HomeMy WebLinkAbout0762_001Minutes
comMirrEE OF THE WHOLE
May 27, 1992
The meeting was called to order at 7:36 p.m. by Mayor Gerald L. Farley. Trustees present
were Mark Busse, George Clowes, Tim Corcoran, Leo Floros, and Paul Hoefert. Trustee Irvana
Wilks was absent. Also present were Village Manager John Fulton Dixon, Planning Director
David Clements, Village Planner Mike Sims, Finance Director David Jepson, Plan Commission
Chairman Don Weibel, Business District Development and Redevelopment Commission
(BDDRC) Chairman Hal Predovich, members of the Plan Commission and BDDRC,
approximately 40 residents and three members of the print media. Additionally, Robert Mears,
Fidel Lopez and Steven Golden of Broadacre Management Company, Howard Decker of
Decker and Kemp and Alan Saunders of Planning Partnerships were present.
The minutes of May 12, 1992 were accepted and filed.
No citizens appeared before the Committee
9 9 0 RETT-TITITITIT8 Pin 71173=774
Market Study
Robert Mears, President of Broadacre Management Company, stated that his firm had
completed an extensive market study of the Downtown Mount Prospect Area to determine what
kind of development project was feasible in the Triangle Development Area bounded by Main
Street, Central Road and Northwest Highway. The findings of their study included the
following:
1. The real estate development market is far different today than in the 1970's and 1980's.
It is very difficult to find investors for development projects because of tax law changes
and the high vacancy rates for commercial and office buildings.
2. There is a market for high quality residential units in Downtown Mount Prospect.
Mr. Mears explained that a multi -family development project could include 10%-15%
of retail space and a very limited amount of office space. He added that the design
would need to be flexible so that potential retail and office space could be converted
to residential or vice -versa depending on the ability to find tenants. He compared the
proposed development in Mount Prospect to the Market Square Project in Lake Forest.
Howard Decker, architect, presented the conceptual plan of the proposed project. He said the
four principles that were foremost in developing the plan were: 1) The Plan would include a
unique context; 2) The Plan must be flexible and adaptable; 3) The Plan should foster
continued growth; and 4) The Plan should include a mix of public and private uses. He also
said the plan must provide for easy movement of traffic, an East-West open space image and
a scale that would be attractive to residents and customers.
Mr. Decker said that the specific features of the proposed plan included:
1. The relocations of Northwest Electric to the corner of Main and Central. After the
move, the existing Northwest Electric Buildings would be replaced with an East-West
roadway and green space along with a retail and apartment building. The new
Northwest Electric facility would include areas for other retail uses and office space.
2. The Pine/Wille block would include a Pine/Wille Commons Area and two apartment -
retail buildings.
3. A Senior Housing Project would be incorporated into the westerly portion of the
Pine/Wille block.
4. The area East of Main Street could include restructured parking and continuation of
the green belt open space. This area could be used for other public purposes in the
future.
Mr. Decker said the Plans called for up to 900 parking spaces for retail use, commuter use and
residential use. He said the architectural style would include balconies and pitched roofs, open
spaces, traditional masonry and stucco and small windows.
In response to a question by Mayor Farley, Mr. Decker said no plans have been made for the
properties East of ' Enlerson Street. At this time they have concentrated on the area West of
Main Street. In response to a question by Trustee Corcoran, Mr. Decker said the style of
building represented high quality construction at extremely competitive prices. He added that
there were approximately 230 underground parking spaces planned for the Pine/Wille block.
Trustee Clowes questioned Mr. Decker regarding the height of the 'residential buildings.
Mr. Decker replied that the building along Pine Street would be 5 stories and the other two
buildings in the Pine/Wille block would be 4 stories.
Trustee Hoefert said he liked the appearance of the proposed development and agreed with the
proposed building heights. He stated that he would like to see the Terrace Supply Building
upgraded to conform to the other buildings in the proposed project. Trustee Floros said he was
pleased that the area West of Main Street was being addressed and that the Maple Street Area
should be left alone. He also said he was delighted that Northwest Electric was included in the
p roject. He said that he thinks, the plans are on the right road,
Alan Saunders of Planning Partnerships, a consultant for Catholic Charities, stated they had
completed similar projects in Schaumburg, Arlington Heights, Glenview, Elmhurst, and
Barrington. He stated that the renters would be income qualified and that there would be a
preference for Mount Prospect residents. He added that there is a great need for this type of
housing with current waiting lists in the 5 to 10 year range. He said that Catholic Charities
would apply for the funding from HUD, and if the funding is received, Catholic Charities would
own and manage the apartments.
The Committee unanimously supported the project.
Robin La Best of the League of Women Voters appeared before the Committee in support of
the project. She said the housing was truly needed and this was an exciting opportunity for the
Village.
Rob Campbell - 5 South Maple, Sharon Paulsen - 7 South Maple, Rev. Kurt Grotheer -
21 South Maple, and David Alexander - 9 South Maple, all appeared before the Committee to
object to the designations of commercial for the West side of Maple Street and multi -family for
the East side of Maple Street in the Comprehensive Plan. They said they would like to maintain
the single-family character of their homes and would like to see the Plan changed.
Robert Clapp - 7 South Owen Street requested that the Plan address the traffic problems in the
downtown area.
Mayor Farley stated that because of the lateness of the hour, that further discussion on the
Comprehensive Plan would be deferred until June 9, 1992,
VI Manager's Rom
The Village Manager did not present any report.
No other business was presented.
VIII Adjournment
The meeting adjourned at 11:46 p.m.
DCJ/sm
5
Respectfully submitted,
David C. Jepson, Finance Director
VILLAGE OF MOUNT PROSPECT
PLANNING DEPARTMENT
Mount Prospect, Illinois
TO: MAYOR AND VILLAGE BOARD OF TRUSTEES
JOHN F. DIXON, VILLAGE MANAGER W11'e—
FROM: DAVID M. CLEMENTS, DIRECTOR OF PLANNING
DATE: JUNE 4, 1992
SUBJECT: COMPREHENSIVE PLAN
MAPLE STREET LAND -USE DESIGNATION
Trustee Wilks asked that I prepare language that summarizes her thoughts on the Maple
Street land -use designation. She asked that this be distributed for the June 9 meeting.
Mp-Iti-famil y Housing Areas - Pages 27 & 28
New high quality central area housing could add significant new life and vitality to
the downtown area and help create a built-in market for commercial activities. The
area south of Prospect Avenue between Emerson and Maple Street would be
appropriate as multi -family housing in the future. Also. the gast side of Maple Street
between Central Road and Northwest Highway bad been design-altd for notential
AWN
DMC:hg
VILLAGE OF MOUNT PROSPECT
PLANNM DEPARTMENT
Mount Prospect, Illinois
TO: JOHN F. DIXON, VILLAGE MANAGER
FROM: DAVID M. CLEMENTS, DIRECTOR OF PLANNING
DATE: JUNE 1, 1992
SUBJECT: COMPREHENSIVE PLAN
In a recent discussion concerning the Comprehensive Plan, Trustee Clowes requested more
information on a statement concerning a proposed fire station to be constructed in the
northern part of the Village, in the vicinity of Randharst.
Attached is a memo from Chief Ed Cavello that provides information on this subject.
DMC:hg
Attached
VILLAGE OF MOUNT PROSPECT
ILLINOIS
INTEROFFICE MEMORANDUM
TO: DAVID CLEMENTS, DIRECTOR OF PLANNING & ZONING
FROM: FIRE CHIEF EDWARD M. CAVELLO
DATE: MAY 28, 1992
SUBJECT: COMPREHENSIVE PLAN
The Mount Prospect Fire Department places a very high priority on
response time. This is the amount of time it takes from the time
we receive a request for aid until we arrive on the scene.
Because we deal with real emergencies that are happening and from
time to time are life threatening, our goal is to get to the scene
of an emergency from 3-5 minutes. This situation is helped by the
strategic location of 'fire stations that enable emergency
personnel to respond in all directions. Our Station #14 at
Kensington and River Road is located at the extreme eastern
boundary of Mount Prospect and, therefore, only able to respond in
a limited number of directions. This deficiency was identified by
the Insurance Service Office (ISO) during every rating since 1972
when we annexed the northeast section of the village. ISO
recommended that a station be located in the Randhurst area. This
station would provide improved response times to the Randhurst
site, to the Kensington Business Center and to the Lexington Town
Home Community. The nearest station to the Lexington development
is our station on Pine Street. Response times from that location
to Lexington exceed our goal of 3-5 minutes.
I propose that, if this new station becomes a real possibility, an
impact study be done which will determine what our overall fire
protection and emergency response plan should be. we need to
collect data over time to determine if the number of emergency
calls to the Lexington area warrant a major expenditure of this
type. Other options are whether to re -locate the men and
equipment from Station #14 to the Randhurst area or to build a new
facility and hire additional personnel. if managed properly,
these changes will provide better service to our community as well
as to improve our ISO rating to a desireable Class 1.
Edward M. Cavello
Fire Chief
EMC/mah
Village of Mount Prospect
Mount Prospect, Illinois
INTEROFFICE MEMORANDUM
F3
TO: MAYOR GERALD L. FARLEY AND BOARD OF TRUSTEES
FROM: VILLAGE MANAGER
DATE: JUNE 4, 1992
Staff has had extensive contacts with Broadacre over the last two weeks concerning
financial considerations for development of the triangle area. Finance Director Jepson
has put together numbers using taxable as well as non-taxable Bond Issues after
discussions with Bond Counsel concerning items that could be taxable.
At this point in time, we are recommending that the Village Board could participate in
the downtown development by committing to the public improvements at Pine and Wille
and public improvements at Main and Wille as well as property acquisition at the
northwest comer of Elmhurst and Central.
In addition, the Village could commit to the demolition at Pine and Wille and Main and
Wille as well as capitalized interest and commit to a maximum payment of $2 million
for parking improvements for an underground parking structure in the triangle
development.
This type of Bond arrangement as well as those expenditures that we have already put
together will cause the Village to break even in expenses in about a two year period of
time. The first year there will be about a $100,000 deficit and the second year there will
be less than a $30,000 deficit and then there will be a break even or positive cash flow
in each of the remaining years in the TIF after that. This is done by calculating the
return on investment that Broadacre has presented to us at 90%. It is also using a
figure for interest on Bonds that is higher than is in the marketplace presently by over
one-quarter of a percent and also utilizing a higher expected acquisition for properties.
These are all done in order to give the most conservative view of the downtown
development project.
VILLAGE OF MOUNT PROSPECT
FINANCE DEPARTMENT
INTEROFFICE MEMORANDUM
TO: John Fulton Dixon, Village Manager
FROM: David C. Jepson, Finance Director
DATE: June 4, 1992
SUBJECT: Financial Feasibility of the Triangle Redevelopment Project
Two pieces of the puzzle that are needed to determine the financial feasibility of the Triangle
Redevelopment Project are the cost of the improvements that the Village is expected to finance,
and the amount of the tax increment revenues that will be available. The amount of the tax
increment revenue is the key piece of information because usually the improvements can be
modified somewhat to fit within the available revenue. Additionally, the timing of both the
expenditures for the improvements and the receipt of the revenues is also very important in the
financial analysis.
This type of financial information is very difficult to project with an acceptable degree of accuracy
while the project is stili in the conceptual stage, and the results determined at this time will need
to be refined a number of times before firm figures are dependable. Broadacre has established
some preliminary target dates for the project and has provided an estimate of the property taxes
that would be generated from the uses as presented in the conceptual plan. These estimates are
based upon the completion of a new Northwest Electric Building, additional retail space provided
by Northwest Electric, Building C South of Mount Prospect Commons, and Buildings A' and A2
plus a one story retail building in the Pine/Wille Commons. Following is a summary of the
various uses and the estimated tax revenues that are included in the conceptual pian:
Multi -Family Retail Office Estimated
Locationni S Ft F T Revenues
New Northwest Electric - 36,200 - $183,000
Northwest Electric Retail - 10,550 - 60,800
Building C 32 17,050 - 140,700
Pine/Wille Commons 102 37.200 6.400 ` 0
Totals 134 t 66 4A 00
From the Estimated Tax Revenues listed above, the "frozen" taxes of $172,600 (the level of taxes
when the TIF District was amended in 1988 to include the Main/Wille Block and the 1992 taxes
for the Pine/Wille Block) need to be subtracted. Additionally, because this is still a conceptual
plan, I believe some level of caution should be built into the projections. The estimates provided
by Broadacre produce about $2,100 per year in property taxes for each apartment unit and
John Fulton Dixon
Financial Feasibility of the Triangle Redevelopment Project
June 4, 1992
approximately $5.00 per square foot for retail and office space. I realize that these are estimated
1996 amounts, but I think they are somewhat optimistic. Also, the conceptual plan calls for
64,800 square feet of retail space (exclusive of new Northwest Electric) when their market study
indicated there was a potential market for 23,850 to 44,000 square feet of retail space. Because
of these factors, I have reduced Broadacre's estimated tax revenues by 10% in my analysis.
The estimated tax increment amounts that would be received using these assumptions are shown
on attached Schedule 1. This Schedule shows that in 1997 the Village could expect $585,000 in
tax increment revenue and that amount would increase to $675,800 in the year 2000. Schedule 1
also shows the debt service requirements for two bond issues that would be needed to finance
the additional costs the Village would incur for this Project.
One of the bond issues would be a traditional non-taxable municipal issue and the other would
be a taxable issue. It is estimated that the taxable issue would be sold about October 1, 1992
and would mature on December 1, 2008. The estimated amount of this issue is $3,750,000 with
an assumed interest rate of 8.5%. The non-taxable issue is expected to be $1,200,000 with an
assumed interest rate of 6.5%. This issue would be sold about December 1, 1992 and would also
mature on December 1, 2008. The reason there are two proposed bond issues is because certain
costs that are incurred and which are not exclusively for a public purpose cannot be financed with
non-taxable bonds.
Attached Schedule 2 shows the tentative amounts that would be paid from each bond issue. In
addition to bond issuance costs and capitalized interest, these two bond issues will provide for
the balance of property acquisition, demolition, public improvements, and $2 million toward
parking costs. Broadacre has estimated that the total cost of parking will be about $4 million and
that the Village should contribute the entire amount. However, based upon the assumptions
included on Schedule 1 and the information available at this time, the total of the two proposed
bond issues is the maximum amount that I think this development can support.
The capitalized interest (the interest payable before the tax increment revenues will be available)
covers 1993 through 1996, and an annual debt service payment of $650,350 for 1997 through 2008
is anticipated. The bond repayment schedule is based on the premise that the existing TIF
district will be expanded and not on the creation of a new district.
In addition to the tax increment that the project is expected to generate and the annual debt
service requirements, Schedule 1 also shows the cumulative cash flows for 1994 - 2000. There
is a negative cash flow during the initial construction in 1994 and 1995 but after that time the
cash flow is positive. The tax increment revenues of an amended TIF district would continue to
increase after the year 2000 as assessed values increase, and these amounts could be substantial.
If the tax increment revenues come in as I have estimated (90% of Broadacre's figures) there
would be a cash balance in excess of $1 million at the end of the TIF period in 2009. However,
if the revenue projections are cut back another 10% (80% of Broadacre's estimates), there would
John Fulton Dixon
Financial Feasibility of the Triangle Redevelopment Project
June 4, 1992
be a deficiency of approximately $800,000 at the end of the TIF period. The break-even point
is at about 85% of Broadacre's figures.
Attached Schedule 3 shows the Village's total investment in this project based upon costs
previously incurred for property acquisition and demolition and the amounts included in
Schedule 2. Based on this information, the Village's total investment would be $6,180,000. It
is expected that $4,330,000 would be recovered through tax increment monies over the life of
the bonds and that $1,850,000 would need to be recovered at some future date for the Village
to break-even.
With a total investment of over $6,000,000, I think it would be reasonable to expect that the
Village would receive more than the $1,850,000 in the future. If an amount greater than
$1,850,000 is received, the excess would be deposited in the TIF Fund and could be used for
other development projects in the same TIF district, or it would be used to pay off the
outstanding bonds and/or returned to all the taxing bodies on a proportional basis.
Attached Schedule 4 includes the Project Target Dates that have been used in developing my
estimates.
One of the purposes of a TIF redevelopment project is to revitalize an area that is either
deteriorating or stagnating. I believe this project would revitalize this area, and I think it would
have a positive effect on the balance of the downtown area. There should be increased sales tax
revenue for the Village and a much higher level of property taxes for the other taxing bodies at
the end of the TIF period. The current amount of frozen property taxes for this area are
$172,600, and if the revenue projections are correct (90% of Broadacre's estimates) this area
would produce $1,191,100 in property taxes at the end of the TIF period.
In conclusion, the numbers as presented show that the project could work for the Village and
that it could be a good long-term investment for the other taxing bodies. However, I want to
point out that these figures are based on a conceptual pian and are not firm figures. If the plans
change significantly, i.e. if the retail space is cut back and/or improvement costs are increased,
the analysis would need to be re-evaluated. One of the other items that needs to be pointed out
is that when the Village purchased the Aldi's property earlier this year, it was anticipated that
we would receive $1,000,000 back within three years. We had anticipated using these funds to
repay the bonds issued to acquire the property. If this circumstance changes, we will need to use
other funds for the principal and interest payments on those bonds.
There are a number of questions that remain unanswered at this time, and until a Developer
Agreement is approved and firmer revenue figures and improvement costs are received, I think
we should proceed with caution on this project.
Enclosures
Year of Tax Levy
Year of Tax Collection
Main/Wille Block
Current TIF Properties
New Northwest Electric
Mount Prospect Commons
Less -Frozen Taxes
Tax Increment
Pine/Wille Block
Current TIF Properties
Pine/Wille Commons
Less Frozen Taxes
Tax Increment
Schedule 1
VILLAGE OF MOUNT PROSPECT
Triangle Redevelopment Project
Estimated Tax Increment and Debt Service Requirements
1993 1994 1995 1996 1997 1998 1999
1994 1995 1996 1997 1998 1999 2000
$ 48,900 $ 12,900
$ 12,900
$ 14,400
$ 14,400
$ 14,400
$ 16,100
- 109,750
219,500
228,300
228,300
228,300
255,700
- -
63,250
126,500
126,500
126,500
141,600
< 64.500> < 64.500>
< 64,500>
< 64.500>
< 64,500>
< 64,500>
< 64 00>
$ < 15,600> S 58,150
$231.150
047 0
$394.7
3 4 7 0
1141-9-W
$ 20,200 $ 20,200 $ 20,200
$ 22,600
$ 22,600
$ 22,600
$ 25,300
- - 182,900
365,800
365,800
365,800
409,700
< 108J00> < 108.100> < 108.100>
< 108.100>
< 108.100>
< 1 1 >
< 108.100>
< 87,9 > < 87.9 > 95,000
$280,300
$280-30
11300
S 326
Total Tax Increment $<103,500> $ < 29,750> $ 326,150 $ 585,000 $ 585,000 $ 585,000 $ 675,80
Debt Service Requirements - - -52 950 650-35 50 350 - -35Q
Tax Increment Surplus
or < Deficiency > <l 3 .40>< 29.750> 326150 25 05(1 <65 y`50> < 65 50> S 25,45
Cumulative Cash Flow< 103 Q > < 1 1250 > 212 900 X237 9 17 ,_, l 2 0 _ 1 2
WIIV111x175iuCOUNN 0U M11Uxw
Triangle Redevelopment Project
General Obligation Bond Requirements
Final Costs - Target Area A
Public Improvements - Pine/Wille
Public Improvements - Main/Wille
Bond Costs
Capitalized Interest ($292,200 - $97,200)
Property Acquisition
Total
Sale Date 12/1/92, @ 6.5%, Maturity 12/1/2008
94 .
Demolition Pine/Wille
Demolition Main/Wille
Property Acquisition
Parking Improvements
Bond Costs
Capitalized Interest ($1,500,300 - $315,300)
Total
Sale Date 10/1/92, @ 8.5%, Maturity 12/1/2008
Schedule 2
$ 50,000
310,000
570,000
25,000
195,000
50,QQQ
12
$ 80,000
100,000
350,000
2,000,000
35,000
VILLAGE OF MOUNT PROSPECT
Triangle Redevelopment Project
Village Investment
IST
Property Acquisition
Demolition
Public Improvements
IM. AMR. =0
Property Acquisition
Less Sale to Catholic Charities
Total Property
Demolition
Public Improvements
Parking Improvements
Total Village Investment
$2,100,000
< 300,000 >
Amount To Be Recovered Through Tax Increment
Net Village Investment
Schedule 3
$1,240,000
130,000
57Q.000
$1,940,000
$1,800,000
130,000
310,000
2,000,
$4,240,000
Schedule 4
VILLAGE OF MOUNT PROSPECT
Triangle Redevelopment Project
Project Target Dates
7/1/92 Project Decision
9/1/92 Developer Agreement Approved
10/1/92 Public Hearing - Amended TIF District
130 M-MfAll - ;
10/31/92
Property Acquisition - Norb's and Prospect Auto Body
12/01/92
Demolition - Norb's and Prospect Auto Body
3/01/93
Start Construction - Northwest Electric
11/01/93
Start Construction - Main/Wille Improvements
12/31/93
Complete Northwest Electric Facility
2/01/94
Demolish Old Northwest Electric
3/01/94
Start Construction - Mount Prospect Commons - Bldg C
12/31/94
Complete Mount Prospect Commons - Bldg C
6/01/93
Demolish Aldi's Building
7/01/93
Start Construction - Parking
8/01/93
Vacate Old Public Works Building
9/01/93
Demolish Old Public Works Building
2/01/94
Start Construction - Pine/Wille Commons
3/01/94
Start Construction - Elderly Housing
6/01/94
Start Construction - Pine/Wille Improvements
4/30/95
Complete Construction - Pine/Wille Commons
5/31/95
Complete Construction - Elderly Housing
6/30/95
Complete Landscaping