The URL can be used to link to this page

Ordinance 2005-010A ORDINANCE NoQ=�9% D —A, AN ORDINANCE OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, APPROVING A TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AND PLAN FOR THE PROPOSED TAX INCREMENT REDEVELOPMENT AREA WHEREAS, the Mayor and City Council (the "Corporate Authorities ") of the United City of Yorkville, Kendall County, Illinois (the "Municipality"), have heretofore determined that the stable economic and physical development of the Municipality is endangered by the presence of blighting factors as often manifested by progressive and advanced deterioration of structures, by a lack of physical maintenance of such structures, by obsolete and inadequate infrastructure, by I obsolete platting, and by deleterious land use and layout, with a resulting decline of the Municipality which impairs the value of private investments and threatens the sound growth and • I the tax base of the Municipality and the taxing districts having the power to tax real property in the Municipality (the "Taxing Districts ") and threatens the health, safety, morals and welfare of the public; and, WHEREAS, the Corporate Authorities have heretofore determined that in order to promote and protect the health, safety, morals and welfare of the public, blighted conditions in the Municipality need to be eradicated and redevelopment of the Municipality be undertaken in order to remove and alleviate adverse conditions, encourage private investment, and, restore and I enhance the tax base of the Municipality and the Taxing Districts; and, WHEREAS, the Municipality has heretofore caused to be conducted an eligibility study to determine whether the proposed U.S. Route 34 & Ill. Route 47 (Countryside Shopping Center) (the "Proposed Area ") qualifies as a "redevelopment project area" pursuant to the Illinois Tax g AU NTY� l. F�� I N GALL FEB 18 2005 -� County Clerk C Kendall County Increment Allocation Redevelopment Act, as amended (the "Act "), 65 ILCS 5/11- 74.4 -1 et seq.; and, I WHEREAS, the Municipality has heretofore evaluated various lawfully available programs to provide such assistance and has determined that the use of tax increment allocation financing is necessary to achieve the redevelopment goals of the Municipality for the Proposed Area; and, WHEREAS, the Municipality was advised in June, 2004, that the Proposed Area qualifies as a "redevelopment project area" under Section 11- 74.4 -3 of the Act; and, WHEREAS, it is therefore concluded by the Corporate Authorities that the Proposed Area remains qualified as a "redevelopment project area" under Section 11- 74.4 -3 of the Act as of the date hereof; and, WHEREAS, the Municipality has further caused the preparation of and made available for public inspection a proposed redevelopment project and plan (" Project and Plan ") for the Proposed Area; and, WHEREAS, the Project and Plan sets forth in writing the program to be undertaken to accomplish the objectives of the Municipality and includes estimated redevelopment project costs proposed for the Proposed Area, evidence indicating that the Proposed Area on the whole has not been subject to growth and development through investment by private enterprise, an assessment of the financial impact of the Proposed Area on or any increased demand for services from any taxing district affected by the Plan and any program to address such financial impact or increased demand, the sources of funds to pay costs, the nature and term of the obligations to be issued (if any), the most recent equalized assessed valuation of the Proposed Area, an estimate as to the 2 I I equalized assessed valuation after redevelopment, the general land uses to apply in the Proposed Area, and a commitment to fair employment practices and the Project and Plan accordingly complies in all respects with the requirements of the Act; and, WHEREAS, pursuant to Section 11- 74.4 -5 of the Act, the Corporate Authorities by a Resolution adopted the 28` day of September, 2004, called a public hearing (the " Hearing ") relative to the Project and Plan and the designation of the Proposed Area as a redevelopment project area under the Act and fixed the time and place for such Hearing, being the 23` day of November at 7:00 p.m., at the City Hall, 800 Game Farm Road, Yorkville, Illinois; and, WHEREAS, due notice in respect to such Hearing was given pursuant to section 11 -74.4- 5 of the Act, said notice, together with a copy of the Project and Plan, was sent to the Department of Commerce and Community Affairs of the State of Illinois by certified mail; to the Taxing Districts on September 29, 2004, by hand deliver; by publication on November 4, 2004, and November 11, 2004; and, by mail to taxpayers within the Proposed Area on November 2, 2004; and, WHEREAS, the Municipality has heretofore convened a Joint Review Board as required by and in all respects in compliance with the provisions of the Act; and, WHEREAS, the Joint Review Board has met at the times and as required by the Act and has reviewed the public record, planning documents and a form of proposed ordinance approving the Project and Plan; and, WHEREAS, the Joint Review Board has adopted by a majority vote an advisory, non- binding recommendation that the Municipality proceed to implement the Project and Plan and to designate the Proposed Area as a redevelopment project area under the Act; and, 3 WHEREAS, the Joint Review Board based its decision to approve the proposal on the basis of the Proposed Area and Project and Plan satisfying the Plan requirements, the eligibility criteria defined in Section 11- 74.4 -3 of the Act, and the objectives of the Act; and, WHEREAS, the Municipality held the Hearing on November 23, 2004, at the City Hall, 800 Game Farm Road, Yorkville, Illinois; and WHEREAS, at the Hearing, any interested person or Taxing District was permitted to file with the Municipal Clerk written objections and was heard orally in respect to any issues embodied in the notice of said Hearing, and the Municipality heard and determined all protests and objections at the Hearing; and, WHEREAS, the Hearing was adjourned on the 23` day of November, 2004; and, WHEREAS, the Project and Plan set forth the factors which cause the Proposed Area to be a "blighted" area as defined by the Act for improved and vacant areas, and the Corporate Authorities have reviewed the information concerning such factors presented at the Hearing and have reviewed other studies and are generally informed of the conditions in the Proposed Area which could cause the area to be "blighted "; and, WHEREAS, the Corporate Authorities have reviewed evidence indicating that the Proposed Area on the whole has not been subject to growth and development through investment by private enterprise and have reviewed the conditions pertaining to lack of private investment in the Proposed Area to determine whether private development would take place in the Proposed Area as a whole without the adoption of the proposed Project and Plan; and, WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to real property in the Proposed Area to determine whether contiguous parcels of real property and l 4 I I improvements thereon in the Proposed Area would be substantially benefitted by the proposed Project improvements; and, WHEREAS, the Corporate Authorities have made an assessment of any financial impact of the Proposed Area on or any increased demand for services from any taxing district affected by the Project and Plan and any program to address such financial impact or increased demand; and, WHEREAS, the Corporate Authorities have reviewed the proposed Project and Plan and also the existing comprehensive plan for development of the Municipality as a whole to determine j whether the proposed Project and Plan conform to the comprehensive plan of the Municipality. NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the United City of Yorkville, Kendall County, Illinois, as follows: Section 1. Findings. The Corporate Authorities hereby make the following findings: � (a) The Proposed Area is legally described in Exhibit A attached hereto and incorporated herein as if set out in full by this reference. The map of the Proposed Area is depicted in Exhibit B attached hereto and incorporated herein as if set out in full by this reference. (b) There exist conditions which cause the Proposed Area to be subject to designation as a redevelopment project area under the Act and to be classified as a "blighted" area as defined in Section 11- 74.4 -3 of the Act. (c) The Proposed Area on the whole has not been subject to growth and development through investment by private enterprise and would not be 5 reasonably anticipated to be developed without the adoption of the Project and Plan. (d) The Project and Plan conform to the comprehensive plan for the development of the Municipality as a whole. (e) As set forth in the Project and Plan and in the testimony at the public hearing, the estimated date of completion of the Project is no later than December 31, 2028, and the estimated date of the retirement of any obligation incurred to finance redevelopment project costs as defined in the Project and Plan is no later than the year 2028. (f) The parcels of real property in the Proposed Area are contiguous, and only those contiguous parcels of real property and improvements thereon which will be substantially benefitted by the proposed Project and Plan improvements are included in the Proposed Area. Section 2. Exhibits Incorporated by Reference. The Project and Plan which were the subject matter of the public hearing held on the 23` day of November, 2004, are hereby adopted and approved. A copy of the Project and Plan is set forth in Exhibit C attached hereto and incorporated herein as if set out in full by this reference. Section 3. Invalidity of Any Section. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. 6 Section 4. Superseder and Effective Date. All ordinances, resolutions, motions or orders in conflict herewith be, and the same hereby are, repealed to the extent of such conflict, and this Ordinance shall be in full force and effect immediately upon its passage by the Corporate Authorities and approval as provided by law. PASSED this day 2005. APPROVED: a �,O� Mayor AYES: NAYS: ABSENT: Attest: er er � yotkviuetfiMord 1. ExhibitA Legal Description i EXHIBIT "A" LEGAL DESCRIPTION LOT 7 (EXCEPT THAT PART DESCRIBED AS FOLLOWS; COMMENCING AT THE MOST EASTERLY SOUTHEAST CORNER OF SAID LOT 7; THENCE NORTH 80 DEGREES 58 MINUTES 11 SECONDS WEST ALONG SOUTHERLY LINE, 309.0 FEET TO A SOUTHEAST CORNER OF SAID LOT 7 FOR A POINT OF BEGINNING; THENCE SOUTH 80 DEGREES 58 MINUTES 11 SECONDS EAST ALONG SAID SOUTHERLY LINE 209.0 FEET TO A SOUTHEAST CORN €R OF SAID LOT 7; THENCE NORTH 04 DEGREES 45 MINUTES 00 SECONDS EAST ALONG AN EASTERLY LINE OF SAID LOT 7, 90.0 FEET; THENCE NORTH 80 DEGREES 58 MINUTES 11 SECONDS WEST, 140.35 FEET; THENCE SOUTH 70 DEGREES 02 MINUTES 02 SECONDS WEST, 185.15 FEET TO THE POINT OF BEGINNING; AND ALSO EXCEPTING THAT PART AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHERNMOST LINE OF LOT 6 OF THE RESUBDIVISION OF PART OF BLOCK 1, COUNTRYSIDE CENTER, UNIT NO. 1 WITH THE WESTERLY LINE OF ILLINOIS ROUTE NO. 47; THENCE SOUTH 69 DEGREES 58 MINUTES 14 SECONDS WEST ALONG SAID SOUTHERNMOST LINE 230.45 FEET TO THE SOUTHERNMOST CORNER OF SAID LOT 6; THENCE "SOUTH 19 DEGREES 57 MINUTES 45 SECONDS EAST 192.30 FEET; THENCE NORTH 70 DEGREES 02 MINUTES 14 SECONDS EAST 141.82 FEET TO SAID WESTERLY LINE; THENCE NORTH 04 DEGREES 45 MINUTES 00 SECONDS EAST ALONG SAID WESTERLY LINE 211.98 FEET TO THE POINT OF BEGINNING) OF THE RESUBDIVISION OF PART OF BLOCK 1, COUNTRYSIDE CENTER, UNIT NO. 1, AND ALSO THAT PART DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERNMOST CORNER OF LOT 6 IN SAID RESUBIDVISION; THENCE SOUTH 04 DEGREES 45 MINUTES 00 SECONDS WEST ALONG THE EAST LINE OF SAID LOT 7 211.98 FEET FOR THE POINT OF BEGINNING: THENCE SOUTH 85 DEGREES - 15 MINUTES 00 SECONDS EAST, 136.94 FEET TO THE EAST LINE OF SAID ILLINOIS ROUTE 47: THENCE SOUTH 02 DEGREES 08 MINUTES 48 SECONDS WEST ALONG SAID EAST LINE, 397'..70 FEET: THENCE SOUTH 04 DEGREES 45 MINUTES 00 SECONDS WEST ALONG SAID EAST LINE, 191,78 FEET; THENCE NORTH 85 DEGREES 15 MINUTES 00 DEGREES WEST, 150.00 FEET TO THE.WEST LINE OF SAID ILLINOIS ROUTE 47; THENCE NORTH 04 DEGREES 45 MINUTES 00 SECONDS EAST ALONG SAID WEST LINE, 589.05 FEET TO THE POINT OF BEGINNING. IN THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS, 1 �L J I 0000 , 0 00� 0 � / I �{' i� °gee �• , ct 1. �t• °...m.:�� t 09 �*^I . i l ^ 4% 4 % /4z !, / 1 .A • Ct e- ENGINEERING ENTERPRISES, INC. G:\Public\YorkvilIO2004\Y00437 00untrygido 0onler\Doc \EXHII3IT.doc SUGAR GRQVE, IL Exhibit B Map �I i Exhibit B Country side Parkway i I i i if Mull Block: 104 Parcel: 015 r. 9,2,3,4,5,6";7;8';9* 0 CU = I L ^ CU ' 1..1. U Project Area Boundary 3,4,5* Blight Factors: 1. Obsolescence 2. Deterioration (JS 3. Presence if structures Route 34 below minimum code 4. Excessive vacancies 5. Declining or lagging equalized assessed value6. Lack of community planning S. Environmental remediation 9. Excessive land I coverage /overcrowding * Indicates factor present to a limited extent Figure 4 tribution of Blight Factors R oute US • is Route 47 Yo rkville, Tax Increment Financing Redevelopment Protect Area URS e TPAP I:. Exhibit C Plan f US ROUTE 34 & IL ROUTE 47 (COUNTRYSIDE SHOPPING CENTER) TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AND PLAN UNITED CITY OF YORKVILLE September 17, 2004 Prepared by: URS•TPAP US ROUTE 34 & IL ROUTE 47 (COUNTRYSIDE SHOPPING CENTER) TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AND PLAN UNITED CITY OF YORKVILLE This Redevelopment Plan is subject to review and comment and may be revised after comment and hearing. September 17, 2004 Prepared by: URS•TPAP TABLE OF CONTENTS I . INTRODUCTION .................................................................................................. ..............................1 A. Tax Increment Financing ............................................................................... ............................... 3 B. US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project and Plan ................................................................... ............................... 3 H . LEGAL DESCRIPTION ....................................................................................... ..............................6 III. PROJECT AREA ELIGIBILITY CONDITIONS ............................................. ..............................8 A. Surveys and Analyses Conducted .................................................................. ............................... 8 B . Summary of Findings ...................................................................................... ..............................8 IV. REDEVELOPMENT GOALS AND POLICIES .............................................. .............................10 A . General Goals ................................................................................................. .............................10 B. Redevelopment Objectives ............................................................................. .............................10 V REDEVELOPMENT PROJECT ........................................................................ .............................12 A. Overall Redevelopment Concept ................................................................... .............................12 B. Generalized Land Use Plan ............................................................................. .............................12 C. Development and Design Objectives ............................................................. .............................14 D. Redevelopment Improvements and Activities ................................................ .............................15 E . Redevelopment Project Costs ......................................................................... .............................17 F. Sources of Funds to Pay Redevelopment Project Costs ............................... ............................... G. Issuance of Obligations .................................................................................. .............................21 H . Valuation of the Project Area ......................................................................... .............................22 VI. LACK OF GROWTH AND DEVELOPMENT THROUGH INVESTMENT BY PRIVATE ENTERPRISE ....................................................................................................... .............................23 VII FINANCIAL IMPACT ......................................................................................... .............................24 VIII. DEMAND ON TAXING DISTRICT SERVICES ............................................. .............................25 IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND PROJECT TO THE COMPREHENSIVE PLAN FOR THE DEVELOPMENT OF THE CITY ASA WHOLE ....................................................................................................... .............................26 X . PHASING AND SCHEDULING ......................................................................... .............................27 XI. PROVISIONS FOR AMENDING THE REDEVELOPMENT PLAN .......... .............................28 XII. COMMITMENT TO FAIR EMPLOYMENT PRACTICES AND AFFIRMATIVE ACTION PLAN .... ............................... XH1. IMPACT ON INHABITED RESIDENTIAL UNITS ....................................... .............................30 FIGURES AND EX MITS FIGURE1: PROJECT AREA BOUNDARY ....................................................... ............................... 7 FIGURE2: LAND —USE PLAN ............................................................................ .............................13 EXHIBIT I REDEVELOPMENT PROJECT COSTS EXHIBIT H US ROUTE 34 & IL ROUTE 47 (COUNTRYSIDE SHOPPING CENTER) TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA ELIGIBILITY STUDY a I. INTRODUCTION This document, entitled US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project and Plan, is to serve as a redevelopment plan (the "Redevelopment Plan") for a commercial area in the central part of the United City of Yorkville (the "City "). The redevelopment project area generally includes the buildings and property constituting Countryside Shopping Center located in the northwest quadrant of the intersection of US Route 34 and IL Route 47. The area is subsequently referred to in this document as the US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project Area (the "Project Area "). The Project Area is illustrated in Figure 1 (Project Area Boundary) and legally described in Section II of this Redevelopment Plan. The United City of Yorkville and the US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project Area The United City of Yorkville is located in the Fox River Valley of Kendall County approximately 45 miles southwest of Chicago. The City includes land on both sides of the Fox River and is generally bounded by unincorporated portions of Kendall County with the neighboring communities of Montgomery to the north, Oswego to the east, and Plano to the west. Yorkville was originally settled south of the Fox River in 1832 as an agricultural business center with a downtown district along the Fox River. Growth of the community was reinforced by the county seat designation in 1859, the Chicago Burlington and Quincy railroad route established through Yorkville in 1870, and the incorporation of the town in 1887. Based on shared circumstances and vision, the towns of Yorkville and Bristol (the town to the north of the Fox River) combined to form the United City of Yorkville in 1957. Since 1960, the City has steadily grown to its current population of approximately 9,000 persons and is poised for future growth. As regional growth of the Chicago metropolitan area proceeds southwestward, the City has focused its planning efforts on guiding development to assure a compatible and efficient balance of land uses reflective of the City's small town heritage but also responsive to contemporary development opportunities. Yorkville's downtown was the only business district in the City up until the early 1970s when the City annexed a large area at the intersection US Route 34 and IL Route 47 known as Countryside Center. The annexation provided for the development of the Countryside Shopping Center (the "Shopping Center ") and the surrounding residential subdivision stemming from two primary arterials of the growing City. With nearly 158,000 square feet of space, the Shopping Center served as a community -scale center configured as an inward- oriented cluster of three buildings plus an outlot cinema building surrounded by large accessory parking areas and potential for more outlot development. Over the past three decades, additional retail and commercial businesses have been developed along the intersecting corridors of US Route 34 and IL Route 47 in a pattern that US Route 34 & IL Route 47 (Countryside Shopping Center) page 1 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 has been traditionally auto - oriented to include strip retail centers, big box uses and businesses with drive -thru facilities. As newer development has emerged at this location, the Countryside Shopping Center has encountered competition from sites and buildings that have been constructed according to the most up -to -date market tastes for commercial and retail development. Various aspects of the Shopping Center have become increasingly obsolete, including its distinctive layout that hampers visibility, access and a sustainable mix of retail tenants since contemporary requirements for size, configuration, parking, and co- tenanting desires are difficult to achieve. In recent years, the retail mix of the Shopping Center has declined significantly and vacancies have been a chronic problem resulting in lagging income and a corresponding lack of investment in maintenance, rehabilitation or more substantial renovations. Over the past few years, the City has recognized the need to revitalize or redevelop the Shopping Center in order to achieve the overall goal of sustaining and growing the US Route 34 & IL Route 47 area as a regional shopping destination. The obsolescence of the buildings as well as the costs associated with acquisition of existing buildings/leases, demolition and environmental remediation have been barriers to redevelopment. As part of its strategy to revitalize the Shopping Center and stimulate private investment for retail and commercial uses, the City engaged URS -TPAP to investigate whether the approximately 20.2 -acre Project Area qualifies as a "blighted area," under the Illinois Tax Increment Allocation Redevelopment Act (the "Act"). URS -TPAP surveyed the area identified by the City and referred to as the Project Area to document any blighted area factors that may exist within the Project Area. URS -TPAP documented these factors in a study entitled, "US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project Area Eligibility Study" (the "Eligibility Study "), which is included as Exhibit 11 to this report. Characteristic conditions in the Project Area include extensive, long -term vacancies, deteriorated buildings and site improvements, obsolescence due to size, layout and configuration, buildings below minimum local code standards, a declining and lagging equalized assessed valuation and need for environmental remediation. Overall, the Project Area has not been subject to growth and development through investment by private enterprise and is not reasonably anticipated to be redeveloped without the efforts and leadership of the City. The Redevelopment Plan summarizes the analyses and findings of URS- TPAP's work, which, unless otherwise noted, is the responsibility of URS -TPAP. The City is entitled to rely on the findings and conclusions of this Redevelopment Plan in designating the Project Area as a redevelopment project area under the Act. URS -TPAP has prepared this Redevelopment Plan and the Eligibility Study with the understanding that the City would rely: 1) on the findings and conclusions of the Redevelopment Plan and the related Eligibility Study in proceeding with the designation of the Project Area and the adoption and implementation of the Redevelopment Plan, and 2) on the fact that URS -TPAP has obtained the necessary information so that the Redevelopment Plan and the related Eligibility Study will comply with the Act. US Route 34 & IL Route 47 (Countryside Shopping Center) page 2 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 I I, A. Tax Increment Financing In January 1977, TIF was made possible by the Illinois General Assembly through passage of the Tax Increment Allocation Redevelopment Act. The Act is found in Illinois Compiled Statutes, Chapter 65, Act 5, Section 11- 74.4 -1 et seq., as amended. The Act provides a means for municipalities, after the approval of a redevelopment plan and project, to redevelop blighted, conservation, or industrial park conservation areas and to finance redevelopment project costs (sometimes referred to as "Project Costs" or "Redevelopment Project Costs ") with incremental property tax revenues. "Incremental Property Tax" or "Incremental Property Taxes" are derived from the increase in the current equalized assessed valuation ( "EAV") of real property within the Project Area over and above the "Certified Initial EAV" of the real property. Any increase in EAV is then multiplied by the current tax rate which results in Incremental Property Taxes. A decline in current EAV does not result in a. negative Incremental Property Tax. I To finance Project Costs, a municipality may issue obligations secured by estimated Incremental Property Taxes to be generated within the Project Area. In addition, a municipality may pledge towards payment of such obligations any part or any combination of the following: (a) net revenues of all or part of any redevelopment project; (b) taxes levied and collected on any or all property in the municipality; (c) the full faith and credit of the municipality; (d) a mortgage on part or all of the redevelopment project; or (e) any other taxes or anticipated receipts that the municipality may lawfully pledge. Tax increment financing does not generate tax revenues by increasing tax rates. This financing mechanism allows the municipality to capture, for a certain number of years, the new tax revenues produced by the enhanced valuation of properties resulting from the municipality's redevelopment program, improvements and activities, various redevelopment projects, and the assessment and reassessment of properties. All taxing districts continue to receive property taxes levied on the initial valuation of properties within the redevelopment project area. Additionally, taxing districts can receive distributions of excess Incremental Property Taxes when annual Incremental Property Taxes received exceed principal and interest obligations for that year and redevelopment project costs necessary to implement the redevelopment plan have been paid and such excess amounts are not otherwise pledged, earmarked or designated for future usage on other redevelopment projects. Taxing districts also benefit from the increased property tax base after redevelopment project costs and obligations are paid and the Project Area's term has expired or has been terminated. Route 47 (Countryside Shopping Center Tax B. US Route 34 & IL R ( ry pp g Increment Financing Redevelopment Project and Plan As evidenced in Section VI, the Project Area as a whole has not been subject to growth and development through private investment. Furthermore, it is not reasonable to expect that the Project Area will be redeveloped without the use of TIF. This Redevelopment Plan has been prepared in accordance with the provisions of the Act and is intended to guide improvements and activities within the Project Area in order to stimulate private US Route 34 & IL Route 47 (Countryside Shopping Center) page 3 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 investment. The goal of the City, through the implementation of this Redevelopment Plan, is that the entire Project Area be revitalized on a comprehensive and planned development basis in order to ensure that private investment in rehabilitation and new development occurs: 1. On a coordinated rather than piecemeal basis to ensure that the land use, pedestrian access, vehicular circulation, parking, service and urban design systems are functionally integrated and meet present -day principles and standards; 2. On a reasonable, comprehensive and integrated basis to ensure that blighted area factors are prevented or eliminated; 3. Within a reasonable and defined time period so that the area may contribute productively to the economic vitality of the City; and The Redevelopment Plan sets forth the overall Redevelopment Project to be undertaken to accomplish the above - stated goal. During the implementation of the Redevelopment Project, the City may, from time to time, (i) undertake or cause to be undertaken public improvements and activities as described in Section V of this Redevelopment Plan and (ii) enter into redevelopment agreements with private entities to construct, rehabilitate, renovate or restore private improvements on one or several parcels (collectively referred to as "Redevelopment Project "). This Redevelopment Plan specifically describes the Project Area and sets forth the blight factors that qualify the Project Area for designation as a blighted area as defined in the Act. Section H of the Redevelopment Plan contains the Project Area description and map depicting the boundaries of the Project Area. Successful implementation of this Redevelopment Plan requires that the City utilize Incremental Property Taxes and other resources in accordance with the Act to stimulate the comprehensive and coordinated development of the Project Area. Only through the utilization of TIF will the Project Area develop on a comprehensive and coordinated basis, thereby eliminating the blighted area factors, which have precluded development of the Project Area by the private sector. The use of Incremental Property Taxes will permit the City to direct, implement, and coordinate public improvements and activities to stimulate private investment within the Project Area. These improvements, activities and investments will benefit the City, its residents, and all taxing districts having jurisdiction over the Project Area. The anticipated benefits include: • An increased property tax base arising from new private development; • An increased sales tax base arising from new private development for contemporary retail uses; • A revitalized/redeveloped anchor location within one of the City's primary commercial districts; • An increase in full -time employment opportunities for existing and future residents of the City; and US Route 34 & IL Route 47 (Countryside Shopping Centel) page 4 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 • Elimination of problem conditions in the Project Area as well as general physical improvement and upgrading of properties. US Route 34 & IL Route 47 (Counbyside Shopping Center) page 5 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 II. LEGAL DESCRIPTION The boundaries of the Project Area have been carefully drawn to include only real property and improvements substantially benefited by the proposed Redevelopment Project to be undertaken as part of this Redevelopment Plan. The boundaries of the Project Area are generally coterminous with the property assigned the 2003 tax parcel number 02 -28- 104 -015 plus adjacent right -of -way along IL Route 47. The Project Area boundaries are shown in Figure 1, Project Area Boundary, and legally described below. LOT 7 (EXCEPT THAT PART DESCRIBED AS FOLLOWS: COMMENCING AT THE MOST EASTERLY SOUTHEAST CORNER OF SAID LOT 7; THENCE NORTH 80 DEGREES 58 MINUTES 11 SECONDS WEST ALONG SOUTHERLY LINE, 309.0 FEET TO A SOUTHEAST CORNER OF SAID LOT 7 FOR A POINT OF BEGINNING; THENCE SOUTH 80 DEGREES 58 MINUTES 11 SECONDS EAST ALONG SAID SOUTHERLY LINE 209.0 FEET TO A SOUTHEAST CORNER OF SAID LOT 7; THENCE NORTH 04 DEGREES 45 MINUTES 00 SECONDS EAST ALONG AN EASTERLY LINE OF SAID LOT 7, 90.0 FEET; THENCE NORTH 80 DEGREES 58 MINUTES 11 SECONDS WEST, 140.35 FEET; THENCE SOUTH 70 DEGREES 02 MINUTES 02 SECONDS WEST, 185.15 FEET TO THE POINT OF BEGINNING; AND ALSO EXCEPTING THAT PART AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE SOUTHERNMOST LINE OF LOT 6 OF THE RESUBDIVISION OF PART OF BLOCK 1, COUNTRYSIDE CENTER, UNIT NO. 1 WITH THE WESTERLY LINE OF ILLINOIS ROUTE NO. 47; THENCE SOUTH 69 DEGREES 58 MINUTES 14 SECONDS WEST ALONG SAID SOUTHERNMOST LINE 230.45 FEET TO THE SOUTHERNMOST CORNER OF SAID LOT 6; THENCE SOUTH 19 DEGREES 57 MINUTES 46 SECONDS EAST 192.30 FEET; THENCE NORTH 70 DEGREES 02 MINUTES 14 SECONDS EAST 141.82 FEET TO SAID WESTERLY LINE; THENCE NORTH 04 DEGREES 45 MINUTES 00 SECONDS EAST ALONG SAID WESTERLY LINE 211.98 FEET TO THE POINT OF BEGINNING) OF THE RESUBDIVISION OF PART OF BLOCK 1, COUNTRYSIDE CENTER, UNIT NO. 1, AND ALSO THAT PART DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHERNMOST CORNER OF LOT 6 IN SAID RESUBIDVISION; THENCE SOUTH 04 DEGREES 45 MINUTES 00 SECONDS WEST ALONG THE EAST LINE OF SAID LOT 7 211.98 FEET FOR THE POINT OF BEGINNING; THENCE SOUTH 85 DEGREES 15 MINUTES 00 SECONDS EAST, 136.94 FEET TO THE EAST LINE OF SAID ILLINOIS - ROUTE 47; THENCE SOUTH 02 DEGREES 08 MINUTES 48 SECONDS WEST ALONG SAID EAST LINE, 397.70 FEET; THENCE SOUTH 04 DEGREES 45 MINUTES 00 SECONDS WEST ALONG SAID EAST LINE, 191.78 FEET; THENCE NORTH 85 DEGREES 15 MINUTES 00 DEGREES WEST, 150.00 FEET TO THE WEST LINE OF SAID ILLINOIS ROUTE 47; THENCE NORTH 04 DEGREES 45 MINUTES 00 SECONDS EAST ALONG SAID WEST LINE, 589.05 FEET TO THE POINT OF BEGINNING. IN THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS. I US Route 34 & IL Route 47 (Countryside Shopping Center) page 6 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 CountNSide Parkway � Block: 104 Parcel: 015 a) 0 J Ca L CU a. L C (D U VS R oute 34 11 Project Area Boundary Figure 1 Project Area Boundary Ro ute US Tax Increment Financing Redevelopment Project Area URS • TPAP I I III. PROJECT AREA ELIGIBILITY CONDITIONS The conditions summarized in this section are described in detail in a separate report, entitled US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project Area Eligibility Study (the 'Eligibility Study "). The Eligibility Study, prepared by URS•TPAP, presents the definition, application and extent of the blighted area factors in the Project Area. The Eligibility Study is attached as Exhibit II to this Redevelopment Plan. The Project Area conditions documented in this section are based on surveys and analyses conducted for the City by URS•TPAP. Based on the definitions set forth in the Act, the Project Area is found to be eligible for (i) classification as an improved "blighted area" and (ii) designation as a redevelopment project area. A. Surveys and Analyses Conducted The summary of findings for the Project Area is based upon surveys and analyses conducted by URS•TPAP. The surveys and analyses conducted include: 1. Exterior survey of the condition and use of each building; 2. Field survey of environmental conditions covering streets, sidewalks, lighting, traffic, parking facilities, landscaping, fences and walls, and general property maintenance; 3. Analysis of existing uses and their relationships to the surroundings; 4. Comparison of current land use to the current zoning ordinance and the current zoning map; 5. Comparison of surveyed buildings to existing codes of the City; 6. Analysis of original and current platting and building size and layout; 7. Analysis of vacant portions of sites and buildings; 8. Analysis of original and current platting, air photos and building size and layout; 9. Review of previously prepared plans, studies and data; 10. Review of Kendall County Assessor records for assessed valuations and equalization factors for the Project Area for assessment years 1997 to 2003. A Summary of Findings Under the TIF Act, if an area is improved (i.e. contains buildings or site improvements), it may be found to be eligible as a "blighted area" based on the finding that industrial, commercial, and residential buildings or improvements are detrimental to the public safety, health, or welfare because of a combination of five or more of thirteen factors, each of which is (i) present, with that presence documented, to a meaningful extent so that a municipality may reasonably find that the factor is clearly present within the intent of the Act and (ii) reasonably distributed throughout the improved part of the redevelopment project area. US Route 34 & IL Route 47 (Countryside Shopping Center) page 8 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 Based on surveys, inspections and analyses of the Project Area as identified above, the Project Area qualifies as a blighted area. The blighted area findings are summarized as follows: • Five of the thirteen factors set forth in the Act for a blighted area are present to a meaningful extent and reasonably distributed in the Project Area, including obsolescence, deterioration, excessive vacancies, structures below minimum code standards, and declining or lagging equalized assessed valuation. • An additional four factors, including lack of light ventilation or sanitary facilities, environmental remediation and lack of community planning, are present to a more limited extent but support the overall finding of eligibility as a blighted area. • The Project Area includes only real property and improvements thereon substantially benefited by the proposed redevelopment project activities and improvements. i �I US Route 34 & IL Route 47 (Countryside Shopping Center) page 9 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 IV. REDEVELOPMENT GOALS AND POLICIES Comprehensive and coordinated investment in new public and private improvements and facilities is essential for the successful redevelopment of the Project Area and the elimination of conditions that have impeded redevelopment of the Project Area in the past. Redevelopment of the Project Area will benefit the City through improvements in the physical environment, an increased tax base, new commercial opportunities, new jobs and job training opportunities and an increase in the vitality of the Project Area. This section identifies the general goals and objectives for redevelopment of the Project Area. Section V of this Redevelopment Plan describes the overall redevelopment concept for the Project Area, specific design and development goals and redevelopment activities that the City intends to undertake to achieve the redevelopment goals and objectives presented in this Section. A. General Goals Listed below are the general goals for redevelopment of the Project Area. These goals provide overall focus and direction for this Redevelopment Plan. 1. An environment within the Project Area that will contribute more positively to the health, safety and general welfare of the City, and preserve or enhance the value of properties within and adjacent to the Project Area. 2. Elimination of the factors that qualified the Project Area as a blighted area. 3. An increased real estate tax base for the City and other taxing districts having jurisdiction over the Project Area. 4. Redevelopment of the Project Area in accordance with the Redevelopment Plan, the Comprehensive Plan and contemporary development needs and standards. 5. New commercial development to expand the sales tax and employment base of the City. A Redevelopment Objectives Listed below are the redevelopment objectives which will guide planning decisions regarding redevelopment within the Project Area. 1. To reduce or eliminate the conditions which qualify the Project Area as a blighted area and eliminate the influences and manifestations of physical and economic deterioration and obsolescence. 2. Create an environment and provide incentives that stimulate private investment in new construction. 3. Encourage a high - quality appearance of buildings and sites and encourage high standards of design. US Route 34 & IL Route 47 (Countryside Shopping Center) page 10 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 I I I 4. Encourage coordinated redevelopment of parcels and structures in order to achieve efficient building design and unified off - street parking and service facilities. 5. Where appropriate, provide adequate screening and buffering improvements between different land uses. 6. Redevelop underutilized and obsolete sites. US Route 34 & IL Route 47 (Countryside Shopping Center) page 11 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 V. REDEVELOPMENT PROJECT This section presents the Redevelopment Project anticipated to be undertaken by the City and by private entities in furtherance of this Redevelopment Plan. The Redevelopment Project described in this Redevelopment Plan and pursuant to the Act includes: • the overall redevelopment concept and goals; • the land use plan; • development and design objectives; • a description of redevelopment improvements and activities; • estimated redevelopment project costs; • a description of sources of funds to pay estimated redevelopment project costs; • a description of obligations that may be issued; and • identification of the most recent EAV of properties in the Project Area and an estimate of future EAV. A. Overall Redevelopment Concept and Land Use Plan The Project Area should be revitalized and redeveloped as a cohesive, distinctive, and active shopping area with commercial and retail uses that contribute to the vitality of the US Route 34 and IL Route 47 district and provide for the needs of residents, businesses, and visitors. The Project Area should provide employment opportunities and consist of new commercial development that provides contemporary space for retail, restaurant, and service businesses and other uses allowed in the City's commercial district. The Project Area should be served by a street system, parking facilities, access points and public infrastructure that provide safe and convenient access to and circulation within the Project Area for vehicles, pedestrians and bicycles, as appropriate. The Project Area should also be characterized by cohesive urban design features that organize and provide focus to the Project Area, including quality building materials; pedestrian amenities; distinctive lighting, signage and landscaping; and other appropriate site amenities. Figure 2, Land Use Plan, identifies the land uses to be in effect upon adoption of this Redevelopment Plan. This Redevelopment Plan and the Redevelopment Project described herein conform to the land -use development policies and standards for the City as set forth in the City's 2002 Comprehensive Plan. As indicated in this figure, the Project Area should be designated for commercial uses. US Route 34 & IL Route 47 (Countryside Shopping Center) page 12 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 Countryside Parkway i II�0� Bloek;�,104 Parcel: 015 r` d a� 0 tr x J l L CO a L C U Us Route 34 11 Project Area Boundary ® Commercial Figure 2 Land Use Plan US Route 34 & IL Route 47 Yo rkville., Tax Increment Financing Redevelopment Project Area URS • TPAP A Development and Design Objectives Listed below are specific development and design objectives that will assist the City in directing and coordinating public and private improvement and investment within the Project Area in order to achieve the general goals and objectives identified in Section IV of this Redevelopment Plan. • Promote quality new commercial developments in the Project Area. • Encourage land use arrangements that buffer adjacent residential neighborhoods from more intensive uses, traffic patterns and other impacts. • Ensure that private development and redevelopment improvements to sites and streetscapes are consistent with public improvement goals and plans for the US Route 34 and IL Route 47 corridors. • Ensure that design, access, parking and circulation in the Project Area enhances the overall commercial environment of the US Route 34 and IL Route 47 corridors and is compatible with adjacent developments. • Promote the use of landscaping and attractive fencing to screen dumpsters, waste collection areas, loading and service areas, and the perimeter of parking lots and other vehicular use areas. • Provide adequate screening and buffering between different land uses. • Ensure high quality and harmonious architectural, signage and landscape design throughout the Project Area. • Promote the use of architectural treatments and landscaping around all sides of new buildings to add visual interest. • Ensure that all commercial parking areas are paved, striped, lighted, well maintained and properly drained. • Upgrade utilities and infrastructure, as required. 0 As appropriate, install improvements related to traffic engineering and controls, including improvements related to access, ingress, egress, movement, parking and signalization. • Where feasible and appropriate, improve street surface conditions, sidewalks, curbs and gutters, and street lighting. US Route 34 & IL Route 47 (Countryside Shopping Center) page 14 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 C. Redevelopment Improvements and Activities The City proposes to achieve its redevelopment goals and objectives for the Project Area through the use of public financing techniques including, but not limited to, tax increment financing, to undertake some or all of the activities and improvements authorized under the Act, including the activities and improvements described below. The City also maintains the flexibility to undertake additional activities and improvements authorized under the Act, if the need for activities or improvements changes as redevelopment occurs in the Project Area. The City may enter into redevelopment agreements with public or private entities for the furtherance of this Redevelopment Plan. Such redevelopment agreements may be for the assemblage of land; the construction, rehabilitation, renovation or restoration of improvements or facilities; the provision of services; or any other lawful purpose. Redevelopment agreements may contain terms and provisions, which are more specific than the general principles set forth in this Redevelopment Plan. 1. Analysis, Administration, Studies, Surveys, Legal, Marketing, etc. The City may undertake or engage professional consultants, engineers, architects, attorneys, etc. to conduct various analyses, studies, surveys, administration or legal services to establish, implement and manage the Redevelopment Plan. The City may also undertake the cost of marketing sites within the Project Area to prospective businesses, developers and investors. 2. Property Assembly, Site Preparation and Environmental Remediation Property acquisition and land assembly by the private sector or public entities in accordance with this Redevelopment Plan will be encouraged by the City. To meet the goals and objectives of this Redevelopment Plan, the City may acquire and assemble any and all property within the Project Area. Land assemblage by the City may be by purchase, exchange, donation, lease, or eminent domain and may be for the purpose of: (a) sale, lease or conveyance to private developers or other public bodies; or (b) sale, lease, conveyance or dedication for the construction of public improvements or facilities. Furthermore, the City may require written redevelopment agreements with developers before acquiring any properties. As appropriate, the City may devote acquired property to temporary uses until such property is scheduled for disposition and development. Property assembly may also include demolition of buildings, site preparation, and site improvements that serve as an engineered barrier to ground level or below ground level environmental contamination. 3. Provision of Public Works or Improvements The City may provide public improvements and facilities that are necessary to service the Project Area in accordance with the Redevelopment Plan and the Comprehensive Plan. Public improvements and facilities may include, but are not limited to, improvements to streets, sidewalks, utilities and traffic control infrastructure. US Route 34 & IL Route 47 (Coundyside Shopping Center) page 15 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 4. Relocation In the event that residents, active businesses or other occupants are displaced by the public acquisition of property, they may be relocated and may be provided with financial assistance and advisory services. Relocation services will be provided in accordance with City policy and the Act. 5. Job Training and Related Educational Programs Programs designed to increase the skills of the labor force that would take advantage of the employment opportunities within the Project Area may be implemented. 6. Building Rehabilitation The City may reimburse all or a portion of the costs incurred by property or business owners that undertake building rehabilitation projects in furtherance of the objectives of this Redevelopment Plan. 7. Interest Subsidies Funds may be provided to redevelopers for a portion of interest costs incurred by a rede- veloper related to the construction, renovation or rehabilitation of a redevelopment project provided that: (a) such costs are to be paid directly from the special tax allocation fund established pur- suant to the Act; (b) such payments in any one year may not exceed 30 percent of the annual interest costs incurred by the redeveloper with respect to the redevelopment project during that year; (c) if there are not sufficient funds available in the special tax allocation fund to make an interest payment, then the amounts so due shall accrue and be payable when suffi- cient funds are available in the special tax allocation fund; (d) the total of such interest payments paid pursuant to the Act may not exceed 30 per- cent of the total (i) cost paid or incurred by a redeveloper for a redevelopment project plus (ii) redevelopment project costs excluding any property assembly costs and any relocation costs incurred by the City pursuant to the Act; and (e) the cost limits set forth in this paragraph in subparagraphs (b) and (d) above shall be modified to permit payment of up to 75 percent of interest costs incurred by a rede- veloper for the financing of rehabilitated or new housing units for low- income house- holds and very low- income households, as defined in Section 3 of the Illinois Afford- able Housing Act. US Route 34 & IL Route 47 (Counbyside Shopping Center) page 16 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 D. Redevelopment Project Costs The various redevelopment expenditures which are eligible for payment or reimbursement under the Act are reviewed below. Following this review is a list of estimated redevelopment project costs that are deemed necessary to implement this Redevelopment Plan (the "Redevelopment Project Costs "). Eligible Redevelopment Project Costs Redevelopment Project Costs include the sum total of all reasonable or necessary costs incurred, estimated to be incurred, and any costs incidental to this Redevelopment Plan pursuant to the Act. Such costs may include, without limitation, the following: (1) Costs of studies, surveys, development of plans and specifications, implementation and administration of the redevelopment plan including but not limited to, staff and professional service costs for architectural, engineering, legal, financial, planning or other services, provided that no charges for professional services are based on a percentage of the tax increment collected except that on and after November 1, 1999, no contracts for professional services, excluding architectural and engineering services, may be entered into if the terms of the contract extend beyond a period of 3 years. In addition, "redevelopment project costs" shall not include lobbying expenses; (2) The cost of marketing sites within the redevelopment project area to prospective businesses, developers, and investors; (3) Property assembly costs, including but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, site preparation, site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination, including, but not limited to parking lots and other concrete or asphalt barriers, and the clearing and grading of land; (4) Costs of rehabilitation, reconstruction or repair or remodeling of existing public or private buildings, fixtures, and leasehold improvements; and the cost of replacing an existing public building if pursuant to the implementation of a redevelopment project the existing public building is to be demolished to use the site for private investment or devoted to a different use requiring private investment; (5) Costs of the construction of public works or improvements; except that on and after November 1, 1999, redevelopment project costs shall not include the cost of constructing a new municipal public building principally used to provide offices, storage space, or conference facilities or vehicle storage, maintenance, or repair for administrative, public safety, or public works personnel and that is not intended to replace an existing public building as provided under paragraph (3) of subsection (g) of Section 11- 74.4 -3 unless either (i) the construction of the new municipal building implements a redevelopment project that was included 'in a US Route 34 & IL Route 47 (Countryside Shopping Center) page 17 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 redevelopment plan that was adopted by the municipality prior to November 1, 1999 or (ii) the municipality makes a reasonable determination in the redevelopment plan supported by information that provides the basis for that determination, that the new municipal building is required to meet an increase in the need for public safety purposes anticipated to result from the implementation of the redevelopment plan; (6) Costs of job training and retraining projects, including the cost of "welfare to work" programs implemented by businesses located within the redevelopment project area; (7) Financing costs including, but not limited to, all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations issued hereunder including interest accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and for a period not exceeding 36 months following completion and including reasonable reserves related thereto; (8) To the extent the municipality by written agreement accepts and approves the same, all or a portion of a taxing district's capital costs resulting from a redevelopment project necessarily incurred or to be incurred in furtherance of the objectives of the redevelopment plan and project; (9) Relocation costs to the extent that a municipality determines that relocation costs shall be paid or is required to make payment of relocation costs by federal or state law; (10) Payment in lieu of taxes as defined in the Act; (11) Costs of job training, retraining, advanced vocational education or career education, including but not limited to courses in occupational, semi - technical or technical fields leading directly to employment, incurred by one or more taxing districts, provided that such costs (i) are related to the establishment and maintenance of additional job training, advanced vocational education or career education programs for persons employed or to be employed by employers located in a redevelopment project area; and (ii) when incurred by a taxing district or taxing districts other than the municipality, are set forth in a written agreement by or among the municipality and the taxing district or taxing districts, which agreement describes the program to be undertaken including but not limited to, the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay for the same, and the term of the agreement. Such costs include, specifically, the payment by community college districts of costs pursuant to Sections 3 -37, 3 -38, 3 -40, and 3 -40.1 of the Public Community College Act (as cited in the Act) and by school districts of costs pursuant to Sections 10- 22.20a and 10 -23.3a of the School Code (as cited in the Act); US Route 34 & IL Route 47 (Countryside Shopping Center) page 18 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 (12) Interest costs incurred by a redeveloper related to the construction, renovation or rehabilitation of a redevelopment project provided that: a) such costs are to be paid directly from the special tax allocation fund estab- lished pursuant to the Act; b) such payments in any one year may not exceed 30 percent of the annual inter- est costs incurred by the redeveloper with regard to the redevelopment project during that year; c) if there are not sufficient funds available in the special tax allocation fund to make the payment pursuant to this provision, then the amounts so due shall accrue and be payable when sufficient funds are available in the special tax al- location fund; d) the total of such interest payments paid pursuant to the Act may not exceed 30 percent of the total: (i) cost paid or incurred by the redeveloper for such rede- velopment project, plus (ii) redevelopment project costs excluding any prop- erty assembly costs and any relocation costs incurred by a municipality pursu- ant to the Act; and e) Up to 75 percent of the interest cost incurred by a redeveloper for the financ- ing of rehabilitated or new housing units for low- income households and very low- income households, as defined in Section 3 of the Illinois Affordable Housing Act. (13) Unless explicitly provided in the Act, the cost of construction of new privately - owned buildings shall not be an eligible redevelopment project cost; (14) An elementary, secondary, or unit school district's increased costs attributable to assisted housing units will be reimbursed as provided in the Act; and (15) Up to 50 percent of the cost of construction, renovation and/or rehabilitation of all low- and very low- income housing units (for ownership or rental) as defined in Section 3 of the Illinois Affordable Housing Act. If the units are part of a residential redevelopment project that includes units not affordable to low- and very low- income households, only the low- and very low- income units shall be eligible for benefits under the Act. (16) After November 1, 1999, none of the redevelopment project costs enumerated in this subsection shall be eligible redevelopment project costs if those costs would provide direct financial support to a retail entity initiating operations in the redevelopment project area while terminating operations at another Illinois location within 10 miles of the redevelopment project area but outside the boundaries of the redevelopment project area municipality. For purposes of this paragraph, termination means a closing of a retail operation that is directly related to the opening of the same operation or like retail entity owned or operated by more than 50% of the original ownership in a redevelopment project area but it US Route 34 & IL Route 47 (Countryside Shopping Center) page 19 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 does not mean closing an operation for reasons beyond the control of the retail entity, as documented by the retail entity, subject to a reasonable finding by the municipality that the current location contained inadequate space, had become economically obsolete, or was no longer a viable location for the retailer or serviceman. If a special service area has been established pursuant to the Special Service Area Tax Act, [35 ILCS 235/0.01 et. seq.] then any tax increment revenues derived from the tax imposed pursuant to the Special Service Area Tax Act may be used within the redevelopment project area for the purposes permitted by the Special Service Area Tax Act as well as the purposes permitted by the Act. Estimated Redevelopment Project Costs A range of redevelopment activities and improvements will be required to implement this Redevelopment Plan. The activities and improvements and their estimated costs are set forth in Exhibit I of this Redevelopment Plan. All estimates are based on 2004 dollars. Funds may be moved from one line item to another or to an eligible cost category described in this Redevelop- ment Plan at the City's discretion. To the extent that municipal obligations have been issued to pay for such Redevelopment Project Costs prior to, and in anticipation of, the adoption of TIF, the City shall be reimbursed from Incremental Property Taxes for such Project Costs. Redevelopment Project Costs described in this Redevelopment Plan are intended to provide an upper estimate of expenditures. Within this upper estimate, adjustments may be made in line items without amending this Redevelopment Plan. In the event the Act is amended by the General Assembly after the date of the approval of this Redevelopment Plan by the City to (a) include new eligible redevelopment project costs, or (b) expand the scope or increase the amount of existing eligible redevelopment project costs (such as, for example, by increasing the amount of incurred interest costs that may be paid under 65 ILCS 5/1- 74.4- 3(q)(11)), this Redevelopment Plan shall be deemed to incorporate such additional, expanded or increased eligible redevelopment project costs under the Redevelopment Plan to the extent permitted by the Act. In the event of such amendment(s) to the Act, the City may add any new eligible redevelopment project costs as a line item in Exhibit I or otherwise adjust the line items in Exhibit I without amendments to this Redevelopment Plan, to the extent permitted by the Act. Increases in estimated total Redevelopment Project Costs of more than five percent, after adjustment for inflation from the date of the Redevelopment Plan adoption, are subject to the Redevelopment Plan amendment procedures as provided under the Act. E. Sources of Funds to Pay Redevelopment Project Costs Funds necessary to pay for Redevelopment Project Costs and secure municipal obligations issued for such costs are to be derived primarily from Incremental Property Taxes. Other sources of funds which may be used to pay for Redevelopment Project Costs or secure municipal obligations are land disposition proceeds, state and federal grants, investment income, private financing and other US Route 34 & IL Route 47 (Counhyside Shopping Center) page 20 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 legally permissible funds the City may deem appropriate. The City may incur Redevelopment Project Costs, which are paid for from funds of the City other than Incremental Property Taxes, and the City may then be reimbursed for such costs from Incremental Property Taxes. Also, the City may permit the utilization of guarantees, deposits and other forms of security made available by private sector developers. Additionally, the City may utilize revenues, other than State sales tax increment revenues, received under the Act from one redevelopment project area for eligible costs in another redevelopment project area that is either contiguous to, or is separated only by a public right -of -way from, the redevelopment project area from which the revenues are received. The Project Area may, in the future, be contiguous to or separated by only a public right -of -way from other redevelopment project areas created under the Act. The City may utilize net Incremental Property Taxes received from the Project Area to pay eligible redevelopment project costs, or obligations issued to pay such costs, in other contiguous redevelopment project areas or redevel- opment project areas separated only by a public right -of -way, and vice versa. The amount of revenue from the Project Area, made available to support such contiguous redevelopment project areas, or those separated only by a public right -of -way, when added to all amounts used to pay eligible Redevelopment Project Costs within the Project Area, shall not at any time exceed the total Redevelopment Project Costs described in this Redevelopment Plan. The Project Area may become contiguous to, or be separated only by a public right -of -way from, redevelopment project areas created under the Industrial Jobs Recovery Law (65 ILCS 5/11- 74.6 -1, et seq.). If the City finds that the goals, objectives and financial success of such contiguous redevelopment project areas or those separated only by a public right -of -way are interdependent with those of the Project Area, the City may determine that it is in the best interests of the City and in furtherance of the purposes of the Redevelopment Plan that net revenues from the Project Area be made available to support any such redevelopment project areas. The City therefore proposes to utilize net incremental revenues received from the Project Area to pay eligible redevelopment project costs (which are eligible under the Industrial Jobs Recovery Law referred to above) in any such areas and vice versa. Such revenues may be transferred or loaned between the Project Area and such areas. The amount of revenue from the Project Area so made available, when added to all amounts used to pay eligible Redevelopment Project Costs within the Project Area or other areas as described in the preceding paragraph, shall not at any time exceed the total Redevelopment Project Costs described in Exhibit I of this Redevelopment Plan. F. Issuance of Obligations The City may issue obligations secured by Incremental Property Taxes pursuant to Section 11- 74.4-7 of the Act. To enhance the security of a municipal obligation, the City may pledge its full faith and credit through the issuance of general obligation bonds. Additionally, the City may provide other legally permissible credit enhancements to any obligations issued pursuant to the Act. All obligations issued by the City pursuant to this Redevelopment Plan and the Act shall be retired within twenty (20) years of their date of issuance, and no later than December 31 of the year in which the payment to the municipal treasurer is to be paid with respect to ad valorem taxes levied in the twenty-third calendar year after the year in which the ordinance approving the Project Area US Route 34 & IL Route 47 (Countryside Shopping Center) page 21 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 and credit through the issuance of general obligation bonds. Additionally, the City may provide other legally permissible credit enhancements to any obligations issued pursuant to the Act. All obligations issued by the City pursuant to this Redevelopment Plan and the Act shall be retired within twenty (20) years of their date of issuance, and no later than December 31 of the year in which the payment to the municipal treasurer is to be paid with respect to ad valorem taxes levied in the twenty-third calendar year after the year in which the ordinance approving the Project Area and the Redevelopment Plan was adopted, such ultimate retirement date occurring on December 31, 2028. In addition to paying Redevelopment Project Costs, Incremental Property Taxes may be used for the scheduled retirement of obligations, mandatory or optional redemptions, establishment of debt service reserves and bond sinking funds and any other lawful purpose. To the extent that Incremental Property Taxes are not needed for these purposes, any excess Incremental Property Taxes shall then become available for distribution annually to taxing districts having jurisdiction over the Project Area in the manner provided by the Act. G. Valuation of the Project Area 1. Most Recent EAV of Properties in the Project Area The most recent EAV of the single tax parcel in the Project Area is estimated to total $1,553,330. This EAV is based on the 2003 assessed valuation and is subject to verification by the County Clerk. After verification, the final figure shall be certified by the County Clerk of Kendall County, Illinois. This certified amount shall become the Certified Initial EAV from which all Incremental Property Taxes in the Project Area will be calculated by Kendall County. The Project Area's only parcel has 2003 tax parcel number of 02 -28- 104 -015 and, as stated above, its 2003 EAV is $1,553,330. 2. Anticipated Equalized Assessed Valuation By the year 2028 and following the completion of the Redevelopment Plan and Project, the EAV of the Project Area is estimated to total approximately $8.5 million. This estimate is based on several key assumptions, including: 1) redevelopment of the Project Area will occur in a timely manner; 2) demolition of existing buildings and new construction of approximately 175,000 square feet of retail space; 3) the EAV of new developments in the Project Area will grow at the rate of 2.0 percent per annum; and 4) a state equalization factor of 1.0000 is used in all years to calculate estimated EAV. US Route 34 & IL Route 47 (Countryside Shopping Center) page 22 Tax Increment Financing Redevelopment Project and Plan United City of'Yorkville September 17, 2004 VI. LACK OF GROWTH AND DEVELOPMENT THROUGH INVESTMENT BY PRIVATE ENTERPRISE As described in Section III of this Redevelopment Plan, the Project Area as a whole is adversely impacted by the presence of numerous blighted area factors, which represent impediments to sound growth and development. Specific findings regarding lack of growth and development through investment by private enterprise include: • The Project Area buildings and site improvements exhibit various levels of deterioration due to lack of maintenance and repair; • Various components of the Project Area buildings are below code standards and have not been corrected through upgrade and rehabilitation; • In the past two years, the equalized assessed valuation of the Project Area has declined and in five of the six years between 1997 and 2003, the growth rate of the total equalized assessed valuation ( "EAV ") of the Project Area lagged behind the growth rate in the total EAV of the balance of the City as a whole (total EAV of the City less total Project Area EAV). • The average annual growth rate in the total EAV of the Project Area over the past six years (1997 to 2003) was only 3.7% compared to a rate of 14.1% for the balance of the City as a whole (a rate over three times that of the Project Area). • Despite a strong commercial market location in the City, retailers have progressively vacated or rejected the option of locating in the Shopping Center (evidenced by a chronic vacancy rate, declining retail mix and current vacancy rate of nearly 50 %) -- resulting in reduced Shopping Center income and lack of ongoing leasehold improvements. In summary, the Project Area as a whole is eligible as a redevelopment project area, based on eligibility for a blighted area. The meaningful presence and reasonable distribution of blighted area conditions are detrimental to the public safety, health, and welfare of the City and provide evidence to support the finding that the Project Area on the whole has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of this Redevelopment Plan for the Project Area. US Route 34 & IL Route 47 (Countryside Shopping Center) page 23 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 VII. FINANCIAL IMPACT Without the adoption of this Redevelopment Plan and TIF, the Project Area is not reasonably expected to be redeveloped by private enterprise. In the absence of City- sponsored redevelopment initiatives there is a prospect that blighted area conditions will continue to exist and spread, and the Project Area on the whole and adjacent properties will become less attractive for new development, redevelopment and rehabilitation of existing buildings. In the absence of City- sponsored redevelopment initiatives, erosion of the assessed valuation of property in and outside of the Project Area could lead to a continued reduction of real estate tax revenue to all taxing districts. Section V of this Redevelopment Plan describes the comprehensive Redevelopment Project proposed to be undertaken by the City to create an environment in which private investment can occur. The Redevelopment Project will be staged over a period of years consistent with local market conditions and available financial resources required to complete the various redevelopment improvements and activities as well as the Redevelopment Project set forth in this Redevelopment Plan. Successful implementation of this Redevelopment Plan is expected to result in new private investment in rehabilitation of viable existing buildings and new construction on a scale sufficient to eliminate deteriorating problem conditions and to return the area to a long -term sound condition. The Redevelopment Project is expected to have both short- and long -term positive financial impacts on the taxing districts affected by the Redevelopment Plan. In the short-term, the City's effective use of TIF can be expected to stabilize existing assessed values in the Project Area, thereby stabilizing the existing tax base for local taxing agencies. In the long -term, after the completion of all redevelopment improvements and activities, the Redevelopment Project and the payment of all Redevelopment Project Costs and municipal obligations, the taxing districts will benefit from any enhanced tax base which results from the increase in EAV caused by the Redevelopment Project. US Route 34 & IL Route 47 (Countuside Shopping Center) page 24 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 i I VIII. DEMAND ON TAXING DISTRICT SERVICES The Redevelopment Plan provides for commercial and retail development activity within the Project Area. The exact quantity and e of new development Prod q ty type is not known at this time. It is p anticipated that redevelopment projects implemented as part of the Redevelopment Project and Plan may cause increased demand for services or capital improvements on some of the taxing districts. The Project Area is comprised of property located within one tax code. The taxing agencies that currently levy taxes against property in the Project Area are: Kendall County, Bristol Township, United City of Yorkville, Waubonsee Junior College 516, Yorkville Bristol Sanitary District, Bristol Kendall Fire District, Kendall County Forest Preserve, Yorkville School District 115, and the Yorkville Library District. It is possible that the replacement of underutilized properties with new commercial/retail development will increase the demand for services such as police protection, sanitary collection, sanitary and storm sewage treatment, etc. However, it is expected that any increase in demand for City and other impacted taxing districts' services can be adequately handled by existing services and facilities. Therefore, at this time, no special programs are proposed for potentially impacted taxing districts. Should demand increase so that it exceeds existing service and program capabilities, the City will work with the affected taxing district to determine what, if any, program is necessary to provide adequate services. USRoute 34 & IL Route 47 (Countryside Shopping Center) page 25 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND PROJECT TO THE COMPREHENSIVE PLAN FOR THE DEVELOPMENT OF THE CITY AS A WHOLE This Redevelopment Plan and the Redevelopment Project described herein conform to the comprehensive plan for the City as a whole as set forth in the City's 2002 Comprehensive Plan. US Route 34 & IL Route 47 (Countryside Shopping Center) page 26 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 X. PHASING AND SCHEDULING A phased implementation strategy will be utilized to achieve comprehensive and coordinated redevelopment of the Project Area. It is anticipated that City expenditures for Redevelopment Project Costs will be carefully staged on a reasonable and proportional basis to coincide with Redevelopment Project expenditures by private developers and the receipt of Incremental Property Taxes by the City. The estimated date for completion of Redevelopment Projects is no later than December 31 of the year in which the payment to the City treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the twenty-third calendar year following the year in which the ordinance approving the Project Area is adopted (i.e., assuming City Council approval of the Project Area and Redevelopment Plan in 2004, by December 31, 2028). US Route 34 & IL Route 47 (Countryside Shopping Center) page 27 Tax Increment Financing Redevelopment Project and Plan United City oj'Yorkville September 17, 2004 XI. PROVISIONS FOR AMENDING THE REDEVELOPMENT PLAN This Redevelopment Plan may be amended pursuant to the Act. I i II US Route 34 & IL Route 47 (Countryside Shopping Center) page 28 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 XII. COMMITMENT TO FAIR EMPLOYMENT PRACTICES AND AFFIRMATIVE ACTION PLAN The City is committed to and will affirmatively implement the following principles with respect to the Redevelopment Plan: A) The assurance of equal opportunity in all personnel and employment actions with respect to the Redevelopment Plan, including, but not limited to: hiring, training, transfer, promotion, discipline, fringe benefits, salary, employment working conditions, termination, etc., without regard to race, color, religion, sex, . age, handicapped status, national origin, creed or ancestry. B) This commitment to affirmative actions will ensure that all members of the protected groups are sought out to compete for all job openings and promotional opportunities. In order to implement these principles for this Redevelopment Plan, the City shall require and promote equal employment practices and affirmative action on the part of itself and its contractors and vendors. In particular, parties engaged by the City shall be required to agree to the principles set forth in this section. �I i US Route 34 & IL Route 47 (Countryside Shopping Center) page 29 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 XIII. IMPACT ON INHABITED RESIDENTIAL UNITS As set forth in the Act, if the redevelopment plan for a redevelopment project area would result in the displacement of residents from 10 or more inhabited residential units, or if the redevelopment project area contains 75 or more inhabited residential units and a municipality is unable to certify that no displacement will occur, the municipality must prepare a housing impact study and incorporate the study in the redevelopment project plan. The Project Area contains no inhabited residential units. Given that this Redevelopment Plan would not result in the displacement of residents from 10 or more inhabited residential units and the Project Area does not contain 75 or more inhabited residential units, the completion of a housing impact study is not required under the Act. US Route 34 & IL Route 47 (Countryside Shopping Center) page 30 Tax Increment Financing Redevelopment Project and Plan United City of Yorkville September 17, 2004 EXHIBIT I: US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project Area Estimated Redevelopment Project Costs ELIGIBLE EXPENSE ESTIMATED COST Analysis, Administration, Studies, Surveys, Legal, Marketing etc. $250,000 Property Assembly including Acquisition, Site Prep and Demolition, Environmental Remediation $5,000,000 Public Works & Improvements, including streets and utilities and public facilitiesM $1,000,000 Interest Subsidies $500,000 Rehabilitation of existing buildings, fixtures and leasehold improvements $250,000 Relocation Costs $100,000 Job Training and Vocational Education $100,000 TOTAL REDEVELOPMENT PROJECT COSTS $7,200,000 121131 This category may also include paying for or reimbursing (i) an elementary, secondary or unit school district's increased costs attributed to assisted housing units, and (ii) capital costs of taxing districts impacted by the redevel- opment of the Project Area. As permitted by the Act, to the extent the City by written agreement accepts and ap- proves the same, the City may pay, or reimburse all, or a portion of a taxing district's capital costs resulting from a redevelopment project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the Redevelopment Plan. 121 Total Redevelopment Project Costs exclude any additional financing costs, including any interest expense, capi- talized interest and costs associated with optional redemptions. These costs are subject to prevailing market condi- tions and are in addition to Total Redevelopment Project Costs. t31 Increases in estimated total Redevelopment Project Costs of more than five percent, after adjustment for inflation from the date of the Redevelopment Plan adoption, are subject to the Redevelopment Plan amendment procedures as provided under the Act. The amount of the total Redevelopment Project Costs that can be incurred in the Project Area will be reduced by the amount of redevelopment project costs incurred in contiguous redevelopment project areas, or those separated from the Project Area only by a public right -of -way, that are permitted under the Act to be paid, and are paid, from Incremental Property Taxes generated in the Project Area, but will not be reduced by the amount of redevelopment project costs incurred in the Project Area which are paid from Incremental Property Taxes generated in contiguous redevelopment project areas or those separated from the Project Area only by a public right -of -way. Total Redevelopment Project Costs listed above are expected to be paid for with Incremental Property Taxes, how- ever, additional funding from other sources such as federal, state, county, or local grant funds may be utilized to supplement the City's ability to finance Redevelopment Project Costs identified above. EXHIBIT II: US ROUTE 34 & IL ROUTE 47 (COUNTRYSIDE SHOPPING CENTER) TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA ELIGIBILITY STUDY i US ROUTE 34 & IL ROUTE 47 (COUNTRYSIDE SHOPPING CENTER) TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA ELIGIBILITY STUDY United City of Yorkville, Illinois I Prepared by URS•TPAP September 17, 2004 TABLE OF CONTENTS I . EXECUTIVE SUMMARY ............................................... ............................... 1 II. BASIS FOR REDEVELOPMENT .................................... ............................... 4 III. THE PROJECT AREA .................................................... ............................... 5 IV. ELIGIBILITY SURVEY AND ANALYSIS ..................... ............................... 7 V. ELIGIBILITY CONCLUSIONS ...................................... ............................... 19 APPENDIX — I "United City of Yorkville memorandum and Report of Inspections, 500 -546 Countryside Center, February 10, 2004" i LIST OF FIGURES Figure 1: Project Area Boundary Map .............................................................. ............................... 3 Figure2: Existing Building- Use ......................................................................... ..............................6 Figure3: Exterior Survey Form ......................................................................... ............................... 8 i Figure 4: Distribution of Blight Factors .......................................................... ............................... 20 LIST OF TABLES Table 1: Growth in EAV of the Project Area vs. the City of Yorkville............................................................................................. .............................18 I. EXECUTIVE SUMMARY The purposes of this report entitled US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project Area Eligibility Study (the "Eligibility Study ") are to: (i) document the conservation factors that are present within the US Route 34 & IL Route 47 (Countryside Shopping Center) Redevelopment Project Area (the "Project Area ") in the United City of Yorkville (the "City "), and (ii) conclude whether the Project Area qualifies for designation as a blighted area within the definitions set forth in the Tax Increment Allocation Redevelopment Act (the "Act "). The Act is found in Illinois Compiled Statutes, Chapter 65, Act 5, Section 11- 74.4-1 et. seq., as amended. The findings and conclusions contained in this Eligibility Study are based on surveys, documentation, and analyses of physical conditions within the Project Area. The City is entitled to rely on the findings and conclusions of this Eligibility Study in designating the Project Area as a redevelopment project area under the Act. URS -TPAP has prepared this Eligibility Study and the related US Route 34 & IL Route 47 (Countryside Shopping Center) Tax Increment Financing Redevelopment Project and Plan (the "Redevelopment Plan") with the understanding that the City would rely on (i) the findings and conclusions of this Eligibility Study and the related Redevelopment Plan in proceeding with the designation of the Project Area as a redevelopment project area under the Act, and (ii) the fact that URS•TPAP has obtained the necessary information so that the Eligibility Study and the related Redevelopment Plan will comply with the Act. The determination of whether the Project Area qualifies for designation as a blighted area pursuant to the Act is made by the City after careful review and consideration of the conclusions contained in this Eligibility Study. The Project Area is approximately 20.2 acres and is located in the northwest quadrant of the intersection of US Route 34 and IL Route 47. It is comprised of a large single tax parcel that contains an outlot cinema building and a cluster of three buildings organized around an open pedestrian landscaped court. The buildings are surrounded by accessory parking. The boundaries of the Project Area are generally coterminous with the property assigned 2003 tax parcel number 02 -28- 104 -015 plus adjacent right -of -way of IL Route 47. The boundaries of the Project Area are shown on Figure 1, Project Area Boundary. Existing conditions in the Project Area include extensive long -term vacancies, deteriorated buildings and site improvements, obsolescence based on size, configuration and layout, buildings below minimum local code standards, a declining and lagging equalized assessed valuation, and a need for environmental remediation. These conditions, combined with the general lack of private investment in the area have led the City to initiate the Eligibility Study. The City engaged URS•TPAP to analyze conditions in the Project Area to determine whether the Project Area qualifies for designation as a "redevelopment project area" based on criteria for a "blighted area" contained in the Act. US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 1 Eligibility Study Yorkville, Illinois — September 17, 2004 Eligibility Evaluation The approach taken to evaluate the presence of eligibility factors within the Project Area is listed below. • Survey the Project Area to document the physical conditions of buildings and site improvements. • Document and analyze existing land uses and their relationships with one another, and the size, configuration and layout of buildings and parcels. • Review supporting secondary and previously prepared plans and documents, including the zoning ordinance and code violations anlaysis. • Tabulate and map the extent and distribution of blighted factors that exist within the Project Area. • Evaluate the extent and distribution of eligibility factors within the Project Area, and conclude whether the extent and distribution of the factors are sufficient to qualify the area for designation as a redevelopment project area. Summary Conclusions Based on the definitions set forth in the Act, the Project Area is found to be eligible for (i) classification as a "blighted area" and (ii) designation as a redevelopment project area. Specifically, • The Project Area is over 1 1 /2 acres; • 5 of the 13 blighted area factors, including "obsolescence," "deterioration," "structures below minimum code standards," "excessive vacancies," and "declining or lagging equalized assessed valuation" are present to a meaningful extent and are reasonably distributed throughout the Project Area; • An additional four factors are present to a more limited extent, including "lack of light, sanitation or sanitary facilities," "excessive land coverage and overcrowding of structures and community facilities," "environmental remediation," and "lack of community planning ", and support the overall blighted area finding; and • The Project Area includes only real property and improvements thereon substantially benefited by the proposed redevelopment project improvements. These conclusions are made on the basis that blighted area factors are (i) present to a meaningful extent and (ii) reasonably distributed throughout the Project Area. US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 2 Eligibility Study Yorkville, Illinois —September 17, 2004 Countryside Parkway 1 i Block: 104 Parcel: 015 i i a� �° I I i (a CU D_ C N U VS Route 34 Project Area Boundary Figure 1 Project Area Boundary Ro ute US Ro ute Tax Increment Financing Redevelopment Project Area URS • TPAP II. BASIS FOR REDEVELOPMENT A. Introduction The Illinois General Assembly made two key findings in adopting the Real Property Tax Increment Allocation Redevelopment Act: 1. That there exist in many municipalities within the State blighted and conservation areas; and 2. That the eradication of blighted areas and the treatment and improvement of conservation areas by redevelopment projects are essential to the public interest. These findings were made on the basis that the presence of blight or conditions which lead to blight are detrimental to the safety, health, welfare and morals of the public. To ensure that the exercise of these powers is proper and in the public interest, the Act also specifies certain requirements which must be met before a municipality can proceed with implementing a redevelopment project. One of these requirements is that the municipality must demonstrate that each prospective redevelopment project qualifies either as a "blighted area" or as a "conservation area" or combination thereof, within the definitions set forth in the Act (Section 11- 74.4 -3, as amended). i The definitions pertaining to blighted areas are paraphrased below. B. Eligibility of a Blighted Area A blighted area may be either improved or vacant. If the area is improved, it may be found to be eligible as a blighted area based on the fording that industrial, commercial, and residential buildings or improvements are detrimental to the public safety, health, or welfare because of a combination of 5 or more of the following 13 factors, each of which is (i) present, with that presence documented, to a meaningful extent so that a municipality my reasonably find that the factor is clearly present within the intent of the Act and (ii) reasonably distributed throughout the improved part of the redevelopment project area: 1. Dilapidation, 2. Obsolescence, 3. Deterioration, 4. Presence of structures below minimum code standards, 5. Illegal use of individual structures, 6. Excessive vacancies, 7. Lack of ventilation, light, or sanitary facilities, 8. Inadequate Utilities, 9. Excessive land coverage and overcrowding of structures and community facilities, 10. Deleterious land -use or lay -out, 11. Environmental remediation, 12. Lack of community planning, 13. Total EAV is declining or not keeping pace with the growth in the EAV for the balance of the City. US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 4 Eligibility Study Yorkville, Illinois — September 17, 2004 III. THE PROJECT AREA The Project Area encompasses an area of approximately 20.2 acres on a single tax parcel, containing the Countryside Shopping Center (the "Shopping Center ") and a separate theatre building on the same property. The Shopping Center leases approximately 158,000 of space. The Shopping Center consists of a cluster of three buildings with the largest building on the north which contains approximately 64,270 square feet of space configured for 10 tenant spaces; the west building contains approximately 52,500 square feet of space configured for 15 tenant spaces; and the east building contains approximately 29,900 square feet of space configured for 11 tenant spaces. The three buildings form a perimeter around a central open and landscaped pedestrian area. A service drive and perimeter parking areas surround the buildings. An 11,150 square foot cinema building is located to the southeast of the primary Shopping Center buildings (the cinema operation is closed). The Project Area is characterized by excessive vacancies, obsolescence, deterioration, code violations, declining equalized assessed valuation and a general lack of maintenance throughout the site. Sixteen of the 36 tenant spaces are vacant. Of the existing tenants, only a few are considered retail in nature. Several tenants include private, public or semi - public office uses. Over the past couple of years, several tenants have been on short-term or month -to -month leases. Figure 2, Existing Building Use, identifies existing uses within the Project Area. Outlots with a variety of freestanding commercial establishments are located adjacent to (but outside of) the Project Area along US Route 34 and IL Route 47. USRoute 34 & Illinois Route 47 (Coundyside Shopping Center) Redevelopment Project Area page 5 Eligibility Study Yorkville, Illinois — September 17, 2004 Countryside parkway Block: 104 Parcel: 015 d- m � I 0 • J o L a L v-. U � it Project Area Boundary US Route 34 Retail Service ® Public /Semi - Public 0 Vacant Space Figure 2 Existing Building Use Ro US Route 47 Yo rkville., Tax Increment Financing Redevelopment Project Area URS • TPAP IV. ELIGIBILITY SURVEY AND ANALYSIS FINDINGS An analysis was completed for each of the blight factors listed in the Act based on existing conditions in the Project Area to determine whether any of the factors are present, and if so, to what extent and in what locations. Surveys and analyses included: 1. Exterior survey of the condition and use of each building; 2'. Field survey of environmental conditions covering streets, sidewalks, lighting, traffic, parking facilities, landscaping, fences and walls, and general property maintenance; 3. Analysis of existing uses and their relationships; 4. Comparison of surveyed buildings to local codes of the City; 5. Review of the City of Yorkville code audit report and environmental report. 6. Analysis of original and current platting and building size and layout; 7. Analysis of the assessed valuation of properties over the past five years; and 8. Review of previously prepared plans, studies and data. A. Building Condition Analysis In August 2003, URS•TPAP documented physical conditions by means of an exterior survey of all buildings and properties. Noted during the inspections were structural deficiencies and occupancies of individual buildings and related environmental deficiencies in the Project Area. Summarized below is the process used for assessing building conditions in the Project Area, the standards and criteria used for evaluation, and the findings as to the existence of dilapidation or deterioration of structures. A copy of the Building Condition Survey Manual: Methods and Criteria for Evaluating Structures, which details the methodology used when completing the field survey work, will be provided to the City and filed with the official document. Figure 3, Exterior Survey Forin, illustrates the building condition survey form used to record building conditions and eligibility factors. 1. Building Components Evaluated During the field survey, each component of a subject building was examined to determine whether it was in sound condition or had minor, major or critical defects. Building components examined were of two types: -- Primary Structural These include the basic elements of any building: foundation walls, load bearing walls and columns, roof and roof structure. -- Secondary Components These are components generally added to the primary structural components and are necessary parts of the building, including porches and steps, windows and window units, doors and door units, chimneys, and gutters and downspouts. US Route 34 & Illinois Route 47 (Counbyside Shopping Centel) Redevelopment Project Area page 7 Eligibility Study Yorkville, Illinois —September 17, 2004 I EXTERIOR BUILDING SURVEY PROJECT (BLOCK# I I I PERSONNEL DATE 11�7M''":s ,ii, i " " I'��I� �', fil I O. YfP'ellgguL:nmsrrnlbn rltrnn c r. D0,1I i M..IiI - '• { {� O -y O "P 0O p " } {. / G A. Illagd Uwnn,W idmt III- O ..d ( �'L (�� iS� �G ��2 �j, � •Q ry� f ''4, �O '�j•� �mmwnnvoc+Nm Ddm. MmlmmmCndn 9u.utned. ' L�� CG .O G " ? r� G A r �7, h G r :n«xwrsma.,naNOw.en.'af.e.rs�m . C vmlC udryPeerlDim C CNr r.? .e g. LmR nrvwtlrabm,llW4msnniuryrauula Ift—i i L , n J. O r w. Dnio�.�.�.unMU ad Cy O II.Lxko /Cemmunlry Plmnlnp I J�1 , ' +l?, �' ii. DW. W mmmrn .,naaun e.d.+,n...navnwnron � w {''G5 4 gmVB�ng qan PARCEL BLDG ACTIVITY " ;;_ ^' COMMENTS O; ", II y IJ �" a� 17 { i {r, �II M I�I�iu{ 111�I�d Pq ` M ` IrFI nI�A a r ;q ]7 411 i,'�•,, �� I Ila.' IrF ?ia I' s s `��,'illf I h II n ;j �N� ', 7` ,,lfF�, pilu,�4i 'PNi 4. Ilr i'i',I UI °i'71i, ll n7 Fl ih,ii JJ �'� „ '.,F;'' i„ '� rx,� i, Zand,U5e al. �I ' 1 it q, Ji �i C1`_ N�II;I''.,I f' v CI "','', Construction' h �,,I�,,,I' D �'w 7 � V pti;,,l 't'" „Y ",I Ilifw ; ,.•.,',i I I I' "llw , , G,I', GfSileS;,,1';' I rl�lily, A II.I' ' nr, N w G fi IS ght, Decide' ti tf Residential t! I I story illia l Masonry "' p Before 1900 " 6 1950 -1960 Commercial 11 ]rnstory ET Concrete "s'I`u'j',' 1900 -1910 "u2, 1960 -1970 nt� "1 Industrial %12: stories 11 1.3 Wood ,1910 -1920 +`fS 1970 -1980 Public 9i!"L 2irstories 4 Metal ,fflp3 1920 -1930 x;19 1980 -1990 g "E; iS Semi - Public 101 3 stories Tw 1930 -1940 '' 1990 -2000 Transient 1m! 4 stories 1iH',i'''.'S 1940 -1950 ','I'I :! 2000 -2010 1 h: Wlllpaptbuildingsu"eytemplate .xis Figure 3 Exterior Building Survey Form US Route i R ou t e i Y Tax Increment Financing Redevelopment Project Area URS • TPAP -- Criteria for ClassifvinLy Defects for Building Components Each primary and secondary component was evaluated separately as a basis for determining the overall condition of individual buildings. This evaluation considered the relative importance of specific components within a building and the effect that deficiencies in components will have on the remainder of the building. Z Building Component Classifications The four categories used in classifying building components and systems and the criteria used in evaluating structural deficiencies are described below. -- Sound Building components which contain no defects, are adequately maintained, and require no treatment outside of normal maintenance as required during the life of the building. -- Deficient - Reauirina Minor Repair Building components which contain minor defects (loose or missing material or holes and cracks over a limited area) which may or may not be corrected through the course of normal maintenance but could be significant depending on the size of the building or number of buildings in a large complex. Buildings with minor defects clearly indicate a lack of or a reduced level of maintenance. Minor defects have limited effect on either primary or secondary components and the correction of such defects may be accomplished by the owner or occupants of either average size residences or smaller commercial buildings. Minor defects are not considered in rating a building as structurally substandard. -- Deficient - Requiring Maior Repair Building components which contain major defects over a widespread area and would be difficult to correct through normal maintenance. Buildings in the major deficient category would require replacement or rebuilding of components or significant upgrading of larger buildings or complexes of buildings by people skilled in the building and maintenance trades. -- Critical Building components which contain major defects so extensive that the building is classified as substandard (dilapidated) and the cost of and degree of repair would be excessive or unfeasible. Examples of such major defects are bowing, sagging, or settling to any or all exterior component causing the structure to be out -of- plumb, or broken, loose or missing material and deterioration over a widespread area. 3. Final Building Rating After completion of the exterior and interior building condition survey, each individual building was placed in one of four categories based on the combination of defects found in various primary and secondary building components. Each final rating is described below. -- Sound Sound buildings kept in a standard condition, presently requiring no maintenance. Buildings so classified have less than one minor defect. i US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 9 Eligibility Study Yorkville, Illinois — September 17, 2004 -- Deficient Deficient buildings contain defects which collectively are either not easily correctable through normal maintenance or require contracted skills to accomplish the level of improvements as part of maintenance or correction of defects. The classification of major or minor reflects the degree or extent of defects found during the survey of the building. -- Minor Buildings classified as minor deficient require minor repairs, i.e., the buildings have at least one minor defect, beyond normal maintenance, in one of the primary components or in the combined secondary components but contain less than one major defect. -- Major Buildings classified as major deficient require major repairs, i.e., the buildings have at least one major defect in either one of the primary components or in the combined secondary components, but contain less than one critical defect. -- Substandard Structurally substandard buildings contain defects which are so serious and so extensive that the building must be removed. Buildings classified as structurally substandard have two or more major defects on any of the primary or secondary components. Minor deficient and major deficient buildings are considered to be the same as deteriorating buildings as referenced in the Act; substandard buildings are the same as dilapidated buildings. The words building and structure are presumed to be interchangeable. B. Presence of Blighting Factors Summarized below are the conclusions of the surveys and analyses completed for each blighting factor based on existing conditions within the Project Area. The conclusions indicate whether the factor is found to be present within the Project Area, and the relative extent to which the factor is present. A factor noted as "not present" indicates either that no information was available or that no evidence could be documented as part of the various surveys and analyses which would indicate its presence. A factor noted as "present to a limited extent" indicates that the factor is present, but the distribution or impact of the factor is limited. Finally, a factor noted as "present to a major extent" indicates that the factor is present throughout major portions of the Project Area, and that the presence of such conditions has a major adverse impact or influence on adjacent and nearby development. 1. Dilapidation As defined in the Act, "dilapidation" refers to an advanced state of disrepair or neglect of necessary repairs to the primary structural components of buildings or improvements in such a combination that a documented building condition analysis determines that major repair is required or the defects are so serious and so extensive that the buildings must be removed. The condition of all buildings was determined based on findings of an exterior survey of each building group within the Project Area, as described earlier in this Eligibility Study. US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment ProjectArea page 10 Eligibility Study Yorkville, Illinois — September 17, 2004 Of the three building groups and the theatre, most indicate limited deterioration or defects. Conclusion The results of the analysis indicate that the factor of "dilapidation " is not present in the area 2. Obsolescence As defined in the Act, "obsolescence " refers to the condition or process of falling into disuse. Structures have become ill suited for the original use. In making findings with respect to buildings, it is important to distinguish between functional g g p g P obsolescence, which relates to the physical utility of a structure, and economic obsolescence. which relates to a property's ability to compete in the market place. Functional Obsolescence Structures historically have been built for specific uses or purposes. The design, location, height and space arrangement are intended for a specific occupancy at a given time. Buildings become obsolescent when they contain characteristics or deficiencies which limit the use and marketability of such buildings. The characteristics may include loss in value to a property resulting from an inherent deficiency existing from poor design or layout, improper orientation of a building on site, etc., which detracts from the overall usefulness or desirability of a property. Economic Obsolescence. Economic obsolescence is normally a result of adverse conditions which cause some degree of market rejection and, hence, depreciation in market values. Typically, buildings classified as dilapidated and buildings which contain vacant space are characterized by problem conditions which may not be economically curable, resulting in net rental losses and/or depreciation in market value. Site improvements, including sewer and water lines, public utility lines (gas, electric and telephone), roadways, parking areas, parking structures, sidewalks, curbs and gutters, lighting, etc., may also evidence obsolescence in terms of their relationship to contemporary development standards for such improvements. Factors of this obsolescence may include inadequate utility capacities, outdated designs, etc. Obsolete buildings contain characteristics or deficiencies which limit their long -term sound use or re -use. Obsolescence in such buildings is typically difficult and expensive to correct. Obsolete building types have an adverse effect on nearby and surrounding development and detract from the physical, functional and economic vitality of the area. Obsolescence, as a factor, should be based upon the documented presence and reasonable distribution of buildings and site improvements evidencing such obsolescence. The following characteristics of obsolescence are found to be present. Built in 1972, the Shopping Center's site design and buildings are considered economically and functionally obsolete. Vacancies are one indicator of this obsolescence. Another indicator of obsolescence is the declining presence of retailers, which shows that the Shopping Center does not USRoute 34 & Illinois Route 47 (Counbyside Shopping Center) Redevelopment Project Area page 11 Eligibility Study Yorinville, Illinois — September 17, 2004 I offer competitive space for current retail demands. Kendall County Health and Human Services occupied an anchor of one building and recently moved out and a Senior Services Center anchors another building. The third building has only one anchor space, which is vacant. Aside from the few retailers that remain, the Shopping Center is dominated by service uses and not - for - profit office and community spaces. Physical characteristics contributing to obsolescence include relatively small "anchor" spaces; poor visibility of various sections of the Shopping Center from the arterials; poor sight lines from pedestrian paths to, from and around the center; difficult and inadequate loading and service amenities; and parking that is not convenient for quick stop shopping -- particularly to the smaller inline spaces. The factor of obsolescence is present to a meaningful extent and reasonably distributed throughout the shopping center. Conclusion The results of the analysis indicate that the factor of "obsolescence" is present to a meaningful extent and reasonably distributed throughout the Project Area. 3. Deterioration As defined in the Act, "deterioration" refers to, with respect to buildings, defects including, but not limited to, major defects in the secondary building components such as doors, windows, porches, gutters and downspouts, and fascia. With respect to surface improvements, the condition of roadways, alleys, curbs, gutters, sidewalks, off-street parking, and surface storage areas evidence deterioration, including, but not limited to, surface cracking, crumbling, potholes, depressions, loose paving material, and weeds protruding through paved surfaces. Based on the definition given by the Act, deterioration refers to any physical deficiencies or disrepair in buildings or site improvements requiring treatment or repair. • Deterioration may be evident in basically sound buildings containing minor defects, such as lack of paint, loose or missing materials, or holes and cracks over limited areas. This deterioration can be corrected through normal maintenance. • Deterioration which is not easily correctable and cannot be accomplished in the course of normal maintenance may also be evident in buildings. Such buildings may be classified as minor deficient or major deficient buildings, depending upon the degree or extent of defects. This would include buildings with defects in the secondary building components (e.g., doors, windows, porches, gutters and downspouts, fascia materials, interior walls, ceilings, stairs etc.), and defects in primary building components (e.g., foundations, frames, roofs, floors, load - bearing walls or building systems, etc.), respectively. Within the Project Area, deterioration is highlighted as follows: Deterioration of Buildings The analysis of building deterioration is based on the survey methodology and criteria described in the preceding section entitled "Building Condition Analysis" (see page 11). Of the total 4 buildings within the Project Area, all are classified as deteriorating. As noted in the following summary, building and structure deterioration exists in the Project Area. US Route 34 & Illinois Route 47 (Counoyside Shopping Center) Redevelopment Project Area page 12 Eligibility Study Yorkville, Illinois —September 17, 2004 Exterior Survey The conditions of the buildings within the Project Area were determined based on observable components and the degree and distribution of minor and major defects. Components of each building found in deteriorating conditions are noted on the field survey forms previously referenced in the report and will be made available to the City. Of the total 4 buildings: -- 0 buildings were classified as structurally sound; -- 4 buildings were classified as minor deficient (deteriorating); -- 0 buildings were classified as major deficient (deteriorating); and -- 0 buildings were classified as substandard (dilapidated). While deterioration and related defects noted on the exterior were considered to be of a minor degree or extent relative to the large complex on various components, corrective action as part of a restoration or improved maintenance effort would be extensive due to the size of the center with three large complexes of building groups. Deterioration was noted as follows: • Shake cedar roof shingles deteriorated, mildewed around dormers and limited areas of the complex • Rusted light fixtures under sidewalk canopies • Rusted electrical circuit panels • Brick pier damage around loading area Dented and damaged downspouts and gutters • Deteriorated and broken or missing vertical boards at garbage enclosures • Signs of roof seepage from stained or missing ceiling tile where visible • Caulking missing or loose on most windows • Pointing of masonry needed around parapet walls Deterioration of Parkins and Site Surface Areas and Improvements, Site improvements, including landscaping, planters, retaining walls, sidewalks under canopies, benches and shelters exhibit widespread deterioration with cracked, loose or missing materials. The perimeter roadway and parking areas are severely deteriorated with cracked and loose asphalt pavement, many sections with weed growth protruding through the surfaces. Conclusion "Deterioration" is present to a meaningful extent and reasonably distributed throughout the Project Area. 4. Illegal Use of Individual Structures As defined in the Act, "illegal use of individual structures" refers to the use of structures in violation of applicable federal, State, or local laws, exclusive of those applicable to the presence of structures below minimum code standards. No uses or businesses of the Project Area were noted to be of an illegal activity. US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 13 Eligibility Study Yorkville, Illinois —September 17, 2004 Conclusion The results of the analysis indicate that the factor of "illegal uses of individual structures" is not found to be present throughout the Project Area 5. Structures Below Minimum Code Standards As defined in the Act, the "presence of structures below minimum code standards" refers to all structures that do not meet the standards of zoning, subdivision, building, fire, and other governmental codes applicable to property, but not including housing and property maintenance codes. As referenced in the definition above, the principal purposes of governmental codes applicable to properties are to require buildings to be constructed in such a way as to sustain safety of loads expected from the type of occupancy; to be safe for occupancy against fire and similar hazards; and/or to establish minimum standards essential for safe and sanitary habitation. Structures below minimum code standards are characterized by defects or deficiencies that threaten health and safety. A detailed code audit of all buildings and stores was conducted by the City of Yorkville Building Department on February 10, 2004. The inspections revealed extensive non -code compliance and violations in building, fire, electrical, plumbing and HVAC as well as ADA (American Disability Act) requirements exhibited by masonry wall deterioration, lack of fire suppression, electrical hazards between the roof deck and finished ceilings, and insufficient roof system. These conditions are present to a meaningful extent and reasonably distributed throughout the center. See Appendix I, "United City of Yorkville memorandum and Report of Inspections, 500 -546 Countryside Center, February 10, 2004" at the end of this report. Conclusion The results of the analysis, based on the City Inspection Report, is that the factor of "structures below minimum code standards " is present to meaningful extent and reasonably distributed throughout the Project Area 6. Excessive Vacancies As defined in the Act, "excessive vacancies" refers to the presence of buildings that are unoccupied or under - utilized and that represent an adverse influence on the area because of the frequency, extent, or duration of the vacancies. Each of the three building groups is currently between 30 to 50 percent vacant. This vacancy pattern has persisted over the past few years. Currently, according to the latest leasing record, 15 of 36 stores are vacant, including one or more anchor spaces in each of the retail buildings. Vacant anchor spaces have a strong negative impact on the ability of inline stores to remain viable. Of the total 157,892 square feet of space in the Shopping Center, 75,061 square feet (47.5 percent) is vacant, including the theatre building. Several remaining tenants have been located in the Shopping Center with only a month -to -month lease contributing to a pattern of turnover and i US Route 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 14 Eligibility Study Yorkville, Illinois — September 17, 2004 i I vacancy. The degree and length of vacancy within the Shopping Center has been sustained, extensive and chronic over the past few years. Conclusion The factor of "excessive vacancies" is present to a meaningful extent and reasonably distributed throughout the Project Area 7. Excessive Land Coverage and Overcrowding of Structures and Community Facilities As defined in the Act, "excessive land coverage and overcrowding of structures and community facilities" refers to the over- intensive use of property and the crowding of buildings and accessory facilities onto a site. Examples of problem conditions warranting the designation of an area as one exhibiting excessive land coverage are: the presence of buildings either improperly situated on parcels or located on parcels of inadequate size and shape in relation to present -day standards of development for health and safety and the presence of multiple buildings on a single parcel. For there to be a finding of excessive land coverage, these parcels must exhibit one or more of the following conditions: insufficient provision for light and air within or around buildings, increased threat of spread of fire due to the close proximity of buildings, lack of adequate or proper access to a public right -of -way, lack of reasonable required off - street parking, or inadequate provision for loading and service. The four buildings of the Shopping Center are situated on one tax parcel along with attendant surface parking lots. An exterior survey of loading and service areas flags problems with access for several tenants. The building coverage and configuration of stores either limits or inhibits adequate loading due to the lack of rear access to all stores. Most of the smaller storefronts face the interior pedestrian court area and are accessible only by the pedestrian ways on the interior of the complex. Conclusion The factor of "excessive land coverage and overcrowding of structures and community facilities" is present at least to a limited extent in portions of the Project Area. 8. Lack of Ventilation, Light, or Sanitary Facilities As defined in the Act, lack of ventilation, light, or sanitary facilities refers to the absence of adequate ventilation for light or air circulation in spaces or rooms without windows, or that require the removal of dust, odor, gas, smoke, or other noxious airborne materials. Inadequate natural light and ventilation means the absence or inadequacy of skylights or windows for interior spaces or rooms and improper window sizes and amounts by room area to window area ratios. Inadequate sanitary facilities refers to the absence or inadequacy of garbage storage and enclosure, bathroom facilities, hot water and kitchens, and structural inadequacies preventing ingress and egress to and from all rooms and units within a building. The City's code inspection report (see Appendix I) indicates inadequate ventilation in rooms with heating fixtures and inadequate facilities such as a lack of hot water and plumbing problems related US Route 34 & Illinois Route 47 (Counbyside Shopping Center) Redevelopment Project Area page 15 Eligibility Study Yorkville, Illinois —September 17, 2004 to the sanitary requirements in a number of bathrooms and related fixtures throughout the Project Area. Conclusion The factor of "lack of ventilation, light or sanitary facilities " is present to limited extent. 9. Inadequate Utilities As defined in the Act, "inadequate utilities" refers to underground and overhead utilities such as storm sewers and storm drainage, sanitary sewers, water lines, and gas, telephone, and electrical services that are shown to be inadequate. Inadequate utilities are those that are: (i) of insufficient capacity to serve the uses in the redevelopment project area, (ii) deteriorated, antiquated, obsolete, or in disrepair, or (iii) lacking within the redevelopment project area. No existing utility system problems have been identified or brought forth as part of the surveys and analysis. However, upgrading of existing sanitary, storm and water systems may be required in conjunction with new development. Conclusion "Inadequate utilities" are not sufficiently documented as beingpresent in the Project Area. 10. Deleterious Land -Use or Layout As defined in the Act, "deleterious land -use or layout" refers to the existence of incompatible land -use relationships, buildings occupied by inappropriate mixed -uses, or uses considered to be noxious, offensive, or unsuitable for the surrounding area. No incompatible relationships between uses can be considered as having an improper impact within the complex. Conclusion "Deleterious land -use or layout" is not present. 11. Lack of Community Planning As defined in the Act, "lack of community planning" means that the proposed redevelopment project area was developed prior to or without the benefit or guidance of a community plan. This means that the development occurred prior to the adoption by the municipality of a comprehensive or other community plan or that the plan was not followed at the time of the area's development. This factor must be documented by evidence of adverse or incompatible land -use relationships, inadequate street layout, improper subdivision, parcels of inadequate shape and size to meet contemporary development standards, or other evidence demonstrating an absence of effective community planning. USRoute 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 16 Eligibility Study Yorkville, Illinois — September 17, 2004 The center was built in 1972 - -a few of years before Yorkville adopted its first comprehensive plan in 1974. In general, comprehensive plans are intended for long -range land use recommendations and establish official policy guides for future growth and development on a community -wide basis. They generally are not intended to provide guidelines for a single site development such as US Route 34 & IL Route 47. The siting of the Shopping Center at the intersection of two arterials is consistent with generally sound community land use principles. The access and layout of the shopping center also appears consistent with development standards of the time, but as is indicated above in the discussion of obsolescence, the site layout of the center is problematic relative to today's standards. Because the community did not have a plan in place at the time of its development, "lack of community planning" is at least present to a limited extent. Whether the community undertook sufficient analysis of market viability over the near, immediate and long -term at the time of development in order to relate its scale and function to existing and/or planned residential or other development is unclear. Planning practices /tools at the time of development as well as the early history of the Shopping Center's performance and viability might provide additional evidence of the absence of effective community planning. Conclusion "Lack of community planning" as a factor is present to a limited extent throughout the Project Area. 12. Environmental Remediation As defined in the Act, "environmental remediation" means that the area has incurred Illinois Environmental Protection Agency or United States Environmental Protection Agency remediation costs for, or a study conducted by an independent consultant recognized as having expertise in environmental remediation has determined a need for, the clean -up of hazardous waste, hazardous substances, or underground storage tanks required by State or federal law, provided that the remediation costs constitute a material impediment to the development or redevelopment of the redevelopment project area. Based on the Phase I Environmental Assessment prepared by LFR Levin-Fricke and dated June 28, 2002, it appears that the need for environmental remediation is present at least to a limited extent throughout the Shopping Center. Hazardous material inside the complex (asbestos) and a UST (underground storage tank) associated with the cleaners are cited as issues requiring remediation. Conclusion The factor of "environmental remediation" is present to a limited extent in the Project Area. 13. Declining or Lagging Equalized Assessed Valuation As defined in the Act, a "declining or lagging equalized assessed valuation" means that the total EAV of the proposed redevelopment project area has declined for 3 of the last 5 calendar years for which information is available or is increasing at an annual rate that is less than the balance of the municipality for 3 of the last 5 calendar years for which information is available or is increasing at an annual rate that is less than the Consumer Price Index for All Urban US Route 34 & Illinois Route 47 (Counbyside Shopping Center) Redevelopment Project Area page 17 Eligibility Study Yorkville, Illinois —September 17, 2004 Consumers published by the United States Department of Labor or successor agency for 3 of the last S calendar years for which information is available. Table 1: Growth of the Project Area vs. the City of Yorkville Proposed Route 34 and Route 47 TIF Redevelopment Project Area Total EAV of the City of Yorkville (excluding Total EAV of the Year Project Area) % change Project Area % change 1997 98,087,469 1,295,904 1998 103,472,718 5.5% 1,295,904 0.0% 1999 109,116,164 5.5% 1,295,904 0.0% 2000 116,367,823 6.6% 1,295,904 0.0% 2001 133,394,743 14.6% 1,807,000 39.4% 2002 163,091,454 22.3% 1,666,600 -7.8% 2003 199,768,005 22.5% 1,553,330 -6.8% In five of the six years between 1997 and 2003, the growth rate of the total equalized assessed valuation of the Project Area lagged behind the growth rate in the total EAV of the balance of the City as a whole (total EAV of the City less total Project Area EAV). Conclusion The factor of "declining or lagging equalized assessed valuation" is present to a meaningful extent and reasonably distributed throughout the Project Area. USRoute 34 & Illinois Route 47 (Counhyside Shopping Center) Redevelopment Project Area page 18 Eligibility Study Yorkville, Illinois — September 17, 2004 i V. ELIGIBILITY CONCLUSIONS The Project Area meets the requirements of the Act for designation as an "improved blighted area." There is a meaningful presence and a reasonable distribution of five of the thirteen factors listed in the Act. These include: 1. Obsolescence 2. Deterioration 3. Excessive vacancies 4. Structures below minimum code standards 5. Declining or lagging EAV Additionally, there are four (4) factors present to a lesser degree and include: 1. Excessive land coverage and overcrowding of structures and community facilities 2. Lack of ventilation, light or sanitary facilities 3. Environmental remediation 4. Lack of community planning The distribution and summary of blight factors is indicated in Figure 4, Distribution of Blight Factors. The conclusion of the Eligibility Study is that the Project Area is in need of redevelopment to ensure that it will contribute to the long -term physical, economic, and social well -being of the City. The presence of blighting factors in the Project Area indicates that the Project Area has not been subject to sound growth and development through investment by private enterprise, and is not reasonably anticipated to be redeveloped without public action. VSRoute 34 & Illinois Route 47 (Countryside Shopping Center) Redevelopment Project Area page 19 Eligibility Study Yorkville, Illinois —September 17, 2004 countryside Parkway Block: 104 Parcel: 015 1,2,3,4,5,6 *,7';8 *,9* D 0 t>s Y f>s y -+ C U ►� Project Area Bounda Blight Factors: 1. Obsolescence _ 2. Deterioration 3. Structures below (f minimum code standards `S Routh 34 4. Excessive vacancies 5. Declining or lagging equalized assessed value 6. Lack of community planning 7. Lack of light, ventilation, and sanitary facilities 8. Environmental remediation 9. Excessive land coverage /overcrowding * Indicates factor present to a limited extent Figure 4 Distribution of Blight Factors US Route 34 ; Illinois Route 47 Yo rkville., Tax Increment Financing Redevelopment Project Area URS TPAP APPENDIX I: "UNITED CITY OF YORKVILLE MEMORANDUM AND REPORT OF INSPECTIONS, 500 -546 COUNTRYSIDE CENTER, FEBRUARY 10, 2004" \ ��,D C /p 0 United City of Yorkville s�16 County Seat of Kendall County ESL , 1636 800 Game Farm Road Cl) Yorkville, Illinois 60560 O 'L ��14t�-n = O Phone: 630 -553 -4350 -". Fax: 630-553-7575 I Report of Inspections 500 -546 Countryside Center February 10, 2004 Following is a report of inspections made of the Countryside Center located at c -500 -546 Countryside Center, Yorkville, Illinois: ' I BUILDING INSPECTION; All buildings involved had four (4) common deficiencies: a. Masonry wall deterioration b. No fire suppression ' C. Electrical hazards between roof deck and finished ceilings d. Insufficient. roof system Building No. 1 (units 511 -524) Flat roof design has corrugated steel pan deck over steel bar joists; roof covering materials are unknown. M Original gravel ballust material has been removed. • No fire suppression system installed ■ Trash incinerator located at northwest corner is accessible to the public, with openings to the unit itself causing a safety hazard. ■ Multiple areas of brick parapet walls show visible signs of deterioration at mortar joints, loose wall coping and flashing materials. All units revealed visible signs of past or present roof leaks. ■ Wet spray cellulose insulation applied to bottom of roof deck is falling in various areas throughout the building. ■ The structural beam support located at the exterior wall appears to be masonry block only with no structural columns. 1 511 Countryside: ■ 12 inch masonry wall has 8 inch CNfU and 4 inch brick veneer lateral separations and stress cracks, vertical displacement at various areas of south, west and north walls. ■ Floor covering throughout appears to be vinyl asbestos floor tile. ■ The roof top HVAC system has various sections of ductwork disconnected or removed. 518 Countryside: ■ Storage area above kitchen and utility area are without fire suppression system. Storage area above kitchen/utility area is accessed from a non -fire rated wood pull down ladder system. ■ 100 gallon gas fired water heater located in approximately 5' x 5' room does not have the required net area for combustion make -up air. Room is accessed through a non -rated door assembly. Building No. 2 (units 532 -546 - Approximate age 32 years) ■ Flat roof design has corrugated steel pan deck over steel bar joists. The roof covering is unknown. The gravel ballust has been removed. ■ No fire suppression system installed. ■ Trash incinerator located at east wall is accessible to the public creating a safety hazard. ■ Multiple areas of brick parapet walls show signs of deterioration.. ■ Roof to wall flashing missing above roof canopy at southwest comer. ■ Two units showed visible signs of active roof leaks. ■ Wet spray cellulose insulation applied to bottom of roof deck is falling from better"than 50% of the building. ■ _ Over 50% of the roof area on this building is deteriorated and actively leaking. What appears to be mold is evident in various areas throughout the building. ■ Structural beam support at exterior walls appear to be masonry block only — no structural columns. 532 Countryside: ■ Active roof leak ■ Concrete masonry wall unit at east wall has stress cracks under steel beam down to footing. Entire wall has visible signs of moisture penetration and efflorescence and vertical displacement of CNRJ's. 2 i 538 Countryside: • Active roof leak • Floor covering appears to be vinyl asbestos floor tile. Building No. 3 (units 500 -509 approximately age 32 years) • Flat roof design • Open wiring to unit signage • Loading dock at southwest comer has flashing missing above roof canopy. • Parapet wall at northeast corner has cracked brick. • Unit wall separation at exterior wall comer (unit 503 to main building) • Trash incinerator located at north wall is accessible to the public creating a public safety problem. ■ Service corridor on north end of building houses main sprinkler system with no RPZ valve. ■ Service corridor has high voltage electrical panels that are unlocked and accessible. ■ Structural beam support at exterior walls appear to be masonry block only with no structural columns. 501 Countryside: i ■ Wet spray cellulose insulation has dropped from roof deck. 502 Countryside: ■ Wet spray cellulose insulation has dropped. 503 Countryside: (Laundromat) ■ Appliance service room has open air shafts to roof. ■ Dryer exhaust ductwork is inadequately attached in two areas with no visible service access to vertical ductwork. ■ Cedar shake roof covering has missing materials and overall condition is greatly deteriorated. i 3 ELECTRICAL INSPECTIONS:. 546 Countryside: • Openings in panel board must be closed. • Face plates must be installed on switches and receptacles 542 Countryside: • GFCI required in bathroom • Lay in fixtures must be secured to ceiling grid. 540 Countryside: ■ Panel boards and disconnects are not allowed in bathroom or closest. ■ Lay in fixtures must be secured to ceiling grid. ■ Recess lights must be secured to ceiling grid, not just laying on ceiling tiles. ■ Bonding of water and gas piping required. ■ GFCI required in bathrooms. ■ All low voltage wiring must be secured to building structure; not laying on top of ceiling grid. 538 Countryside: • NM cable not allowed in this type of construction. • NM cable not allowed above drop ceiling grid. • Ceiling must be installed with listed fan boxes and secured to building structure. • GFCI required in bathroom. • All open J boxes and unused openings in boxes must be closed. ■ Secure low voltage wiring to building structure and remove all unused wiring. 536 Countryside: ■ Lay in fixtures must be secured to ceiling grid. ■ All low voltage wiring must be secured to building structure not lying on top of drop ceiling grid. ■ Bonding of water and gas piping required. ■ GFCI required in bathroom ■ All open J boxes and unused openings must be closed. 4 534 Countryside: ■ NM cable not allowed above drop ceiling. ■ Open J boxes and unused openings in boxes must be closed. ■ Lay in fixtures must be secured to ceiling grid. ■ GFCI required in bathroom ■ Bonding of water and gas required. 533 Countryside: ■ NM cable not allowed in this type of construction or above drop ceilings. ■ All open J boxes and unused openings in boxes must be closed. ■ GFCI required in bathroom. ■ Bonding of water and gas required. 532 Countryside: ■ Open 277/480v panel boards must be covered. ■ Equipment grounds must be installed in flex transformer. ■ All open J boxes and unused openings must be closed. ■ GFCI required in bathroom. ■ Bonding of water and gas piping required. ■ Flex cables over 6' not allowed. 524 Countryside: ■ GFCI required in bathroom. ■ Laying flour fixtures must be secured to ceiling grid and building structure. 522 Countryside: • GFCI required in bathrooms. • Panel board not allowed in closet. • Laying floor fixtures must be secured to ceiling grid and building structures. • EM lights required. 5 518 Countryside: ■ Disconnects require grounding and bonding. ■ Telephone board required to be grounded. • . All cables must be secured above drop ceiling. ■ Disconnect switch required at water heater. ■ Open J Boxes and unused openings in boxes must be closed. ■ Laying in flour fixtures must be secured to ceiling grid and building structure. 517 Countryside: • NM cable not allowed in this type of construction. ■ NM cable not allowed above drop ceiling. ■ Illuminated exit signs- required. ■ Emergency lights required. ■ Lay in floor fixtures are required to be secured to ceiling grid and building structure. ■ Listed ceiling fan boxes required and secured to building structure. • Open wiring.above ceiling must be closed. ■ Unused cables must be removed above ceiling. 516 Countryside: ■ Open J boxes and openings in boxes required to be closed. ■ All unused cables must be removed. ■ Ceiling fans required to be secured to building structure and installed on listed fan boxes. ■ Illuminated exit signs required. 514 Countryside: - ■ NM cable to 50a receptacle not allowed above drop ceiling grid. ■ NM not allowed in this type of construction. ■ 514 A — Exit signs and emergency lighting required. 513 Countryside: ■ Lay in fixtures not secured to ceiling grid or building structure. ■ Cables and open wiring lying on top of ceiling grid is not allowed. 6 511 Countryside: • Open J boxes torn out. • No exit signs at fire exits. • Panel boards not protected from forklift traffic. • Class H wiring mixed with line voltage. • Panel boards and main distribution panel not labeled or identified. • 120v and 208v mixed with 277v 480v. • 480v panel boards not identified. • All ceiling mounted furnaces required to have disconnect switches. • Exit and emergency lighting not operative. • Overhead lighting not secured to building structure. • Lay in fixtures not secured to ceiling grid. • Equipment grounds required in flex feed on all transformers. • All transformers must have proper ventilation — minimum of 6" from all i walls and obstructions. • Three or more circuits feeding through floor fixtures are not allowed. I Public Restroom: i ■ Exits signs are required. ■ Emergency lights are not operating. Maintenance Garage: - ■ Exposed NM cable not allowed in this type of construction. ■ Open J boxes must be closed and unused openings in boxes must be sealed. • Open conductor wire not allowed to run from fixture to fixture. 7 I i PLUMBING INSPECTIONS. 546 Countryside: ■ Restroom in bad condition; sink is ready to fall off the wall. 544 Countryside: • Restroom in good working condition. • Not handicapped accessible. 542 Countryside: I I • Restroom is in good condition • Not handicapped accessible. 540 Countryside: ■ One restroom in fair condition. i . I 538 Countryside: I • One restroom functions properly • One restroom has a non - working toilet and a leaking sink. ■ No hot water. 536 Countryside: ■ One restroom in fair condition. ■ Utility sink by water heater appears to have an un- vented trap. ■ Water heater tap valve has a plastic drop tube extra unused gas cock not plugged. ■ Restroom is not handicapped accessible. 534 Countryside: • One restroom in good condition • Not handicapped accessible. 533 Countryside: • One restroom in good condition. • Not handicapped accessible. 8 524 Countryside: i ■ No gas cock on water heater gas pipe. ■ Fixture stop handle leg broke off in main restroom. 523 Countryside: i ■ Restroom toilet not working properly. ■ Sink is inoperative ■ No hot water 522 Countryside: • Fixture stop handle is broke. • No hot water 520 Countryside:. ■ All restroom fixtures need overhaul. 518 Countryside: I Triple bowl sink drain in kitchen - indirect waste splashes on floor. I 517 Countryside: ■ No hot water ■ Laundry sink in bathroom drain leaks. 516 Countryside: ■ Pop -up assembly on restroom sink is disconnected. 514 Countryside: ■ No Plumbing 513 Countryside: ■ Restroom has no hot water. ■ Toilet does not flush properly ■ Aerators need to be replaced. 511 Countryside: Men's Restroom 9 i ■ Pop -up assembly on sink faucet is broken. ■ Faucet assembly needs to - be replaced. • Toilet sink broken. Women's Restroom. • Restroom sink faucet leaks around handle. • On the west side, disconnected plumbing leaves open drains. Restrooms in loft ■ Faucet aerations are bad. ■ Toilet tank cover missing. ■ Open drain on removed sink by water meter. ■ There is an illegal cross connection on the water heater above janitor's closet — the valve is broken off for outside hydrant. Martial Arts Studio • One restroom in working condition • Not handicapped accessible Community Restroom: • No water on at toilet and sinks • Urinal leaks at trap Maintenance Shop: • No hot water • Toilet does not flush properly. Respectfully Submitted By: illiam A. Dettmer, Code cial 10