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Economic Development Minutes 2015 06-01-15 special meetingPage 1 of 3 APPROVED 7/7/15 UNITED CITY OF YORKVILLE SPECIAL ECONOMIC DEVELOPMENT COMMITTEE Monday, June 1, 2015, 6:00pm Yorkville City Hall, Conference Room 800 Game Farm Road In Attendance: Committee Members Chairman Ken Koch Alderman Carlo Colosimo Alderman Diane Teeling Alderman Chris Funkhouser Other City Officials City Administrator Bart Olson Community Development Director Krysti Barksdale-Noble City Planner Chris Heinen Code Official Pete Ratos Other Guests: Tony Scott, Kendall County Record Lynn Dubajic, YEDC The meeting was called to order by Chairman Ken Koch at 6:00pm. Citizen Comments None Previous Meeting Minutes May 5, 2015 The minutes were approved as read on a voice vote. New Business 1. EDC 2015-18 Building Permit Report for April 2015 There were 7 B.U.I.L.D. and one single family permit for April, along with 15 commercial and miscellaneous projects. No further action. 2. EDC 2015-19 Building Inspection Report for April 2015 Mr. Ratos reported 127 inspections for the B.U.I.L.D. incentive program, 10 for commercial buildings and in general, he said there are many new construction inspections. His department also does inspections for private and public sidewalks. Page 2 of 3 3. EDC 2015-20 Property Maintenance Report for April 2015 Five violation notices were issued and there were seven complaints. No further action. 4. PC 2015-08 Fitness Clubs – Text Amendment Mr. Heinen reported that there is no category for fitness clubs in the zoning ordinance. It was found that crossfits are in violation of the ordinance and it was determined they would be best suited for the M-1 zoning districts. The crossfits are workout facilities and do not have weight machines, ellipticals, treadmills, etc. Staff recommends moving forward with the text amendment allowing for a permitted special use in the M-1 district. Alderman Funkhouser said he preferred to not have more than one fitness club in an M-1 area since Yorkville has a limited amount of M-1 space. Ms. Noble said these types of business are generally transient. Alderman Koch asked if these facilities have AED's in place. They are not required and could be used improperly. This item moves forward to the Plan Commission on June 2 and then to City Council consent agenda. 5. EDC 2015-21 Vacant Building Registration Program Ms. Barksdale-Noble spoke with the City Attorney about ways to raise revenue in conjunction with the $70,000 gap due to the B.U.I.L.D. program. As a non-home rule community, the City can enact a “vacant property registration program”. If a building is unoccupied, the owner can be required to register the property, provide a contact name and pay an annual registration fee of $250. Banks would also be required to notify the City when they take possession of vacant properties. The owner can then enter a 'vacant property plan' proving insurance for the property and a plan for the property/building. This information also provides a database for the City. Staff is proposing to enact this program and it is known that the City has about 200 vacant properties. This program would include residential, commercial and industrial buildings. The penalty for not providing this information is $100 per day up to $750 per day and would be handled through the adjudication process. Mr. Ratos added that the City now has no authority to go into what it deems an unsafe building. Alderman Funkhouser also noted the 10 standards for evidence. The committee briefly discussed a couple of the standards and also some of the situations Mr. Ratos has encountered and his rights when doing inspections. Ms. Barksdale-Noble also said the registration program would hold a bank-owned property accountable to fix things before selling the property. Alderman Teeling commented that the program will be a service to residents as well and will bring in money that will go into the General Fund. Alderman Colosimo said he feels the function of this program is for revenue rather than safety and he is not in favor of the program. He said he has issues with the way it is written and the authority it gives to the City. He said prospective buyers can hire an inspector before purchase and it is not the City's responsibility. Alderman Funkhouser also agreed about the revenue. He said he has issues with the word 'authority' and the lack of definition and it should be tightened. Alderman Colosimo asked if surrounding communities use this program, however, none of them do. Mr. Olson suggested surrounding towns and beyond should be surveyed about this program. This information was requested for next month's meeting. He said cities were granted the authority to implement this program in 2010. Ms. Noble said there was no mechanism to determine the owners at that time. In 2013, banks were required to notify cities of ownership. Page 3 of 3 Alderman Teeling noted a situation where water was coming into a townhome from another townhome that had been foreclosed. In this situation, she said the program would be helpful and staff could enter an unlocked door. Life safety issues would be considered as well, said Mr. Ratos. Alderman Koch suggested that the program might be overwhelming for the staff and tracking down out of state banks could cause difficulty. He also asked if the Hearing Officer might be overwhelmed. Ms. Noble said banks expect to have to register as it is nationwide. Overall, the committee also asked for tightening of the program language and it will be brought back next month. 6. EDC 2015-22 Selection of Vice-Chairman Alderman Colosimo nominated and Alderman Koch seconded that nomination for Diane Teeling as Vice-Chairman. 7. EDC 2015-23 Selection of Committee Liaisons The following liaison nominations were made: Ms. Teeling for the Kendall County Plan Commission and Alderman Colosimo for the City Plan Commission. Old Business: 1. EDC 2015-14 B.U.I.L.D. Program Ms. Noble said this program is set to expire on June 30th and staff is requesting an extension to December 31. Ms. Teeling asked if a study had ever been done to determine how much revenue is generated from new home construction. Mr. Olson pointed out that the services the homes require is always more than taxes generated by the resident. Ms. Dubajic said the building process also creates jobs and the retailers look at the construction numbers for the goods that will be purchased for the home. Alderman Funkhouser said Yorkville pulls builders from other communities and Ms. Dubajic said a community must have “something”. Mr. Koch said he would like the water rates omitted and find the revenue somewhere else, but the bond rating is hurt incrementally when the general fund is decreased, said Mr. Olson. It was noted the B.U.I.L.D. Program is only for new construction, except townhomes or spec homes. Mr. Funkhouser said he is in favor of the program if it's sustainable and beneficial with continued discussion. A facelift is needed for the new year according to Ms. Dubajic, especially since other communites have modeled programs after Yorkville. Mr. Funkhouser posed the question of what would happen if fees were eliminated and buyers/builders pay for what they use. It was thought it might not be an adequate incentive. The committee was in favor of extending the program with some tweaking. It will be discussed further in regards to the budget effect. It moves to the next Council consent agenda for a vote on June 9th. Additional Business: The property at the SW corner of Van Emmon and Rt. 47 was discussed and it is for sale. Part of the hill is privately owned and mowing there was discussed. Alderman Teeling questioned the tent at Rt. 47 and Van Emmon. It is for the media and it was noted a media truck will be present in the city hall parking lot for a few days. There was no further business and the meeting was adjourned at 7:22pm. Minutes respectfully submitted by Marlys Young