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HomeMy WebLinkAbout02/10/1990 MPDD MinutesSPECIAL MEETING DOWNTOWN REDEVELOPMENT STRATEGY SESSION February 10, 1990 I. ROLL CALL The meeting was called to order at 9:00 a.m. Present at the meeting were Mayor Gerald Farley, Trustees Ralph Arthur, Mark Busse, Timothy Corcoran, George Van Geem, Leo Floros and Theodore Wattenberg. Staff members present included: Village Manager John Fulton Dixon, Assistant Village Manager Michael Janonis, Fire Chief Edward Cavello, Police Chief Ronald Pavlock, Finance Director David Jepson, Planning and Zoning Director David Clements, Economic Development Director Kenneth Fritz, and Staff Planner Paul Bednar. Also present at the meeting were: Business District Development and Redevelopment Commission members Hal Predovich, Irvana Wilks, Earl Johnson, and Paul Hoefert. Also in attendance were Janet Hansen, Executive Director of the Mount Prospect Chamber of Commerce, Dennis Reindl, owner of Northwest Electric, and three persons from the print media. Village -hired consultants included Jacques Gourguecheon, Michael Blue, John Holm, Arthur Hall, Cheryl Baxter, Fred Borich and Naras Statkas. Also invited to attend were developers Norm Katz and Dick Baldwin. H. WELCOME AND AGENDA Mayor Gerald Farley welcomed those in attendance and indicated that the major objective of the meeting was to reach a decision regarding the siting of the new Public Safety facility. The sites under consideration included the present location of the Public Safety Building at Northwest Highway and Maple Street, and the old Public Works site on Pine Street. It was Mayor Farley's hope that, through discussica of long-range redevelopment g,oasis for the downtown, a permanent siting decision could be reached. Jack Gourgliecheon ;. dicated that rye would be servin' in the capacli ;� cif a facilitator a: .3 hoped hat the group *ould achieve bas -'agreement on ia,,.Jor issues regarding downtown redevelr:�-naent so that a derision on siting _? ald be made. Mi. Gourg�,,!�,,heon stared by t.s9 4blish-.mg three basicassumptions - 1. There iti a need fo. -a "new"'r'ublic Safety Building. 2. Two Public Safety. sites ars. currtatly available Street/Northwest Highway). 3. Economic redevelop-t.aent of tlde downtown area is desirable and necessary. Downtown Redevelopment Strategy Session February 10, 1990 Meeting There was general discussion among attendees regarding the framework within which such a siting decision would be made. These factors included public acceptance, market conditions, Village's return on investments, and impact on existing downtown merchants. III. STAFF OVERVIEW Village staff reviewed, with attendees, past efforts with regard to downtown redevelopment, current parking considerations, financing options and the status of the consultant's report on the proposed Public Safety facility. David Clements, Planning and Zoning Director, reviewed with attendees present conditions as they relate to both the Village's Comprehensive Plan and the downtown master plan. Mr. Clements indicated that these documents called for retail development to take place in the parcel commonly known as the "triangle" (Northwest Highway, Main Street, Central Road). It was Mr. Clements' opinion that siting the Public Safety Building at the old Public Works site on Pine Street would have a detrimental affect on future redevelopment in this area. Kenneth Fritz, Economic Development Director, reviewed with attendees the overall parking situation in the Central Business District. Mr. Fritz indicated that preliminary results of a consultant's report indicated a large demand for commuter parking that placed pressure on other parking uses in the downtown area. Parking deficiencies could be identified in each of the major downtown corridors. David Jepson, Finance Director, reviewed with attendees various factors that would impact on any financing for (1) a new Public Safety facility, (2) downtown redevelopment. Mr. Jepson indicated that current TIF obligations could be met through 1990. After that, however, the project would begin to run a deficit until 1997, at which time, the anticipated surpluses would cover prior deficits. He then noted, however, that there would be no surplus in increment to help support redevelopment in other areas. For illustrative purposes, Mr. Jepson indicated that a 4 million dollar/20 year bond issue would require approximately $392,000 in annual debt service payments. This would equate to a 5.5 cent increase in the debt service tax rate. Fred Borich, Donohue and Associates, reviewed with attendees their preliminary findings regarding scaled-back rehabilitation of the existing Public Safety facility. Identified as Option D1, Mr. Borich indicated that the cost of scaled-back rehabilitation was in the area of $7,091,000. This figure was slightly less than the original rehabilitation option (Option D) at $7,627,000 but was less than a newly constructed facility at the present location (Option -2- Downtown Redevelopment Strategy Session February 10, 1990 Meeting A) for $7,156,000. Mr. Borich indicated that Option D1 did not resolve all priority 1 and priority 2 deficiencies as listed in their initial report. Life safety Code deficiencies were not all addressed because not all walls and partitions within the building would be removed. Operational deficiencies could not be resolved because of the need to maintain load bearing walls throughout the facility. Trustee Timothy Corcoran asked the Village Manager if any contacts have been made with the owners of the "VanDriel's" building and the Evans Restaurant building. Trustee Corcoran felt that the purchase of these two properties would create a more suitable location for a new or rehabbed Public Safety site. He felt that the additional land would negate the need for structured parking. Staff was directed to make contact with these two property owner. IV. DEVELOPER PERSPECTIVE Mr. Norm Katz of Rescorp, and Dick Baldwin of Nordon Investments, spoke with attendees regarding the current market conditions for redevelopment and their respective thoughts regarding potential for Mount Prospect's Central Business District. Both gentlemen indicated a softening of all sectors of the development market. Mr. Katz felt there was some potential for residential while Mr. Baldwin indicated that he felt redevelopment within the triangle would have to take place over a long term (10 to 15 years). Both gentlemen indicated a need on the part of the Village Board to establish clear direction regarding redevelopment within the triangle. They indicated that it was difficult for a developer to develop concepts without first knowing what the expectations of the Village were. There was also considerable discussion about the Village's decision not to use its power of condemnation vis a vis certain properties within the triangle. Messrs. Katz and Baldwin indicated that this reluctance could create serious problems in any attempt to put together a land package. V. CONSULTANT'S RESPONSE Village -hired consultants reviewed such issues as land -use, parking, marketing, and financial options. Mr. John Holm discussed parking related issues including the costs of structure versus grade level parking and the need to gear "parking type" toward the intended users. There was general agreement that surface parking was necessary for successful retail, while structure parking could be utilized by employees, merchants and commuters. -3- Downtown Redevelopment Strategy Session VI. VII. February 10, 1990 Meeting Mr. Gourguecheon addressed the issue of land -use and indicated that placement of the Public Safety Building at the Pine Street site would, in effect, cut the "triangle" in half. He also indicated that, because of the Village Board's unwillingness to acquire certain properties, the remaining land massing potential was diminished and the remaining parcels would result in an awkward configuration. Ms. Cheryl Baxter indicated that marketing was a crucial tool in communicating to developers the type of development being sought. This required the Village to have a strong vision of who they were and what they wanted to be. This strong vision would build confidence in developers. Arthur Holm discussed various financing options the Village could consider in putting together a developer package. Mr. Holm reviewed several private sector techniques, such as, land swapping and joint ventures as a means to acquire control over property. He also emphasized that the Village currently held possession of two very valuable parcels of land within the downtown area (Pine Street and Northwest Highway). DISCUSSION AND CONSENSUS BUILDING Discussion among attendees resulted in consensus being reached on the following objectives: 1. Eliminate police/fire deficiencies 2. Provide effective/efficient public services 3. Manage fiscal resources 4. Optimize redevelopment options An attempt was made to establish a "vision" for the Central Business District. Most attendees indicated a preference for a homey/low density style of development. There was some discussion regarding height and density as well as the need to "seek out redevelopment" as opposed to letting market conditions dictate redevelopment. SITING CHOICE After extensive discussion, the attendees were polled and the overwhelming majority indicated a preference for locating the Public Safety facility at its present site' on Northwest Highway and Maple Street. -4- Downtown Redevelopment Strategy Session February 10, 1990 Meeting VIII. STAFF DIRECTION Village staff was instructed to: 1. Establish further cost reductions for Public Safety Building/Option A 2. Contact First Chicago Bank regarding interest in a shared parking facility 3. Make initial contact with the owners of the VanDriel's and Evan's properties 4. Attempt to re-establish contact with various developers IX. ADJOURNMENT MEJ:hg The meeting was adjourned at 4:20 p.m. -5- Respectfully submitted, MICHAEL E. JANONIS, Assistant Village Manager