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Home My WebLink About4.2 Discussion on Annexation of Unincorporated Properties between Oakton, I-90 and Higgins CreekBoardDocs® Pro Agenda Item Details Meeting Category Subject Access Type Preferred Date Absolute Date Fiscal Impact Budgeted Recommended Action NO Public Content Information Page 1 of 2 4.2 Discussion on annexation of unincorporated properties located between Oakton Street, the 91' Tollway and Higgins Creek. Public Action Nov 27, 201 Nov 27, 2018 No No Staff is requesting direction from the Village Board whether to pursue the annexation of unincorporated properties located between Oakton Street, the 1-90 Tollway and Higgins Creek. Annexation '!. i 'i bfl ve�. wwll�11 The Village is considering the annexation of approximately 28 acres of industrial and commercial property in unincorporated Cook County located at the southern border of the Village (see attached area map and annexation plat). The annexation may occur thanks to the Village's annexation of a portion of Tollway property just north of I-90, which the Village Board approved April 3, 2018 through intergovernmental agreement with the Illinois State Tollway Authority. The 28 acre subject property is now bounded on all sides either by the Village or another municipality. The subject property parcels are located along the south side of Oakton Street, west of the Higgins Creek. The area consists of 25 individually owned parcels and over 28 businesses that have addresses on Oakton Street, Weiler Road, Hamilton Road and Elizabeth Drive. The existing businesses are a mix of industrial, warehouse and commercial uses that were developed several decades ago in the county. The proposed annexation up for discussion at this meeting does not include any parcels north of Oakton, such as Willoway Terrace. The Village is considering the annexation of this property so that it can provide local services to these properties and to eliminate inefficient service provision by the county to this pocket of unincorporated land. In addition, the Village would zone the property I-1 Limited Industrial, which is the most compatible zoning district with the existing land uses in this area. The property would add $9.6 million in new equalized assessed value to the Village's tax base, thereby reducing the tax burden to other taxpayers in the Village. Annexing the property would also provide the Village with greater control of the long-term redevelopment of the property moving forward. The attached memorandum provides an overview of the current conditions in the area under consideration for annexation and an estimate of the cost of public improvements needed to bring the area up to Village standards. It should be noted that staff isn't suggesting that these improvements be installed immediately, but that the Village would need to determine the best way to finance them in the future and budget accordingly. Providing these infrastructure improvements would increase property values, encourage private reinvestment in the properties and possibly spur redevelopment opportunities that take advantage of •llway exposure r • Annexation are a top priority on . • - -Agenda within the 2018 StrategicAnnexationof similar parcels north of I-90/south of Oakton, but east of Higgins Creek, occurred May 16, 2017. Previous annexations in https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 11/27/2018 BoardDocs® Pro Page 2 of 2 this area have been generally positive with regard to the property owner's experience and transition of services from other agencies to the Village. Staff will present an overview of the existing conditions in this area and will discuss the benefits and challenges of annexing the properties into the Village. Most significantly, these properties are provided water service by individual private wells and Elk Grove Township sanitary sewer. Many of the wells are failing and several of the property owners have contacted the Village about extending water service. A water main could be extended along Oakton to provide Mount Prospect water to these properties. This would enhance property values and create economic development opportunities. More importantly, this water main extension would improve life -safety conditions relative to fire protection. This improvement could be financed with a Special Service Area, which would allow property owners to finance the improvement over a twenty year period. Ultimately, staff is looking for direction from the Village Board whether to pursue the annexation of unincorporated properties located between Oakton Street, the 1-90 Tollway and Higgins Creek. 1. Direct staff to pursue the annexation of unincorporated properties located between Oakton Street, the 1-90 Tollway and Higgins Creek. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends that the Village Board direct staff to pursue the annexation of unincorporated properties located between Oakton Street, the 1-90 Tollway and Higgins Creek. The Village is best positioned to provide municipal services to this area. If support is given, Staff will begin the annexation notice and hearing process and schedule an open house for impacted property owners and businesses. Oakt&r West of Oreek Ar,u,iexati&n Plat 5-1-5-1.7.pdf (823 KB) L__J Oaktire --West of Oreek Ar, u,iexati&n 2 is mo.pdf (6,54. KB) -iof0akt&n W'estof�iiggi�r-isC�ree�kP�ro�pe�rties.,Ip(Jf (205 KB) out[ ........... ... . . ....... 0 -i Ar-u,iexati&n Area Map 2.pdf (1,923 KB) a �kto �r Administrative Content Executive Content https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 11/27/2018 W112 *114 SEC. 26-41-f1, -OAKTa. PLAT OFANNEX4TION TO THE VILLAGE OF MT PROSPECT of TIT 7/7, E112 - NW114 SEC 26-41-il VILLAGE BOARD CFALT, -Er --------------- s"" ON- ----------- ------------- ---------------- GEWALT HAMILTON MT. PROSPECT Un ASSOCIATES, INC.JANE ADDAMS TOLLWAY AND OAKTON 10 i F Fd,- D-, 11,11, 11 611,11,1 7'1'1847,478,97CC —847,478,9701 J Village of Mount Prospect MCKIntP P Community Development Department \A/ TO: FROM: DATE: SUBJECT MICHAEL J. CASSADY, VILLAGE MANAGER DIRECTOR OF COMMUNITY DEVELOPMENT NOVEMBER 15, 2018 PROPOSED ANNEXATION OF PROPERTIES ON OAKTON STREET, WEST OF HIGGINS CREEK The Village is considering the annexation of approximately 28 acres of industrial and commercial property in unincorporated Cook County located at the southern border of the Village (see attached plat). The subject properties are located along the south side of Oakton Street, west of the Higgins Creek. The area consists of 25 individually owned parcels and over 28 businesses that have addresses on Oakton Street, Weiler Road, Hamilton Road and Elizabeth Drive. The Village is considering the annexation of this property so that it can provide local services to these properties and to eliminate inefficient service provision by the county to this pocket of unincorporated land. In addition, the Village would zone the property 11 Limited Industrial which is the most compatible zoning district with the existing land uses in this area. The property would add $9.6 million in new equalized assessed value to the Village's tax base, thereby reducing the tax burden to other taxpayers in the Village. Annexing the property would also provide the Village with greater control of the long-term redevelopment of the property moving forward. Per state statutes, the Village is required to pay the Elk Grove Rural Fire Protection District (EGRFPD) a gradually reduced percentage of the property taxes that they currently receive from the subject properties over the following five years. The Village must pay the EGRFPD their full levy in year one, 80% in year two, 60% in year three, 40% in year four and 20% in year five. The Village has negotiated a modified payment schedule that provides the EGRFPD with these payments over a three year period rather than five. The following chart provides an estimate of the required EGRFPD payment and the amount of property taxes that the Village will receive from the annexation of these properties over that same time period. Oakton/West of Creek Year EGFPD Payment PT paid to Village Year #1 $125,345 $109,785 Year #2 $125,345 $109,785 Year #3 $125,345 $109,785 Year #4 $0 $109,785 Year #5 $0 $109,785 Total $376,036 $548,926 In addition to the required EGRFPD payments noted above, annexing the subject properties will impact various department operations. Below is an analysis of the potential implications noted by staff. Police - The Police Department reviewed Cook County Sheriff's Office data regarding calls for service of the commercial areas along the Oakton Street corridor. Based on the data provided, it appears the vast majority of these calls appear to have been alarm calls, 911 hang-up calls, ordinance violations, and traffic related stops and crashes near the businesses. The call volume of this commercial area alone does not constitute a significant impact to Departmental service levels. Fire — The Fire Department reviewed the area proposed for annexation and offered the following observations: Buildings- The area includes 25 industrial buildings. Emergency Response Requests - The Elk Grove Township Fire Department has provided emergency services for the Oakton corridor since the late 1970's. No significant structure fires were found in the data provided by the EGTFD. If the unincorporated areas south of Oakton Street were annexed into the Village, Station 12 would be the station that would service this community. The station is located at Golf Road and Busse Road and is 2.5 road miles from the entrance to the area. The response times are estimated to be just over the six minute mark. Water Supply - Currently, there are no fire hydrants located in the Oakton corridor west of Higgins Creek. The closest fire hydrants are located along Terminal Drive to the north of the property. Access to a water supply would have to be a water shuttle operation or relay pumping. The closest hydrants are on a 12 inch looped feeder main located on Terminal Drive. The travel distances between existing hydrants and proposed annexation areas exceed well over 1,000 feet. This would impact firefighting operations if a fire were to occur in this area. The Fire Department strongly recommends establishing a plan to provide additional water supply and fire hydrants for this area. Access - There are multiple entrances to the Oakton corridor industrial area, all of which are off of Oakton Street or five streets that run south of Oakton Street. All roads are paved with no access or travel problems. Fire Prevention Bureau - Annual fire inspections would be required for all commercial buildings located in this area. There are some properties located in this area that will be required to remove large amounts of combustible materials and clean the site to ensure fire safety. Public Works - The Public Works Department assessed the Oakton Area to identify potential impacts the Village should consider if the area is annexed. The assessment included analysis of roadways, drainage, water distribution, sanitary wastewater collection, waterways, flood mitigation and streetlights Storm water - FEMA Flood Insurance Rate Maps indicate that ten (10) properties south of Oakton Street are within the 100 -year floodplain of Higgins Creek. Affected properties are denoted in exhibit #1. Notably, FEMA reports that this area has not been formally surveyed and, therefore, the entire floodplain is classified as floodway. Floodway is the most restrictive waterway classification. Potential impacts include severe restrictions on new construction, existing building footprint expansion, building value improvements, and substantive compensatory storage requirements. To better discern these potential impacts, staff recommends performing an engineering survey to establish existing elevations and define the limits of the floodway and floodplain. The estimated cost to hire a qualified engineering consultant to perform this work is $50,000. Streets - Overall, streets in this area were rated from poor to fair condition. PCI values ranged from 60 to 76. Due to the commercial/industrial nature of the area, and the higher truck volume associated with this use, staff recommends that the standard pavement treatment include a 4" grind replaced with 2" of binder course and 2" of surface course hot -mix asphalt. For Weiler Road, Elizabeth Drive, Diane East, and Hamilton Road (from Diane East to Weiler Road), the scope of work should also include removing and replacing sections of curb and gutter as well as adjusting existing storm sewer structures to improve drainage For Hamilton Road (from Oakton to Hamilton), the scope of work should also include installing additional storm sewer structures to improve drainage, adjusting existing storm sewer structures, installing curb and gutter, and repaving sections of off-street parking. Staff recommends that proposed pavement maintenance be implemented in phases over the next few years. Specifically, Weiler Drive, Elizabeth Drive, Diane East, and Hamilton Road (from Oakton to the curve) should be resurfaced in the next 2-4 years. Improvements on Hamilton Road (from the curve to Weiler Road) should be constructed in the next 4-6 years. Exhibit #2 denotes anticipated street rehabilitation costs and timetable. If annexed, the area will add 1.33 centerline miles of pavement to the Village street inventory. The resurfacing burden for this addition is $514,800. Water Service - Water supply in the area is presently provided by privately -owned, shallow groundwater wells. In most cases, each property or building owns, operates, and maintains its own well system. As noted previously, Village Code allows groundwater wells to exist as a potable water source if they were installed prior to May 21, 1985. However, the code also requires connection to a Village water main (if available) should an existing well become unusable or inoperable. It is feasible to extend the Village -owned water distribution system to service the entire area. This extension would provide the area access to treated Lake Michigan water and avail property owners to improved fire protection. A proposed water main extension concept is shown on exhibit #3. Generally, the scope of work would include the installation of 10,500 linear feet of 12" diameter ductile iron water main along with necessary appurtenances including valves and fire hydrants. The estimated cost to construct these improvements is $5,265,000. Sanitary Service - The area presently receives wastewater collection service from Elk Grove Township. The township owns and operates a sanitary sewer system that conveys wastewater to a Metropolitan Water Reclamation District of Greater Chicago interceptor main in the Oakton Street right-of-way. The township operates this utility as an enterprise and charges customers a user fee for service. Annexation, in and of itself, does not transfer ownership of the township's sanitary sewer utility to the Village. However, the township has indicated that it is interested in transferring ownership to the Village. No metrics are presently available to describe the inventory of sewer mains, manholes, and other appurtenances that comprise the Elk Grove Township sanitary sewer system. Furthermore, no assessment has been made to ascertain the condition of the township's sewer assets. Based on information presently available, the system appears to be in questionable condition. Below is a summary of actions that the Village may wish to consider prior to taking any responsibility for the Elk Grove Township sewer system. • Inspection of sanitary manholes. • Television inspection of sanitary sewers. Estimated cost $35,000. • Resident survey of historical basement back-ups and surface flooding issues. Estimated cost $8,000. • Private building inspection for improper sanitary connections. Estimated cost $10,500. • Smoke -testing of sewer mains and service laterals. Estimated cost $12,000. • Flow monitoring of sewer mains at discharge points to MWRDGC interceptor $10,000. • Review of Elk Grove Township maintenance records, capital improvements, and flooding complaints. It is relevant to note that information garnered from these activities could indicate a need for more substantive improvements including manhole and/or pipeline rehabilitation. Streambank Stabilization — Higgins Creek dissects this proposed annexation area. Between Oakton Street and Hamilton Drive both banks are armored with sheet -pile retaining walls. However, much of the sheet pile on the east side of the creek is failing. Due to the close proximity of buildings and prohibitive U.S. Army Corps of Engineers regulations on reducing the cross section of the creek channel, staff anticipates that removal and replacement of the failed sheet pile is likely necessary. The estimated cost to perform this work is $350,000. Streetlights — Staff estimates that it will require up to 15 new, Village -owned aluminum poles with LED luminaires to effectively illuminate roadways in the area. The estimated cost to purchase and install these fixtures, along with commensurate engineering, wiring, and control equipment, is $50,000-$75,000. Please forward this memorandum and attachments to the Village Board for their review and consideration at the November 27 Committee of the Whole meeting. Staff will present this information at that meeting and is looking for direction from the Village Board on whether to pursue the annexation of these properties. Exhibit #1 Higgins Creek Floodway G--.1 TILLAGE OF [TiOlIAT PROSPECT 1A- 0 Exhibit # 2 Street Rehabilitation Schedule Estimated Age Length Width Maintenance Improvements Pavement Improvements Recommendation Year Cost* Recommendation Year Cost* Street of Pavement FT FT Hamilton Road 5-10 years 235 23 Crack fill and Patching 2019 $2,402 Resurfacing 2026 $23,422 Hamilton Road 12-16 years 425 24 Patching 2019 $567 Resurfacing 2020 $44,200 Diane East 12-16 years 435 25 Patching 2019 $604 Resurfacing 2020 $47,125 Elizabeth Drive 12-16 years 590 32 N/A Resurfacing 2019 $81,813 Weiler Road 12-16 years 665 32 Patching 2019 $1,182 Resurfacing 2021 $92,213 Hamilton Road 5-10 years 1630 32 Crack fill and Patching 2019 $17,387 Resurfacing 2025 $226,027 Exhibit # 3 Conceptual Water Main Extension Mound Nosjmt, IL - Oakl:-Are a Wore, S ... - Eval.mfin $�URNS ., Proposed Water Marin Exterisiori MDo HELL Legend A Proposed Hydrant 0 Proposed Water VaNa - Proposed Water Main A Existing Hydrant Existing Water VaNe Existing Water Main Private Utilities Electric Gas Telecommunications ill 11 ", "111 1:11 11 11"I""'"I"IF111 Riddiford Roofing Co / 2333 Hamilton Rd .. Commercial roofing and maintenance $ 575,839.26 2001 Boutique & Sales, DBA 2001 Autobody 08-26-102-016-0000 2301 E Oakton St 847-806-0979 Auto body, mechanical shop $ 697,378.10 235,386 Creative Automotive 08-26-102-018-0000 2355 E Oakton St 847-759-9307 Auto body, mechanical shop $ 244,345.72 82,474 Cumberland Servicenter 08-26-102-019-0000 2375 Oakton St 847-437-5050 Truck auto service and repair $ 521,041.16 175,867 Magnum Automotive 08-26-102-025-0000 2231 E Oakton St Timothy Stef- 847-593-0707 Car maintenance and repair $ 351,820.63 118750 Jet Grinding & Manufacturing 08-26-102-026-0000 2309 E Oakton St. 847-956-8646 Supplies precision grinding components $ 377,744.25 127,500 Asphalt Equipment & Supply 08-26-102-027-0000 110 Hamilton Rd. 847-640-6440 Construction equipment supplier $ 143,394.68 48,400 Attitude Performance 08-26-102-029-0000 2349 E Oakton St Matt Dinelli- 847-593-0505 4x4 off road vehicle modification and repair $ 258,501.50 87,252 Dave & Jim's Auto Body 08-26-102-038-0000 2345 E Oakton St 847-228-5277 Auto body, mechanical shop $ 322,341.76 108,800 Parking Lots Plus 08-26-102-039-0000 2324 Hamilton Rd James Peterson- 847-439-2500 Asphalt reconstruction company $ 71,466.25 24,122 VIP Charter 08-26-102-044-0000 2225 E Oakton St 847-264-8145 Private transportation services (also party buses!) $ 55,387.68 18,695 G & G, G & M Truck & Auto Repairs 08-26-102-046-0000 130 E Hamilton Rd 847-806-9590 Car maintenance and repair $ 369,744.96 124,800 Riddiford Roofing Co 08-26-102-047-0000 2333 Hamilton Rd 847-437-5771 Commercial roofing and maintenance $ 575,839.26 194363 Exquisite Limousine 08-26-102-049-0000 2420 Hamilton Rd 773-370-5466 Private transportation services $ 295,167.88 99,628 Chicagoland (Suite Al), Tri State Auto Group 08-26-202-001-0000 2407 E Oakton St 847-228-6800 Construction company: custom homes, roofing, siding, $ 387,722.62 130,868 G Motorcars 08-26-202-002-0000 2411 E Oakton St Joe Mok- 847-228-1900 Used cars and truck sales $ 312,395.98 105,443 O'Hare Precision Metals, LLC 08-26-202-003-0000 2404 Hamilton Rd Tom Knowles- 847-640-6050 Steel manufacturer $ 347,524.71 117,300 Arlington Imports 08-26-202-006-0000 120 Elizabeth Dr 847-258-4050 Car sales, car maintenance repair $ 366,047.51 123552 Donlon Manufacturing Co 08-26-203-003-0000 125 Elizabeth Dr Irene Donlon- 847-437-7360 Custom design and manufacturing (chop shop) $ 311,083.50 105,000 Viola Imports 08-26-203-006-0000 113 S Weiler Rd 847-690-0790 Authentic Italian specialty product distribution $ 901,235.56 304,194 Teper Transportation 08-26-203-008-0000 2425 E Oakton St 847-871-6265 Trucking company $ 281,456.50 95,000 US Lift & Warehouse Equipment 08-26-204-001-0000 2405 Hamilton Rd 847-364-4343 Lift and warehouse equipment for sale and rental $ 575,738.53 194,329 Emi-Porta Inc. 08-26-204-002-0000 250 Hamilton Rd Chris Ganas- 847-593-4900 Elevator components and equipment $ 266,204.52 89,852 Gatwood Crane Services 08-26-204-003-0000 2345 Hamilton Rd 847-364-1400 Crane rental service $ 230,542.50 77,815 Signature Transportation Group 08-26-204-011-0000 2300 Hamilton Rd 844-266-5784 Private transportation services $ 518,724.33 175,085 Hinckley Springs Water 08-26-204-012-0000 2445 Hamilton Rd 800-492-8377 Water storage and distribution $ 822,149.25 277,500 Results $ 9,604,999.33 3,241,975 2017 Cook County Equalization Factor: Rough square footage of area: 1,242,949 sq ft EAV: $9,604,999.33 2.9627 Acreage: 28.5 Acres Village of Mount Prospect w�:-E Proposed Annexation Location Map r LEGEND PROPOSED ANNEXATION AREA 27.6 ACRES CURRENT CORPORATE LIMITS smiiiiiiiiiiiiiiiiiiiillillillillillillilliillillillillillillillillilillillillillillillillillillilliillillillillillillilI im Aw MAP AS OF SEPT. 2018 BY JJP/PW F:111Proposed Annexation Map 2018 W1' R"', mt� Iiii ,