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COW Minutes 1998 01-05-98 CITY OF YORKVILLE SPECIAL MEETING COMMITTEE OF THE WHOLE JANUARY 5, 1998 MEMBERS PRESENT: Bob Johnson, Art Prochaska, Richard Sticka, Lary Kot, Jeff Spang, Jerry Lynch, Jim Stafford, Kathy Jones, Richard Scheffrahn, Tom Sowinski, Tony Graff, Jim Nanninga, Cindy Ketcham, Guests Present: Kathy Farren, Paul Burd, Valerie Burd, Robert Lee, Kathy Washburn, Stan Free, Britt Carson, Jeff Wigton, Kevin McCann. CITY OFFICES & RELOCATION The purpose for the meeting was to discuss the possibilities for office availability for the City of Yorkville. Mayor Robert Johnson opened the meeting by requesting a report from the adhock committee. Alderman Sticka started by saying that they had considerable difficulty in getting information in response to different sites available. Various commercial property locations were looked at and it was felt by the adhock committee that it was best to leave the current commercial structures open to any incoming business traffic that Yorkville may generate. Informal discussions were held with Dr. Engler and with Brian D@BOIt at the Yorkville School District. The question was raised if they had any concerns about any added traffic that the city offices would create. Both felt that it wasn't a concern at this time. They also stated that they felt that there was some advantage to having the police station so close to the schools. There was only one concern raised and that concern was from the Public Library. They were concerned with loosing parking space. There was also a concern with the standing tree line. The Game Farm property would allow for expansion. What would happen to the Game Farm house? Tear down, move, sell the property? Where would the funds go to if the property were sold? The adhock committee felt that they would rather build than rent. They would prefer to pay towards a mortgage instead of paying someone else. Negatives - Paying for the facility. An issue would be financing. Revenues coming in to pay for the facility. If the decision to build, would it be at the Game Farm Property. The recommendation of the adhock committee would be to build on the Game Farm property. The time line is a big concern along with building and zoning. A basement addition would be great for extra space. Alderman Sticka went to Sugar Grove to look at their facility. They did not put in a basement and very much regret that decision. They are already overflowing what space they have. A comment was also made with regards in making the basement a 9 foot depth. It was also suggested to keep 2 feet of the basement above the ground and put in windows. There was a comment of a need for an elevator or possibly a ramp. A suggestion was to speak with Zeiter Dickson Insurance for their input on the elevator issue. Suggestions were made on room configuration. Using shorter sections that are movable. A need for offices for accounting, engineering, etc. for privacy and quiet for concentration. Costs range from $85 to $100 a square foot. Estimation for the full package was $1,130,000.00. A need to be sure that heating and plumbing would be adequate for the facility to have additional growth. Alderman Spang raised a question on furnishings. It was estimated that it would probably be an additional $100,000.00. At the present time, there are no details as to what would be needed for furnishings. It was stated that estimates need to be "good" estimates, so that the project would not go over budget. The old Pamida was looked at for space. The cost would be $9.00 a square foot per year, with build out and taxes. A Kookas property was looked at $10.40 a square foot, but the space was limited to 2,500 sq. ft. The question was raised on how to justify going from office space of about 2,800 or 3,000 sq. ft. to 9,000 sq. ft. The projected building is said to cover the projected growth over the next 10-15 years. Council chambers will be added. Officers lockers space will be adequately made. Another question raised was, would it be wise at this time to start out with a smaller facility and build into the larger facility. Would a reduction to 6,000 be an adequate space? The architect did an extensive study 3 years ago and came up with this floor plan. Maybe the "sally port" an option? There is a need to identify the use of each office to be sure the determination of office size and space is adequate. What kind of changes have occurred in the 3 years since the study was done? Would the offices contain one desk vs. two? Robert Lee has a building for sale. Paul and Valerie Burd have a historical building in town. A riverfront sight, 5,000 sq. ft. building. The sight would need an additional building for the police station. There would be additional property to be purchased. The property is not quite an acre. The two story building would need an elevator. Would need architect to draw plans for an additional building. Funding: Kevin McCann, Speer Financial who has been used for consulting in the past, gave some information with regard to financing. Kevin suggested using Bonds or bank financing. The city could use General Obligation Bonds or Alternate Bonds. The General Obligation Bond would require something pledged. Alternate bonds would be able to be used for 20 years at a fixed rate and would create a need for a referendum. Mr. McCann felt that bonds would be at the best rate possible and the alternate bond method does not count against the borrowing cap. The cost to create the bonds would be about $25,000.00 which would include attorneys fees, purchase fees, etc. The rate would be about 5%. Speer Financial has been operating since 1954 and has worked with several local communities. This is their only service they present and they work only with municipalities. The time frame for the alternate bonds after the dollar amount has been decided, would be a maximum of 75 to 90 days. The city would need to authorize the issuance of the bond amount and then it would have to be presented to the citizens of Yorkville. Stan Free, from the Bank of Yorkville, also spoke regarding to the lending capabilities of the local financial institutions. Mr. Free spoke of a traditional loan at an interest rate of approx. 5.25% amortized over 20 years. The loan term would be 20 years, but the interest would be adjustable after a 5 year period of time. A 10 year ARM would be at a higher rate of interest. There would be no prepayment penalties. A comfort level status was asked from all of the alderman. Alderman Sowinski-felt that a new building was the plan of action. Alderman Lynch-felt that a new building was the plan of action. Alderman Stafford-showed concern with the slowed growth. Was concerned with the future revenue and felt that maybe renting for 5 years would be better. Alderman Kot-felt that a more solid price was in order. He felt that there was still too much information missing to make a solid judgment. r Alderman Spang felt at this time no to a new building. Felt that there are still several options of local buildings that could be used. Alderman Sticka-felt yes to getting a bid package put together. Alderman Prochaska-Felt that if we were looking at renting to get information on the 9,000 sq. ft to rent and get a bid package on that information. Felt that taking on more debt at this was maybe inappropriate. Alderman Jones felt a bid package was a good idea so that it could be used as a guideline, but maybe to rent office space for a couple of years. A question was raised if other options would still be available while the bid package was being processed? A concern of the building would preclude streets, etc. or other project that may come up. A comparison of the payoff of 7 years vs. 20 years. Mayor Johnson instructed the staff at this time to prepare a bid package. He also asked each committee to again look at its needs for office size and put that information together so that it would firm up some of the costs. There was a request to bring back the bid package on January 29. The question was also raised as to what square footing would be needed it there was a need to get by. Respectfully submitted by Cindy Ketcham