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Joint Review Board 2000 09-27-00 UNITED CITY OF YORKVILLE JOINT MEETING OF THE TAXING BODIES MEETING MINUTES SEPTEMBER 27, 2000 In attendance: Brent Ekwinski, YBSD Mayor Prochaska Jay Tovian, Dist. #115 Mike Anderson Mike Hitzeman, BKFD Larry Kot Diann Reed, DCCA Jim Nanninga Don Falls, DCCA Joe Wywrot Mayor Prochaska welcomed everyone stating that the Library, Waubonsie Community College, Kendall County and Kendall Township had called to say they couldn't be present tonight. He stated that each person had a packet that had a map showing where the Industrial Park was located for those who may not know. They are hoping to upgrade all of the Industrial Park, including some drainage problems. The City wants to get a loan based on a bond and promise payment from future Motor Fuel Taxes (MFT)revenue. The worst case scenario would be that the bond would stay unpaid by MFT. The plan is based on the increase expected in our population. We currently get $40,000 to $50,000 per year in MFT revenue. We expect the population at the current census figures which is due out soon to be increase by approximately 1500 people. Additionally, to touch on another big ticket street improvement issue, once we receive the census figures (reflecting our new count& making us eligible) we can apply for an 80% grant for state funds to improve Game Farm Road. We have added funds to the Street Repair Fund from the General Fund for the 20%. Regarding the Industrial Park, one business owner out there is looking to build another manufacturing space, and two others are looking to expand. The way the TIF works is that the assessed value as it sits today is established by the County Assessors office and then it is frozen. The tax revenue to all the taxing bodies would get the established about based on this figure. As the improvements are done and the area improves the property values increase. This increase in value goes toward re-payment of the bond. The City expects this loan to be paid back in 10 years, but the maximum time period for repayment is up to 23 years. We want to get the bond and get the streets finished,upgrade the Industrial Park and encourage those who may be considering a relocation, to stay and expand. We have some vacant buildings that are available now, and with the improvements we hope those will be filled and if we get it up to speed and it looks good, we have vacant land for new buildings to be added, and more land to the south which is also zoned industrial. I can't tell you why these roads deteriorated, I don't know, but it has to be fixed correctly and the drainage as well. It all has to be tied together to bring the entire value of the park up, which would benefit us all. We first talked to the land owners and now the taxing bodies. We estimate the cost to be $325,000 to $330,000. for the streets alone, plus what it costs to correct the 1 drainage. Speers Financial used a figure of$500,000. This would be a yearly payment of $48,600. Don Fall from DCCA stated that o start the TIF District we have to establish a Joint Review Board with representatives from all the taxing bodies, the residents and City members. The Board selects a Chairman and they review the re-development plan, and figure the plan issues and costs, why the area is eligible and then they will approve or not approve. If they choose to not approve they have to report it and allow the City to respond, correct or re-do. Historically there have been some bad TIFs due to mis-use, and changes have been made. But, the Board has the power to recommend denial of the TIF. This would cause the City to have to re-look at the project. Treasurer Allen asked if this was one body, one vote. Don Falls stated yes. Seven people, when one is absent it means a 4 -2 vote rules. The public member can be appointed jointly by the City Council and Review Board. He will do a little more research to get this clarified. Mayor Prochaska stated this meeting is meant to be informal, but there are standards to be met. Page 5 talks about how you determine if you are eligible,with 3 ways to determine this. Each has a requirements we have to identify. Each body must look at this seriously. Don Falls stated some things have changed. One is the age of the area is now not considered. It is primarily deterioration and decline of the area. Mayor Prochaska stated that possibly we should get a consulting attorney to help guide us, even though this is a small TIF area compared to some that are millions of dollars. The whole issue is we are dragging this out,just 10 years and we can add wording that upon completion the TIF will be dissolved. Don Fall stated that this can be amended, but it must be up for review, then upon reaching payoff we can move to dissolve. Mayor Prochaska stated that in the past the City had looked at doing this as a Special Service Area, but it was narrowly defeated. The Council is trying to build confidence in that we are trying to improve the City. He feels that then others looking here will notice our interest and generate more business interest. The issue that bothers him is businesses moving out. We want to draw people in. We want to get this in shape and on a roll. How we maintain business areas is important. We want to get this to where we can keep it in good order. In business areas we need it to be kept up to attract other business. This is probably the only instance where we would want to use a TIF, perhaps downtown, but this is not a s likely. To do a TIF the stages that we will follow are to determine a joint review board, do a public hearing and announce who the members of the board are. Once we start there is a time limit so it is best to get our timing set before we begin. 2 Ms. Baker stated that there is a 14 day notice for the review board. Don Falls stated you begin by doing a resolution. Until that happens it is informal, but the more you talk the better you will do. You do need a quorum at the meeting, so talk among yourselves. Mayor Prochaska stated that the clock begins at the Public Hearing. Then we need things to fall into place. The steps are outlined for preliminary eligibility, but we need to go into detail for eligibility. Don Falls stated that probably the owners need to see what you are planning, because they will be the developers. Identify the developer up front so they are capable of where you want to go. Mayor Prochaska stated we have done the first step, now we need to pass a resolution of intent, but must talk to the business owners and taxing bodies. If there are problems, we want to know. I hope it will not be an up hill battle with opposition. Alderman Anderson stated that we have met with the property owners already and they were in favor. Chief Hitzemann stated there is no down side for the business owners. Don Falls stated there is no tax increase for businesses. Mayor Prochaska stated that over the next couple of months we will try to get over the next steps and do re-development and feasibility plan. The first year we won't get anything and won't until it gets going. The goal of the City is to not stop, allow us to continue to improve other areas. Treasurer Allen asked what to expect in attorney fees. Don Falls stated this can cost from $30,000 to $50,000. This project may be cheaper, but consultants are usually looking at much larger projects. Some are willing to work on just pieces of the project. Alderman Kot asked if this can be paid from the bond revenue. Don Falls stated this depends on how it is worded in the re-development plan. This is one are that was changed due to abuse. Mayor Prochaska stated that for some areas we do have an advisor, but we have other names too. We want to know what your feels are on this. We want to spend the money on the project instead of the consultant. Chief Hitzemann asked if the Engineer can do the road. 3 Mayor Prochaska stated that from the standpoint of legalities and to get all the points together we may need some help to get past the rough spots. And to get through all the steps to review agreement to be sure it includes all the points. Chief Hitzemann asked who has to be made happy with it. Don Falls stated there are a number to correspond to, but the taxing bodies. There are bonds and the Department of Revenue to be sure all is complete. DCCA has no say so. Mayor Prochaksa stated that it is important that the local taxing bodies be comfortable that we have done everything we had to do to satisfy each taxing body. Alderman Kot asked how can reject this. Don Falls stated that the Joint Review Board has first say. They have to say yes. If they say no, then the next questions is, is anything salvageable. Chief Hitzemann stated that in keeping with the spirit, if we are trying to satisfy the local government do we need our own just decent proposal, and are there legal documents that need to be included? Mayor Prochaska stated, yes, and that perhaps a consultant may be wise to review and see if everything required by statute has been done. That in fact we have done everything we need to do. Chief Hitzemann stated should this be a consultant or attorney. Mayor Prochaska stated a TIF attorney to act as a consultant to us. Mr. Tovian stated that we could run into a problem with staff to do the bond.. Mayor Prochaska stated that Mr. McKenna from Speer Financial has gone over this with us, so we do have that in line. The need for a TIF attorney will be for step 3, to be sure we are doing everything we need to. Don Falls stated that the taxing body has to agree on this. Mayor Prochaska stated that the re-development plan we can do. Don Fall stated he had samples of the re-development plan that can be used as a guideline. Mayor Prochaska stated that over the years the City has done a lot, and has never asked for any assistance from the other taxing bodies, and this will help us all in the long run. Don Falls asked if we want to use all of the MFT funds, and also if we have done a study of the Industrial Park to see what funds it will bring in. 4 Mayor Prochaska stated that a base number would be helpful, and perhaps we can get that information from Kendall County. We need a projection of growth from the base EAV. WE need to figure where dollar zero is. We would want to have these figures in our plan. As a City, and I also ask that you each talk to your boards, so if something comes up you will let us know as we go through the first steps, so we will have addressed those issues as they arise. Don Falls stated that when discussing the TIF, when questions come up, it is easier to resolve than letting it go to the Public Hearing not having discussed them, or having an attitude that can come back. Mr. Tovian stated that it would be good for the school to have those numbers too, that he is for it, he just has to talk to the board. Mayor Prochaska stated he was looking for a notice to public hearing because we need to get the first three steps done. Any concerns anyone has, they should get with Holly or Jim. He wants to look at passing a resolution and he feels there is an atmosphere of co-operation. Ms. Baker stated that the Public Hearing starts the time requirement. Mayor Prochaska stated that they have some items lined up. This will cost money, so if 5 of the 7 taxing bodies object, we have wasted taxpayers money. Alderman Kot stated this plan may not be perfect, but it is something positive. Mayor Prochaska stated we want to encourage improvements by business owners. Please go back to your boards and if there are any specific concerns contact Holly or Jim. WE don't want to prepare the whole plan and then have issues brought up. Again, this is the MFT revenue funds to guaranteed the loan, with the TIF to help, based on a ten year loan and then the TIF would be dissolved. Meeting Adj ourned 8:10 PM Minutes by Sandy Marker 5