The URL can be used to link to this page

Home My WebLink About7.2 Motion to Approve a Request by Parenti and Raffaeli for reimbursement of eligible TIF Relocation ExpensesBoardDocs® Pro Page I of 2 Agenda Item Details Meeting Aug 21, 2018 - REGULAR MEETING OF THEM UT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.2 Motion to approve a request by Parenti and Raffaeli Ltd. for reimbursement of eligible TIF relocation expenses in the amount of $3,000,000 Access Public Type Action Preferred Date Aug 21, 2018 Absolute Date Aug 21, 20141* Fiscal Impact Ye.2 Dollar Amount 3f111f11'1.00 Budgeted Ye*1 Budget Source Prospect and Main TIF fund Recommended Action Approve the payment of $3,000,000 in eligible TIF relocation expenses to Parenti and Raffaeli for their move from 215 - 225 E. Prospect Avenue to 1401 Feehanville Drive. Public Content Relocation of Parenti and Raffaeli Parenti and Raffaeli Ltd. (Parenti) moved their architectural millworking facility out of the downtown district to thc Kensington Business Park in the fall of 2017. This move was initiated in large part due to the desire of the Village t* pursue the redevelopment of the entire block that Parenti was situated on as detailed in the Downtown Implementation Plan (Plan) that was completed in 2013. The Village worked with Parenti for several years on relocation options and ultimately were successful in those efforts when Nicholas and Associates (Nicholas) stepped in ind crafted a relocation plan to the Kensington Business Park with the Parenti and Raffaeli owners. The Village was not included in this transaction. However, a key part of the relocation plan included the Village providing financial _?ssistance to Parenti for eligible Tax Increment Financing (TIF) expenses associated with their move. Parenti has submitted a detailed list of these expenses which total $4.64 million. Parenti"s total investment in their new facility exceeded $10 million. As stated above, negotiations for the Parenti relocation were progressing very slowly until Nicholas entered the scene and proposed the move to the Kensington Business Center. Nicholas purchased the former ITT building at 1401 Feehanville Drive and designed plans to expand that facility to meet the needs of Parenti moving forward for the foreseeable future. The result of those efforts were the development of a state-of-the-art millworking facility for Parenti and the retention of a highly successful business in Mount Prospect. Prior to the Nicholas efforts, Parenti was looking at several options outside of Mount Prospect in the Chicagoland area. Future Use of the Site The Parenti relocation opens up 215-225 E. Prospect Ave site for redevelopment as recommended in the Downtown Implementation Plan. The Plan proposes redevelopment of the Parenti property and surrounding properties for high density mixed-use residential/retail to enhance the existing downtown district. The Plan also encourages the relocation of the existing industrial businesses to other locations zoned for industrial in the Village, and notes that https://www.boarddocs.com/il/vomp/Board.nsf/Public 8/21/2018 BoardDocs® Pro Page 2 of 2 these properties provide the Village with the most significant opportunity to capture demand generated by proximity to the Metra train line. The 215-225 E. Prospect Ave site is also adjacent to the Village -owned Maple Street commuter parking lot, providing an opportunity for a public-private partnership. The redevelopment of these properties is also a top priority of the Village"s Strategic Plan. Redevelopment Potential Nicholas has been working with the Village to prepare preliminary plans for the redevelopment of the western six acres of P. block. Tentatively named the Maple Street Lofts, this proposal addresses several of the Prospect and Main TIF Performance Metrics including new residential units, growth in EAV and sales tax revenue, improvement to public infrastructure and increase in Metra ridership. The plans call for the construction of approximately 300 new residential units and 10,000 square feet of retail/restaurant space. The residential units would be a mix of high end rental units in mid -rise structures located along Prospect Avenue, and rowhome units that would front along Maple Street and Lincoln Street. The retail/restau rant space would be located in a mixed-use structure located at the corner of Prospect Avenue and Maple Street. The existing Maple Street commuter parking lot would be reconfigured on the block in a parking deck or surface lot, continuing the use of convenient commuter parking. These potential improvements are estimated to increase the equalized assessed value (EAV) on these parcels from $1.7 million to over $35 million, generating significant tax revenues (estimated at over $20 million through the life of the TIF) that can be used to cover public infrastructure, property acquisition, business relocation expenses and other TIF eligible expenses deemed appropriate by the Village. Nicholas has not asked for any further financial assistance with the exception of providing storm water detention for the redevelopment project. These plans are becoming more defined and staff expects a formal zoning submittal within the next month. The first neighborhood open house for the project is scheduled for September 19th. Recommendation Staff has reviewed the list of expenses submitted by Parenti with our legal team and have determined that they are all eligible under the TIF statutes for reimbursement. Although they are all eligible expenses, staff is recommending that the Village Board authorize the reimbursement of $3 million to Mr. Parenti. This amount is supported by the total investment that Parenti made on their new facility in Kensington Business Center, as well as estimated future revenue that a redevelopment such as Maple Street Lofts would generate to the Village. Alternatives 1. Authorize the payment of $3,000,000 in eligible TIF relocation expenses to Parenti and Raffaeli Ltd. for their move from 215 - 225 E. Prospect Avenue to 1401 Feehanville Drive. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends that the Village Board approve the payment of $3,000,000 in eligible TIF relocation expenses t* Parenti and Raffaeli Ltd. for their move from 215 - 225 E. Prospect Avenue to 1401 Feehanville Drive. This funding was anticipated in the Series 2017 TIF bond issue. III iii „ iii i, liiexIIG- � iiises G- �f ex(:eIIIIII-)d f (8'.1. IIS[:13) Administrative Content Executive Content https://www.boarddocs.com/il/vomp/Board.nsf/Public 8/21/2018 "A RESPECTED TRADITION IN WOODWORKING" December 12th, 2017 Michael Cassady Village of Mount Prospect 50 S. Emerson Street Mount Prospect, IL 60056 Rer Parenti & Raffaelli, Ltd TIF Items Mr. Cassady; I am writing this letter as an update to Parenti & Raffaelli's TIF Reimbursement as previously submitted. Now that we have completed the move to our new location at 1401 Feehanville Drive, I have been able to assign final costs to most of the items on the above mentioned list which I have attached for your review. Please note that a small number of items are still in the process of being completed, I have included the purchase order amount for those items and there should only be minimal revisions or additions to the costs from this point forward. Please review at your earliest convenience and let me know if you have any questions or if you need any additional information. If I bn t lie v from you by year's end, have a great holiday and Happy New Year! r " inceNli « 1�" )bert G. Ilair e' nti, President 1401 Feehanville Drive Mount Prospect, IL 60056 www.parentiwc)odwork.com RECYCLED 847-253-5550 FAX -847-890-6777 RECYCLED 1401 Feehanville Drive Mount Prospect, IL 60056 847-253-5550 FAX -847-890-6777 www.parentiwoodwork.com "A RESPECTED TRADITION IN WOODWORKING" f" r e nff Raf"f°aaffi ftrf -11F Items 1 $ 64,490.00 Machinery Moving (disconnect and reconnect) 2 $ 347,042.80 New Dust System Installation (new ductwork, concrete pad) 3 $ 265,789.50 New Spray Booths and Drying Room including installation & PAINT VAULT 4 $ 60,682.95 Moving cost of all materials, miscellaneous hand tools, supplies, work benches, hardware, ect... 5 Relocate all hose and electrical reels (disconnect and reconnect) -- INCLUDED BELOW in Air Compressor Relocation 6 $ 7,079.00 Move all office furniture and files (include labor to dissemble, modify, ship and reinstall) 7 Cost from moving company for all fire proof cabinets (these are too heavy for P&R to move) — INCLUDED ABOVE in Moving of Office Furniture 8 $ 17,447.55 Cost to relocate phone and computer systems 9 $ 936,193.70 Office Buildout (Reception Desk, Copy / Coffee Room for shop and office, Drafting Room, Architectural Fees, New Security System and Office Buildout Upgrades 10 $ 40,033.90 Tech cost to shut down, dismantle, set-up and start up of all computer controlled machinery (including all CNC controlled machinery) 11 $ 109,144.75 Air Compressor (hook-up air, electrical and all piping) & RELOCATE ALL HOSE AND ELECTRICAL REELS 12 $ 39,055.43 Special company to move finishing material / Paint Vault (pack -up, move, unpack) 13 $ 108,950.00 Screening for rooftop units 14 $ 414,525.00 HVAC (needs specific to P&R operations) 15 Air Make-up Units (remove and reinstall) — INCLUDED ABOVE in HVAC 16 $ 23,233.73 Cost for Spray Booth and Dust System permits (Mostardi & Platt) 17 $ 141,600.00 Attorney Fees 18 $ 3,471.00 Cost to move fork -lifts 19 $ 5,000.00 Relocate Trash Compactor and electrical 20 $ 14,845.00 Wood Grinder remove and reinstall / special costs (for building modifications to accommodate grinder) 21 $ 985,895.21 Power and Electrical (needs specific to P&R operations) 22 $ - P&R Ceiling Fans and related electrical — WORK WILL NOT BE COMPLETED 23 Relocate Lockers — INCLUDED ABOVE in Moving of Materials 24 $ 310,427.97 Buildout of All Shop Offices, Lunchroom, Storage Rooms, factory and factory partitions. 25 $ 59,200.00 Overhead Jib Cranes remove and reinstall (engineering costs for any additional structural support required) NEW $ 527,939.00 GENERAL BUILDING/SITE/UTILITES UPGRADES REQUIRED FOR P&R OPERATION NEW $ 26,775.04 SIGNAGE NEW $ 49,506.00 CLEAN, PREP & SEAL OF EXISTING FACTORY FLOOR NEW $ 78,107.00 SONITROL SECURITY & FIRE NEW $ 201,1 16.03 NICOLAS & ASSC. PERMITS, LABOR, PROJECT MANAGER, & SUPERINTENDENT NEW $ 147,500.00 DESIGN & ENGINEERING RECYCLED 1401 Feehanville Drive Mount Prospect, IL 60056 847-253-5550 FAX -847-890-6777 www.parentiwoodwork.com Total $ 4,647,643.07 Cost TIF Items 1 $ 27,294.03 Machinery Moving (disconnect and reconnect) 2 $ 353,677.80 New Dust System Installation (new ductwork, concrete pad) 3 $ 283,704.80 New Spray Booths and Drying Room including Installation & PAINT VAULT. 4 $ 21,369.58 Moving cost of all materials, miscellaneous hand tools, supplies, work benches, hardware, etc. 5 Relocate all hose and electrical reels (disconnect and reconnect) -INCLUDED BELOW in Air Compressor Relocation 6 $ 7,385.00 Move all office furniture and files (include labor to dissemble, modify, ship and reinstall) 7 Cost from moving company for all fire proof cabinets (these are too heavy for P&R to move) -INCLUDED ABOVE in Moving of Office Furniture 8 $ 13,631.37 Cost to relocate phone and computer systems 9 $ 869,123.53 Office Buildout (Reception Desk, Copy / Coffee Room for shop and office, Drafting Room, Architectural Fees, New Security System and Office Buildout Upgrades 10 $ 50,417.00 Tech cost to shut down, dismantle, set-up and start up of all computer controlled machinery (including all CNC controlled machinery) 11 $ 102,684.00 Air Compressor (hook-up air, electrical and all piping) & RELOCATE ALL HOSE AND ELECTRICAL REELS 12 $ 19,792.50 Special company to move finishing material / Paint Vault (pack -up, move, unpack) 13 $ 108,950.00 Screening for rooftop units 14 $ 414,525.00 HVAC (needs specific to P&R operations) 15 Air Make-up Units (remove and reinstall) - INCLUDED ABOVE IN HVAC 16 $ 12,000.00 Cost for Spray Booth and Dust System permits (Mostardi & Platt) 17 $ 109,600.00 Attorney Fees 18 $ 5,800.00 Cost to move fork -lifts 19 $ 5,000.00 Relocate Trash Compactor and electrical 20 $ 14,845.00 Wood Grinder remove and reinstall / special costs (for building modifications to accommodate grinder (for building modifications to accommodate grinder) 21 $ 960,034.00 Power and Electrical (needs specific to P&R operations) 22 $ 5,000.00 P&R Ceiling Fans and related electrical - INCLUDED ABOVE in Power & Electrical 23 Relocate Lockers - INCLUDED ABOVE in Moving of Materials 24 $ 217,024.69 Buildout of All Shop Offices, Lunchroom, Storage Rooms, factory and factory partitions. 25 $ 70,290.00 Overhead Jib Cranes remove and reinstall (engineering costs for any additional structural support required) 26 $ 527,939.00 General Building/Site/Utilities upgrades required for P&R Operation 27 $ 45,342.16 Signage 28 $ 38,000.00 Clean, prep & seal of existing factory floor 29 $ 25,000.00 Sonitrol Security & Fire 30 $ 191,713.61 Nicolas & Assoc. Permits, Labor, Project Manager & Superintendent 31 $ 147,500.00 Design & Engineering Total $ 4,647,643.07