita Total $240,122 $240,122 $240,122 $240,122 $240,122 $240,122 $240,122 $240,122 $240,122 $240,122
Net Annual Fiscal
($218,583) ($98,133
Impact to Elgin ) ($98,133) ($98,133) ($98,133) ($98,133) ($66,310) ($66,310) ($66,310) ($66,310)
Cumulative Fiscal ($218,583) ($316,716)
Impact ($414,849) ($512,982) ($611,115) ($709,248) ($775,558) ($841,868) ($908,179) ($974,489)
_
Per Employee Service Cost Analysis Method
Cost per Employee $236,716 $236,716 $236,716 $236,716 $236,716 $236,716 $236,716 $236,716 $236,716 $236,716
Total
Net Annual Fiscal ($215,176)
Impact to Elgin ($94,727) ($94,727) ($94,727) ($94,727) ($94,727) ($62,904) ($62,904) ($62,904) ($62,904)
Cumulative Fiscal ($215,176) ($309,903
Impact ) ($404,630) ($499,356) ($594,083) ($688,809) ($751,713) ($814,617) ($877,521) ($940,425)
Prepared by Camiros, Ltd. 14 2/14/06
P
f FISCAL IMPACT TO SCHOOL DISTRICT U-46
The analysis of fiscal impact to School District U-46 is ased on revenues and expenses
provided by the Illinois State Board of Education School eport Card for the district. The
following assumptions were used in determination of the fiscal impact to School District
U-46:
• There will be no new students to School District U-46.
• Revenues will lag because property tax revenues levied in one year are not
collected until the following year.
The Autumn Green residential development is a senir resident only development.
Therefore, no school aged children are expected to reside in the development.
Revenues to School District U-46 are anticipated from onhy one primary source; property
tax revenues from new residential development.
Property Tax Revenue
As reported by the Kane County Clerk, the property tax rate for School District U-46 is
4.7024%per$100 assessed valuation.
ent- The proposed residential development is expected to enerate $6,274,020 in taxable
value for 160 units after project completion. The dev lopment will in turn generate
$295,031 in annual property tax revenue for the School District U-46.
Property taxes are collected one year after being levied. T erefore, revenue from property
taxes on units in the development is shown in the second ear of occupancy.
General State Aid Revenue
No new school age children are expected as a result of the Autumn Green development.
Therefore, no general state aid revenue will be generated from the development.
Interest Revenue
As stated previously, interest revenue is generated from property tax as lump sum
revenues are commonly not expended at once. Interest revenue from the Autumn Green
development was calculated foryears after project completion and totals $4,425.
Total Revenue
Upon project completion, the Autumn Green developrhent is expected to generate
$299,457 in revenue to School District U-46 annually.
r
Prepared by Camiros, Ltd. 15 2/14/06
Annual Operating Expenditures 415
No new school age children are expected as a result of the Autumn Green development.
Therefore,no new operating expenditures will be generated from the development.
NET IMPACT TO SCHOOL DISTRICT U-46
The net impact of the proposed development on School District U-46 is shown in Table 8
below. The development will have a positive cumulative impact over the 10-year
projection period.
Table 8: School District U-46 Summary of Estimated Revenues and Costs
Revenue 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source
Property Tax $0 $295,031 $295,031 $295,031 $295,031 $295,031 $295,031 $295,031 $295,031 $295,031
General State $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Aid
Interest $0 $0 $0 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425 $4,425
Total $0 $295,031 $295,031 $299,457 $299,457 $299,457 $299,457 $299,457 $299,457 $299,457
Revenues
Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Fiscal $0 $295,031 $295,031 $299,457 $299,457 $299,457 $299,457 $299,457 $299,457 $299,457
Impact
Cumulative $0 $295,031 $590,062 $889,519 $1,188,976 $1,488,432 $1,787,889 $2,087,346 $2,386,802 $2,686,25:. !,
Impact
0
Prepared by Camiros, Ltd. 16 2/14/06
, •
CONCLUSION
The result of this fiscal impact analysis shows that at completion, the proposed Autumn
Green development, with a 160 residential units has a negative net impact on the City of
Elgin on an annual basis. As previously noted, these projections are based on an average
household size of 1.72 persons per unit. If a significant perdentage of units are occupied
by single individuals, the negative fiscal impact to Elgin Could be somewhat less than
projected. The annual impact on School District U-46 is expected to be positive. The
revenues and costs are summarized in Table 9: Summary of Estimated Revenues and
Costs at Completion.
Table 9: Summary of Estimated Revenues and Costs at Completion
Revenue Source Estimated Ahnual Revenue
Property Tax $120,450
Sales Tax $71482
State Income Tax $20,921
Motor Fuel Tax $71,866
State Use Tax $3036
Telecommunication Tax $9,322
Fines and Penalties $1,144
Franchise Fees $ ,592
Subtotal $173,812
Interest, 1.5% 1$0
Total $143,812
Expenditures
Cost per Capita Total $240,122
Cost per Employee Total $286,716
Net Annual Fiscal Impact to Elgin ($66,310 —($62,904)
School District U-46
Revenue Source
Property Tax $295,031
General State Aid $0
Interest 4,425
Total $299,457
Expenditures
Operating Cost $0
Net Annual Fiscal Impact to SD U-46 999,457
Prepared by Camiros, Ltd. 17 2/14/06