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HomeMy WebLinkAbout01/05/1990 MPDD MinutesMINUTES DOWNTOWN REDEVELOPMENT STRATEGY SESSION JANUARY 5, 1991 I. ROLL CALL The meeting was called to Order at 9:10 a.m. Present at the meeting were: Mayor Gerald Farley; Trustees Ralph Arthur, Mark Busse, Timothy Corcoran, Leo Floros, George Van Geem and Don Weibel. Also present at the meeting were: Village Manager John Dixon, Assistant Village Manager John Burg, Planning and Zoning Director Dave Clements, Economic Development Director Ken Fritz; Business Development and Redevelopment Commission members Paul Hoefert, John Eilering, Earl Johnson, Irvana Wilks and Joe Janisch; Chamber of Commerce Executive Director Janet Hansen; Broadacre representatives Fidel Lopez, Francis Freeman and Robert Meers; Crown Group representative Mark Lambert; Bob Martinson of Capital Construction who has worked with Crown Group on various projects; three members of the press and three persons in the audience. II. INTERVIEW DEVELOPERS - DOWNTOWN DEVELOPMENT The purpose of the session was to interview two developers regarding downtown development. Planning and Zoning Director Dave Clements said an information packet was sent to 45 qualified developers. An orientation meeting with the three interested developers was held. Two developers expressed an interest in making a presentation before the Board: Broadacre and Crown Group. Neither developer was able to provide an economic analysis or a conceptual plan in the time allotted. Representatives of Broadacre then gave a presentation including a slide show of projects such as North Pier in Chicago and Market Square in Lake Forest. Fidel Lopez said Broadacre is very interested in the traditional characteristics of the community and is comfortable with a piecemeal approach to development. For example, the Market Square project has taken six years. He said Broadacre owns and manages the properties they develop. There were various questions regarding the appropriate location of the Public Safety Building. In response to a question from Trustee Corcoran as to where they would start a project if the Village owned none of the property in the downtown area, Mr. Freeman said that he would like to start the project down Main Street radiating from the train station. Trustee Van Geem asked what Lake Forest's contribution was in the Market Square project. Mr. Freeman said that Lake Forest sold the recreation center to Broadacre. He said the Village did not subsidize the project but the Federal government did under the Landmark Program. Trustee Van Geem also wanted to have assurances that the businesses currently operating would not be hurt by redevelopment. Mr. Freeman said that the key to redevelopment is to make the current businesses successful. He said in the Market Square project most of the businesses that were already there were able to relocate within the development area. He said that in this project they may propose to move uses within the triangle but would try to build on the strengths and would try to retain the current businesses. Village Manager Dixon asked how long it would take for Broadacre to get working on the project. Mr. Lopez said it would take a couple of months. Trustee Busse asked what incentives Broadacre is looking for. Mr. Freeman said they would like to come in as part owner with an agreement for cash compensation if development does not occur. He said creating a proper TIF District is a key to this type of project. Mr. Freeman also suggested using the investment in the Public Safety Building to spawn other development. Mr. Lopez said that Broadacre would also seek help with various items such as land acquisition. Mayor Farley asked if this development would impact the area south of the tracks. Mr. Lopez said this area should benefit over the long haul. Irvana Wilks said she was very impressed with the Market Square and North Pier projects. Mr. Mark Lambert of Crown Group then gave a presentation which basically followed the format of the questions prepared by staff. Mr. Lambert stressed that timing is very important in a project like this. He said that he would require one year of homework such as researching the market potential and many other things to make sure that a proper and viable project would be developed. He also stressed the need for pre -leasing any development. He said that for the most part they own their own product. He said they build long-term relationships based on trust and performance with six years in the business. In response to a question about what they expect from the Village, Mr. Lambert said the Village would have to provide land to the developer at a value which can support whatever is built. He said the Village would have to get the land value down. He said Crown Group would like a reasonable rate of return. He suggested that the Village could possibly waive Permit Fees, provide assistance on infrastructure and other items. He said it would take 60 to 90 days to do the preliminary research on the project. He said Crown Group would expect to invest some time and money but they would expect the Village to do the same. He said this is not a clean deal. He said that not all the land in the triangle is available at the present time, there is a question about the location of the Public Safety Building and he is uncertain as to whether the TIF District will be expanded. Trustee Van Geem said that the previous developer had appealed to the Village's artistic sense and he gave this developer the same opportunity. Mr. Lambert said that Crown has done quality projects but he noted that the more clock towers there are, the more expensive the project will be. Trustee Van Geem noted the concern about the economic feasibility of redevelopment. Mr. Lambert said Crown Group is successful. He gave an example of a 100,000 square foot office building which included many nice touches. He noted that his building is 100% leased compared to office buildings owned by competitors in the area who have lease rates of 70-80%. With regard to residential development, Mr. Lambert said his company is not experienced in this aspect but they definitely have the expertise to do the research and to do the project properly. He again noted that a very important part of any project is doing the homework and he said his company would do this. After the presentations, there was a discussion about which developer would be appropriate to be designated as the Village's Preferred Developer. Mayor Farley asked if other developers are interested. Mr. Clements and Manager Dixon discussed the other developers who showed some interest. Mr. Dixon indicated that Broadacre and Crown Group are the only serious contenders at this time. Manager Dixon noted that one developer was interested in installing a construction yard at the Pine Street site, but Manager Dixon said the Village was not interested. Mayor Farley indicated that he liked the incremental approach recommended by Broadacre. There appeared to be unanimous consensus that the philosophy and the experience represented by Broadacre would be exactly what the Village is looking for. Village Manager Dixon was instructed to inform Broadacre that it had been chosen as the Village's preferred developer. There was a discussion about the desirability of allowing Broadacre to make suggestions on the appropriate development of the Public Safety Building. Village Manager Dixon was asked to contact Broadacre to ask for their input on the Public Safety Building. Again, there was a discussion about the appropriate site of the Public Safety Building. This matter will be discussed and decided upon either at the January 15 or the January 22 meeting. III. ADJOURNMENT The meeting adjourned at 12:50 p.m. Respectfully submitted, JOHN P. BURG Assistant Village Manager JPB/rcw