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HomeMy WebLinkAbout2009-07-15 Special MinutesMINUTES OF THE JULY 15, 2009, SPECIAL MEETING OF THE BOARD OF TRUSTEES RICHARD T. FLICHINGER MUNICIPAL CENTER 6101 CAPULINA AVENUE MORTON GROVE, ILLINOIS 60053 Pursuant to proper notice in accordance with the Open Meetings Act, the Special Meeting was called to order at 6:30 pm by Mayor Daniel J. Staackmann who led the assemblage in the Pledge of Allegiance. Clerk Kalogerakos called the roll. In attendance were: Elected Officials: President Daniel Staackmann, Trustees Dan DiMaria, Larry Gomberg, William Grear, Sheldon Marcus, John Thill, and Maria Toth, and Village Clerk Tony Kalogerakos Village Staff: Village Administrator Joseph F. Wade, Community and Economic Development Director Bill Neuendorf, Village Engineer Chris Tomich, Finance Director/Treasurer Ryan Horne, Building Commissioner Ed Hildebrandt, Village Planner Bonnie Jacobson, Fire Chief Tom Friel, and Corporation Counsel Teresa Hoffman Liston Also Present: Members of the press and public Mr. Wade announced this meeting followed discussions regarding the resolution for the McDonough Engineering contract. Given this is a new administration, Mr. Wade thought it was appropriate for the Village to present a report on the various projects within the Lehigh/Ferris TIF District. Mr. Wade noted development within the TIF District has continued through three Mayors and eighteen different Board members. Planning actually started for the Lehigh/Ferris TIF District in 1997 pursuant to a grant. The Lehigh/Ferris TIF District is in one of the older parts of the Village and currently is in transition. The District has natural assets, which include the Forest Preserve and the Metra train station where there are over 1,000 commuters which visit the site each weekday. In 2000, the TIF District was formally established. In 2007, the Village Board approved a $9.2 million bond issue for public improvements and the purchase of real estate. To date, the Village has taken the conservative management approach towards the TIF District. Unlike other TIF Districts, the Village has not overextended its borrowing in this District. Incremental revenue is currently being generated by the Woodlands and the Toll Brothers development. Due to the economic downturn, development of some current and perspective projects has slowed. Mr. Neuendorf added the District includes 78 acres centered around the Metra station. The current goal of this administration is to get out of the planning and into the construction mode. He then reviewed the general goals and redevelopment objectives of the District. They included improving the quality of life within the District, eliminating physical and economic deterioration and obsolescence, increase the real estate and sales tax base, provide a variety of housing options, and encourage economic development and job opportunity. To accomplish these goals, the Village has attempted to reduce or eliminate blighted and deteriorated conditions in property and has begun to assemble land into parcels suitable for modern development. From 2000 to 2007, total Village EAV grew from $532 billion to $969 billion. During that same period, EAV within the Lehigh/Ferris TIF District grew at a much quicker pace, i.e., from $14.2 million to $52.6 million. In 2007, the annual increment generated by the District was $2.4 million. Most of that is generated by the Woodlands Development. The Village's Redevelopment Agreement in the amount of $5 million with the Woodlands is paid in full. The Village still has certain outstanding obligations in the District including the payment of $2.6 million for the purchase of the Bowman site, $9.2 million for the 2007 tax exempt bond, and the final payment is due and a note in the original amount of $800,000 owed to Northern Trust. The Village has projected revenue in the amount of approximately $3 million to $5 million a year throughout the life of the TIF for a present day value of all TIF increment in the amount of $42 million. The Districts debt to revenue ratio is considered excellent. The District currently has a fund balance in the amount of approximately $9 million and the Village holds title to 12 pieces of property within the District. Mr. Neuendorf then reviewed the eligible uses for TIF increment financing. They include the completion of professional studies, the assembly of property, the demolition of obsolete buildings, public works improvements, job training, financing costs, capital costs, relocation, and other related expenses. Mr. Neuendorf also explained the $9.2 million bond was issued on a tax exempt basis and therefore the use of these bond proceeds is limited to infrastructure and other related public improvements and land acquisition costs. IRS laws restrict profits and revenues that can be generated by the sale of property acquired through bond proceeds. He also noted the total proceeds from the bond must be significantly committed by no later than November 2010. To date, $2.5 million of these proceeds have been spent. Mr. Tomich then reviewed the Lehigh/Ferris streetscape plans. Design work was started in 2008 with construction to occur in 2010. The estimated cost for this project was $1.5 million (based on estimates received in 200'x. Mr. Tomich also reviewed plans for the modification of truck routes within the District. Village consultants have recommended truck traffic be eliminated along Lincoln and Ferris Avenue. Once the Village Board approves this plan, it will be necessary to modify the Municipal Code and to coordinate truck routes with IDOT. Mr. Tomich then reviewed plans for the realignment of the Metra crossing at Lincoln Avenue adjacent to the train station. He noted the total cost for this project would be $2 million to $3 million. Metra was requiring Morton Grove take the lead on this project and provide all funding. Questions then arose regarding accidents and fatalities at this crossing; there were no records of fatalities at this location to date. A discussion then ensued on whether this alignment was needed. Mr. Tomich then reviewed planned utility improvements within the area which included upgrades to the water and sewer system as recommended by the Village's 2008 utility study, burying or relocating Commonwealth Edison lines as needed, and replacing the Dempster Street water main, a portion of which could be funded with TIF dollars. The cost for the Dempster Street water main was $1.5 million (up to $1 million will be TIF eligible). The cost for Main Street water and sewer improvements is estimated to be $400,000 and the cost to relocate Commonwealth Edison lines underground is approximately $1.9 million. Mr. Tomich then noted the additional plans included the Lehigh Avenue resurfacing from Oakton to Lincoln Avenue at a cost of $473,000, $145,000 of which may be TIF eligible. Main Street resurfacing was also indicated as needed at a cost of $300,000, all of which was TIF eligible. Mr. Tomich then discussed the plans for a pedestrian rail walk. Such a rail walk would provide a safe, convenient, and attractive path for a pedestrian and bicyclist from Dempster Street to the train station. The cost for this project would be $440,000. The full design and construction of this project is on hold pending federal decisions about high speed rail routes. Mr. Tomich then discussed Village goals of relocating the Metra rail yard. Metra currently operates from a construction trailer which is not aesthetically harmonious with the plans for the District. Metra has voiced an interest in relocating this rail yard but only at the Village's expense. The estimated cost for this relocation is $100,000 to $200,000. Mr. Tomich then discussed the possibility of rebuilding the Metra train station and platform. The cost for this project would be $3 million to $4 million. The Village could also consider building a commuter parking garage which would provide multi-level parking with 140 to 168 spaces to serve the commuters and general public. Depending on the site, the estimated costs are approximately $4.2 million. Some of this cost maybe covered through a CMAQ grant which the Village has applied for. Mr. Tomich then reported on planning for the reconstruction of old Lincoln Avenue. This road needs to be resurfaced or relocated. The cost for this project would be $100,000 to $300,000. Mr. Tomich also discussed possible improvements at the intersection of Capulina and Narragansett which would expand Capulina into two continuous lanes at the intersection of Narragansett Avenue at a cost of $400,000. Mr. Wade and Mr. Neuendorfthen reported on current developments within the TIF District. The Woodlands Development has been completed and generates approximately $2.2 million annually to the TIF District in addition to taxes paid to schools, parks, and other agencies. The Toll Brothers project, the Crossing, is almost 50% completed. Six more buildings are currently under construction. Site "B" (the Bowman site) has been acquired by the Village and the site has been cleared of structures. Approximately $4.5 million has been invested in this site. The Village is currently considering its options for development there. Site "C" (adjacent to old Lincoln Avenue, west of the Metra tracks) is a site of 1.6 to 1.9 acres. A developer who plans on building amulti-story senior condominium development controls the largest parcel on the site. The Village also owns a parcel on this site. Mr. Neuendorf then gave a brief overview of other sites within the District. There being no further discussion, Trustee DiMaria moved to adjourn to Executive Session to consider the sale of real estate, and pending litigation. The motion was seconded by Trustee Marcus and approved unanimously pursuant to a roll call vote at 8:00 pm. At the close of Executive Session, Trustee DiMaria moved to adjourn the special meeting. The motion was seconded by Trustee Marcus and approved unanimously pursuant to a voice vote at 8:26 pm. Minutes by: Tony S. Kalogerakos Special meeting minutes.07-15-09