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Home My WebLink About09/29/1992 COW minutes Minutes ,~ ,COMMITTEE OF THE WHOLE Downtown Redevelopment Workshop ' Tuesday, September 29, 199~ Fh~t Chicago Bank Building - 3rd Floor 111 East Busse Avenue ~, Mount Prospect, IL I Roll Call Thc mceung was called to order at 6:45 p.m. by Mayor Gerald L. Farley. Trustees present were Mark Busse, George Clowes, Tim Corcoran, LeoFloros, Paul Hoefert and Irvana Walks. Also present were Village Manager Machael E. Sanonis, Planning Director Dawd Clements, Economic Development Coordinator Ken Fritz, and Finance Director David Sepson. H Executive Session ~ The meeung adjourned at 6:47 p.m. to go into executive session to discuss land acqmsition. HI Reconvene Committee of the Whole Meeting . The meeung was reconvened at 8:15 p.m. In addition to the Mayor, Trustees, and staff presno~sly Mentified the following were in attendance. Janet Hansen, Executive D~rector Mount Prospect Chamber of Commerce; Robert Meats, Felix Lopez, and Steve Golden of Broadacre ConsulUng Service; Hal Predovich, Chairman, John Falering, Bait Kelpk, and ~ohn Metzenthm of BDDRC; one Village resident; and three members of the print media. IV Triangle Redevelopment Project . Mayor Farley stated that the purpose of the meeting was to discuss the Triangle Redevelopment ,Project He said that the Village had made a commitment to downtown redevelopment and that there was no lack of vision for redevelopment but there was a lack of investment interest. He added that the health of the downtown area reflected on the entire community and that it was important to continue efforts at redevelopment. Village Manager M~chael Janonis smd the meeting was being held m a different location to provide an atmosphere to be able to make some pohcy decisions regarding downtown redevelopment He ~ added that the outline of the meeting ~ncluded a brief overview and then there would be a d~scuss~on { ~ of a senes of go, no-go questions. Planning Director Clements reviewed some' of the TIF milestones since 1985. He stated that the Hemphlll project had been completed, additional property had been acquired m Target Areas C, E, and F and the TIF District had been expanded in 1988 to include the Matn/Wllle block. Econonue Development Coordinator Ken Fritz reviewed the features of the Broadacre Redevelopment Plan. Included in the plan was the relocatton of Northwest Electric, a commons area focal point and the construction of 132 apartment umts and approximately 60,000 square feet of re~l/office space He added that a proposed Senior Citizens Housing Project was also being considered. Village Manager Janoms stated that the questions to be addressed included, property ac. qulslt~on, private development, extension of the TIF, project investment and the developer agreement. Mayor Farley stated that in regard to the question of property aequmt~on, the Village Board had decided not to pursue purchase of the gas staUon at Main and Central and the auto body shop. He ~ added that there were recent deaths in the families of the property owners and that it did not appear that the project as presented could be financed. Village Manager Janonls stated that the Village had made an offer to purchase the property at Main and Central and that there had been several counter- offers The Village Board rejected the most recent counter-offer and deternuned that they would no longer pursue acqumt~on of the property ~,~ , Mr Sanoms stated that this decision changed the plans to relocate Northwest Electric from their present location to the property at Main and Central. In the future the Village would work w~th Northwest Electric to consider expansion at their present locataon. In regard to the quest;on of expanding the TIF District, Mr. Janoms stated that an expansion of the TIF District would be essenUal to pay public improvements in the Plne/Wille block. Also, it would provide greater flexibility in th~ future for mak;ng other public improvements ~n the mangle area Mr. Janoms added that there were two optaons: expanding the Dlsmet to include only the l~ne/Wllle block or including the balance of the enUre triangle area in the D~stnct Planning DLrector Clements then reviewed the tametable needed to expand the District in 1992. He stated that a reddvelopment plan must be prepared and notaces sent to all of the taxing districts and the State of Ilhnols by October 15, 1992. A public heanng would be held on December 1, 1992 and the ordinance would be adopted at a special meeUng of the Village Board on December 22, 1992. Mr. Clements added that it was a tight tametable but that ~t could be done. Mr. Clements also stated that it would provide more flexibihty ff the enure mangle would be ~ included in the District. He smd this would provide the potentaal for future improvements m the triangle area. He added that it would be an advantage to complete the expansion in 1992. In response to a question, Mr. Clements said the recommendation was to expand the TIF District rather than to create a new District because it resulted in a shorter pay-back period for the other taxing &stncts ~ ,, .... Trustee Clowes smd he did not support an expansion of the TIF District because TIF Districts provided funds for redevelopment at the expense of other taxing districts. He said he preferred special service districts for redevelopment projects He added that developers may have more interest in redevelopment if the Village had fewer restrictions. ~ ~. '~ : ~'"'~ Mayor Farley and Trustees Busse, Corcoran, FIoros, Hoefert and Wilks said they supported expansion of the TIF Dismct to the entu'e mangle area Village Manager Janoms said the issue m regard to the Village's investment m redevelopment was whether the Village was wdhng to use general revenues for a redevelopment project. Finance D~rector Sepson explaaned that property tax increment revenue could be used for improvements that benefited the public, but that any improvements for the benefit of a private interest could only be pad for with general Village revenues. Mayor Farley and Trustees Busse, Coreoran, Fioros, Hoefert and Wllks indicated they would not support using general revenues for private purposes. %llage Manager Sanonis stated that because the redevelopment plan would need to be changed, it would not be appropriate to discuss the developer agreement at this meeting. He asked the representalaves from Broadaere if they thought they could come up w~th a plan for the Pme/Wflle Block. Robert Mears stated that the econom~cs were changed but their market study had indicated a demand for up-scale residential units. Fidel Lopez stated that planmng is a continuous process and that he thought they could come up with a workable plan. Mr. Lopez also reminded the Board that the previous consulting agreement had expired and they were interested m extending the agreement. Hal Predovlch, chairman of BDDRC, asked ff other financing approaches had been explored and if the deciszons of the Board were sub-optimmng the potential for the triangle area. Finance Director Jepson said the Village had looked into other financing alternalaves and that a Imvate or a pubhc/pnvate development corporation could be formed at any lame that investora would be interested. Village Manager Janoms said the Triangle Redevelopment Plan was a good plan but there was only so much that the Vdlage could do. He said market conditmns precluded proceeding with the plan as presented at this Ume. Trustee Corcoran stated that the original plan was tempting but that it was possibly too ambilaous. Trustee Hoefert smd the original plan was a good plan but the problem was with the financing. Trustee Wilks smd the Village needed good apartment units and she was very suppomve of the Semor Cmzen Housing Project. Village Manager Sanoms stated that the decisions the Board had made provided clear dtrectaon to the Village staff. IX Adjournment The meeUng ad. loumed at 10:10 p.m. Respectfully submitted, Davad C..]'epson, Finance DLrector '¢~ DC J/sm 3