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HomeMy WebLinkAbout1368_001MINUTES COMMITTEE OF THE WHOLE NOVEMBER 23, 1993 0 a The meeting was called to order by Village Manager Michael Janonis at 7:30 p.m. Present at the meeting were: Trustees George Glomes, Timothy Corcoran, Richard Hendricks, Michaele Skowron and Irvana Wilks. Trustee Hoefert arrived at 8:02 p.m. Absent from the meeting was: Mayor Gerald Farley. Also present at the meeting were: Assistant to the Village Manager David Strahl, Public Works Director Herbert Weeks, Deputy Public Works Director Glen Andler, Finance Director David Jepson, Police Chief Ronald Pavlock, Human Services Director Nancy Morgan, Assistant Human Services Director Jan Abernethy, Human Services staff* including April Foley, Judy Fell, Nina Persino. On a Motion by Trustee Skowron and Seconded by Trustee Clowes, Trustee Corcoran was unanimously voted as President Pro Tem for the meeting. MINUTES On a Motion by Trustee Skowron and Seconded by Trustee Clowes, the Minutes of September 14, 1993 were Approved with Trustee Hendricks abstaining. Trustee Skowron made a Motion to Approve the Minutes of November 9, 1993 which was Seconded by Trustee Hendricks. The Minutes were unanimously Approved with Trustee Wilks abstaining. 1110 CITIZENS TO BE HEARD W. There were no ciftizens present who wished to Address the Board at this time. Ivo MELAS PARK DEVELOPMENT OVERVIEW Village Manager Michael Janonis stated that the Arlington Heights Park District and the At. Prospect Park District are here to present a Development Plan overview. The initial development will focus on the west half of the Park which lies in the Arlington Heights Park District zone. At this time, few 'improvements are contemplated 'in the east half of the site which is under control, of the Mt. Prospect Park District. He further stated that an informational mailing was distributed to residents 'in the area of the Park prior to this meeting "in order to solicit citizen comments. a Tmmftd W'ft asked what nights would the lights be on until 11:00 p.m. Mr. Oakes stated usually Monday through Friday the lights would be Off by 11:00 p.m-. due to their league rules. Their leagues typically only run through weekdays. kdays. Trustee Wilks asked if there were any plans for the Mount Prospect side, Waly CooK of #* Mt P Park D" stated at this time, they have no extensive plans for the development of their side of the site. However, they plan to use the football/soccer fields that they currently have more intensively in the future and also may consider building a concession/shelter and play area in the general vicinity of the playing field. General discussion followed. Tmistee Wft asked Mr. Dickerson 'if he would provide a list of similar lighting schemes in the area for Trustees"to review. Mr. Dickerson stated that would be no problem and would forward a list to all Trustees for their information, Herb Wool% stated they would sUll be able to dump leaves and snow in the parking lot and this is included as part of the agreement. The type and cost of the road is yet to be determined but he would estimate approximately $100,000 for the road which is the Village's responsibility according to the agreement. 6 Mr. Oakes stated he is investigating possible grant availability for funding of various phases of the project as is Mr. Weeks for funding anal* stance for the road itself, General discussion concerning the amount of parking spaces followed with numerous Trustees stating their concern about the limited number of parking spaces when the site is under heavy use; for example, during the 4th of July celebration based on the it scheduled for the west side would damage the fields. The 4th of July celebration will remain on the east side of the service road, Mr. Ze ' ' stated that they could redraw the plans 'in order to determine if additional land is available for future lots and a possible land banking situation and at this time, may even consider adding additional parking if necessary per the Trustees' comments. Tnjsb* Hoefert recommended that additional parking be built at this time to minimize disruption. I Training will have to focus less on acting after the fact, like filing a police report, to spending time to avoid filing a police report. Will have to spend more time in community. General discussion followed where miscellaneous issues concerning the Police Department were discussed among the Trustees and the Police Department personnel. Trustee C asked if any citizen surveys show Citizen concern about secunoty Aft in a speciffic area-7 Chief PavWck, stated that the surveys have not spea*fically addressed this concem Trustee Hoefert stated your mission statement sets a goal of providing a feeling of security, how does this statement equate to Officers catching offenders in the act compared to responding after the fact. All Chief P ,alv*,x*, reshooro ponded that neighbord at helps pvide the secure feeling, but the probability of Officers intercepting a crime is remote. Tnmgee Hoetert asked if dispatching from a single location improves the feeling of security. Chief Pavkck stated the Officers are responding to one call after another and do not wait at a location for a call in order for Officers to be in the field and avoid returning to station unless necessary. Trustee Skowron questioned the cost per f cer comparison chart and its illustration compared to other muniCA'palities. Dave Jepson stated that it is important to isolate the total cost for all services within each Department, therefore, the cost associated with the Police Department includes all costs that the Village must cover. For example, insurance and Workers' Compensation is included in the total Police Department cost while other communities may not include that 'in one single budget location. T,n,mMw, Corcoran stated if you switched to community-based policing, how will you know when more Officers will be needed. I Chief PaAck", stated that service demands may not always tell us when we need more Officers but citizen demands should provide that. Although community- based policing is not based on statistics which we usually utilize to illustrate the need for additional Officers, the actual participation of citizens and the interceding of Officer assistance should be comparable to service demands. 7 via MANAGERS REPORT No Manager's Deport. V' I. ANY OTHER BUSINESS No other business. Villa ADJOURNMENT The meeting was adjourned at 11.16 p.m. Respectfully submitted, DAVID STRAH L DS/rcc Assistant to the Village Manager 0 MINUTES COMMITTEE OF THE WHOLE DECEMBER 14, 1993 CALL TO ORDES The meeting was called to order by Mayor Gerald Farley at 7:34 p.m. Present at the meeting 'were: Trustees George Clowes, Richard Hendricks, Michaele Skowron andIrvana Wilks. Absent from the meeting was: Absent from the meeting was Trustee Timothy Corcoran. Also present at the meeting were - Village Manager Michael Janonis, Assistant to the Village Manager David Strahl, Public Works Director Herbert Weeks, Deputy Public Works Director Glen Andler, Forestry Superintendent Sandra Clark, Finance Director David Jepson, Inspection Services Director Chuck Bencic, and Engineering Coordinator Jeff Wulbecker. 1140 MINUTES The Minutes were asked to be deferred by Trustee Hoefert due to his request for addonal detail on pages 4 and 5 of the Minutes concerning addonal Trustee comments. Trustee Clowes also requested a review of page 3 to ensure that the comments were accurate. The Minutes were deferred until the next Committee of the Whole meeting. Ilia CITIZENS TO BE HEARD 11 Richard DumbrowsM, of 914 Sumac Lane, stepped forward to speak about property taxes, He asked why can't residents get more action concerning minimizing property taxes. He stated that much of the discussion has focused on senior citizens. He 'i's concemed that the younger C4*tizens are not getting equal consideration of n"sing property taxes. Tnmfte Hoefbrt stated that as Trustees, we all want to keep taxes down and asked Mr. Dumbrowski if he has gone to i taxing bodies with his concerns. Mr. Dumbrowski stated that he is trying to get the other taxing bodies to discuss this concern, however, he feels there seems to be a great deal of apathy among the citizens. He is planning to go to District 214 meetings in the near future. Tro*w floefert asked numerous questions 'Including the effect of last year' - drought on the tree population and if the Department has any recommendation, to protect trees during construction. He also asked if the slower growing tree have a longer life -,span compared to the fast-growing shade trees. I I Tmotee Ckmas asked if i budget include's money for leaf pick-up. He also asked what the ratio of parkway trees is compared to trees on private property. He also stated the report states that most communities pay approximately $2.60 per capita for trees and he 'Inquired whether this figure includes other governmental bodies! expenditures for trees; for example, i Preserves, etc. He also stated that there had been more trees planted than removed based on the analysis of the report, however, he questioned the level of Ob 0 0 citizen participation in replacement trees and whether the Village was 'incurring higher cost for replacement with minimal citizen participation. Trindee WOI* stated that the report recommends on page 27 that the Village revise its Ordinance and prohibit topping of trees. She also stated that the report recommend removal of unwanted trees. She also asked if there could be anything done to prevent gypsy moss pn*or to them becoming active in the destruction of the trees. Sandy Clark and Chrls Luley responded to the numerous comments from the Trustees. The drought may cause long-term root damage, however, regular watering does help in minimizing the root damage. Also, there has been some rapport established with area contractors to minimize i and damage to trees due to construction projects. There really is no data on whether slow- growing trees have a longer life span as compared to faster growing trees, however, most homeowners want the fast growing trees to maximize shade availability as quickly as possible. Many more trees have been planted without citizen participation because there 'I's minimal developer money available due to development being down within the Village so the Village will incur additional cost in the Village for maintenance and installing trees. The topping of trees takes away the drown and it disrupts the growth pattern of the van"ous trees. The Village Forestry Department has a policy of not topping trees, however, vadous utilities continue this practice. The State is still studying i moth program in an effort to reduce its impact and study its life cvc1e. . However, as of this date, there has been minimal progress. M 414 1" 11111- U41 X#ICI Lawrence Freedman, adbn*y I Target Development Group, spoke. He requested that the Board table the discussion on Economic Incentive Programs until all of the Board could be present to participate 'in the discussion. He also requested that the planned second reading of the Zoning for the Target property at the Village Board meeting of December 21, 1993 be delayed until this discussion has taken place. 3 ^^nomic Incentive diwmssion� should be broader Trustle's- Hoefert stated that the mco than the single Target Development issue. Mayor Farley stated that he would defer thi& discussion until another Committee of the Whole meeting when all members could be present. VIC STATUS REPORT FOR REGIONAL ROAD PROJECTS Village Manager Janonis stated that staff has provided the Village, Board with an outline of current construction projects within the Village and cost 'Information whichrelated to Flood Control Projects linked to these road construction projects. He also stated that the numerous regional road proiects are going to 'impact upon the Village due to. additional staff time and wanted z to keep the Village Board informed of these projects and their status. projects that are projected Chuck Bencic provided an overview of the fivw major for the next couple of years within theVillage of Mount Prospect. Project #1 is Semkx* Lane Project #2 is Linneman Road r 0 The Village Is asking for Federal funding assistance for both of these projects. Projects #3 and 4 are SRA w Route 83 and SRA Route 12 These two roads are expectedexpect to have minimal financi*al impact on the Village, however, there is ed to be substantial 'impact on local traffic movements. Pr"ect #4 is Kensington Road knprovement near Prospect High 01 o School Jeff Wulbecker, Village Engineer, summan*zed the various projects. He started with an overview, of SRA Route 12 (Rand, Road). SRAs are supplemental major artedal roads designed to supplement highway traffic. A recent public hearing was held to present the final design report. The projected, schedule to provide a final engineering report is expected in February of 1994. The only real financial impact to the Village will be the cost of upgrading,traffic signals with Opticon systems. The Village has gone on record W*th issues including a barn"er median and the Intersectiorilof Rand/Kensington and Route 83. General discussion followed in which numerous Trustees voiced conpoms about displMMAcement of ftmes Wd businesses and the impact of the barrier median on local businesses, along- Rand Road. 4 Jeff Wtiftclker further stated that IDOT i's 'interested in designing Rand Road a a longAistance travel road minimizing local traffic movement through the use o increased green time on the traffic lights in the Village. Jeff Wulbecker the summanzed the status of SRA Route 83. No draft report is expected until earril 1994. IDOT has proposed a project from Interstate 90 to Northwest Highway. Th cost impact to the Village is limited to any infrastructureimprovements that ma be provided simultaneously with the road construction. Based on the prelimina plans that have been provided to the Village, a significant tree loss 'is expected The widening of the road to five lanes will cause 75% of the trees to be remove between Golf and the s -curve. With only four eleven -foot lanes, there will be 50% tree loss. Some of the problems that are expected to be encountered wit this reconstruction are the closeness of the homes to the road at vadous location and the cul-de-sacing of Pine and Wille streets on the s -curve. The public hearing is expected to be scheduled for sometime in early 1994 and to take place 'in the spn*ng of 1994. 1 General discussion followed in which numerous Trustees stated their concern about the tree removal and the impact on residents including the noise of enlarged lanes closer to residential units. It was also discussed among the Trustees that the public notice and "the public hearer,,'I'an s the responsibility of IDOT d recommended the Village staff also provide the notices to the area residences which will be affected. Jeff Wulbecker stated that the traffic lights which had odginally been projected to be removed will now be staying on the road after reconstruction. Jeff Wulbeckerthen summadzed the status of Seminole Lane reconstruction from Wolf to River Road. This is a joint project between Prospect Heights and the Village of Mount Prospect. They are projecting funding from the Northwest Municipal Conference for approximately 60% of the total pace. Prospect Heights is the lead agency and they are awaiting status of the funds in order to determine when construction might begin. General discussion followed in which Trustees were informed that the Northwest Municipal Conference is the agency that reviewed Federal Fund Applications for regional road projects. Jeff W jbecker summarized the Linn man Road reconstruction. The project runs from Dempster to Golf Road. At this point, the Village is in the process of obtaining the right -of -sway necessary for the reconstruction. A preliminary schedule has been determined with the recent approval of the n,, in firm which is charged with performing the Phase 1 and Phase 11 engineering. 5 V%age�nager Janon1b stated that the schedule is aiso based on projecte( Federal funding approval, Currently, there is some discussion with the Northwes Municipal Conference 'in order to obtain some funds to assist in this project However, due to the limited amount of funds available, the prospects of obtainin� funds is somewhat unknown at this pol"nt. However, the Village staff is pursuinc the possibility of .� obtaining funds 'in order to assist in funding this projecL Jeff Wulbecker then summarized the Kensington Road . project. This project il, primarily within Arlington Heights, however, they have asked for some assistanCA from the Village of Mount Prospect at the point of the intersection of Prospect Higt School and Kensington Road. At this point, Village staff has not expended muct staff tim e inth is project due to,. the. fact that Arl i ngton Heights is the agency wh ict is interested � in constructing this road. V11111age Manager Jan, onis stated that one of the concerns the Village has informed Arlington Heights of is the State requirement for Jurisdicti1onal transfer. Arlington Heights was informed that the Village of Mount Prospect is notinterested in taking jurisdictional transfer over any part of Kensington Road at this point. Tmwtee wl", offered,, some final comments concerning SRA Route 83. She reiterated her concern for taking of people"s front yards in order to widen the road. She 1"S "interested in determining if other options are available. VNage Manager Janonis stated that staff will work with IDOT to determ'ine what options are available and communicate these options to the Board. VII. MANAGER'S REPORT No Manager's Report. V11L ANY OTHER BUSINESS No other business. We EXECUTIVE SESSION A Motion was made by Trustee Will and Seconded by Trustee Skowron at 10:13 p.m. to go into Executive Session to discuss litigation. Village Board returned from Executive Session at 10.*27 and promptly adjourned for the evening X8 ADJOURNUENT The meeting was adjourned at 10:28 p.m. Respectftulel y submitted DAVIDSTRAHL DS/rcc Assistant to the Village Manager No p"/giving C PROGRAIIIii, n .......... WMT IS AN 1VICC9 Congress authorized MCC's as a method of providing housing assistance to eligible homebuyers. An MCC reduces the amount of the borrower's federal income tax liability, thus making more income available to qualify for a mortgage loan. Every homeowner is allowed to claim a federal income tax deduction for interest paid on a mortgage loan. An MCC improves this benefit. Twenty percent of all mortgage interest paid quaes as a tax credit - that 'is, a dollar for dollar reduction of the borrower's tax liability. The remaining eighty percent of the mortgage interest paid continues to qualify as an itemized tax reduction. The reduction in tax liability resulting from the MCC tax credit effectively reduces the interest cost of the mortgage loan. The buyer may either file a revised W-4 withholding � to receive an immediate benefit, or wait until filing his or her federal income tax return to receive the credit in the form of a tax refund. Either way, the buyer applies more of his or her earnings to mortgage payments and less to federal income taxes. The following requirements must be met to qualify r MCC: 1) In most instances, borrowers must be buying their first home (or may not have owned a residence in the past three years). 2) The buyer's household income must fall wn a specified limit that is set by the IRS. 3) The mortgage loan must be a r not a refinancing. 4) The home must become the buyer's principal residence within 60 days of closing. The residence may be a single family detached residence, a townhome, or a condominium unit, The purchase price of the home cannot exceed the purchase price limit set by the IRS. The MCC is M• r• onto the participating lender's own loan. An MCC may be used 1 conjunction with any conventional, FILA, or VA insured loan. The interest rate can be fixed o I adjustable. An MCC, cannot, however, be used in conjunction with a loan obtained from a tax I exempt age bond program. The lender establishes the interest rate, down payme mortgI n requirement, loan fees and underwriting criteria. The MCC tax credit is good for the life of the mortgage so long as the home remains the buver's principal 'residence. WO, S ,HOW AN MC Assume we have a family that earns $35,000 annually with no other standard tax deductions. They buy their first home and borrow $65,000 at an interest rate of 8%, from one of the participating lenders and in the process qualify for a Mortgage Credit Certificate. Let's see the savings in taxes our borrowers will realize. Annual Income $ 35,000 Loan Amount 657000 -Interest Rate 8.0% First Year Interest Paid 57180 Deductible Interest No MCC 51180 Deductible Interest With MCC 39885 MCC Tax Credit $ 1,295 (Based Upon a 25% Credit Rate) Taxes Without MCC Income $35,000 Mortgage Deduction 5,180 Taxable Income 299820 Taxes Due @ 15 % $ 49575 Income Mortgage Deduction Tax Income Taxes Before Credit @1501101 MCC Credit Taxes Due I 35,000 3,8-oi, 319115 41667 1329- $ 39372 Tax Savings 1,203 N 2 AMORTIZATION SCHEDULE FOR -THE MCC PROGRAM 565,000.00 INTEREST RATE: 7.0000% TERM: 30 YEARS ANNUAL ANNUAL INTEREST PRINCIPAL PRINCIPAL MCC PAYMENT PORTION PORTION OUTSTANDING CREDIT 5,189.40 49529.08 660.32 64,339.68 1,132.27 59189.40 41481.34 708.06 639631.62 11120.34 59189.40 49430.18 759.22 62982.40 19107.55 5,189.40 49375.30 814.10 62,058.30 1,093.83 5,189.40 41316.44 872.96 619185.34 1,079.11 5,189.40 49253.32 936.08 609249.26 7,063.33 5,189.40 4,185.65 1,003.75 59,245.51 1,046.41 5,189.40 4,113.08 1.076.32 58.169.19 1,028.27 5,189.40 4,035.28 19154.12 57,015.07 11008.82 51189.40 3,951.86 19237.54 55,777.53 987.97 5,789.40 3,862.39 19327.01 54,450.52 965.60 5,789.40 3,766.47 19422.93 53,027.59 941.62 5,189.40 31663.58 19525.82 51,501.77 915.90 5,789.40 3,553.29 1,636.11 49,865.66 888.32 5,789.40 3,435.03 1,754.37 48,111.29 858.76 5,189.40 3,308.20" 1,881.20 469230.09 827.05 5,189.40 3,172.20 2,017.20 44,212.89 793.05 5,189.40 3,026.41 2,162.99 429049.90 756.60 5,189.40 2,870.02 2,319.38 39,730.52 717.51 5,189.40 2.702.34 2,487.08 37,243.46 675.59 5,189.40 2.522.57 2.666.83 34,576.83 630.64 5,789.40 2.329.80 2,859.80 31,717.03 582.45 5,789.40 2.123.05 3,068.35 28.650.68 530.76 5,189.40 19901.38 3,288.02 25,362.86 475.35 51189.40 1,683.69 3,525.71 21,836.95 415.92 51189.40 19408.82 3,780.58 18,056.37 352.21 59789.40 1,135.54 4,053.86 141,002.51 283.89 5,789.40 842.47 4,348.93 9,655.58 210.62 5,189.40 528.22 4,661.18 4,984.40 132.06 5,189.40 191.25 4,994.40 0.00 47.81 $155,682.00 $909678.25 565,000.00 22,669.56 2 IST, TAME t'��-iE �`{'�'�S �rlc, AS�ca3resE ►.J �-�tsr 3 Ys�,cs� Exhibit 5A NonmTargeted Areas -Revised October 28, 1993 n $44,000 }600 -. $182}510 -- _ $691,320 _.. $78w060 } 490 _ ____$109.880 Gook, P . $47,8W _. $54,740- $1588080127130 } _.. $143,140 $173}270 $201,500 DeKalb ! -$127j130 $51,060 $158.080 $143}140 $173,270 $201,500 +Jadkson 000 $50,600 270 $59,020 460 ' Jo Dass _ � } ��}270 •5 3971 $117}980 $137,200 Kane} Kendall $52*000$59}800 r 158.080 } $127.130 $143,140 $173}270 $201,500 Kanka- k" $128}830,9W _ $77} $94,030 $109,340 Lako saw n $68,770 i� $158 ,a ,............. } $1_27,130 $1431 140 $173}270 $201,500 MA con` $44s000 t $90,270 } _ �i �i _ $80,960 _. $94#140 $459 $52,005 _ $1040430 $83,250 $931740 $113,460 T } _ $131,960 Peod , Ta, - Woodford $44, $509600 $117,410$61,430 $69,170 $830730 $97,370 - _ ,- $44.000 $50, $90,270 _ $58}320 $05,670 $-79*490 $92440 _ Menard $44,000 _$50s600 $147,38072 $ } - $1154460 St CW. Chntw- Monroe $44}000 _ - $50,600101 700 -� - $78}030 - $87,860 $106,350 $123,670 } $51,500 $59,225 $158,080 $127.130 $143,140 $173,270 ....... _. $201,500 Vvwwwbago. Boone $44,000 _ $50}800 _ $118}800 $76,140 $854740 $103.780 20,61-90 A11 Other bounties $ 4, C Q $50,600$90,270 _ $55 350 , _ $82.320 $75,4401177 I These limits have been determined by a Private fetter Ruling Issued by the IRS to the Authority. These limits may be y used only in connection with Authority Programs. Use of these limits in connection with other Band Programs Is prohibited. :The Illinois Housing Development Authority ("The Authority") can provide full service Mortgage Credit Certificate program administration to home rule municipalities in Illinois. Our Services include the following: 14 of Draft for your municipality the "election to issue Mortgage Credit Certificates" that must be filed with the IRS, and the "report to the Governor's Office" on volume cap allocated and issued. 2. Assist your municipality market the program to lenders, realtors, homebuilders and the general public. 3. Provide the following documents for your municipality's MCC Program: A. Lender Participation Agreements - to ensure participating lenders comply with program requirements. 13. Lender Procedur*"al Manuals - so lenders have a readily available resource. I C. Program Forms and Affidavits - to certify buyer eligibility and tax code compliance, 4. Develop ,and .maintain a first come, first served MCC reservation system. 5. Review MCC applications for eligibility and compliance, and issue MCC's following loan closing. 6. Maintain records regarding the issuance of MCC's and prepare for your municipality quarterly and annual reports to the IRS on MCC's issued. 7. Furnish data to participating lenders and monitor their 11 annual reporting to the IRS. 8. Maintain demographic data sufficient to meet the IRS reporting regulations governing MCC Programs, In return for our services, MCC recipients will be required to pay,an administration fee in an amount equal to $350.00 or one percent (1k) of the mortgage loan, payable at closing whichever is less. We recognize that many first-time homebuyers are "cash poor" at closing, and our fee adds one more cost. However, unlike closing costs, the borrower will recover this expense many times over during the course of owning the home. For the "cash poor" borrower, a means of reducing the lender's loan origination fee is generally available. Most lenders will reduce their loan fee by at least one percent if the borrower accepts a .25t higher interest rate. In conclusion, the Authority will provide full service program administration to your municipality. We will work closely with lenders, realtors and buyers to ensure program success. 7 MORTGAGE CREDIT CERTIFICATE PROGRAX LP)ROGRAM ADMINISTRATION AGREEMENT This Program Administration Agreement ("Agreement") dated as of r 199 , is made by and between The Illinois Housing Development Authority ("The Authority") ("Program Administrator") and ("Issuer"). W I T N E S S E T H WHEREAS, the Internal Revenue Code of 1986 ("Tax Code") provides for the issuance of Mortgage Credit Certificates ("MCCs") as a means of assisting qualified individuals with the acquisition of new and existing single family housing; and WHEREAS, by resolution, the Issuer has established the MCC Program ("Program") and agrees to issue MCC's in connection with mortgage loans which meet the requirements of the Tax Code; and WHEREAS, the Authority wishes to administer the MCC Program for the Issuer. NOW THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Issuer and the Authority agree as follows: 1. Issuer hereby appoints the Authority as its agent for receipt and Tax Code compliance review of applications for MCC' undYrr the Program. I 2. The Authority warrants that it is familiar with,, Sect icn 25 of the Tax Code and all temporary and permanent regulations applicable thereto as well as all applicable provisions of state law. The Authority hereby agrees to be bound by and comply with all applicable provisions of the Tax Code in effect or that may become effective in the future. 3. The Authority hereby agrees to assist the Issuer prepare and file its election to issue MCC's with the Internal Revenue Service, and its report to the Governor's Office on volume cap allocated and issued. 4. The Authority hereby agrees to assist the Issuer marke,-_ the Program to lenders, realtors, homebuilders and the general public. 5. The Authority hereby agrees to provide the Issuer wit'.4. all documents for the MCC Program, including' Lender Participatic... Agreements, Procedural Manuals, Program Forms and Affidavits. 11 6. The Authority hereby agrees to develop and maintain a first come, first served MCC reservation system. 9 7. To the extent MCC authority remains available, the Authority hereby agrees to review MCC applications for eligibility and Tax Code compliance, and 'issue MCC's as Issuer's agent following loan closing. 8. The Authority hereby agrees to maintain records regarding the issuance of MCC' s, and prepare for the Issuer quarterly and annual reports to the Internal Revenue Service on MCC"s issued. 9. The Authority hereby agrees to furnish data to participating lenders and monitor their annual reporting to the Internal Revenue Service. 10. The Authority hereby agrees that the Issuer has the authority to examine and inspect all books and records in the Authority's possession relating to any MCC and the Program. 11. The Authority may charge each borrower an administration fee in an amount equal to $350.00 or one percent (it) of the mortgage loan, whichever is less, due and payable at closing. 12. The Issuer hereby agrees to demand strict performance by lenders of all provisions of the Lender Participation Agreement, and further agrees not to waive or modify any provision of the Lender Participation Agreement without written consent of the Authority. 13. This Agreement shall remain in, full force and effect until terminated. This Agreement shall terminate one year from the date of this Agreement dated above, or upon issuing all MCC's and filing all reports to the Internal Revenue Service, whichever occurs the latter. (Issuer) IN By: MUTM pml� 9z Its: By: Its: Its: R Village of MountProspect Mount Prospect, Illinois N 0, 4 Aoo i V, 11, INTEROFFICE MEMORANDUM TO: MAYOR GERALD L. FARLEY AND BOARD OF TRUSTEES FROM: VILLAGE MANAGER DATE: JANUARY 7, 1994 SUBJECT: BUSINESS ASSISTANCE PROGRAM DEVELOPMENT The biggest concerns that have been articulated by Board members, staff and other interested parties; i.e., Economic Development Commission and local business persons, are: (1) The fear that once the door is open, it cannot be closed; and (2) Any policy geared solely toward new business is not equitable in dealing with existing businesses. While these two concerns are legitimate and require substantial thought and debate, they should be balanced against the economic gain that the Village could realize as a result of a reasonable Business Assistance Program. The attached information package should help to frame some of the issues inherent in any discussion on this topic. Additionally, the Board may wish to consider the following list of policy questions as part of their deliberations: What are the costs and benefits of economic policies used to large commercial users?, I 0 2. How can the Village protect itself from ano y risk associated with such policies? 3. What other communities in the and/or/there and Northwestern Suburbs have looked at such policies and what types of approaches have been taken? 4. What are some important local goals in addressing their policies? 5. What are the downside risks of not evolving policies? 6. How can the Village develop approaches that apply to some users but not all users? T. What about marketplace risks and the concerns that users might not be around long term? & Why do big national corporations tions care, about Village assistance when they can "afford" to develop such sites themselves? 9. What's the next wave? Staff attempt to secure "experts" in this'area that might be able to discuss both the pros and cons of establishing a, Business Assistance Program. MEJ/rcc b� GRAINS CHICAGO BUSINESS JANUARY 3_,WQ4 3 I r now ep b g employ Ev ne..%t n k -e■ development with Chicago'6 John Into building a new ialAity in the Resisting city move, it will grow in' suburb Buck Co, to build a 300 -plus -unit apartment lower on its former head- suburbs, "We certainly did look at all our quarters site. options and seriously considered the The renewal means Evanston not Inv for conient"tv c2 1 mrr_-� at WasWnglon National also owns alternatives we had," says PCA Oy TOM AP401111111110LI only will retain 245 jobs --and one 600--se!�,4c- -city AMULC MiL the 335,000 -square -foot NBD Bank Treasurer Elizabeth Young, who of its larges( downtown office us- NTD Bank Plaza, Plaza. where PCA Is the largest ten- headed up the company's effort Having just "t one of Its largest em—but will gain another 80 work- c—P _7 - l T7w ritz -and art stilt ncsamt- ant, Buck Co. represented Washing- A big factor keeping PCA in employers, Evanston has bounced m as PCA consolidates at the head- Ft — .iL.A.zagin variance that would to n National in renewing the PCA Evanston was convenience for its back to retain Packaging Corp. of quarters a division now located indw COMEM ut vie Mae& to L lease. employees, about half of whom five America, among the largest private Northbrook- PCA's current lease expires in in Evanston or neighboring suburbs. employers in the North Shore suburb PCA is expanding its space to 1995, In putting its space needs on The manufacturer certainly also After a year-long search for office 120,000 square feel from 100,000 in �tuvk with a rap as a tough place the market, PCA wanted to take ad- negotiated a thrifty lease, although space that Included a careful look at one of the largest suburban office to do business, Evanston took a shot vantage of a heady tenants' market terms of the deal were not disclosed. downtown Chicago, the corrugated leases of Iasi year. on the chin two years ago, when for office space brought about by "We had to be market-competi- conwrier manufacturer will renew "I'm very happy, because we Washington National Corp an- overbuilding and corporate downsiz- live," says broker Goldie Wolfe. "it and expand its headquarters lease at were very disturbed when we heard nounced plans to relocate to a new, ing. PCA was mpre-swIted in its is important because (hat's one of NBD Bank Plaza Building in down- they were contemplating leaving," 175,000 -square -loot, build -to -suit space search by Chi cago"slUdie B. the criteria that we would have had town Evanston. says Evanston Mayor Lorraine Mor- headquarters in Van Vlissingen & Wolfe & Co- to satisfy anywhere." Packaging Corp of America tow Co.'s Lincolnshire Corporate Cen- Among the downtown buildings PCA's Evanston lease is cont in - (PCA), a subsidiary of Houston- fiviuvston,4 "hc(W oy ter. PCA consi considered were Sem Tower, gent on final approval from parent based Tenneco Inc-, has made its to tem The insurer's move cost Evanston 311 S. Wacker Drive, 225 W, Tenneco and Washington National, home in Evanston since it opened in b(CAS orincentives, PCAA 700 jobs. Washington National cur- Wacker Drive and 500 W. Monroe The deal was expected to close be - 1959. BuIt i - t iii nap ark= rently is working on a joint -venture St. The manufacturer also looked fore the end of last year - >f AUL 1113111111111110111ill d d t Loss o e uc ion eans ME a higher cost for lobby- 9 With advocacy effectively costing usually far outweigh the dollars in- MP111111111 a third more this year than last, com- volved panies will be reconsidering the ex- "it might cause us to review all WASHINGTON—It's 9 a,m, on pease of maintaining a large Wash- our tirade associations and ad hoc the first business day of the year, Do inglon office, a stable of outside lob- coalitions," says Rudy Johnson, se - you know where your lobbyist is'! byists and memberships in a bevy of nior vice-president of government Executives will have to start keep- trade associations- relations for Amoco Corp. "I don't Ing very close tabs on contacts with And some of the many industry see any wholesale Jettisoning, but it government officials now that Con- groups headquartered in the Chicago will cause some tightening," gress has eliminated the deduction area may shrink or find it harder to The Illinois State Chamber of for lobbying expenses at the state raise dues after members learn that Commerce, for instance, expects that and federal level, part of their dues is no longer de- 30% to 50% of its dues will no ductible- longer be deductible, The final num- Accounting for lobbying ex- "it won't become an issue with ber probably will fall at the low end penset will become a nightmare members until it's tax time," pre- of that range, says Pat Alvarez, for trade osilloclations and their dicts Greg St. Aubin, director of vice-president of government affairs, member*,: "if you track an Issue governmental affairs for the Illinois Losing members is "atlways a and then take * position on It, oil Realtors Assn. "'Men we'll hear possibility any time there's a change of the work we've dome on that from them." in the dues structure or the tax de - Issue becomes, lobbying," says Fundamental changes in lobbying duction, but I don't think it will be Harry Kling*man of the Illinois by business interests are not ex- significant numbers," Ms, Alvarez Restaurant A"n. pected, simply because the stakes See Lobbying on Page 28 u W U wlall Street wvwonders 'if unions can lift L stock I III Ill alt 1x111% t I I I VI "I 1� III i,I , ,111,1 %1 k K ii, IA JN tl(-'N INCCI Ili k killt 1110, L t: It. I LI Y Ll I I Ll -S %A I bilkh f I ll� 11,1 A 1, It I, itill 'I I Ikk -6 1111 114 the N 11.111. 111 killic I '. 111.11 U (114 in i FIA IICF 'AIII flill it I \1 1110 1 kcktflo�c Nhil, Atilt the ttaltlia(l) tic.,ded _1 C's MI 3 3 IX( ala I 'Ili 11 A ;1l1 14111 lilt , "sill -111 ill,, I%)( lilt I ( Ili N Nlrf llk It. C L haill 1111,111 (ICI t:. ildt ii IIIiF it 11111C IS Ilk N C k IK k 101 old (itucmAidd Aiiuld LJOIlIlLiC 10 111 till II ill( till) 111,11 Yl, K S lilt(Jllgh %hill it 10Auld 111111ift)VIng tIJC kill 111IC' h Jump in price 'A licit dw I )k"A Jolics 1114 1,111,11 findfl-L1.11 I)CFI0FIIIdJILC dill 110( Just ,1%crags 1111 1 new high 1,1"I I llesday, aini Ili pfescive jobs OAI iniNsed The wave, ii%mg only Mr Greenwald was interviewed by Sy MARK VEVERKA tate I 1 I I k r I 1 1, - gat -ived at AlrpOrt e ftay cif aself e airport, than 100 see bim. mo. but elevated CIMMM. , al e train In Irs the Itown." one cm - a botglot v rWbg Isp"UdIM ,y deecriV- IA ASI Slulls, engtb� 7 ayS t =nmon sotse, says the Erskine Bowles. Robert Snjegrrmn, htUftal 00*bd St� V* Ur""'S'O 'of 1111"M at 6nciW, rA4A--- %M 110 that brwot aboUt, Mgo", , aft, to Wad to their d4w", ME a WIN Hs I N sting e Pam, t, h6d t int of theSAY bd;*d ;n1Ae WdO NEW Piz faw� ` V. ,,. j -w,, �A, Odober, i Point out no.** job,,, 1* i"Ine, AP%1 in the indus"' A t how NOOF111will M" UdA. this dkOV wW MUM of The immIedtaM MOM post BOWIM the, d0aine hu bem� the imhdl- a rems. nUatilm, of PeM. ChcW Tnbur* lem Exp6rdns KahOm 'I'D W"' IF3 ....... s"IM Oil., PXGE� Slulls, engtb� 7 ayS t =nmon sotse, says the Erskine Bowles. Robert Snjegrrmn, htUftal 00*bd St� V* Ur""'S'O 'of 1111"M at 6nciW, rA4A--- %M 110 that brwot aboUt, Mgo", , aft, to Wad to their d4w", ME a WIN Hs I N sting e dream sheet`(" h'e int of theSAY *ban praidgeasks'YM to do xpgnetkilM itt hard to Point out no.** job,,, 1* SOVAm covoeded thombewas I.V*ued 'at' iMP*wMtj4 IN, a Clinton. Sgx SsAw, P,A4& 2, post BOWIM land" Put, , POSIUM MS MAN %CJPAOI merchant's association belong d pak is nOt um 'T 1 Od", bje sthal"10n ",nt Ln, M051 ttow COMMM to 9, VaryW Rixtp e Vern,,O'n. 1411AA-, Ma, l, t1own's 'Mernll and S%joki.pr, - ..... ..... AM 1 of the OU "I U 4 and, Schaumburg ha,ve bieenn 51 S4M,N(A1A,& dechmed to, be, SPeCMC,2WUt, L= - bons du—I an Latfg"�"­ Allut UW.re thg most obvious, suburbs.- hl ,says, like ggri3O,,lig st on tb th Sha, m tes 0, Nor ly,m th, e, Oak Brook, arm Wbother they will be the same size, as the Lle loicalticin is', to be,de.*r� M 11 1 mmsed: thelatt" ocmuptesio.WD KuArel av 'at Anth ar*,tf*,r 4,,Mo sqt 1)(M ,a ablef ­ex- i1a, Pam' "lott, it 47,81olit'k spaces,, for0,.79P.1,cas. "I The C,,hicagh, am is crawting withbeauty sal , on morew than, other ompam Malls cotrre4um FRom PAGE I ;ncm-ating, a more diverw cmtical :l. s,$o m aLl w1tof1Jc,,e rowers surrounding their shopping cen- sers. MAny, of the other mall tOMM$ ,t,a& I .1re now ang abqu,t. e.mulat;M; that by ,attmctW,h1,l;h,l,4eniRy af- 1,ndus,try and apartments will supply ft nutls WIth, 3 ,,aptilve audiem* as' the compett- rton for retail, dollar­ls becomes more intense. Another crucial issue facing mall towns is the periodic cost of rehabilitation tQ keep their region- al cenmrs, c - writ peti'ti ve. MAR ol t,<)r,,s areaskirl towns'(1or ftnan=bil on icons to help wttft the, CIO st, of rem"odeling so they can retaw the anchor department stores, whose operating covenal expU`e in the next few year -s, said R*bert 'IN, Long. who "wads the invest- ment group 'that, OWU and rums Yorktown, in, Lootigard. "'When you build a shopping center. the anchors come in and, typicaUy S*, _20- to *year ode t. that enable the de- veloper to get ftn=Mcing for the, project and bring in otbier tenants."' Long said., ',Ise covenants for shopping centers built after 1970 are going to expire 500M., That should result in an intense comlon among mall open t0M,- to raid one another's anchor tenants, and the older centers are at risk unless they spend millions to remodel - „ore , lnndustry tmd. to have an adage, that you have to remodel, your store, every sev", years to i _tTav curmn't,01 414 Don Hackl " ident afthe Loebl.Sch ' I mssman and Hackl arctiWlural ftm, that desi,p;ed =ny of" the, area*s malls. 17�xlay,,th,a,t, is, ,may every, dozen vears." )rland Park is as good an ex i,mp, ' te as an-, y 0(hqw, ilorninant mv, 'at Jtng as be -come in the mall, ,towns, Nationally there is anaver., -,1ge of 18, square feet of retail ar .rcapita. although 'the Chi- area—at '20 square! 'feet- is higher. Ortand flark W, almost L= square feet per capita. The two malls' combined ac- count for 2 nullion square feet or 40 percent of Orland Park's total store sp , ace, That would, not be a problem if Lt were not for some other things happening in the, subtuban scene. -The suCcessful regional mall has become rather formalized and sterile." said Hackl, "I could de - t, pc them, u, my sleep:` But the, public 'has &MtuAty d_jfferen,�� tjaung between trite They are no laTiger penetrating new marleets but tnding CLIS'Mmerl he adde,. distilling wt wade industry data is s hewing. . Annual surveys of U -S., mail cus- tomers by Stillerman Jones & Co. in Indianapolis indicated that since 1965 people have begun to spend elm t,,M* in mails and shop in fewer stores per visit, though they were spending more money per trip. On the other hand. the malls and towns in `hich, they are Jocated, have become mets for all sorts of rled develop,ment— superstore ,% strip oentors. ftU chise outlets and, all, man—ner of chain dismunt shires. , a former a, imo J'am 'Lang JL,�, slmlll vp-au;man resolw Sl heAdkey'V*tS at AJI*od, 'Sk" Carlp. arA Centel Corp. A,ppoint Wlol, 1Ac, schwi suppLies % 04YOrl SM Vaw derwarker new andflAW Tau-* W"o cy *a"r r"A Oland Square mail and its neigtibor. Orland Parl1i Race, spar*ed rapid development in Uw village, Together, the two malls account for 40 percent of the village's total retall space. Melvin H. Doogan, former island Park mayor, recalls sealing ttie deal for a mail in his small town with a handshake. Robert Bruegmann, historical architect at the University of Mi- nois in Chicago, uses Woodfield as an example. .The immediate areas around the malls have attracted a Lot of business." he said. -The people w4o built the,ongirW, didn't bund the outlying 'center rs.,, The WooldAe Id, shopping region is rem- ly in, t,hree towTis,-Schaumbun. Hofftan Estates, and Rolling Meadows," although the 2 million - square -foot lifleld maU' that started it all was built in, Schaum- burg to 1971. In OrUnd Park, the opening of Orland Square in IM prompted California, entrepreneur Dennis, Bass five years later to build 5 ,,W.000 -square -foot Orland Court just to the south. Although that m" was later expanded to ".000 square leM, and, renameti, �Ortand Park P Lice. it has bem, pilt by a vacancy problem since it opened and has been through three reor- pnizattoM The ftrst occurred, in 1981, just a few months after opening. when the lenders foreclosed on a $20 million note and Bass filed for bagkr,uptcy prgotWtom, The latest was artnounced, Last summer when Tri -Land Properties Inc.. a West- chester -based firm specializing in rehabilitating sick ipails, an - nounced plans to redevelop the center as a home for discount re- taimlers. Schaumburg has been similarly alm%cted.one Schaumburg Place, a 6MADO-squarel center just south. of 'Woodfield, has had problem, stnm, it opened, in 1991. , The problems in O(land Park and Schaumburg were a shock to an, tndustry that has gmwn vnldly _e, Philip , ilip Kluaftnick , and his par—tners, developed Park Forest Plaa , 'in 1,94,9,. Park Forest, ",,e early malls in Harvey and Hillside. were eclipsed by newer rivals in the 1970s. By the time Klutzmck's successors opened Or- land Square in 1976, the typical suburban mall had swelled to more than a minion square feet— all indoors—and was the domi- nant factor in suburban retailing, The malls that were built in the 1970s usually were erected on cheap farmland in areas where growth wass expected. Towns often rough,t Over them mwd, dio- velopm played one tawrt apins"t another for concessions, Vie battle between Lombard and Downers Grove for Yorktown is a classic example. as are the tactics used by the Klutznick XrouP to annex the Hawthorn, amil to Ver- non Hills after Mundelein balked. Former Orland Park Nlayor Mel- vin H.Doopn recalls, that the se- lection of his town as a mall z to was not all that complicated or controversial. "We made a deal with a handshake," he said- ­T'he only time we needed a lawyer was to mak it legal" His village, at the tane had a population o ,f ab et 13.00U �Lnd TIO prof#sstonal staff, He hand led most of the details necessary 10 make the site acceptahle to Urbl Investment Development Corp - (now JMB Retail Properties Group). However, iters Anderson. the village planner hired, a fewo ; "Literrec , Alls that 'Y,WaIM ptl ta-is, werel dubious about the st4lwand center. 1 understand that the pude the ticiansreally,didn't nod shopmg, center �Uld it. but Iftgured, 'that s=ue the dl*-Vel'� opers weretaking the nsk Aridvest,ir ,the money. they would let it be built," Anderson said. Net d eop F10U.'MV serve our wretched ilmage? Could be. The day I penned this LsdIUMM ,r,m an articleltbi(Yult red I came ac whatevf KoppeL cUimin g the, S2 in ation-a, v (ag yeu, star, was, fed, op, witt being,, ana ho,� ,tmted like chattel. 0" 9nPe7 them- T tan- custoM4 cW numbers "clonfidennal"--off- cloulmILL limits to the Likes of Koppel". Addn The same days news also in- Remedi, cluded a howler about the short but' nasty Amencan XLrIlnes more Lr powerft sou le. The, coraw, y ski t�adly Levi Sti mist edcustomers", about canceled nates e, MIglits that Selry of Transpor- bosses tation Felo'Pe,1ka felt cOm- rorpom pelled to endCEO Robert Cran- " d4 a leiter =pl<)rtng him to tell But the truth. (ions. % Sure, for every pair of ,tortes pection all 4: like these, Literally millions of 4,,aLly carrnerll, transactions we The dllµ come off wi,thouta hitch. Still. the Eact that we. don': assume the rest of butcher puts his thumb, on the A.11 t h -icale doesn't negate the sense of t)bviou foreboding the average person has P�egd W about business. Moreciver, those p iace_ ," pi' ctans have ,ncrPR!xk1 In rle-, nauve cent, yeAn­,.a$ bigiftrlrrm. iaddled, garion with bloat, from iess­corn Pet ItIvie line.. 1'� days, have excis;*,d mi -Worts of 1rus I - folks trom their DayroLLs, � i rU V So w hat do we do' Perhaps us. Th i., nothing. There are so many bust- the bas nesses, and the t:.mes a -re so tur- -hipsi 7 bulent, that the odds of eiuninat- t� wee :ng all, genume rm%,reants are to rp rL,-.4 zilch. Sessidess. ,urine` s will keep �t i a lying to customem, iII do routine- highw.i ly, in my,eKpertencep. iiihons will v continue to senselessly withhold enabier data &om employees with a "'need I rVSiLtV ------ ---- — - -----------0, ------- . ....................... .... Chicago* Oak Brook OPEN SUNDAY IN "SaiMs; Service., ",del and 34pport at Discount rrices LO% oil, 9 P owe rbook I 80c Est Powerbook 165c Rgoale 7jesavvnr Cluadra W5,4M System SI -199 OeskJet Quadra 605, 4/160 System ALL asorJet 12u&dra 610, BrtA 1,aserjeT Cluadra 610, WMCD (luadra M &V MutbMadis Kit f Mae l S"9 Newton w/Modem S'99 Jill isu Me - Value PT 6381EV2 l 4i 20 Value PT 63841 &SrA 4-1 S "Ag Monitor SM4 14' 2a0P L I UT e Detift o Svilorn _jqaecn' I PC & Mac SinimucompuwReffra's Oak Broo APPLE, IBM, COMPAQ -*512 2?2?l 5 0ally * Weekly a Morn� Chicago Oesktw, Priryters, Lavrms 9 �Oylp wou DinKt R"l Une 7W 51 3-C4 computel lrar�rk Can" Corn* tiUSINESS MARK Runs on Sunday, M IfTednesday in the BUSI For advertising rates an on ad placement cc Covington at (312) . . . .......... PROPERTY TAX INCENTIVES FOR COMMERCIAL AND INDUSTRIAL DEVELOPMENT IN COOK COUNTY Assessor Thomas C. Hynes Tax Incentive Program Cook County Assessor's Office 118 N. Clark (Room 312) Chicago, IL 60602 (312) 443-7529 . .. . .. ............. .. PE' TY TAX'NCENTIVES FOR COMMERCIAL AND INDUSTRIAL DEVELOPMENT IN COOK COLiNTY PRO R Cook County has a property tax incentive program for businesses wishing to develop new facillitles or to ex, and existing facilities. The program, proposed by Assessor Thomas C. Hynes and approved by the Cook County Board of Commissioners, also extends relief to reoccu- pled1ndustrial and commercial properties that have, been vacant for 24 continuous months. The program allows for reduced assessment levels in four categories, determined either by use or by the combination of use and location. Without an incentive, the standard level of assessment would be 36% for industrial real estate and 38% for commercial real estate. Tbese incentives are designed to encourage industrial and commercial development county- wide. to stlmjlate t?ne revitalization of communities g ecollomic stagnation, and to i -,,crease )ob opporulities. Any newly developed, substantially ri---habil)tated, or reut I I zed fndtrial facility l+ e in Cook County may rec..ive, The cusiness is required to obtain municipal approv of the incenfive, before applying to the Ass-sessor 1n adc tion, the application to the Assessor must be filed 6efdre the commencement of constructlo-i of ne�% buildings, or the substantial rehabilitation or 4:1 reo,.-,cupancy of existing buildings. Class 6b Any newly developed, substantially rehabilitate -I or reutilized I'ndustrial facility used primarily for mar7,ifac- turl'ng purposes or located in a state Enterpr1se Zor,,e may receive, The business Is required to obtain muricipal approv indicating that the incentive is necessary bercre appiying to the Assessor. In addition. 1he apolica-ior t the Assessor must be filed before the comrrercemer�t 1.0 of construction of new buildings. or the substarTia rehabilitation or reoccupancy of existing buiid�ngs I Class A 111111r� jq� IMP ff 06 I � i Newly develloped, substantially rehabilitated, • $zed k7dUsftal or COMMemial facilities in areas expenenc,ing ao deterl"'orationeconomic depre oeligible, for M largest tax 'neentive': a 16% assessment level for 12Y ears. For this inc na ve a municiPafitY applies to the Asses- sor of n p sses- sor tf area as "severely blighted." The c6terion for this, designation is based upon no f� o' shon severe socio-economic decline Once,, an area is certified b the Assessor, essor, the municipality also, a �t prove specific roAis asconsistent witoverall plantor the rehabilitation of e re (5-90) a14mo TABLE OF CONTENTS o&nW, Introduction 11. PrrCjed Descriplion Ill. Buisinw i dct L al Desc;n'p*jon IV. Business Drsteirt Development Prosect V. Source of Authority VL. Sources of Funds V1I. Nood for BLsclnws DistHcct k/111, *d tic Mitigate Ext- rdxnary Com►ts Ix. Rui biic Purpose X Findings X1. Ran dndrne7 ' s Ext.100. A - Legal UescripUon B Trade Area " { im L INTRODUCTION T*he Village of Mt. Prospect (the n/illage") islocated in Cook County, Illinois. It lies approximately 22 milas roorthweSt of downtown Chicago and covers approximately tQn square Wes. It is bordered on the north by tne Village of Wheeling and the Ctty of Prosped Heights, on t* east by the 1'..".'O'ook County Forest Preserves and the City of Des Aftft Plain*&, on the south by the City of Dos, Plainee and Elk Grovt:w. Villago, and on Vne west by the Village of Arfington Heights, t M The Village was inoorooratiftd ir It i3 neariy fully developed w predominanty residental Character. The Villaga has a strong"transporta.flosi network an good school systems. Histodcal growth and development paftems of the Village an summndinq communities have lomited the Village's expansion and abii1ty lo a=mmodat new develooment, partculady for con, merciai 3nd retsail pu'rposes. I The Allege re"nizes, rtowever, the need to enwwrage r9taiUc=rner;jaJ development while improving the quality of life for Village residents. Given the facl that Mt. ProspW Is landlocked and fts opportunites for annexation or outwal d eVanslop. are limfted, the village has focused Upon Providing aWactive retail and commerdal opporluniWs wfthin fts own borders, The Comprehensive Plan of ft Allage sets form tM following 9ml for commerdal devekpmert wMin the Village: I *A system of wn. merdall development which sawres the Village's re0onal significance as a retail cenier while provid'ing Dw bcal resldwft wtth ac�qu local or neighborhoW retail facilifiesew SpecftaRy, the ViDage has tormulated the t6lovving policy goals.and cTiteria which, -Provide OLidellnes for ft"a ommerdW development: I Promote new commeqrca' development *Nch produces re'venues to recuce tt* VdIage's reliance onM21propoartf tax6e and roduoq the roal eetate tax burden of Village residents. (2) Promote now commercial deldelcpmerit wh ' 'ch YA111 further ngther and w9and the VIN&P's tax and economic bass. E *A IniRwnt now emplo (3) Promi-.jta wmmercial developmei.it iyhif.h:�rcvides s" mwt opportunites fa Primary and tztecoridary ge earners as .fir a young Village residents. Ar6ract retail users that Wengthen the Village's regional n011 sigrOcance wfth the undamtanding that the Village faces oompetition from retail locatiors ouWide ih coWate lirnhs which will serve trade areas induding the Villagoi These poli r, goals, in con*undcin wfth &=-)r)mIc deveio ent inibst�ves r..%t me Alage and the establishmenti.t pubiie-fonvale part,-iershish S may be us & to ad war:;.:- L' 1:4 A Wage's primary objective stated ih the Cormehenslve Plan.. In cases vvheie OubliU* prWate partnerships or otner econornic developrrert inAiatives afe contemplated which. would facilitMe con, mercial ardior mtail developmen. the following strategies shall t* appliwj as a "tenchimarIk" Io evaluate the suAabla 1, Irnplem, ents of puolic purposs: Project (Jovel'opers should pfo%Aje sufftciant dommentation that wbut fcro assIftrtce ftom-te Vidage the proj-ec "Amuild not gaforwsm aM wouiri not a=mplish the policy goal's stated above- Deviplopers shcxillci docsirnort extracwdinari cmIs and the m.. arket place need for assi nce associxer-4. wnh ft site. (2) As a matter of Pdicy, the Wage warsts to assist only projects which ar strong enougn to provide t4D Village with employment and financiai bene ov % 40 er tim. e. to this and, peoiad deva'opers should rneet'high stwoard.. cre4t worthiness and financial strength and derrur.mstratz.. ftt suf-ic:elll financial resources are at their di.SposW to canr� out the proJect given f 41• 10 46 *but foe' documwtaton �v put�nq funds itito the project �jp*or#,an, receNing relmb4i;rsemem for e*aordinary costs over tinie. �31 The project should creatc a m*nirnurr of j�kr�. (4) The PrqW should CO with the age's ov"I cmprehensive tems of land u3e, d"gn qtAdeflne3, traffic impact and so on. The prolea wnwe possible shouid strengthen •the reverue posfficn - OvedapOng tiAng d"Stict's, 0 1 K The projecvt should ba anchored �y a user which will serve to furtheor development �,w stabilizabon and redevelopment of a4ecent areas. To �mplarrpaAt #4 pofl'Oy gOaf 8 state ;qbovel the VU'k'a9e may estatfish appropriate sowomic development tools that wnform to tpi. abcve axAidas and strategles and that confomt to the V1113g8IS 0.,ornpretiensive. Plart. The Village may also eled to assist private partiss w&, projeds that do n0t LQSP conform to the Policy Goals fisted abc�e to -meet cot Nr pu.bfic ptirposes of the'11,11age sucn 6a� esti-in of cttoosr qw1b exp.r#,;vssed in tfie as the efirninefion of blilght, relief of traffic c-onge Village Comprehens�ve Plan, 11, PROJECT OLSCRIPTION I Inkeeping vvfth ft poficv goals of the '011age as stated above, the Vil!age � considers it es"ritial to tile emiomic and &odal w)-Wiaare of 3* Vida -96 iat rsxlstfifl business and commerciaVretail districts be maintained and revitalIzed. Accord l ngl%/ , me Allage vdishes to assure opporturiftles for development or revelopment .and for attracting arvJ maintaining sound and sUble cummercial growth within the \Allage. As a result, the Village proposes to assist Target Stores, Inc,., a division of Dayton, Hudson Corporation to liocze a free standing retail store of no less tian 95,000 K, ft. an J no more than 139,0100 sq. ft. at the nathwest comer of Algonquin Road and EImh,,Irc,-t Road (the Trojecr) th n -ugh tne form. al aeaton of a Business Disuict. The remainder c" this -Jocu"ant a mas me retail storro vvia �)e approximat ely 11 IILW sq. ft, the m,4�poinbk between the high and low end ipsbrnatees. The Businass DistAct oevelopment am Redevelopment Act combir*d wfth addftnal sWutory authodty will permit the V11'age to use a pooltw of local saies taxes generated by the store to rnftiqate extradrcinairi davekvrnent cmts aswelated with the development of this site. T he site 'te c�j rrent,'), vacant and adjoins the Lake Center Comorate 'Park. In2ccordance with the goals and strategles stated aLove, them rcmaincor of this Busin D6VId Plan (theTIan*" sets forth the necessity :�f the development program Igor the Businen District (the "Distdct"') in the V41age of Mount Prospect. it encompasses thme areas, targeted by the Village for retail devolopment and includes the site of the proposed shopping center to be constructed by Target Stores or entities formed by Tar -let Stores o( Rs ass;gns (11e "DeveloW). Ilia BUSINESS DISTRICT LEGAL DESCRI 104' The MOAct consists Ot apprcx1rnat9iy 120scres jocated generally at 1he North%*90 ccmer of 49onquin RoaO and Ebnrot,�rslkl Road, The DistrIct is �oulidlwad or! 'Me east Uy Elmhurst Road, on the souM �y Algonquin Read ano eYj,1sP!ng commercial develooment on fw west by Wall Sireet. and on the north by LaSalie Street. The Business district Area 10- 4gally described wIVn Exhlbg A. J AL IT41�%-.14 q 0 ro As stated in tw VA111age's ComprehensiNoa Pian, the proposed Oistri M-. is iocated iri the far porUon of the "Olfiage generally bounded by Demszsar, Elmi*wrst, OaKton and busse Road.airea present.1y contafins a range of lan(I uses including industrial, mix.ek,'! t . ' commercial, and business usesinterspersed vAth fe.nidentlaifiand uses. Mx�ausa o" th:'s unique mb� this land.area offers some of the Village's rnost signOlcant op 4 , portunibes fcr new development. 1 -he area has excallent accessibility from major arterial 3treets as well as ft Nbrthwest Toltway. -ancl is hi ghly viss from Oftse rotp;14s . -Several rctlatiqeAy largai. parceis are scattered throughout this aseea, along wth certain ur-depublized parWs whici,% cotild undergo deveiopm. ent intensiftaton vO, which offer a large range of developmert shes for both large and small "a opwafions, I irnplern~lon of the 01stict YA11 m"t the p6mary 'V6,11ago goal of furtherIng fts syst=cfcommorc'&Wdevolopr&iertwhilosawring'Aro!g" als;gnificance and providriq I 10r, adequate kx:al retail faciffties as stated'J'n the Covnr[%,*,ehensive Plan as the trade ama a:o illustVed In Exhbft B shows, a signifio,,,%ant proportim of customers wi'll be drawn to the store frorn outside of dxa Villo9c. However, the oreat'lor.. of tie Disojict, an'd mcre specifmily, the consiruction of the Project, also T"Urthers the V'Hiage's Policy goals of ftM re comm. ercial development, as follows: ConWuctkv. of ft 117,000 square toot Targe! Stc.re is new commerc,-a developmerd which iS expefloW to generate 4st., beta ntial sales and prcpem, tues, As a result. ft:se increased sales Uxes which flow primardy Village enhances fis -Lax base and pro-%e;,d 2.s addonal ravenue to tPte Vi'laae It is eopodW that during its first fuli year of sales, the store will V/ /F mirimum of $202$000 iii sales wawtto $316-000 by,1998. TN! 9 ProOd alwe represents an. apiorox;rnately'6% increase over totai sales tax eipts coNeded by the VdIage. The!oncreased property taxes "nt Pr*cA ts e"ctwd to gwne-,-ate for the Vilia9c; arn.ount. to approximirke:' $48,000 w year. Addifionally, these increase..J property taxes YAJI ircrrsa El Aha tax base of overlappainG faxing districts Th.q. area, U,,JVoI d;strir.,t along W11 realize over $100, 000 in new revenue as a restift of this Priolect and comblhW, other Wing bodies are ex^lec L;- ,receive over $280,000 annually in now prapwty "ax-gs- • The Prqect MI swi)ntlallfy, eypena the Vil'age's tax and ecwomir,ba se, .e ue and wo:)erty i3xeres for the This &scownt etcre vAII add ex;6tftn+j3I new cza' - Village and other WAng distHms. Wn'1:1e R biro;jdens the ecanomic base by redudng Village. rallAnce on other reta;l -ind ravrar`ue prods CIM9 businesses I -fto --porttas for both The Proje*11 ct provide.► significant employment ow unities Mmari and sawridary wage earners as wel"i as young Village residents, Approximately 75 ful-titne and It.6 part -gime positions are expected to ')e genneraW from tMis development. The Project add s u b stantia I I v to th, e V [a la S e's a Iread -Y thn'vin 9 retail !Das e. a 4 The aaddlor. of this deep discounter wOl serve 'k -o draw many nelghbodng I reasidents frcm ail. income levels directLy Mto the Milage for shopping. The aodhion of the Project -will enhance consumeu sr*ppinq choices, giving many outside residents an opportunity to compiete all shopping wixhin Millage toders. A=rdingly, this Project has been found to conform with the Village's stated p6ic e pais. The Project has also b"n evaluated acwrcing to the develownent strategies outlined and has been fuuryd to meet the criterla by which Zc qualify for "Allage assistarcin. I as follows, "M Developer bas suftat)(y demonstrated Mat the costs of kxating a r(AcAil shoppino center on this site are extraordinary- This is dua Prim arily to thea warrent difw of the soils wht&, have been deemed 'unstable' due to signfficant amounts of organic and graanuiat materials undedpnq tile topscx', and which am prosent throughoul, trig P- fit's rp si-to. As aresult, the Oroposi? r+ it store mijst be constructed ,)n a stm-clurai siab POLred on top of comate Olin;s. Piese soil cond'!tiCri extend ii,o tlie parking area Producing extra orci, inary oosts u.' stabilizing and paving ttoa area. These costs are not typical of retail Cavo.;oprr.ents, but are extrawdinary to thiss pari lar efte. 9 -The Prcied wo%Ad bAng ft Village sijbstan6al finandal and employmani (2) bW9% Ov(y, time* The Dev"pw is a naftnalily recognized reftoll operatoi with a diain of stores, Target has m, ado substantia Mmitmont to tho Chicagoiwd market. The Dcvciqw curroMly has q�ng retail stores and ha. presence M the midwast thrau, fts other tfrM SatsfactorlRy demonstrated fts ability to retain a share of the metropoliftwar market, The Developer 6- prepared to 4nance the Project up -front an'• r ive reimbursement for fts extraordinary costs over time from monie,, ,generated from its operations, (3) The Project is expectk.` to create approximately 200 'ob opportin;-4jes including approximately 75 fulWme and 10415 partAlme 1oes,40ons. hese employment posMons are estimated to generate salaryA)weflts of ovei 12 rrillion pw year. (4) The Pr(4"-t, at aN -stages of its mostrictlop. as well as tts. compijj-40n, confonyi fully wilh the Comprehensive Plan of, the Village, as stated in th Plan, In gweral, now commerdal development shculd com plement and rala+e to major commercial uses already located ir the surrounding 3rea. Samusa the surrounding land uum are mixeci, including mmmarcial ano Nsiness us"., te Pr*cfls a compiernentary development and is expecteO. to add to the ctaracter of the area by bier -ding wfth existing stmcWres and uses. Moreovw, becalise Ow Projee is !oeMiad on main wellmtravel" aderials , access 1r, and out of the faa"fity 'i's exwded to be s wfth no dimpflon or inconvenience to any residential areas. (5) The Prood, as de=ibed eadier, is expected to significantly increase �Dott% saWs and propeny taxes, As the value of the land rses with developrnert and ocwpwcy, the niroparty will produce a direct benefit to the taxing dM411 Whi(b levy a propert� tax. (6) Target Oreatiand., a3 3 117,000 :square foot freestanding retail center. cala, be considered an anChor. drawing cth.er usem to adjacent areas, which 0011i want to Wate near oornmercial and retail uses and in tra M-, c. 1*1 To facil 9 *Ifili-age goals, cartain acfiors lovith re-gaird !c the ProjQrrt shal; 'C>40 5akor., I appmodate parbes as C)'lows- criy The Nveicper intends to construct a n4itall st�oor)'Cg ce0fter of approximat, 117,000 sauare feel. As part of such P!, 'Oetq " Dev,oieper will also in %tall parking I OJ areas, acx*ss drives, ard the required she drair.age anri u-flfti.es. The 14"Riv s 1 e 6 ."Ao ar. agreemerit(swith deyelo�*rs or 01ands to ixoVia..'or nter I other pHvate sector interesft to provide certam pubic iompnoriternents, ir, the Disir ct to anhance t* �nmedidlte airea and support the Distric.7 end to serve the neeas cf commercial developrrient, Appropriate oublic irnp�ovements Ma'/ indude, but are OMOO to: Improvement or relocation o;. entrap to and eyjts from streets, 6 Const.ruction of new or exoar.sion .3f exis6nq nqhts-of-way. incluting streets. sldewalks'J tum"Ing lanes, curts and gutters; ImprovemeM of parking �ots attendant to newretall facillbes developed c, r the subject site-, 01 Provision Y" r improvements of public util"ies or relocatioinfx electnic Ulir I I fines necessary to the develoment )f the site, induding con3*iucton c replacement of water mains, as well as sanitary and storm, seww►r. an rateinbonidetention ponds, if neca3s.ary andfor mitigatirim �A 4_nvirrmmlrp"ql� problems associated wIM any of the puol'K., improvements: Provision of traffic signalization and lko�Aipng- , I & B -- c eautifica6on, and installaticr, of i1Jent'IVF'czVcn niarkers, Land IV -ar.­ ing/streatscaping, figtning ano signaga of pub,'ic rig htt.-o*bL_0.1:2 Y; Reasonable soft costs assoc-ated wit.1wi the aoove, includ"ng but not 'im, ite to, construction man2gement, angin"Ping -arid doeir; and N Cistrict ■$'do and ■or pvbfic Mioption of 30ij pmt)jem 'ated within tft L, . 5 jk3socl improvements attel-dant thereto. I T is Plan. the Village r. ay adoillonally enter in*o o achieve the objeetvft Of th* agreements **h one or more developers or other private sedor inleresft to provide , incenfive payments, These incentive payments may be for PurPMindudebut S whiGh are not lkrhed to, land wrifte doymso tax rebates, and costs of certain sit4l improvem8n% orrelated puolicim, orovements. In unftdakinq ft acdOles desaitood earfier,- the Villadge intents to incur an expend funds to mogate tne extraordinary costs associated wO tnis site (the "DeLMO. ment I Costs*)- The following table contains estimated Development Costs associated swit this Pr(�OCL 11 Mount Prosped Business Dist Developmeni CO Cost of Structural Slab Above Normal (.",'Ost Coet of Parking Lit Stabzation Total Extraordinary Costs AN projW CoSt astMateS amin 1993 dollars. Adju ents tathe GetImatad lir. ;0 Rem costs above are expeded. The total of line 4en. s set forth nove are not intend r. . to piace a total limftd on ihe dew'bed expendRures. Adjustments may be made in lin & I items within ft total, cMer inmasing or decreasing line ftem cost for redevetopi-rennIt. The Ekalsiness District Development and Redevelopment Act, III Rev. stal. Ch 24, s 1 1 1 -74.3=1 v at■(the "AcC' authorllze�■ 111'Inois munidpalft'ets* to designate an area ect within municipality as a Businew District. The OWLHct is established with the adeplio;-i of a Buskme Distid Pian foWwing public hearinqs convened by the Comorale Autwifts of to Munk**fty. The Businew District Plan must aiso conform with the compretvnslve plan of the municipalily. Businan DlWcts have been used throughout Winois to assure opportunibes ior murildpaltUes to attract sowd and stable commer.U'- all growth. Powert granteo und-er staTe law do not Jimd municipai home rul2 powers, bw add to th4rn. In a rdance "'kh tI)e A4 the Millage may exerck, a all or any of the foilowing powws In canrying out a Business 0')Wct Development or Redevelopment Plan. To approve ail deveiopment and redevelopment proposals within the District. 2) To exercise Q of eminent domain ior the acquisitiori of real ?,rr., pwsonal' property fer the purpose of i aevefowtieiit or projed. 3) To acquire, manage, convey or otherwise diSpose Qf real and WsOn propwty acquirad pursuant to ft provisions of a development or redevelop merit plan. 41 o apply for and accept capital grants and loans from. the United Viates ari ft State of Illinois, or any instrumentally of the United Stakes or the Stat of fllinois, for District development and radeveloomem. P To Nyrow funds as R. may be deeno ed necessary for the purpose of Business oistrict, devoiopment and redovelopment, am in tris corknecti,on issue such obligation or revenue bords as 4 shall be deemed necessary sut■ ed to apable statutory limitations. To enter into contrat-Acts vAh any public or plivate agency or pwson. 7) To sell, lease, tade or improve such real property ass may be aoquirisi� connecton with DWct covel.opment and redevelopment plan. 8) To employ all' such persans as may be necessary for ® planning, aamir.s tration and implernentation of the Distrkl. Nan. 9) To expend such public "Ninds as may be necessary for the plar,Prig exact and implernentall'on of the Plan. 10) To establish by ordinance or resolution procadw-es for ® pla execution and irriplemerstaUon of the Plan. 1 9 -11 V1. SOURCES OF FUNDS I ihe Funds necessary Io pay for Development 0""osls are to be Weiy dedved frorn '0 t funds which PW MIllage is entMad to received annually pursuant lo II'F;WV-*S`tat*- Ch 12.7 11422-17, and such other author4 as shall be applicable and any sumessor SWOO tO the above, and which are detived tom ft Distict (the *SaWs Tax Revenues"'). 'The Wage will appiy ;) porti of the Sslee Tax Revr*riuee to the reimbumemer%A of Developmeni Costs incurred by the Deveioper pursuant to this Pian and will issue 3`41es Tax Reverwe Notes evidendng the Village's Wigation to do so upon recelpt of any Sales Tax Revenuee. I At PnwAot the areas available for large scale commercial ex4)anslon within The Village are limked. 'This is due to the N'storical growth and development paftem of the Village. Due to sucj"j,,,jv&cjor3, the village may c*34'qnate addRional BUSIne53DI3tiCt3, however, no sucii acton woula affect this propose(i Disthla or tN Deveiopers fights herein. 0 The %A-flage *soles tc establish an area wnich can acwmmodate cornmerc, eVansion induding 4what ot Target Stores. Spe6fically, the Village has earmarked prope located on tv northwest c.=er of AIVQaquin and Brnthuust RoWs. This ptipwtv however, has cWain condhions upw It* We which give rjw. to extaordinary develo ment coft, Cer.ain sdo's coriddlons upon the sfte will give n' -ie to eAraordinary Jevelopmem wsts. Tine soils are unstable because of large amounts of orgartic and grarjular matefials underlying tm topsol(4 In adcWon, the site Mas mers filleckdA with varlious matedals whiM furttw reduce stabilh�#. The resuft of these iibnor.T.al soils contitions is that the Prciea would need to be consructed on a Mctural *.,slab poured on top concrete Pilings. The paNng lot areaw-11 also nwd to be stabilaea Pnd soil con0ions remeolat-a6a. Suco costs are not typicaNy invoived in the developm, ent of a rataii tadl�,Ly. -They are Px#arxdin;iry to this par5cular sft. The b :� cofta:n c*s-ts which exceed soil condRions present chi the Wo- n�:- those aosocWed wfth the developmeril of a tjo�17arqet Sto,ra. "r1rite soils on the sft wil', not 0wr Ve Wd ot the skn foundation and fl-2-orpad withot,.1t struMralfalure, swngs and test pOrs on the sits raveal that the top layers of soH -include cia� mix"' with top soil & -os.ts of soft clav =4 organic material and various fbrms or organic rnateriala The aK id HIC 9AWd bgtwwn 3 and 14 favt holow t* "Stiong 9 P. T-ne soil survey also revastod debris under the soil induding pieces of concrete as large as 3 feet 'in diameter, metal, plas6c, wood, etc. The clay undedng the fl " mi re has a very high moisture coMant Undemeath tho day an xayof silt and sand deposits. De col caissons, or concrete The soil conditions requ're that *he 7arget Store bui pilinge, extending between 7 and 26 fe�t below th,40 grade of the stme. Each caisscn most be Wl-shaW or,., the txAom to distribute the load. Caiwpons must be plaMd around the perimeter of the building $do to support the wails of the store, Caissons must be placed around tho perimeter of the building sitiq 'T" support the wails of ft store. odws mu!tA tWinstalled undemeath the floor ftself to Im= a foundation for the slab. ir. alit #* 497 caissons must be placed Us support the store etructure. The concrete s;lab for the floor ftself must be 2 jr%,&w,.s thicker thar, a normal kore and must be reinforce4i with steel. The 00st to build a typical Target Store 318b and foundation on a site wfiere exbmordinary conditons are not encountered is approximately $290,000. The ccst to build the structural s(ab requimd on ths sfte is projected to be $934,617. Thus, this site fo T1 - required approximately $645,000 in *,xtraordinary costs for the slab and undafio cwstrucWn of the wails and roof will not !)e affected by the sofis cmdhion. I TN soil Woditions on 0-te site also rttiult in eAlraordluairy wspts to install tile paridng area. First, the site must be stabilized with lime so that construction fquipment will no sink into the soft fill and ciay. Once gra4ed for the parking lot the area must item be proof rolled to doted any soft area which Uvn must e under cut and ileo wiAn L granular material. Nor to adding the granular fill, ea& undercut must be connected. 4o the cw"l sWrmwater drainage system to prevent puddling under the pavement, A fabric layer must then be Installed underneath the granular base or directly urug er the pavement fo; fur ftw stabilizaton. Unti Me proo roling is complete the precise requirements for undercut ane granular fil cannot be determined They have- been estimated $224,5% Theso costs - are above the normal expwses associated with grading and Raving a store site. 11 V111. NEED TO MITIGATE EXTRAORDINARY COSTS mop jor. a ent to support large scale Amawh me sRe provides a I=t nd acreage $=lei 00 -%Ommercial develoomeM, t�e s,4e j%,aa 319nificant soil proc4erns, AnftiPtad CA s 0 f public and site improvements required for the Project rentlem ryd i iment I I - infisasib4o. Aoocwd*n91y, public inoenbves we requir9d to off -set excess costs of ;ntal dev*k>PMznt ano the Vi0age t%.as deiefriii"nea ttle tx*wst type Of 3331stance to be evab"Sish- ,-,w ; nent of te District 'ect are beyond 1he capacirl. �J 1.he The extrao(dinary cost6 associated wM ttle Proi 10 mpiernmarket strateg Deyelopw to support. ks thne. Dee veiww i nts y in ChiCagc'and 4 Dayton Hudson maintains verf sJh-^.,t "icies *ten determin-ing where to ailocate it. AT f* r. I I*,Pi r I and to thei s reswrces. his stratogy ty�*7dl u'idll discQuilt cha'nls flke Wal-Martp KJ a To meet thoeir ciiscount proa goals, theese retai(em i -roust maintain operating CoStS wdh' 4 �J 0 1 Ws profels and returr. calain ranges. Each store srte is iudged by its contribut!on 'o the fin IF 1W 11jese cvnstralnts leave -oary )Jtbe room for extracroinary wst5 sL. �h as ftse descr:lt-e� above. Most Tar�*t Stores 'in the Chicagoland. area vAll achl;eve sales of betweer $21 on and W million 'in Clmie first year of operatlons- A TypicsUy, itse Oevelopa.- Days fromU.00 to So.00 Der square foot fdr land tooui " ui q%V . a ft stores. The lower end of the range is more common to, oudying J"icns in loww C, 11 mwlog en-vironmwts Van +.M*e found In tne'volliage. i lie *xtraordinary costs to daivelo sitsit ak-ine, if llocated on a squre bas�ls --o . . 0 e d $ 68 aariar Miosra fcot to the pni - of ffw Drojel. This cosm puts the s0e out of the Developer's range, The base Cost of th iand in this case 'is within market eters for the e area, evn wie a th th�3so parannr�at remed!afion S. The Deysioper has sought and examired other sites In the market area, Inut r M U -e the cf trac pm%m 1he ioc2ficn at Alganq in and Elmhurgt potentia' it affer from both an east�west and a nort"outh artedal roadw3y. There is soigniftant public purpose and boneflits to "the W,iage assoolialed -,wh. D;W,d wtich jutfify As impllomentalon,. Among to most significaN are the inccrea 4Z tiweft te the Vllage,, to Me taAng distr;lcts and to Wiage resiaerts themselves Additional oinclude intensfthd uses of undertiblized'sand and the fij&herance V`01age goai le becorne a major regional retail center. h I The Prqed i • expected to realize sa of $21, 00C,00-0 in fts first fill year of operAonsinl9N. Sales are pmj9dad to grow to 5217 million in 1907 and mach $25.9 rnam . Further 'Increases, are, qxpected, to k . h 'InflationVd realgmwths- Theseproduce -$316,000in new ales taxes f r rll y 1MA","Oh fl tia'01 u c�pe►r�r►r,+� and its substantial already ex�ceeeding m0ion ann i-Ay.Stkilized sales bs sales r�avenue �' the Pr ',ect would ,ra resent an Increase of approxir� at+�ly 6% over fowl 1992 taxes dna � � saWe W r9ftipts oNlIecied by the Village. m Furter, the location of a Target Store would enhance the V111aga's regional draw for rated sales. The ette ed map (Exhibh 2) shows chat a large portion of the pnimary trade gree for a Target Store InMt.Prr includes areas ou side the Village � boundaries.I� The store is e� ed to draw customers from neighboring wmarnunhies su as Adington Heights, Des Pia ine3, and Elk Grove village. The a nt of this trade area will help the Village to draw shopping in dollars from o+utd.zide the colmmurifty: therefore prroducing the effect of increased sales tax dollars which will be paid by many . cutsl'4 e The enhanced ,saes tax revenue generated by the Project is a significant public benellt to the V"dia fe. M Vie pr+fflininary trade area map indicates, rnr lch of the s *s ftm the Mt Prosoed store are expected to come from residents outside the Village.Ow)he development of the store will further ent ance the Village's pos �or In the regional r+eta i; market, in I~ med safes tax ravencue will resu t in rWuced reliance by t' :+e Village or. ad valorem taxes and therefore diversifyifts revenua base rlsr-) fFw e Besides #e neer sales taxes, the Project. will produce increased ad valorem taxes for the Villa and other ta)ang bodies. Because the sde is + rrent'ly vacant, the r evenLe 'impact of ft new shore WU be that much greater, The site producad approximatall., $83,000 in taxesin 1993. Through the awition of the Project, the Equalized Asses -se -i It%latue of tM, pmperty is projected to read over $6.5 mi3lion for tax year 1995, an increase of approximately S6,6 miftn. ,MCI The \A11age stands to gair., appro.ximstaty $48,OW per y9ar in nQw cfoow-ty iax revenuc T. he area Wml djWCt oaal!U Cver $100.000 in new revenue firom the Storg. Coffbned, other taxing todiies wotAd realizo over $280,000 annually in new � q L01 ' �rw � • In addftion to the substanbal bi)nefits of irmwsed saides taxes bome bv enany I I residents, Village residents will also einljoy the bee neflts c -f haOnq a first C�ass 'r Villagetad esWlIsNrent within their cemmiknity. Tt-..,,1s:shaopnq center wili a130 Orovide S,'grqificant I a ernploymnt opportundies for tha V"11614-39?2 residents. A Finady, by tak!nV proddive Steps anJ fadlitati i.q the Oeve'topment Of this pro.061-ty. ft Village ha hafted a,v*-,y poteril'al ded1kne ir. the proparty value of the intend6.d development Me and. any potential dangers assoaated %ith %Vacant land, includiang ny dumping, fiftefing, ana an.croachinq blight, (a) This Plan %,:onsftles a spe0c plan for busIness disvi'M In t N. Wiaac- of Mt. Prospft-4.. Cook County, iillnois.- 9 and yr.ore wntcuw- (b) The cesignaticn for the DW.ct as WentiW fin this Pian ly descdbed in FxhibO A affachoo hereto as a ht;slness distria !n accor- dance with the Act wO.' asswe opportunUs for oevelopment and radevqloo- ment and alUacbng sound and siaNe commerclai growth to the Wlage. (c) The Plan and the st�ct c=form, wftb the Viliagis. Comprehensive Ran, (d) The Milage's exercise of the powQrs providod *�e Act fi; ded1calod toPla pmmbw of the publ'ic interestana to the enhancement of the Uu bc^.se cf busino" disticft and ft Milage"s use of thek powers !or the development and rodemaloWoent of the District as providec in ttft Plar is aeclared to oQ a publk.z. use essential to the public interest crf the residents of the Village ct Mt, Prosped, 11finol"S, 14 XJ* PLAN AMENDMENTS, sites surrounding the Business Ustrid am currenty being usad for to Vftge may doom as ftwipatible with Ihe retag estabiRshment to be OqUasiv #* Village wtay arrend thig plan ftom tme to *m by cted. In, such c4n.*u adopdng an ordinance so providing. bVMpbdp." 12,06-93 1 i 5 EXHIBIT A Legal Description EXt HIBIT A :A LEGAL 0&v.-"5CRlPTl0e4 P4. kr; $ F:ING A S�iMi)w LQT5 819 , 10AND 1' LAKE famN E R P' PAR DF THE NORTH " "W$T 4 Q T OF L0 ' 6"I" 4 N. LINNE70-MA1*5 Ul-w �'.)F P";' F %a* P= C; T I C N *tA-'3, ANC PART %.;F 'T"r4t60!J7.-lEAsr ON 14) AL '"D PRINCIPAI NIE Ri%.,, i A TOWNS&HIP 41 NOS -fH, 114 E-A%ST OF THr- 'HieR A--'%C;CIRDIN;3 To THE PL, "p OF IAI LA�-%E k;F�4-TER P' Aa7.-A��..� � .� ��.�; 1988 AS DOCUMENT r-40. 882c,.,4*1 4, -11 81 ALI. C."-DUNTY,. 'i'LLINJOIS, EXHIBIT B Trade Area Map t� TO: Michael E. Janonis, Vie Manager FROM,: David C. Jepson, Finance Director' DATEO December 13, 1993 SUBJECT: Target Store - Request for Financial Assistance I have reviewed the Discussion Material and the Business District Model Development Plan that has been supplied by Kane, McKenna and Associates, Inc. on behalf of the Target Store proposed for South Emhurst Road. The Discussion Material ('DM) formally requests assistance from the V e to compensate Target for *extraordinary project costs" and the Business District Model Development Plan provides the statutory mechanism for providing assistance to a developer outside of a District. Target is requesting reimbursement for extraordinary costs from the Vie of $869,167. I&- The DM identifies the types of ex1lalordinary costs that are expected to be incurred during construction and also discusses the benefits of this development to the Vie and to other ta= g bodies. The extraordinary costs are the result of poor soil conditions which will require a more expensive method of constructing the and foundation and in stab the parking lots. The DM states that Target p-meteers this sine, but the extra costs puts the site out of Target's range. 17he DM also includes detailed projections of new revenue that the Village and other toxin bodies would "or& I have sum these projections and added a 2nd - 1/4 home rule sales tax and an estimate for utility taxes and the food and beverage tax on the attached sched u I e Ile schedule shows the annual average receipts for the first 10 years, 10 year total receipts and 20 year total opts.During the first 10 years' the Vie would average $438,144 per re-ar in new revenue and other taxing bodies would realize $311,394 per year. Over the first 10 vex period, the Mfllage would receive $4,329,058 and the other taxing bodies would rete il-e $2,8059549, The Business District Model Development Plan identifies the statutory method that the Village could use to provide assistance outside of a TIF District. This is a draft document that has been modeled after the provisions of the Business District Development and Redevelopment Act in Illinois Revised Statutes Chapter 24, Section 11-74.3. This Act allows for the use of sales Lax receipts and any other available receipts to provide assistance to developers who meet Spec It i%-' criteria in contributing to the overall public benefit of the community. This type of assistance 6 Michael E. Janams Page 2 Target Store - Request for Financial Assistance has been provided by Evanston, Skolde, Lombard, Batavia, Woodridge, Wood Dale, Bradle, and Galesb urg. Over the past 15 years the Village of Mount Prospect has provided assistance to developers U" the following ways: 1) Industrial Revenue Bonds IRit 2) Class 6B Property Tax Incentives 3) Tax Incremental Financing District ); 4) The Facade Improvement Program; and 5 Marketing Consulting Services for Mount Prospect Plaza,.. An IRB allows the Village to issue tax-exempt bonds on behalf of a business. Tne advantagi is us y a reduction in M'terest rates of about 2-1/2%. The V e issued 6 IRB's during thO 41 1980's with an average principal amount of about $3,000,000. For a ten-year maturity, thl- would amount to a savings of about $495,000 in interest costs over the life of the bonds. Internal Revenue Service has tightened the requirements for IRB's and currently they only appli, to certain tax-exempt org fintions and certain housing projects. A Class B Property Tax Incentive A W - - ,provides for. a reduction in eq valuation (EAV from 36 % to 16 % for 8 years and then from 36 % tofor the next four years for cer=' manufacturing properties. The typical savings for the first 8 years are about $35,500 per yea for each $1 mon of EAV. IMe V e has granted Class 6B to th:ree properties, howeVer only two were actually constructed. A TIF provides a number of incentives for p - rties included in a TIF District. In TIF Targe Am A, the V e wrote down land values by 50% as well as M*sWEng certain utilities. Thl V e's total costs in Target Area A were approximately $1 miWon. Additionally, in Targe Area E, the V e expended some $400,000 to provide additional parldng 'in the downtowl area, The Facade Improvement Progmin has provided design services plus a grant of up to $5,000 to downtown area businemes for code and facade improvements. Since 1980, the Village ha -s expended $275,000 in CDBG funds and approximately $150,000 in General Fund monies for this purpose. 11 The Marketing Consulting Services for Mount Prospect included payment of 50% of the cost of a study to upgrade Mount Prospect P The Village's share of the study was about $459000. Michael E. Janonis Page 3 Target Store -Request for Financial Assistance From the above examples it can be seen that the V e has been involved in a number of a sistance prom=s for local bu in The circumstances in ea h instance have been unique W and have been used to the extent possible. In regard to the request by Target, I should mention that the assistance requested is not n ssarily for a one-time payment. Ile . &stance can be paid over a period of time with the source of the payments limited to new revenues received from Target, I understand that this means that 'if revenues are not received, the Village would not have any oblig4on to pay. I realize that this is an extraordinary request and a different type of assistance d= has been provided, in the past. Also, I wonder if there could be some middle ground or reduced amount regarding the amount of stance provided. However, the, proposed Target Store would provide a t financial benefit to the Village and the other taxing bodies in the Village and I think we should explore some type of financial assistance. DCJ/sm. En -C Sales Tax Normal Sales Tac 1 st - 1/4C Home Rule Sales Tax 2nd - 1140 Home Rule Sates Tax Property Taxes Village of Mount Prospect Other Taxing Bodies Other Taxes (Est) Utility Taxes !Food &Beverage Tac Total Tax Receipts Total Village Tax Receipts PROPOSED TARGET- STOItE Emitted Trx Receipts 194:1-2014 Annual Amount jQ�„� 10 Year Totals 20 Year IOWA $21,17'b $2,511,762 $ 6,136,846 62,794 62,-W4 627,940 627 1,534,212 $376,764 $3t767,642 �L534s,212 $902051270 $521,375 $ 471,371 (1) S► 1,2ZU,139 (2) 311.3% 2a8O5-650 (1) 7257351 (2) 5363,769 i� S43 53,276,92U VA i 34A§W S4,S2,058 $ 8,477,490 2 IOLM fdo&64" I Propcny tAxcs paid during the first 10 gears represent 9 years' receipts. ') Properly taxes pAid during thr t it st .10 years represent 19 years' receipts. TO: Mount Prospect Village Board of Trustees FROM: Economic Development Commission SUBJECT: Incentives as Economic Development Tools The Economic Development Commission (EDC) was asked by Mayor Farley to develop a "White Paper" on the use of "Incentives" by Mount Prospect in econcmc development. A complete "Wlite Paper"remains to be developed but the basics for the report are incorporated in this memorandum. The EDC suppom and uses the Village's comprehensive plan which is to be used to establish appropriate development of properties within the boundaries of Mount Prospect. Our recommendations are that if economic incentives are to be offered, they should be available for the development of: 1. Existing businesses 2. New businesses 3. Business attraction 4. Dow.Ttow—ii urevitafization impill 1 Pill wevilliriiii pievis 1. Any assistance must be carefully considered in order to assure that their is no economic risk to the Village and it's residents. 2. Each project should be considered on its own merit and first meet a pre -established criteria before the Village Board of Trustees mav o assistance to any development. From these recommendations and other considerations, the EDC considered whether to recommend the use of economic incentives. Further, it was acknowledged that the trend continues locallv in the area and nationwide for the use of economic incentives. However, some studies do indicate that incentives are not often the top reason why companies choose one location over another. Businesses more often seek incentives to reduce costs and increase their bottom line which then becomes an integral part of a company's decision process and business plan. The incentive game is an intense and senous one wide1v used and available on a local and state basis. &I These factors mentioned and others led to the following motion which was made N_ and seconded by Ben Trapani. The motion was approved by 6 ayes and 0 nays. One member absent. "We support the use of economic incentives for business development in Mount Prospect. However, each project should be considered on its own merit and meet a pre -established criteria. Unexpected or extr or dffiary expenses should 1e the 1asis for new &Wopment". I The main reason for EDC to recommend that Mount Prospect offer incentives is to be equal to or more competitive with other communities. A second and almost as compelling a reason is that major national retai] t�?e companies that have the potential of cenerating, comiderable sales tax revenue and new, emplo�ment opportunes, do as a part of their initial m*quu'-v., ask what incenti,\,,es are available. Without the option of at least discussing incentives that could be considered, the probable action by an inquiring c.ompan-v would be to discontinue their consideration of their store location 'in the Villa�ge and look elsewhere. At this time, the EDC is prepared to continue its work M' the development of pre- established criteria for incentives. The in(�.entives listed below are those first being evaluated bv EDC to entice new businesses and keep existing businesses from lea-ving. W 1. Unexpected or extraordinary expenses cost sharing: for major retail type business a return of up to a 1.14 cent of sales tax generated by the store to help defray unexpected extra expense (ie, poor soil. conditions, condemnation, etc.) limited to a predetermined dollar amount and a defined period of time. A.. Sharing of some renovation costs of certain distressed areas (econo ' or/physical) -- payment of cost by sales tax rebate over a defmed period of time. 3. Site infrastructure.- can be equated with traditional public works --highways, roads streets. water supplv s-vstems, sewage and waste systems, etc. 4. Accelerated permitting process (one stop permit process . ), The EDC was briefed on the Target Store request for some economic support by the Villagre of Mount Prospect that is proposed for use in the construction of a new store on a vacant parcel of land. The Targ .:,et Store under consideration to be lol-,-.ated near Algonquin Road and Elmhurst Road was specificarlhT discussed at our January 5., 1994 meeting. The request by Target Stores was for financial assistance to help offset the extraordm*ary expenses to mitigate a poor soil condition of the site. �X'e �,,onsidered the request to be reasonable and justified but the EDC made no recommendations as to the dollar amount of economic support to be proNided by the Village. we believe that 1/4 of a cent of sales tax revenue credited to Target Stores over a fixed period of time is an acceptable and equitable way of funding the Village's economic support. MAYOR GERALD L FARLEY TRUST51011 GEORGE A. CLOWES TIMOTHY J. CORCORAN RICHARD N. HENDRICKS PAUL W HOEFEAT MICHAELE W. SKOWRON IRVANA K. WILKS VILLAGE MANAGER MICHAEL E. JANONIS VILLAGE CLERK CAROL A. FIELDS IV, V4 Village of Mount P11r1Q1'SP0Qt 100 South Emerson Street Mount Prospect, Illinois 60056 AGENDA Phone: 7013 / 392-6000 Fax: 708 / 392-6022 SA&MWIT'COMMISSION TOD: 708 / 392-6064 VILLAGE HALL 100 So EMERSON STREET MOUNT PROSPECT, ILLINOIS j 1v',L"4', 7:30 PoMe CALL TO ORDER ROLL CALL APPROVAL OF MINUTES Cl'I'IZENS TO BE HEARD OLD BUSINESS A* PARKING RESTRICTION ON WEST SIDE OF uirn MAIN STREET Bz;rr� aq vv EEN LINCOLN STREET AND ROUTE 83 (ELMHiJRST ROAD) Be PARKING ON 200 BLOCK OF LOUIS STREET ADJOURNMENT DEFERRED TRAFFIC FLOW ON AUDREY LANE ONE WAY SIGN MILBURN AVENUE AT ST. RAYMONDS SCHOOL PARKING RESTRICTION ON MAIN STREET DAVID :. M A: TO ATTEND THE PREVIOUS SAFETY COMMISSION MEETING HELD ON DECEM13ER1993, 1 WOULD LIKE TO EXPRESS ABOUT THE PARKING BLOCK OF MAIN STREET AT llnS ' BAIRD MADETHE ORIGINALREQUEST PARKINGPARKING RESTRICTIONS ON MAIN STRE BLOCK► ATTACHED SII THE I.CALL TO ORDER 11. ROLL CALL MAYOR APPROVAL OF M1RqUTES GERALD L FARLEY OLD BUSINESS TRUSTEES GEORGE A. CLOWES TIMOTHY J. CORCORAN RICHARD N. HENQRICKS PAUL WM,, HOEFERT I g o of Mount "-�rospioct MICHAELE W. SKOWRON IRVANA K. WILKS Vlt"" MAX^GfR MICHAEL E�, JANONIS 100 South Emerson Street Mount Prospect, Illinois 60056 VILLAGE CLERK CAROL A. FIELDS AGENDA ECONOMIC DEVELOPMENT COMMISSION Wednesday, January 12, 1-994 Amen'can Cyanamid Company 1100 Business Center Dn*ve Mount Prospect, 1111*noi*s 8:30 A.M. I.CALL TO ORDER 11. ROLL CALL III. APPROVAL OF M1RqUTES IV. OLD BUSINESS A. Annual Report B. Small Business Survey I C. Development Incentives IV, NEW BUSINESS A. Work Pro ram - 1994 %of V. ADJOURNMENT li'ohone: 70B / 392-600tl Fax: 708 / 392-602 TDO: 708 / 392-6061 1 MUMUS OF THE MEETVq�QOF TW MOUNT PROSPECT SIGN REVIE 'BOA''" January 3., 1"4 10" Ii o0r1-) :9 o * 44 The regular meeting of the Sip Review Board (SRB) was o AM my called to order by Act' Mg Chairperson John McDermott at 7-0 36 p.rn. on Monday, Jantuay 3, 1994 at, the V`illage HAII, 100 South Emerson Street, Mount Prospect, Minot's. 0 ROLL CALL, Members of the SRB present.- Richard Rogers, Warren Kostak, E' 0 Luxern, Hal Predovich, Philip Stephenson and John McDerniott. Absent was Chiqmwn Adelaide Thulin. Also present was Kenneth Fritz, Econornic vevelopment Coordinator. VII I falls MintAes of the December 6, 1993 Sign Review Board meeting were approved on a motion by Philip Stephenson, seconded by Hal Predovich. 'EIGNIZ2LAR ''Pm& * '' &ng,6 50 , North Klinh. - '01, , It'Road ."t,onjdQT.f ttr'9 ...j w The petitioner seeks a variation 'in height to 15 fixt for a fivestanding * containing SL*X tenant panels. SIP Addonally a spea"al use i's sou& for a 4'X 19 el xtronic inflormation display unit to be 'incorporated into a wall sign co two (2) tenant panels and facing Eknhurst Road. The ordinance permits A% 00 400 * 0 a maxi'murn or one tenant 'identification for each exterior entrance on a building, pis seeking a special use equity option 'in order to identify more than, one tenam on a wall sign. 0 1 0 'a sk John Manglardi, owner of All Professional Office Center,, inaicated that there are six individu 0 0 0 0 9 A low Ift IAIIft conm4pmanies the 34,000 square feet. There "is a aajacent to Elmhurs Road that serves as the In exuance for all of the businesses, There is a security code that must b4- 1;1uncI,W * in or paw key used *in order for people to enter their office complex. Mr. Manglardi stat that his desire is to place a W* C tenant agn Aacent to the driveway and seeks a three foo 0 .6•0 * 0 Ir in height from 12 to 15 feet *in order to mal*ntain visibty for the SM* tenant panels for thiiq. benefit of passing motorists. He also requested a special use for an electronic message center to - placed on a wall Sip together with two separate identifications for Century 21 Northwest and Fir Home Mortgage Company. 2iscussion Conn "ss oi' er Luxern stated that the electronic message center component for the wall sip would be confusing to the motorists and would add to the clutter of signage in the area. She 'indicated that qWft & Sian iwiew Board Minutes Sian 3 6 9% sign between floors - the entire ouWde ext ri of the building is no opporamity tor placfi the wall sum e or is made up of patiels. There is however, an aposed epoxy stone fascia at the top edge of the building. It 'i's the only location that a wall sign could be placed on the building. It is however, 3 5 feet to the top of the sign. The Code permits up to a ma=um, of 3 0 feet for wall signage in a commercial district. They are therefore, seeking a 5 foot variation *in height for the location of the temporazy wall sign on the building. Discussion 0 0 a After revwwmg the plans with the representative from A & E Graphic Sign,%- it was apparent that tho 0 was reasonable to be placed on the horindatal band at the top of the bun] Motion A motion was made by Nk. Hal Predovich, seconded by PAR-' ation 6 0 In height for the temporary sign from 3 0 fed to 3 5 feet. It was noted that the temporary sign locatio was good from one year of the issua= of the sign permit. The vote on the motion was 6 ayes, 0 na I member absent. I go The meeting was aajourned at 8:49 p.m. 4