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HomeMy WebLinkAbout02/09/1999 COW minutes MINUTES COMMITTEE OF THE WHOLE FEBRUARY 9, 1999 I. CALL TO ORDER V~llage Manager Michael Janon~s called the meeting to order at 7 36 p m Present at the meebng were Trustees George A Clowes T~mothy Coreoran, Paul Hoefert, Richard Lohretorfer, Darnel Nocchl and Irvana Wilks Absent from the meeting was Mayor Gereld Fadey Staff members present included Village Manager M~chael E Janonls, Assistant V~llage Manager David Strahl, and Community Development D~rector W~lham Cooney Mr Janoms requested if there were any nommabons frem the floor for Mayor Pre Tern for the meebng Motion made by Trustee Hoefert and seconded by Trustee Lohrstorfer to appoint Trustee Corcoran as Mayor Pre Tern The motion passed II. APPROVAL OF MINUTES , ~ Appreval of M~nutes from January 26, 1999 Motion made by Trustee Wilks and Seconded by Trustee Lohrstorfer to appreve the Minutes requested changes to m~nutes considered as Mr Janon~s that staff-recommended the be part of the minutes M~nutes were appreved w~th the staff-recommended revisions Trustee Clowes abstained M~nutes were approved unanimously III.CITIZENS TO BE HEARD None IV. DISCUSSION REGARDING SCOT'rY'S HOME MARKET REQUEST FOR RELOCATION ASSISTANCE Community Development Director W~lliam J. Cooney stated that staff has been working with Scotty's Home Market business for a number of weeks He stated that Scotty's wants to move into a Kensington s~te and build a fac~hty of approximately 100,000 sq ft He stated there are three remaining ~tems outstanding which need to be addressed prior to the complebon of the deal to get Scotty's to relocate to Mount Prospect 1) A Class Z hquor license A draft ordinance has been created allowing for hquor dehvery to homes, and Scotty's has acknowledged their acceptance of the cond~bons relating to th~s ordinance 2) A request for a Class 6B designation The V~llage has, ~n the past, extended the recommendations for a Class 6B to the County for cons~derabon However, there ~s a d~sflnct possibility that the County may not grant the 6B designation based on the type . of bus~ness Class 6B designation ~s normally only extended to industrial businesses and not retail-oriented businesses 3) A request for sales tax rebate ~n lieu of the Class 6B reduction in property tax costs Scotty's is requesting a sales tax rebate ~n an amount equal to the annual abatement for ten years m case the 6B designation ~s not granted The V~llage has recommended the rebate be bed to the length of the Class 6B and Scotty's has countered by requesting the rebate be available for the hfe of the bus~ness w~thln the community Staff would recommend consideration of the rebate, since the Village typically grants 6B designation recommendations Scotty's move to Mount Prospect would assist ~n addressing the stormwater modification necessary in the Kensington Bus~ness Center Chris Sang, the Chief Financial Officer for Scotty's, spoke He stated that representatives from Scotty's have met with County representatives, and the rewew Is currently underway to determine ~f the business meets the guidelines for a Class 6B designation General comments from the Village Board members included the following ~tems Various Board members felt that the County should senously consider the Class 6B designation, even though there may be a need to alter the definition necessary for granting a Class 6B, because of the changing nature of how business is conducted There was also some concern about the open-ended rebate period and the message it would send to competing grocery stores Chris Sang responded to the questions He stated the 6B classification consideration normally takes approximately 60 days That timeframe has only recently begun However, he stated that a corporate decision ~s necessary ~n the very near future to determine if the business w~ll move The bus~ness ~s at a crossroads, and a larger s~te to service the ex~st~ng customers and grow the bus~ness is necessary He stated the building s~te itself would have over $5 mlll~on dollars in building overhead and would have a large trade area throughout the metropohtan region He stated the company ~s looking to reduce fixed costs ~n order to grow the business He stated th~s fac~hty w~ll be a template for additional businesses ~n metropohtan areas throughout the country He stated it ~s critical that the model, as depicted, ~s economically wable He stated that they expect to h~re, or have, over 200 employees by the end of 2000 and as h~gh as 350 employees ~n two years Mr. Janoms prowded some background on the sales projections for Scotty's The projections for the year 2000 amounted to approximately $30 m~lhon ~n sales He stated he did not feel there was much potential for sales tax for out-of-state sales Mr. Sang stated that the current sales amount to approximately $10 m~lhon, and the need to expand service area through the use of a larger fac~hty would ~ncrease sales substanbally He stated there ~s an assumption that Scotty's w~ll have approximately 1% market share ~n the region, and the company has an ~nvestor relationship with Nordstrom and feels that th~s relationship could be developed for additional services to customers General comments from the V~llage Board members ~ncluded the following items It was pointed out that any revenue generated by Scotty's should be considered new 2 revenue and would not ~mpact ex~sbng revenues, so there would be no need for those revenues to be made up somewhere else because of the unique enwronment that Scotty's would operate w~th~n Mr Janonis stated that, ~f an agreement were to be structured to m~rror the 6B exemption amount, ~t could be completed and forwarded to the Board for cons~derabon at the next V~llage Board meeting He would recommend the Board consider passage of the 6B resolubon and attempt to complete the process for cons~derabon by the County for the 6B Consensus of the V,Ilage Board was to offer a sales tax rebate equal to the 6B class exempt,on amount and t,me frame equal to any Class 6B exemption VILLAGE MANAGER'S REPORT Coffee with Counsel ~s scheduled for February 13, 1999 from 9 A M to 11 A M at the Vdlage Hall ANY OTHER BUSINESS Trustee Paul Wm. Hoefert extended a special thanks to the Special Events Commission for the recent Celestial Celebrabon event CLOSED SESSION Mohon made Trustee Wilks and Seconded by Trustee Hoefert to ~nto Closed by move Session to discuss Property Acqulslbon The meebng moved into Closed Session at 8 50 pm Meeting reconvened ~nto Open Session at 9 27 p m IX. ADJOURNMENT No other business was transacted and the meeting was adJourned at 9 28 p m Respectfully submitted, DAVID STRAHL Assistant Vdlage Manager ~/td H;\GEN\Cow\Mmutes~20999 COW Minutes doc 3