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HomeMy WebLinkAbout05/27/1992 COW minutes ~-I__ Roll Call-'- 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 Walks was absent. Also present were Village Manager John Fulton Dixon, Planning D~rector David Clements, Village Planner Mike Sim~, 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 medxa. Adchtionally, Robert Mears, F~del Lopez and Steven Golden of Broadacre Management Company, Howard Decker of Decker and Kemp and Alan Saunders of Planning Partnerships were present. ? II Minutes of May 12. 1992 The minutes of May 12, 1992 were accepted and filed. -III ~ i ~ - '~ ~' ~ No citizens appeared before the Committe~ IV D~scussion of Downtown Redevelopment Market Study ~ Robert Mears, President of Broadacre Management Company, stated that his firm had completed an ex~ensive 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: The real estate development market is far d~fferent today tha~n 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. Meats 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 ab~hty to find tenants He compared the proposed development in Mount Prospect to the Market Square Project in Lake Forest. 3. The Triangle Area is an ideal area to redevelop and that a development project could help to redefine t~ mage of the Downtown Area and provide a focus for the entire community. The i an would include 4 to 5 story buddings .with a unique architectural design. , ~ 4. Development projects are very difficult to finance today, but with the Vill~ge's participation, he believes a project can be built and be successful in Mount Prospect. Mayor Farley said he was d~sappointed that the study did not support more retail and office ~ space in a redevelopment project. Mr. Meats responded that with curi:ent rents bringing less than $10 per sqhare foot, it would not be a prudent risk for the developer or th& Village. He · ~'~ said an ~mportant ,feature of a plan is the ?bility to change uses as the marke~t changes. , Trustee~ Floros said he found the study to be refreshingly reahst~c. However, he said he was concerned about the residential multi-family market,m light of some of the problems in downto/~n Arlington Heights. Mr. Meats stated that the problem in Arhngton Heights is that the financing was too highly leveraged. He added that the type of building was very important and that the proposal for Mount Prospect would be considerably different than the buildings in Arhngton Heights. Trustee Hoefert said he also expected more retail and office space. He also asked why the proposed project called for rental units rather than condomlnium~., Mr. Mears explained that there will be a market for retail specialty shops and professional 6ffice space and that the plans could change as the project develops. He added that it is generally better to start with rental and convert to condos at a later date than to star~ with condos Trustee CIowes pointed out that the Market Square Project in Lake Forest has a department store as an anchor for the retail area. Mr. Meats stated that people will go to a regional shopping center for bargains and variety but will come to a specialty store because tt ~s a pleasant experience. He said the plan would include zones of activities to attract customers. Trustee Busse asked how much retail was necessary for the project to be successful and if the Triangle Area could be linked with the retail area south of the railroad tracks. Mr. Mears responded that the project could be almost entirely residential, but that he would not recommend that. He said that there should be ripple effect with the residential supporting retatl. He also said it was very difficult to tie together areas that are separated by a major thoroughfare or railroad tracks. ~ Trustee Coreoran asked why the buildings were hmited to 4 to 5 stories and if financing is available. Mr. Meats stated that there is a different level of costs with a higher density and that more density does not always mean more value. He added that investors are becoming more interested and that this project could be very attractiv~e to investors. Trustee Corcoran said he thought the survey was excellent, very well done Hal Predowch, Chatrman of BDDRC, said he thought the proposed project met the goals of BDDRC. He said their prionttes were that the project be economically viable, that it brings people to downtown Mount Prospect, and that tt creates an image that Mount Prospect is .... umque. He also said there was an urgency to keep momentum going. 2 -~Howard Decke~,-ar-chitect, presented the conceptual plan of the proposed project. He said the four'principles that were foremost m developing the plan were: 1) The Plan would include a umque context; 2) The Plan must~be fleyable 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 ~mage 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 comer 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 retml uses and office space. 2. The Plne/Wille block w~uld include a Pme/Wdle Commons Area and twO apartment- retail bmldmgs. 3. A Senior Housing Project would be incorporated into the westerly portion of the Pine/Wfile 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 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 F~rley, Mr. Decker said no plans have been made for the properties East of Enierson 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 stones 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 hke 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 project. He said that he thinks the plans are on the right road. 3 Fidel Lopez, Vtce. President of Broadacre,_said that the Village would need to amend the~-~- existing TIF D~strict or create a new TIF District to be able_to finance_the~project. He explained that the Tax Incremental Financing (TIF) method is the one means available to municipalities to finance development projects: He added that it is a long-range investment for the other taxing bodies and that without a TIF it is unhkely that the area could be developed. Trustee Clowes smd he wanted to go on record as being opposed to expanding the TIF District. He added that he had a concern over investing tax dollars in a risky development project. He smd he did not think the project was economically viable if we needed to use taxpayer money. Mr. Mears responded that financing ~s constantly changing and it was necessary to be creative in today's market. He smd equity is now needed to make a development vaable and TIF financing is critical to making this project work. · Mayor Farley said all investments are risky and that a TIF was the best solution. Trustee Floros said that this Board has embraced the vasdom of using TIF financing in the past and that most of the Board accepts the fact that it is feasible. Trustee Busse said he supported expanding the TIF District. Trustee Hoefert said he supported using TI1e financing and the fact is little is happening without it. He added that we need to take a longer-term v~ew. Trustee Corcoran asl~ed Mr. Meats to explain the Vtllage's equity interest in the project. Mr. Mears said it would be a joint venture with the Village, Broadacre and outside investors. He explained that two years ago, no one would have been interested in this or any development project. ~The climate is better now, but the Village needs to invest in the project. He emphasized that me current era cannot be compared with prior years. Mr. Meats stated that the ~nvestors expected an overall return of 15% - 20% and would need to be repaid before the Village. Trustee Corcoran said he preferred that the Village would not be a long-term eqmty partner. He also said he would like to see how the numbers worked out. Trustee Corcoran said he tentatively supported expanding the TIF if the financial feasibility looked good. Mayor Farley said he sensed there was concurrence to accept the Broadacre conceptual plan. Vdlage Manager Dtxon said the next steps would be to determine a financing plan, enter into a developer agreement, and prepare for pubhc hearings to extend the TIF District. Apartments for the Elderly ~ ' Plan. ng Dtrector Clements stated that the top priority of the re .cenfly adopted Comprebenslve Housing Affordability Strategy was for subslchzed senior housing. He smd both staff and Broadacre agreed that downtown Mount Prospect would be an excellent location for senior housing and it would complement the proposed downtown redevelopment. The proposed s~te would be on the East side of Pine Street at Central Road and would consist of a five-story, approximately 80 unit apartment building, with off-street parking. Mr. Clements stated that an application would be made to HUD by Catholic Charities Housing Development Corporation. HUD would pay a fair market value for the land and Mount Prospect residents would have preference m renting the apartment units. Mr. Clements pointed out that the application needed to be filed by June 24, 1992 and that a determination would be made about October 1, 1992. He said construction would not start until about two years after approval is recetved Alan Satinders 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 wfl'th current waiting lists in the 5 to 10 year range. He said that Catholic Chanties 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. Comprehensive Plan Rob Campbell - 5 South Maple, Sharon Paulsen - 7 South Maple, Rev. Kurt Grotheer - 21 South Maple, and Daxad 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 bemuse of the lateness of the hour, that further discussion on the Comprehensive Plan would be deferred until June 9, 1992. The Village Manager did not present any report. No other business was presented. vm The meeting adjourned at 11:46 p.m. Respectfully submitted, David C. Jepson, Finance Director DC J/sm 5