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HomeMy WebLinkAbout2007-03-26 MinutesCALL TO ORDER I. Village President Rick Krier called the meeting to order at 7:30 p.m. and led the assemblage in the Pledge of Allegiance. II. Village Clerk Carol Fritzshall called the roll. Present were: Trustees Georgianne Brunner, Rita Minx, Dale Senensky, and Dan Staackmann. Trustees DiMaria and Kogstad were absent. Mayor Krier explained that Trustee DiMaria had called him and said that a family commitment had come up and he would be unable to attend tonight's meeting. III. APPROVAL OF MINUTES Regarding the Minutes of the March 12, 2007 Board Workshop, Mayor Krier asked if anyone had any changes or corrections to the Minutes. There were none. Trustee Minx moved, sec- onded by Trustee Senensky, to approve the March 12, 2007 Board Workshop Minutes as presented. Motion passed unanimously via voice vote, with two absent. 2. Regarding the Minutes of the March 12, 2007 Regular Meeting, Mayor Krier asked if anyone had any changes or corrections to the Minutes. There were none. Trustee Minx moved, seconded by Trustee Senensky to approve the March 12, 2007 Minutes as presented. Motion passed unanimously via voice vote, with two absent. IV. PUBLIC HEARINGS NONE V. SPECIAL REPORTS NONE VI. RESIDENTS' COMMENTS (Agenda Items Only) a. Eric Poders (write-in candidate). Mr. Poders was concerned about the TIF assistance request from The Preserves. He wondered if it was a loan or a grant, and whether the amount was $2.7 million or $5 million. He also wondered why they were asking for assistance, point- ing out that the developer, Jeffrey Dietrich, was involved with many other companies. VI. RESIDENTS' COMMENTS (Agenda Items Only) (continued) Mr. Poders wondered why Morton Grove would lay out $2.7 million dollars that, with interest, would end up totaling $5 million dollars, for this developer. Mayor Krier said there would be a full explanation later in the meeting. b. Sherwin Dubren (Reform Party candidate). Mr. Dubren wanted to know why a prime location on Dempster Street was going to be condos. He felt that was a waste of valuable retail space. He thought the plan was ill-conceived and was concerned because the developer didn't seem "committed" to retail space. Mr. Dubren said the Village needs restaurants and grocery stores, not more condominiums. Mayor Krier said the Village is not committed to doing anything right now. He said the Board and staff have done due diligence on this project. They've looked at it with professionalism and had conversations with S.B. Friedman about it as well. Mayor Krier said he, the Board, staff, and the consultant all have some concerns about the project. VII. Mayor Krier proclaimed the month of April 2007 as "Sexual Assault Awareness Month" in the Village and urged all citizens of Morton Grove to commit to taking action against rape and sexual assault. VIII. CLERK'S REPORT Clerk Fritzshall reported that today was the start of early voting. Early voting will be held at Skokie Village Hall from 8:30 a.m. to 5:00 p.m. through April 12, 2007. Early voting is also available on March 31 and April 4 from 9:00 a.m. to noon. People who wish to vote early can also do so on Sunday, April 1, from 9:00 a.m. to noon at the Skokie Courthouse on Old Orchard Road, or on Sunday, April 8, from 9:00 a.m. to noon at the County Building, 69 West Washington, Chicago. 2. Clerk Fritzshall also reported that there is a need for approximately 2,500 election judges for the April 17, 2007 election. If anyone is interested in being an election judge, they should contact her. IX. STAFF REPORTS A. Village Administrator Mr. Wade announced that a New Resident Reception would be held at 6:00 p.m. on Monday, April 23, 2007 at Village Hall. New residents can tour Village Hall and meet their elected officials. 2. Mr. Wade reminded the assemblage that the next Town Hall Meeting would be held on Monday, April 30, 2007, at 7:00 p.m. at Mansfield Park fieldhouse. Ix. STAFF REPORTS (continued) 3. Mr. Wade reported that Economic & Community Development Director Bill Neuendorf has been working with representatives from The Preserves and S.B. Friedman Associates. Village staff has three major concerns about The Preserves' request for TIF assistance: (1) there seems to be a limited return on tax dollar investment; (2) there also seems to be limited direct benefit to the public (i.e., infrastructure improvements, affordable senior housing) (3) there is a lack of detailed project information available. Mr. Paul Shadel, attorney for the development, said that the project consists of 75 dwelling units and 11,000 square feet of retail space. Total project cost is $30.6 million dollars. Mr. Shadel introduced Mr. Dietrich, the developer, and Mr. Laubry, who is the person who put together the gap analysis and the projections of real estate tax increment that would be generated by the project. Mr. Shadel said the developer was requesting TIF financial assis- tance in the amount of $2.7 million dollars, with interest, to a maximum of $5 million dollars. He said that, in the past two weeks, in working with Village staff and S.B. Friedman, the de- veloper has "fleshed out" the budget to provide additional detail; has provided sales/market comparables; has asked the construction bank to provide additional information; and can guarantee that a portion of the project will be "typical" revenue-generating retail stores. Without the TIF assistance, with a projected return of between 3% and 5%, which is considered inadequate, the project is not feasible. Mr. Neuendorf explained the mechanics of how the TIF assistance, if the Village approves it, would work. It would be in the form of an interest-bearing TIF developer note, with the principal amount being $2.7 million. Upon completion of the project, the note would be replaced with atax-exempt developer note in excess of $3.2 million to be paid over a 15-year period by no more than 60% of the tax increment. If the project is not completed, the Village has no liability to pay. The developer is saying that the project can't move forward without this assistance. Village staff talked to S.B. Friedman, its TIF consulting firm. They conducted an expedited review of the project and urged the Village to proceed cautiously. The firm had concerns about the financial information provided to date, and felt that the projections provided mayor may not be sufficient. They cautioned that atwo-tiered not structure is complex and definitely requires the review of a bond counsel. S.B. Friedman representatives felt a more thorough review was needed, and advised the Village not to commit to anything without understanding it fully. Mr. Neuendorf said his research indicated that this developer hadn't had firsthand experience with this type of development, or complying with Illinois monitoring requirements with this type of financing. Further, there is no market study regarding price points and the developer hasn't implemented a timely marketing strategy. The project itself provides a very limited benefit to the public. Mr. Neuendorf said that he supports reinvestment in the Village, but based on his own research and that of S.B. Friedman and Associates, he felt that he could not support this request at this time. He said that insufficient information has been provided to show that this is in the Village's best interests at this time. Trustee Staackmann said, regarding the project providing a benefit to the public, that the plans indicated that one block of Lincoln Avenue would be rebuilt, and a fountain would be installed at Dempster and Lincoln-privately owned, but available for public use. Mr. Neuendorf agreed, but said that the total "public infrastructure" improvement cost was under $1 million...all the other infrastructure improvements are on private property. Ix. STAFF REPORTS (continued) Trustee Brunner asked, regarding the $2.7 million dollar bond, what happens if it's not produc- ing enough money. Mr. Neuendorf said that that is the developer's risk. Mayor Krier said that the developer is looking for a definitive answer tonight from the Board. He said he is concerned because it's a lot of money for basically a condominium project. He felt if the Village provided assistance, the Village should get something it needs there, i.e., retail. Mayor Krier said the Board has been looking at this for a while, and are aware that Village staff and the TIF consultant both have concerns. He asked for a motion on the matter. Trustee Minx moved that the Village Board not approve the request for approximately $5 million of TIF assistance as requested by Morton Grove DLL, LLC for the development commonly known as "The Preservers of Morton Grove", and Village staff will be directed to terminate all discussions and efforts on behalf of this request. Trustee Brunner seconded the motion. Trustee Staackmann agreed that the Village should be cautious, but was disturbed by the phrase "terminate all discussion...on behalf of this request". He said his fear was that the property would just sit there vacant. Trustee Minx said her motion just meant to cut off all discussion regarding the $5 million dollar TIF assistance request. She said the developer needs to rework it and the Village staff and consultant have to be in agreement that this is feasible. Corporation Counsel also clarified the motion for Trustee Staackmann. Trustee Staackmann reiterated that his concern is that there have been so many hours invested in this project, he doesn't want it killed. Trustee Senensky said he doesn't see a problem with the Village helping out with water, sewer, other types of improvements. He said that he, too, doesn't want to see the project killed, but also doesn't want to give $5 million dollars in TIF assistance. Trustee Minx said this was a hard motion for her to make because she has been involved in this project since its inception. There were no requests on the table then, and over the last year, no action on the property. She was disappointed that the project was approved, and then the developer came forward with a request for $5 million dollars of assistance. Mayor Krier said the process takes time. He said when the project was first described, it looked completely different. He felt it was a good project, and a lot of work has been done on it so far. He said that Trustee Minx' motion was more definitive than typical motions because that's what the developer wanted. The option is on the table for the developer to continue working with Village staff. He assured the developer that the Village is not "stringing you along". Mr. Shadel said they were seeking the authorization to negotiate an amount not to exceed $5 million. He said he understood that some things would need to be fleshed out in a redevelopment agreement. Mr. Laubry said that what they were requesting was the Board's authorization to negotiate a redevelopment agreement not to exceed $5 million dollars. Mayor Krier said the Board isn't willing to grant that authorization; the Board is uncomfortable with it. He said, "What you're hearing is, we're not even close-but there is still time to sit with Village staff. They are aware of where the Board stands." Ix. STAFF REPORTS (continued) Trustee Brunner added that she had spent a lot of time discussing this with Mr. Neuendorf and with Village Planner Bonnie Jacobson. She said she doesn't have a lot of confidence in the project right now, and definitely felt that more information was needed. Trustee Staackmann urged the developer to keep this in the proper perspective. He said the Village would love to see a restaurant there....but pointed out that there were, at one time, two restaurants there. When The Studio was for sale, as a restaurant, no one would buy it. Neither restaurant was "making it" financially so they sold. Mayor Krier called for a vote on the motion to deny the request and terminate further discus- sion on this matter. Motion passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner Tr. Minx B. Corporation Counsel: Ms. Liston had no report. X. A. Trustee Brunner: Tr. DiMaria absent Tr. Senensky TRUSTEES'REPORTS Tr. Kogstad absent Tr. Staackmann Trustee Brunner had no formal report. She clarified that the New Resident Reception will also be an Open House for all residents, and encouraged everyone to attend and tour the Village. 2. Trustee Brunner noted that the Seniortran will be taking seniors to the polls on Election Day. Seniors must be Morton Grove residents and must know the location of their polling place. Interested seniors can call the Senior Hotline (847-470-5223) and make a reservation up to April 16th. The cost is free to members of the Senior Center, and $2.00 for non-members. B. Trustee DiMaria: In Trustee DiMaria's absence, Trustee Senensky presented Resolution 07-20, Authorizing the Purchase of a New 2007 Ford F-450 XL 4X4 Flatbed Truck Through the North Suburban Purchasing Cooperative Procurement Program. He explained that this purchase would replace an existing 1984 vehicle. Funds have been approved in the 2007 Budget for replacement of vehicles and related equipment in the amount of $290,300. This particular vehicle will cost $52,509. Trustee Senensky moved to approve Resolution 07-20, seconded by Trustee Staackmann. Motion passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner ~ Tr. DiMaria absent Tr. Kogstad absent Tr. Minx ~ Tr. Senensky ~ Tr. Staackmann X. C. (continued) Trustee Kogstad: Trustee Kogstad was absent-no report. D. Trustee Minx: Trustee Minx presented Ordinance 07-07, An Ordinance Amending/Establishing a Unified Development Code Within the Village of Morton Grove: Amending Title 2, Chapter 4 Entitled "Zoning Board of Appeals"; Title 2, Chapter 5 Entitled "Plan Commission", Title 2, Chapter 12 Entitled "Appearance Review Commission"; Title 3, Chapter 8 Entitled "Department of Building and Inspectional Services", and Title 11, Chapter 1 Entitled "Official Comprehensive Plan"; Deleting Title 10, Chapter 15 Entitled "Appearance Code", Title 11 and Chapter 2 Entitled "Subdivisions"; Re-titling Title 11 to "Community and Economic Development"; Title 11, Chapter 3 to "Neighborhood Preservation Areas", and Title 12 to the "Unified Development Code of the Village of Morton Grove. This is the second reading of this Ordinance. Trustee Minx explained that this ordinance, pursuant to Plan Commission Case PC03-06, updates and reorganizes existing chapters of the Village's Municipal Code relating to the Village zoning laws and establishes a Unified Development Code. This will essentially reorganize the Village's subdivision, appearance, and zoning codes to reconcile inconsisten- cies and reformat these codes in an easier to read, more user-friendly format. Trustee Brunner noted that the wording changes she had requested at the last meeting had been made. She thanked Corporation Counsel Liston, Building Commissioner Ed Hildebrandt, and Planner Bonnie Jacobson for the fine job they did on this ordinance. Mayor Krier pointed out that this was over two years in the making, and will be very helpful. It will also be on the Village's web site, and will be searchable. Trustee Minx moved, seconded by Trustee Senensky, to adopt Ordinance 07-07. Motion passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner ~ Tr. DiMaria absent Tr. Kogstad absent Tr. Minx ~ Tr. Senensky ~ Tr. Staackmann 2' Next, Trustee Minx presented Ordinance 07-08, An Ordinance Amending Title 12, Chapter 8, Section 0 of the Unified Development Code to Update the List of Permitted and Special uses Allowed in the M1 and M2 Manufacturing Zoning Districts. This is the second reading of this Ordinance. Trustee Minx explained that, during the past decade, significant ownership and land use changes have occurred in the Village's M1 and M2 manufacturing and industrial districts. At the direction of the Village President, Village staff has reviewed its ordinances with respect to permitted and special uses in these districts, and propose that this list be updated and amended in the Village's Unified Development Code. X. D. Trustee Minx: (continued) (continued) Trustee Minx moved to adopt Ordinance 07-08. The motion was seconded by Trustee Senensky and passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner ~ Tr. DiMaria absent Tr. Kogstad absent Tr. Minx ~ Tr. Senensky ~ Tr. Staackmann 3. Trustee Minx then introduced for a first reading Ordinance 07-12, Authorizing Amendments to the Morton Grove Library Budget for the Calendar Year Effective January 1, 2007, and Ending December 31, 2007. She explained that the Library had unspent appropriation funding in the amount of $186,129 for the fiscal year ending December 31, 2006. They wished to re-appropriate these funds for expenditures to be incurred during the current fiscal year. Using these funds will not necessi- tate an increase to the tax levy. The total amount requested to amend the Morton Grove Pub- lic Library's budget is $60,000. Ben Shapiro, Executive Director of the Library, stated that the reallocation would help the Li- brary restore some cuts that had been previously made, i.e., it would allow them to hire apart- time reference librarian, add some funds to the audio-visual fund for digital book players, re- place some furniture, etc. Trustee Senensky asked how many employees the Library has. Mr. Shapiro said the Library has 51 employees; the majority of them are part-time. Mayor Krier asked Mr. Shapiro if the Library Board had approved this; he responded, yes. There was no further discussion on Ordinance 07-12. E. Trustee Senensky: Trustee Senensky had no report. Trustee Staackmann Trustee Staackmann presented Ordinance 07-09, Amending Title 10, Chapter 5 Entitled "Property Maintenance Regulations" of the Municipal Code of the Village of Morton Grove. This is the second reading of this Ordinance. Trustee Staackmann explained that the Building Officials and Code Administrators (BOCA) Building Maintenance Code was adopted by the Village in the 1970's, and the last update was done in September 1999. In 2000, the three major U.S. building code groups merged into the International Code Council (ICC). The ICC now publishes the international code series that includes the ICC Property Maintenance Code. This ordinance will amend Sect 1, paragraph A that adopts a code by reference, and Section 10-5-6 to update the requirements for below- grade dwelling units. The remainder of Title 10, Chapter 5, will remain unchanged. X. 2. 3. XI. Trustee Staackmann: (continued) (continued) Trustee Staackmann moved, seconded by Trustee Minx, to adopt Ordinance 07-09. Motion passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner ~ Tr. DiMaria absent Tr. Kogstad absent Tr. Minx ~ Tr. Senensky ~ Tr. Staackmann Trustee Staackmann then presented Ordinance 07-10, Amending Title 10, Chapter 2 Entitled "Electrical Regulations" of the Municipal Code of the Village of Morton Grove. This is the second reading of this Ordinance. Trustee Staackmann explained that this ordinance will adopt by reference the 2007 edition of the Chicago Electrical Code, with amendments. He noted that the last update to the Village's electrical code was made in September 1999. In 2001, the Chicago Electrical Code was completely rewritten based on the 1999 edition of the National Electrical Code with amend- ments unique to the City of Chicago. Trustee Staackmann moved to adopt Ordinance 07-10 Motion passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner ~ Tr. DiMaria absent Tr. Minx ~ Tr. Senensky Trustee Minx seconded the motion. Tr. Kogstad absent Tr. Staackmann Trustee Staackmann introduced for a first reading Ordinance 07-13, Amending Title 13, Chapter 1 Entitled "Building Code" of the Municipal Code of the Village of Morton Grove. He explained that the Village has adopted the BOCA building and mechanical codes since 1960. Beginning with the 2000 edition, the major building code development agencies, includ- ing BOCA, pooled their expertise and published the International code series. The codes are updated every three years. In 2004, the code development agencies disbanded and formally merged to for the International Code Council. This ordinance would adopt the 2003 editions of the ICC codes, customized to meet the Village's needs and conditions. There was no further discussion on Ordinance 07-13. OTHER BUSINESS NONE XI I. WARRANTS In Trustee Kogstad's absence, Trustee Minx presented the Warrant Register which totaled $356,370.74. Trustee Minx moved to approve the Warrant Registers, seconded by Trustee Senensky. Motion passed: 4 ayes, 0 nays, 2 absent. Tr. Brunner ~ Tr. DiMaria absent Tr. Kogstad absent Tr. Minx ~ Tr. Senensky ~ Tr. Staackmann XIII. a. John Thill (Action Party candidate). Mr. Thill asked the Village to call the Illinois Department of Transportation and ask them to clean up along Golf Road, both the east and west side. He said there was a lot of trash along the roadway, and it looked terrible. b~ Sherwin Dubren (Reform Party candidate). Mr. Dubren took exception to a remark made earlier by Trustee Staackmann about the restaurants located where The Preserves is planned. Mr. Dubren said that Maxwells was always busy and did good business. He said they left because they were asked to leave, because of the Lehigh-Ferris TIF. Mayor Krier said that was an incorrect statement. Maxwells' leaving had nothing to do with the TIF; they were simply offered a good price. In spite of being busy, they were having some financial troubles and decided to take the price they were offered. Mr. Dubren said he wanted to make the point that the Village shouldn't say that restaurants can't make it in Morton Grove Mayor Krier asked Mr. Dubren to come up with some facts before making statements. Mr. Dubren said, regarding The Preserves' request for TIF assistance, that the developer had said that, without the Board granting the full amount of the assistance, the project couldn't go forward. He said it seemed to him like there was "no wiggle room". Mayor Krier said, "The Village left the door open." Mr. Dubren asked what committee can grant variances. Mayor Krier said only the Zoning Board of Appeals/Plan Commission can. When that body rules as the Zoning Board, the Village Board cannot overrule them. Mr. Dubren asked Mayor Krier if a candidates' debate was being considered for the upcoming election. Mayor Krier said that this is a Village Board meeting and discussion about a debate does not belong here. He said it was up to the people running the campaigns to decide that. Eric Poders (write-in candidate). Mr. Poders asked if there was a quorum at last week's Economic Development Commission meeting. Mayor Krier asked Mr. Neuendorf to respond. Mr. Neuendorf said that three of the Commissioners were unable to attend last Wednesday's meeting and therefore no quorum was present. No official meeting was held, but there was general discussion among those who did attend. The Agenda will be carried over to the April meeting. XIV Following the regular meeting of the Village Board of Trustees, Trustee Minx moved to adjourn to Executive Session to discuss real estate, litigation, personnel, review of closed session minutes, and collective bargaining matters. The motion was seconded by Trustee Brunner and approved unanimously pursuant to a roll call vote at 8:42 p.m. President Krier called the Executive Session to order at 8:57 p.m. Clerk Fritzshall called the roll. In attendance were: Mayor Krier, Trustees Brunner, Minx, Senensky, and Staackmann as well as Village Administrator Wade, Corporation Counsel Liston, and Fire Chief Friel. Guests present included Philip Kouwe of Emergency Services Consulting, Inc., and Niles Fire Chief Barry Mueller. ADJOURNMENT/EXECUTIVE SESSION (continued) There being no further business, Trustee Minx moved to adjourn the Executive Session. The motion was seconded by Trustee Staackmann and approved unanimously pursuant to a voice vote at 14:43 p.m. Trustee Brunner then moved to adjourn the regular Board meeting. The motion was seconded by Trustee Minx and approved unanimously by voice vote at 14:44 p.m. PASSED this 9th day of April, 2007. Trustee Brunner Trustee DiMaria Trustee Kogstad Trustee Minx Trustee Senensky Trustee Staackmann APPROVED by me this 9th day of April, 2007. Richard Krier, Village President Board of Trustees, Morton Grove, Illinois APPROVED and FILED in my office this 10th day of March, 2007. Carol A. Fritzshall, Village Clerk Village of Morton Grove Cook County, Illinois Minutes by: Teresa Cousar is