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Economic Development Minutes 2012 09-04-12 APPROVED 10/02/12 UNITED CITY OF YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE Tuesday, September 4, 2012, 7:00pm City Conference Room In Attendance: Committee Members Chairman Marty Munns Alderman Jackie Milschewski Alderman Chris Funkhouser Alderman Diane Teeling Other City Officials Mayor Gary Golinski City Administrator Bart Olson Community Development Director Krysti Barksdale-Noble Code Official Pete Ratos Other Guests Lynn Dubajic, YEDC Chris Hamilton, Aurora Area CVB Tony Scott, Kendall County Record Nitin Patel, Hampton Inn Yorkville Ken Koch Kathleen Tompkins, Raging Waves Daryl Wiese, Hampton Inn Yorkville Carrie Herr, AmericInn Oswego Tom Stahl, Bristol Bay Subdivision The meeting was called to order by Chairman Marty Munns at 7:00pm. Citizen Comments: None Minutes for Correction/Approval: None New Business 1. EDC 2012-43 Building Permit Report for August 2012 For information—there was no discussion. 2. EDC 2012-44 Building Inspection Report Summary for August 2012 No discussion 3. EDC 2012-45 Property Maintenance Report Alderman Funkhouser said that Windett Ridge had been assessed again and fined $57,000 in October. Mr. Ratos confirmed they had been issued one citation and one finding of libel this year. The most recent fine is over $532,000 ($100 per day). He had requested a fine $750 per day per lot, but the Hearing Officer recommended $100 per day. Mr. Ratos is working with Caledonia and Prestwickthat have been responsive but, noted that no maintenance has been done in Windett Ridge. The fine structure will remain in place at Windett even if the property changes hands. Mr. Funkhouser recommended against any leniency at this time. 1 Alderman Milschewski inquired about the Nicholson property on Heustis Street. A fence on the property is being improved and the owner also asked about obtaining a permit. There is a judgment against the owner for the fence and he has also been cited for the long grass. Currently there are at least 7 vehicles on the property, however, they cannot be towed off private property. Mr. Ratos said all vehicles except the semi truck have valid license plates and do run. Ms. Milschewski said she is concerned for the people who live in the nearby apartments and the owner of Casa Santiago who is trying to run his business. She would like the property to be more well-maintained in general and Mr. Ratos is working with Mr. Nicholson to try and improve the property. Complaints have also been received about the burning, however, it is for campfires. Mr. Ratos has spoken with the City Attorney. 4. EDC 2012-46 Kendall County Revolving Loan Fund Application Mr. Rick Tollefson of Imperial Investments and landowner in the downtown area, approached the City about relocating overhead electric wires/equipment underground. Since there are not enough TIF funds to cover the entire cost, the City can possibly qualify for a loan through a County Fund Program at a 3-4% interest rate and pay it back over 10 years. This item is on the County agenda for the month-end meeting. Cobblestone Bakery has been losing electric power and revenue as a consequence of the old wires and ComEd is researching this according to Mr. Ratos. Bart Olson will talk with Kendall County and this item will then move forward to the City Council. 5. EDC 2012-47 Dairy Queen Incentive Agreement Administrator Olson said this agreement allows a 50% sales tax rebate over the next 10 years or a maximum sum of $30,000, whichever occurs first. Due to difficulties with the first choice of locations in Kendall Marketplace and associated double costs, the City encouraged this business to stay in the Yorkville area and drafted the proposed incentive agreement. This business will be located near Blackstone Restaurant on Rt. 34. Alderman Funkhouser stated that the rebate is a result of a failure between the buyer/seller, not a failure of the City. He asked if it is fair to give them a full rebate or a lesser option, however, he is in favor of an incentive agreement since the owner has stayed within the City. Alderman Teeling noted that if the business did not build in Yorkville, there would be no tax at all from them. Mayor Golinski said there were many hurdles this business had to overcome and he feels this agreement is a positive step. th This item will move to the Council regular agenda on September 11. 6. EDC 2012-48 RFP for Sale of Old Jail Bart Olson said there had been inquiries about the old jail and said it was a good idea to put it up for RFP, though all inquiries can be rejected. An ordinance would have to be passed to approve the RFP process and all bids would have to be opened and read at a City Council meeting. The City would still move forward with the proposed parking lot slated for this area and the property would be subdivided in order to sell the jail. 2 Alderman Teeling asked about the grant the City had used to purchase the building and the possibility of having to pay back the $64,000 if the building is sold. Mr. Olson thought it would be necessary, but the City is inquiring about this. Alderman Funkhouser asked about the possibility of non-repayment of the grant if the building were kept as a museum or something similar. Mr. Olson will research all possibilities. Ms. Milschewski stated the building should not be demolished and it was noted that it is one of 10 endangered historical buildings in the State. Mr. Olson said any contingencies could be put on a sale and any potential buyer would have to state the intended use of the building. Mayor Golinski suggested a minimum bid of the grant amount be required, however, Mr. Olson said the City should keep all options open. This item will move forward to the regular Council agenda. OLD BUSINESS 1. EDC 2012-33 Agreement with AACVB/Use of Tourism Dollars This item was returned to EDC from a recent C.O.W. meeting. Ms. Teeling said the tourism bureau extends much further than another recently interviewed firm could. She asked to have input from area hotels since they generate the tax that goes to the tourism bureau. AACVB Executive Director Chris Hamilton stated that 54,000 tourism guides were distributed throughout the State last year. He handed out a list of social media sites that provide tourism information. He said the website that the AACVB will launch, will impact a very large area. It will also feature booking mechanisms and on-line ticket sales. Downtown events, weekend getaways, trade shows, lodging, meeting space and giveaways were just a few of the features on the website. He said Yorkville will now have at least 3 seats on the tourism Board, one of which will be a hotel representative. It was state that all communities contribute 90% of their hotel tax to the Tourism Bureau. Mr. Olson noted that a portion of the State hotel tax also comes back to the City. Alderman Funkhouser had inquired about a possible 3-year commitment rather than a 5-year. Mr. Hamilton said he does not think his Board would allow less than a 5-year commitment. Alderman Milschewski commented that she was concerned that the City rarely saw anyone from the AACVB until it was contract time and that no feedback was given on a regular basis. She asked for quarterly reports and Mr. Hamilton committed to providing this information. She said the Council also needs to be diligent about following up on the progress. Hampton Inn representative Daryl Wiese commented that the Hampton Inn provides $32,000 of the $45,000 hotel tax to the AACVB. He said his business at the Hampton comes from outside the Yorkville area and he was concerned that any alternative tourism firm would not have the reach or resources of the AACVB. He said at this point he has received $40,000 of business generated by the Visitors Bureau with a total of over $100,000 for the future. Super 8 and Hampton Inn together, generate 90-95% of the yearly tourism dollars for Yorkville. He already has business booked for 2013 and 2014. He fears any departure with this group will cause tourism to lose momentum in 3 Yorkville. Transportation to local attractions is another service the AACVB can offer that often helps seal some deals. Mr. Olson also noted that the Bureau can coordinate other items such as gift baskets, shuttle services, logistics planning and other items. It was noted that Oswego’s self-travel bureau has closed their doors. Other comments were also heard. The current sales manager for Raging Waves, Kathleen McDonald Tompkins, said that the Aurora Tourism Bureau has been a major player in the State and recommended staying with them. Ken Koch added that 90 baseball teams were brought into the area this year and Mr. Wiese noted a very positive impact from that event. Mr. Nitin Patel of Hampton Inn also recommended staying with the AACVB. It was noted that the Hampton Inn tracks results from the CVB also. Mr. Olson requested direction from the committee as to their wishes. The committee stated the following: Ms. Teeling recommended 5 years, Ms. Milschewski suggested a 3- year contract and add a contract stipulation for quarterly reports. She said the other Aldermen should be made ware of the businesses represented at this meeting as well. Mr. Funkhouser agreed with 3 years. Mayor Golinski said the CVB scope is much larger and it would be short-sighted to discontinue the current relationship--he recommended 5 years. All other current members have 5-year terms. Since the CVB Board has already said no to a 3-year contract, it was decided to recommend a 5-year contract to the Council and then take a vote. This item will move to the next Council agenda. Additional Business Chairman Munns commented that he would like to see the City website be modernized. There was no further business and the meeting adjourned at 8:24pm Minutes respectfully submitted by Marlys Young 4