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HomeMy WebLinkAbout2019-06-24 MinutesMINUTES OF A REGULAR MEETING OF THE PRESIDENT AND THE BOARD OF TRUSTEES OF THE VILLAGE OF MORTON GROVE COOK COUNTY, ILLINOIS, HELD AT THE RICHARD T. FLICKINGER MUNICIPAL CENTER JUNE 24, 2019 CALL TO ORDER 1– Village President Dan DiMaria convened the Regular Meeting of the Village Board at 7:00 p.m. in V. the Council Chambers of Village Hall and led the assemblage in the Pledge of Allegiance. VI. Village Clerk Eileen Harford called the roll. Present were: Trustees Bill Grear, Rita Minx, Ed Ramos, John Thill, Connie Travis, and Janine Witko. VII. APPROVAL OF MINUTES 1. Trustee Minx moved to accept the Minutes of the Regular Board Meeting of June 10, 2019 as presented, seconded by Trustee Ramos. Motion passed unanimously via voice vote. VIII. SPECIAL REPORTS NONE IX. PUBLIC HEARINGS 1. Public Hearing on Sawmill Station: Proposed Establishment of Redevelopment Prosect Area, Creation of Redevelopment Plan and Protect, and Implementation of Tax Increment Allocation Financing. a. Mayor DiMaria opened the Public Hearing and turned it over to Village Administrator Ralph Czerwinski, who explained that no action would be taken this evening—the Village was seeking the public's comments. b. Mr. Czerwinski said the Public Hearing would cover the redevelopment project and plan, the Village's strategic and financial planning; Qualifying Factors of a TIF District; and key elements of the TIF Plan. c. Mr. Czerwinski described the proposed TIF's boundaries; the TIF extends north and south of Dempster and includes Park District properties north of Dempster and some vacant lots south of Dempster. The AT&T Center on Dempster just east of the former Prairie View Plaza and the Public Storage company on Waukegan Road are not included in the proposed TIF. Some parcels in the previous Dempster -Waukegan TIF will now be included in the new proposed TIF. Also parcels in the Waukegan Road TIF will be assimilated into the proposed TIF, as the Waukegan Road TIF is expiring. Minutes of June 10, 2019 Board Meeting IX. PUBLIC HEARINGS (continued) d. Mr. Czerwinski said the Prairie View Plaza shopping center has fallen into disarray, having experienced numerous vacancies over the last 10 years, which created a deleterious impact on the two key commercial corridors of Waukegan Road and Dempster Street. The new owners of the Prairie View Plaza shopping center property and the Village believe that establishing this proposed TIF District—the Sawmill Station TIF—will encourage redevelopment of obsolete or under-utilized buildings or sites, reduce or eliminate impediments to private development within the area, coordinate redevelopment activities within the proposed TIF District in order to provide a positive market signal to private investors, accomplish redevelopment over a reasonable time period, create an attractive overall appearance for the area, and further the goals and objectives of the Village's comprehensive planning efforts. e. The proposed TIF plan complies with the legal provisions of the TIF, including its conformity to the Village's Comprehensive Plan and its makeup, consisting of contiguous parcels and exceeding 1.5 acres. Further, it more than meets the minimum number of TIF Act criteria for "blighted area," and it meets the "but for" requirements—meaning that redevelopment is only feasible with the utilization of tax increment financing. f. Mr. Czerwinski said that the TIF designation is needed in order to address disincentives associ- ated with ongoing and prospective vacancies and reductions in valuations within the proposed TIF District. The TIF designation is key to repositioning and revitalizing existing properties within the proposed TIF District, as well as to the long-term financial stability of the proposed TIF District and to achieving the economic development goals of the Village. g. Mr. Czerwinski said that, of 13 "Blighted Area" Statutory Qualification Factors for a TIF District, five need to be met at a minimum. For the proposed Sawmill Station TIF, seven qualifying factors have been identified, including obsolescence, deterioration, inadequate utilities, lack of community planning, lag or decline in equalized assessed valuation, code violations, and excessive vacancies. h. As far as the key elements of the TIF Plan, the proposed land uses are commercial, retail, residential, and mixed-use. The proposed TIF Budget is $65 million, spread over 23 years, to be repaid by revenues generated from the TIF. The base EAV in 2017 was $17,306,255, but Mr. Czerwinski said that, last, Thursday, Cook County released the 2018 EAV figures, and the base EAV is expected to be lower than in 2017. The projected EAV, upon completion of the re- development activities, is estimated at $85M to $90M, a considerable increase. J• The proposed $65M TIF Plan Budget includes costs for land acquisition and assembly, site prep, utility improvements (including water, storm, sanitary sewer, service of public facilities, parking facilities, and road improvement); rehabilitation of structures; interest costs pursuant to the TIF Act; professional services costs (including planning, legal, engineering, administrative, annual reporting, and marketing); job training; and statutory school district payments. The Village does have the ability to reallocate the estimated costs in each category. The overall TIF Budget cannot be exceeded and budget expenditures are subject to Village approvals and/or review of redevelopment proposals in order to demonstrate payment of TIF expenditures. Expenditures will also be looked at during an annual review by an independent auditor and at the annual meet- ing of the Joint Review Board. Mayor DiMaria asked if the Board had any question for Mr. Czerwinski. There were none. He then asked the assemblage if anyone wanted to speak to this matter. No one did, and no written comments were submitted. 2 Minutes of June 10, 2019 Board Meeting IX. X. XI. PUBLIC HEARINGS (continued) Trustee Minx then moved to close the Public Hearing, seconded by Trustee Witko. Motion passed: 6 ayes, 0 nays. Tr. Grear Tr. Minx Tr. Ramos aye Tr. Thill Tr. Travis Tr. Witko aye RESIDENTS' COMMENTS (Agenda Items Only) NONE PRESIDENT'S REPORT 1. Mayor DiMaria noted that Morton Grove Days 2019 is ten days away! The event begins on Wednesday, July 3 and ends on Saturday, July 6. Once again, it will feature live music, a carnival, parade, fireworks, beer garden, food and loads of family entertainment. Mayor DiMaria added that Morton Grove does it better than anyone else! He commented that the entire event is put on by volunteers, and said the volunteers are still needed, even for as little as a couple of hours. He encouraged everyone to go to mortongrovedays.org to learn about and sign up for vol- unteer opportunities, and to pre -order megabands. XII. XIII. CLERK'S REPORT Clerk Harford had no report this evening. STAFF REPORTS A. Village Administrator: 1. a. b. Mr. Czerwinski introduced for a first reading several Ordinances vital to the next steps of the Sawmill Station redevelopment project. These ordinances will have a second reading and be voted on at the regularly scheduled Board Meeting of July 8, 2019. Ordinance 19-04, Terminating the Village of Morton Grove Dempster/Waukegan Tax Increment Financing District. He explained that the Village created the Dempster/Waukegan TIF District in 2012, pursuant to several Ordinances. This TIF District was comprised of the Prairie View Shopping Center and several adjacent additional parcels. It was created at the request of the then owners of the Shopping Center, who submitted a plan to redevelop it with Village assistance. However, the redevelopment of the Shopping Center did not occur; instead the shopping center continued to decline until it was purchased in 2018. The new owners have proposed to redevelop the shopping center as a modern lifestyle center with restaurants, a movie theatre, retail stores, fitness center, and a grocery store, but only if the Village provides substantial economic incentives and assistance. 3 Minutes of June 10, 2019 Board Meeting XIII. STAFF REPORTS A. Village Administrator: c. In order to provide said assistance, the Village Board has determined it is in the Village's best interests to terminate the Dempster/Waukegan Road TIF District so the properties within that TIF District can be incorporated into a new Sawmill Station TIF District. This Ordinance will repeal the Ordinances that created the Dempster/Waukegan TIF District (Ordinances 12-15, 12-16, and 12-17) and effectively terminate the Dempster/Waukegan TIF District. Illinois law requires that, upon the termination of a TIF District, the Village must return all surplus tax increment funds to the other taxing districts. In the case, the Dempster/Waukegan TIF District never generated any tax increment funds, so there are no surplus funds that need to be returned. 2. Ordinance 19-05, Deleting Certain Property from the Redevelopment Project Area for the Village of Morton Grove Waukegan Road Tax Increment Financing District. a. 3. a. c. Mr. Czerwinski explained that the Village created the Waukegan Road TIF District in 1995 in order to support the redevelopment of the commercial district on Waukegan Road between Dempster Street and Golf Road. Certain parcels in the Waukegan Road TIF District have not been redeveloped during the term of the TIF, including parcels south of Greenwood Avenue on the west side of Waukegan. The Village desires to amend the Waukegan Road TIF District to remove these parcels and thereafter add them to the proposed Sawmill Station TIF District. Since this amendment will not add additional parcels to the Waukegan Road TIF, and will not affect the general land uses in this TIF District, change the nature of the redevelopment project, increase estimated project cost by more than 5%, or displace additional residential units, the Village may amend the Waukegan Road TIF District without holding a public hearing. Ordinance 19-09, Providing For the Issuance of Not to Exceed $26,000,000 Senior Lien Tax Increment Revenue Bonds, Series 2019 (Sawmill Station Redevelopment Project) of the Village of Morton Grove, Cook County, Illinois, and Providing For the Execution of a Trust Indenture and a Bond Order in Connection Therewith. Mr. Czerwinski said that this Ordinance authorizes the Village to sell Revenue Bonds to support the redevelopment of the Sawmill Station Shopping Center. The bonds will be paid from the new tax revenue generated by the Shopping Center and not from the general revenue of the Village. IM Kensington MG LLC (the "Developer") has purchased and proposes to redevelop the approximately 26 -acre commercial center formerly known as the Prairie View Shopping Center, but only if the Village provides financial assistance for the project. In order to support this redevelopment, the Village plans to establish a new Sawmill Station TIF District and has negotiated a Redevelopment Agreement whereby the Village will reimburse the Developer for certain infrastructure, planning, and other qualified costs. In order to fund these reimbursements, the Village plans to sell Revenue Bonds and make the net proceeds from the sale of these bonds available to the Developer. The principal and interest on the bonds will be paid from the new property and sales taxes generated from the Shopping Center. This Ordinance will provide for the issuance of tax increment allocation revenue bonds for the purpose of paying or reimbursing costs for the redevelopment of the Sawmill Station Shopping Center, The Village will pledge certain incremental property and sales taxes derived from the shopping center to pay the principal of, and applicable premium and interest on the bonds. 4 Minutes of June 10, 2019 Board Meeting XIII. STAFF REPORTS A. Village Administrator: d. The Ordinance provides many details of the bonds, including tax-exempt covenants, provisions for terms and form of the bonds, authority for the execution of a trust indenture, and a bond or- der, and appropriations. Trustee Thill commented that he does not want people thinking the Village is writing a check to IM Kensington MG LLC. He stated the Village is not on the hook—anything the Developer gets will be earned. 4. Mr. Czerwinski stated that the Village has been informed by the Illinois Department of Transportation (IDOT) that Dempster Street will be resurfaced from Waukegan Road east to Niles Center Road. Construction will not begin before July 8 per the Village's request. More detail will be provided as the project progresses, but please anticipate some congestion and construction interference when traveling locally after July 8. XIII. STAFF REPORTS (continued) B. Corporation Counsel: Corporation Counsel Liston had no report. XIV. TRUSTEES' REPORTS A. Trustee Grear: Trustee Grear commented that the first act of Morton Grove Days on Wednesday evening's opening night is a local group...including Mayor DiMaria on the drums and Funeral Director Mike Simkins on vocals. He encouraged everyone to come out and support the band—and the event, as many people have worked hard to make it a success. Morton Grove Days begins on July 3 and ends on July 6. B. Trustee Minx: Trustee Minx had no report this evening. C. Trustee Ramos: Trustee Ramos had no report this evening. 5 Minutes of June 10, 2019 Board Meeting D. TRUSTEES' REPORTS (continued) Trustee Thill: Trustee Thill attended the Northwest Municipal Conference's gala last week. The NWMC is an umbrella for 43 towns and cities, representing over 1,000,000 people. He was pleased to an- nounce that, last week, our own Mayor DiMaria was sworn in as the head of the Northwest Municipal Conference. Mayor DiMaria commented that he threw his hat in because in the end, it will benefit Morton Grove. E. Trustee Travis: XV. Trustee Travis reminded the assemblage that the Community Relations Commission's Spring Photo Contest is almost over. The theme is "Working in Morton Grove." She urged people to be creative with their entries, and submit them before the contest ends on June 30, 2109. More information can be found on the Village's website or the CRC's Facebook page. Winners of the Spring Photo Contest will be announced at the July 8, 2019 Board Meeting. Trustee Witko: Trustee Witko noted that the Farmers' Market had another successful day this past weekend. She encouraged everyone to visit the Farmers' Market, which will be open every Saturday (except July 6) until October 19 from 8:00 a.m. to 1:00 p.m. The Market is located at the Civic Center, 6140 Dempster Street. People can become a "Friend of the Market" by going to the web- site mgfarmersmarket.com/marketfriends. OTHER BUSINESS NONE XVI. WARRANTS Trustee Minx presented the Warrant Register for June 24, 2019 in the amount of $461,249.86. She moved that the Warrants be approved as presented, seconded by Trustee Grear. Motion passed: 6 ayes, 0 nays. Tr. Grear aye Tr. Minx Ryl Tr. Ramos Tr. Thill Lys. Tr. Travis ay.2 Tr. Witko aye 6 Minutes of June 10, 2019 Board Meeting XVI I. XVIII. RESIDENTS' COMMENTS NONE ADJOURNMENT There being no further business before the Board, Trustee Minx moved to adjourn the meeting, seconded by Trustee Thill. Motion passed: 6 ayes, 0 nays. Tr. Grear ave Tr. Minx Lys Tr. Thill Lyle Tr. Travis Rye The meeting adjourned at 7:27 p.m. PASSED this 8th day of July, 2019. Trustee Grear Trustee Minx Trustee Ramos Trustee Thill Trustee Travis Trustee Witko APPROVEDiby e this h da of JGIy, 2019. 1 s Daniel P. DiMaria, Village President Board of Trustees, Morton Grove, Illinois APPROVED and FILED in my office this 9th day of July, 2019. Eileen Scanlon Harford, Village Clerk Village of Morton Grove, Cook County, Illinois Tr. Ramos afire Tr. Witko awe Minutes by: Teresa Cousar 7