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Economic Development Packet 11-17-05 .' `4.) Cii.t J�. k o United City of Yorkville 31 800 Game Farm Road EST. 4 LIIMEN1W1 '836 Yorkville, Illinois 60560 t 1 Telephone: 630-553-4350 �� 20 Fax: 630-553-7575 '47LLE rte`' AGENDA ECONOMIC DEVELOPMENT COMMITTEE MEETING Thursday, November 17, 2005 7:00 p.m. City Hall Conference Room 1. Approval/Correction of Minutes: September 15, 2005 2. EDC 2005-01 SSA Tax Policy 3. EDC 2005-02 Draft Economic Incentives Policy to Attract Commercial/Industrial Business to Yorkville 4. PC 2005-51 Van Riper Insurance Agency — Rezoning 708-710 N. Bridge Street 5. PC 2005-49 Oak Grove Subdivision— 1 1/2 Mile Review 6. EDC 2005-03 Kendall County Transportation Development Fees Draft Agreement 7. EDC 2005-04 Feasibility of Relocating Overhead Power Lines to Underground 8. Additional Business CF ,Afl Page 1 of 3 ECONOMIC DEVELOPMENT COMMITTEE Thursday, September 15, 2005 7:00 pm City Hall Conference Room Present: Mayor Art Prochaska Randy Scott Alderman Marty Munns, Chairman Craig Coffey Alderwoman Valerie Burd Mike Stargardt Alderman Jason Leslie Dallas Ingemunson, Attorney Alderman Joe Besco Sal Reshepi, J & S Developer City Attorney John Wyeth Rich Guerard, Wyndham Deerpoint Lynn Dubajic, YEDC Bill Garrett Julie Hanna Cheryl Watts Jeff Foust The meeting was called to order at 7:00 pm by Chairman Munns. 1. Approval/Correction of Minutes: August 18, 2005 6. PC 2005-43 Daniel Laniosz— 10701 Route 71 —Annexation and Zoning—There has been a petition to the city to rezone this piece of property to B3. This was voted against by the Zoning Board with a 3 —4— 1 vote. B3 is the broadest category, and there are some inappropriate uses for the future. Those uses could be deleted in a development agreement. Alderwoman Burd questioned whether it might be better to say what the Council would approve there rather than what they would not approve. The neighboring resident, Bill Garrett brought his plat of survey. The acreage in question has 2 acres currently zoned agricultural and 1.125 acres currently zoned residential. This resident is asking the residential portion stay residential and is asking for buffering from the commercial that would be next door. Currently the business that is there is under special use in the county. This property currently has 2 violations of ordinances. 1 violation is building without a permit and the other is for some Barb wire fence on the property. Dallas Ingemunson has been representing Mr. Laniosz for some time and Bill Dettmer has reviewed the property and Mr. Laniosz will remove the barb wire. Mayor Prochaska pointed out that current ordinance would require some sort of landscape buffering. Also, the current comprehensive plan does not recognize commercial in that location. This will move on to the COW on November 1st with a list of allowed uses and special uses. 3. Building Permit Reports for August and September 2005—There was a revised report for September passed out. These will move on to COW on Consent Agenda. Page 2 of 3 4. PC 2005-32 Yorkwood Estates—Annexation and Zoning—The zoning Board voted 8 —0 in favor of annexation and zoning R2. A tree study will be done in the areas where the trees will be disturbed. The lots on the South end will be 1/2 acre minimum lots that will be built by custom builders. Some storm water management will be done in the South East corner. There will be a fence near the pasture in the South West corner. The residents in an existing subdivision do not want the road to connect to this new subdivision. All the lots will be a minimum of 12,000 square feet. The utilities will be in the front of the properties. There could be a dormant SSA put in place. Mayor Prochaska would like to see it put on the people's titles that they are within so many yards of an existing dog kennel. This will move on to the November 1"COW. 5. PC 2005—33 Chally Farm-Annexation and Zoning—The Zoning Board voted 8 — 0 for annexation and 6—2 for zoning. This would be a PUD with a B2 commercial node. There were concerns from neighboring residents that were present. They did not want to see a road connection into their subdivision because they were concerned that the roads in Pavillion Heights were narrow roads with curves and no streetlights and no sidewalks and people walk and ride their bicycles in the road. The connection road could be a one way street or emergency access only. The residents of Pavillion Heights were concerned with the lot sizes that would be backing up to their properties, the lot sizes in Pavillion Heights are much larger than the ones that are proposed to be built. Currently there is no buffer planned to go between the subdivisions. The proposed houses would be 2,500—3,500 square foot homes. The residents of Pavillion Heights were concerned with storm water runoff. There was also a concern about the commercial area and buffering between the commercial and the existing residential. The residents have previously submitted a petition that meets the 75% of adjoining perimeter and would require the super majority vote of 6 out of 8 Aldermen. A Historical Phase 1 study, required by the state, will be done. An Environmental study will also be done. This will move on to COW on November 1St 7. Discussion of City Initiated Concept Plans—Mayor Prochaska met with Mike Schoppe about a generic concept transportation plan of some areas of the city. It would lay out where the main roads should go. The cost would be recaptured from future developers. Water runoff areas could be identified as well as school sites. The developers could be asked to help build the schools. This would not be as detailed as a preliminary plan. A draft of a policy will go to the next COW on November 1St. 8. Plano Boundary Agreement Update—Mayor Roberts would like to see Yorkville adopt the same amendment that Plano did in regards to the realignment of Ashe Road and a subsequent boundary agreement with Sugar Grove. Sugar Grove should be brought in on the discussion. Yorkville will hold off until there is a ruling from the court. 2. Discussion of Future Incentive Programs to Attract Commercial/Industrial Business to Yorkville—On the cover page Items 3 and 4 should be eliminated. The ineligible businesses are not necessarily part of the future for Yorkville. The businesses could be ranked. Lynn Dubajic did some surveying and also obtained a policy from DeKalb. There is a tremendous amount of difference between Yorkville and DeKalb and the policy is not helpful as written. Page 3 of 3 Under Section 1 of the Policy, Eligible uses of Funds should read Uses that may be considered eligible. The relocation would be if the company was completely brought in from somewhere else,not a 211d location, and the move will cost money. Under Incentive Parameters, #2 may not necessarily be 7 years,the amount of time may be different for each case, but it must have a specific conclusion date. #3 should be clarified or removed. All monies extended by the city shall be subject to reimbursement by the petitioner rather than the developer. The end user will be defined ahead of time. Just because it is applied for does not mean they will receive the incentive. Commercial/Retail is sales tax targeted. Priority businesses would be appliances &electronics (such as Best Buy or Circuit City) Furniture, New car, truck, and motorized vehicles and used luxury cars, department stores, and sporting goods stores. If"Higher End"merchandise is included who decides what high end is? Priority locations do not need each individual intersection defined. It will now read: Priority locations as defined in the Comprehensive plan: Rt 47 commercial nodes, Downtown area, identified by outline of downtown TIF district, US Highway 34 commercial nodes, and Rt 71 commercial nodes. Ineligible businesses will be eliminated. Section 2 will be eliminated. Section 3 refers to Industrial, Service, Manufacturing, and Distribution Developments. The source of rebate is not defined here. It could be in the form of Sales Tax, Real Estate Tax, or Utility Taxes. If they go for this they could get more than if they would apply for a Real Estate Tax Abatement. Could they possibly apply for both? Priority locations would be Yorkville Business Center(near F.E. Wheaton Complex, Fox Industrial Park, and Lincoln Prairie Industrial Park. The Incentive Parameters would mirror the ones for Commercial and Retail. #2 will have a conclusion date,but not necessarily 7 years. #3 should be clarified or deleted. Eligible Activities should be Uses that may be considered eligible. Alderwoman Burd would like to see a similar program for small business. They could receive real estate tax abatements, utility tax abatements. Or it could be part of a pool of overall real estate taxes. The total revenue for a year would have to have a cap. This would be a separate policy. New businesses would be given priority and they would have to generate at least 2 jobs. They could use the money for build out to improve, rehab, or remodel an existing building. This will get cleaned up and brought back next month. 9. Additional Business—Alderwoman Burd asked who should be the liaison to the Chamber Board. It was believed former City Administrator Tony Graff went to those meetings. They are the 3rd Thursday of each month at 7:30 am. Alderman Leslie was volunteered for going to these meetings, and Alderman Munns would be the backup liaison. Alderwoman Burd volunteered to go to the Protect Kendall Now meetings as a liaison, and Alderman Besco would be the backup liaison. The Chamber Board and YEDC is having an event on November 4t'from 8 am— 11 am in the lower level of the Old Second Bank building. Everyone is encouraged to go. The meeting was adjourned at 9:50 pm. Minutes submitted by Laura Leppert. . c-tv = < 4 ` O CITY Reviewed By: J= 0-c► Leg al ❑ City Council `` H !,/,,% Finance ■ EST.141836 Engineer ❑ �t 1 City Administrator • Agenda Item Tracking Number of —ate "�Q Consultant ❑ ��CC C - - .. KenmNCae+7 SLE YEDC ■ City Council Agenda Item Summary Memo Title: Economic Incentives Policy City Council/COW/Committee Agenda Date: EDC—Nov. 17, 2005 Synopsis: Draft policy that outlines how a developer may ask for economic incentives in the form of sales, real estate, or utility tax rebates. Council Action Previously Taken: Date of Action: N /A Action Taken: Item Number: Type of Vote Required: N/A Council Action Requested: Discussion on updates from last month's draft—recommend to COW agenda. Submitted by: Bart Olson Admin Name Department Agenda Item Notes: This draft policy is an update based on the comments that were provided at the October ED committee. Documents included within the packet are a clean copy and a track changes copy. SECTION 1: Commercial / Retail The United City of Yorkville has adopted this Business Incentive Policy to achieve the goal by satisfying the objectives as outlined within the Comprehensive Plan and Comprehensive Land Use Plan Update—Southern Study Area: COMPREHENSIVE PLAN GOAL "A market sensitive, balanced, diverse commercial/service base which can expand to enhance the economic vitality and employment base of Yorkville, and broaden the range of services offered to residents OBJECTIVES 1. Establish and coordinate diversity in market sensitive, commercial development ranging from 1) specialized commercial uses in the downtown,to 2) strategically located convenience centers, and to 3) sub regional unified centers. 2. Plan commercial/office development adjacent to primary, secondary, or collector thoroughfares to maximize accessibility and minimize disturbance of residential areas. 3. Provide areas for commercial/office development which are adjacent to compatible existing and future land uses. 4. Establish commercial development in areas that minimize negative impacts upon the existing roadway system 5. Coordinate commercial/office development with the expansion of the roadway and utility system. 6. Encourage the development of commercial/office activity within unified centers to avoid strip development. 7. Formulate design and development standards for commercial and office facilities to promote attractive development. COMPREHENSIVE LAND USE PLAN UPDATE—SOUTHERN STUDY AREA GOAL 1 "Encourage the development of non-residential "nodes", which would result in concentrated areas of retail and commercial uses instead of strip development; consider allowing small-scale retail nodes in close proximity to residential development to reduce required driving for everyday services." GOAL 2 "Ensure that the Comprehensive Land Use Plan provides for an adequate amount of non- residential land use that is diversified so that future economic development opportunities provide the City with a positive fiscal outlook." OBJECTIVE "Explore economic development opportunities related to the proposed Prairie Parkway, taking advantage of the limited access points to the proposed thoroughfare." GOAL 3 "Promote and encourage the creation and maintenance of local jobs." OBJECTIVE 3.1 Utilize the Yorkville Economic Development Corporation(YEDC) to promote Yorkville as an attractive and desirable place for businesses to locate. 3.2 Utilize the Economic Development Corporation and Chamber of Commerce to work with the business community to maintain a healthy environment for businesses to remain in Yorkville. All requests for business incentives shall be evaluated by how many and how fully the project meets these stated goals and objectives. Consideration for Incentives Sales tax revenues are a primary source of funding for the general municipal operations of the United City of Yorkville. As such, developments that have the greatest potential in producing these types of revenues shall be given priority when evaluating multiple funding requests. Uses of Funds That May Be Considered 1. Land acquisition 2. Demolition 3. Street(re)construction and related improvements (e.g., signalization, turning lanes, etc.) 4. Building Rehabilitation 5. Environmental Remediation Activities 6. Storm Sewer, Sanitary Service & Water System Improvements 7. Architectural/Engineering Services 8. Relocation Expenses of Expanding Businesses Incentive Parameters 1. Assistance shall not exceed 20% of total project hard costs 2. Specificed duration for payback, either amount of time or money, must be in the agreement 3. Public improvements completed on grant basis 4. Private improvements completed on a sales tax rebate and/or loan guaranty basis. All monies extended by the City shall be subject to reimbursement by the petitioner to the City should the business fail to meet its agreed upon goals. No single development shall be automatically approved for incentives. The terms and conditions of such repayment shall be negotiated on a case-by-case basis and incorporated into the final development agreement. Project Evaluation Criteria The City shall consider all aspects of a proposed project, including its financial feasibility, the type of project being proposed, its location within the community, and the amount of estimated tax revenues. For retail/commercial projects, the following shall be considered as priorities of the City and as such, projects meeting one or more of the following criteria shall be given priority when considering multiple funding requests: Sources for Funding Incentives: May be from one or more of the following sources: 1. Sales tax 2. Real Estate Tax 3. Utility Tax Priority businesses • Appliances and electronics • General merchandise • Furniture • Motorized vehicle dealerships (car, truck, motorcycle, boat, watercraft, etc.) • Department store • Sporting goods Priority locations, as outlined in the Comprehensive Plan as "commercial nodes" 1. Route 47 commercial nodes 2. Downtown Area SECTION 2: Manufacturing / Industrial / Distribution Developments To protect, strengthen and expand the City's local economic base, the City relies upon the creation and/or retention of high quality, permanent fulltime jobs for its residents. As such, developments that have the greatest potential in producing these types of jobs shall be given priority when evaluating multiple funding requests. It is noted that the City's adopted Zoning Ordinance shall determine if a business is considered to be a commercial, service or manufacturing type use. Project Evaluation Criteria The City shall consider all aspects of a proposed project, including its financial feasibility, the type of project being proposed, its location within the community, the amount of estimated tax revenues, and the number and type of jobs being created or retained. For commercial/service/industrial projects, the following shall be considered as priorities of the City and as such, projects meeting one or more of the following criteria shall be given priority when considering multiple funding requests: Job Creation and Retention A minimum of five (5) fulltime equivalent jobs must be created and/or retained within 24 months of project completion to be considered eligible for funding. Further, these jobs must be permanent and fulltime in nature (e.g., at least 1950 hours annually), and fall into one of the following categories: Job Type Minimum Hourly Wage Maximum Credit Per Job Unskilled $10.00 $2,500 Semi-Skilled $15.00 $3,000 Skilled $20.00 $4,000 Professional Over$20.00 $5,000 Priority Locations • Yorkville Business Center(near F.E. Wheaton complex) • Fox industrial park • Lincoln Prairie industrial park Incentive Parameters 1. Assistance shall not exceed 20% of total project hard costs 2. Specificed duration for payback, either amount of time or money, must be in the agreement 3. Public improvements completed on a grant basis 4. Private improvements completed on a utility and city property tax rebate and/or loan guaranty basis All monies extended by the City shall be subject to reimbursement by the developer to the City should the business fail to meet its agreed upon goals. The terms and conditions of such repayment shall be negotiated on a case-by-case basis and incorporated into the final development agreement. Eligible Activities: 1. Land acquisition 2. Demolition 3. Street(re)construction and related improvements (e.g., signalization,turning lanes, etc.) 4. Building rehabilitation 5. Environmental remediation activities 6. Storm sewer, sanitary service and water system improvements 7. Architectural/engineering services 8. Relocation expenses SECTION 1: Commercial / Retail The United City of Yorkville has adopted this Business Incentive Policy to achieve the goal by satisfying the objectives as outlined within the Comprehensive Plan and Comprehensive Land Use Plan Update—Southern Study Area: COMPREHENSIVE PLAN GOAL "A market sensitive,balanced,diverse commercial/service base which can expand to enhance the economic vitality and employment base of Yorkville,and broaden the range of services offered to residents OBJECTIVES 1. Establish and coordinate diversity in market sensitive, commercial development ranging from 1)specialized commercial uses in the downtown,to 2)strategically located convenience centers,and to 3)sub regional unified centers. 2. Plan commercial/office development adjacent to primary,secondary, or collector thoroughfares to maximize accessibility and minimize disturbance of residential areas. 3. Provide areas for commercial/office development which are adjacent to compatible existing and future land uses. 4. Establish commercial development in areas that minimize negative impacts upon the existing roadway system 5. Coordinate commercial/office development with the expansion of the roadway and utility system. 6. Encourage the development of commercial/office activity within unified centers to avoid strip development. 7. Formulate design and development standards for commercial and office facilities to promote attractive development. COMPREHENSIVE LAND USE PLAN UPDATE—SOUTHERN STUDY AREA GOAL 1 "Encourage the development of non-residential"nodes",which would result in concentrated areas of retail and commercial uses instead of strip development;consider allowing small-scale retail nodes in close proximity to residential development to reduce required driving for everyday services." GOAL 2 "Ensure that the Comprehensive Land Use Plan provides for an adequate amount of non- residential land use that is diversified so that future economic development opportunities provide the City with a positive fiscal outlook." OBJECTIVE "Explore economic development opportunities related to the proposed Prairie Parkway, taking advantage of the limited access points to the proposed thoroughfare." • GOAL 3 "Promote and encourage the creation and maintenance of local jobs." OBJECTIVE 3.1 Utilize the Yorkville Economic Development Corporation(YEDC)to promote Yorkville as an attractive and desirable place for businesses to locate. 3.2 Utilize the Economic Development Corporation and Chamber of Commerce to work with the business community to maintain a healthy environment for businesses to remain in Yorkville. All requests for business incentives shall be evaluated by how many and how fully the project meets these stated goals and objectives. Consideration for Incentives Sales tax revenues are a primary source of funding for the general municipal operations of the United City of Yorkville. As such, developments that have the greatest potential in producing these types of revenues shall be given priority when evaluating multiple funding requests. I Uses of Funds That May Be Considered, _"-{Deleted:EGeible Uses of Funds 1. Land acquisition 2. Demolition 3. Street(re)construction and related improvements(e.g.,signalization,turning lanes,etc.) 4. Building Rehabilitation 5. Environmental Remediation Activities 6. Storm Sewer, Sanitary Service&Water System Improvements 7. Architectural/Engineering Services 8. Relocation Expenses of Expanding Businesses Incentive Parameters 1. Assistance shall not exceed 20%of total project hard costs 2. Specificed duration for payback. either amount of time or money, must be in the agreement " - Deleted:Payback must be within 7 l _...... - ------- 3. Public improvements completed on grant basis years 4. Private improvements completed on a sales tax rebate and/or loan guaranty basis. All monies extended by the City shall be subject to reimbursement by the petitione><to the _"--{ Deleted:developer City should the business fail to meet its agreed upon goals. No single development shall be automatically approved for incentives. The terms and conditions of such repayment shall be negotiated on a case-by-case basis and incorporated into the final development agreement. Project Evaluation Criteria The City shall consider all aspects of a proposed project, including its financial feasibility,the type of project being proposed, its location within the community,and the amount of estimated tax revenues. For retail/commercial projects, the following shall be considered as priorities of the City and as such, projects meeting one or more of the following criteria shall be , Formatted:Indent:First line: 0.5" given priority when considering multiple funding requests: ,' , Formatted:Numbered+Level:2+ ,' Numbering Style: 1,2,3,...+Start Sources for Funding Incentives' , ' at:1+Alignment:Left+Aligned at: ', 0.75"+Tab after: 1"+Indent at: May be from one or more of the following sources: .'' 1" 1. Sales tax ,-4 Formatted:Bullets and Numbering 2. Real Estate Tax — 4 Formatted:Underline 3. Utility Taxes Deleted:Home Priority businesses ,(Deleted:"Higher end" ,' ,' . Deleted:New car&truck • Appliances anct electronics , . Formatted:Indent:First line: 0.25" • Generals merchandise 1 Deleted:¶ • Furniture • Motorized vehicle dealerships(car.truckmotorcycle, boat.watercraft,etc.) `{Formatted:Bullets and Numbering • Department store Deleted:Route 301 ,'',, Galena Road¶ • Sporting goods ,, Corneas Road¶ ,, Route 341 ,:i, Route 711 Priority locations,as outlined in the Comprehensive Plan as"commercial nodes" walker Roadl 1_Route 47 commercial node ,, Caton Farm Road¶ Se._....- ... _.... _...._ ...... .... ................ _....._ _..._ .._.-.1, "Downtown"area,identified by outline 2. Downtown Area *1, of downtown TM district¶ US Highway 34 commercial nodes¶ _..----....-..._.___ ...._._.___.__. .- , West of Bristol Ridge Road to just west SECTION 2: Manufacturing / Industrial / of Route 471 West CannnballTrailtowestoffuture Beecher Road Extension¶ Distribution Developments EldamainRoadl Route 71 commercial nodes¶ Route 1261 To protect,strengthen and expand the City's local economic base,the City relies upon the Future Prairie Parkway interchangel ` creation and/or retention of high quality, permanent fulltime jobs for its residents. As such, '; Deleted:Ineligible businesses¶ The following business uses shall not be developments that have the greatest potential in producing these types of jobs shall be giveneligible for funding assistance through priority when evaluating multiple funding requests. ; this program unless otherwise directed by the City Council:¶ It is noted that the City's adopted Zoning Ordinance shall determine if a business 1Si' <#>cilRieities staurants)1 (includingbanquet fa considered to be a commercial,service or manufacturing type use. <#>Auto Repaid <#>Beauty SalonsBarbershopsl i <#>Gas Stations¶ Project Evaluation Criteria i, <#>Business/Personal Service Uses(e.g., The City shall consider all aspects of a proposed project, including its financial tax accounting,financial planners, attorneys,printers,funeral homes etc.)1 feasibility,the type of project being proposed, its location within the community,the amount of <#>Medical&Dental Facilities¶ estimated tax revenues, and the number and type of jobs being created or retained. For <#>FinancialInstitutions¶ <#>Religious and Fraternal Organizations) commercial/service/industrial projects,the following shall be considered as priorities of the City `. <#>Taverns¶ and as such, projects meeting one or more of the following criteria shall be given priority when <#>MovieTheatres¶ <#>Perfonning Arts Theatres¶ considering multiple funding requests: <#>General Purpose Grocery stores¶ Job Creation and Retention SECTION 2:Central Business District A minimum of five(5)fulltime equivalent jobs must be created and/or retained within 24Developments¶ months of project completion to be considered eligible for funding. Further, these jobs must be ; Yorkville'scentral business distri MINI permanent and fulltime in nature (e.g., at least 1950 hours annually), and fall into one of the ;I Deleted:3 J following categories: Deleted:Commercial/Service/ • Job Type Minimum Hourly Wage Maximum Credit Per Job Unskilled $10.00 $2,500 Semi-Skilled $15.00 $3,000 Skilled $20.00 $4,000 Professional Over$20.00 $5,000 Priority Locations • Yorkville Business Center(near F.E.Wheaton complex) • Fox,industrial park -_--{Deleted:South side • Lincoln Prairie industrial park ---{Formatted:Bullets and Numbering - Deleted:<#>NW industrial area, Incentive Parameters identified in Comprehensive Plan near Corneils Road and Beecher Road 1. Assistance shall not exceed 20%of total project hard costs V 2. Specificed duration for payback, either amount of time or money, must be in the agreement, --Deleted:Payback must be within 7 3. Public improvements completed on a grant basis years 4. Private improvements completed on a utility and city property tax rebate and/or loan guaranty basis All monies extended by the City shall be subject to reimbursement by the developer to the City should the business fail to meet its agreed upon goals. The terms and conditions of such repayment shall be negotiated on a case-by-case basis and incorporated into the final development agreement. Eligible Activities: 1. Land acquisition 2. Demolition 3. Street(re)construction and related improvements(e.g., signalization,turning lanes,etc.) 4. Building rehabilitation 5. Environmental remediation activities 6. Storm sewer,sanitary service and water system improvements 7. Architectural/engineering services 8. Relocation expenses Page 4:[1]Deleted bolson 11/15/2005 2:48:00 PM Ineligible businesses The following business uses shall not be eligible for funding assistance through this program unless otherwise directed by the City Council: Restaurants (including banquet facilities) Auto Repair Beauty Salons/Barbershops Gas Stations Business/Personal Service Uses (e.g., tax accounting, financial planners, attorneys, printers, funeral homes etc.) Medical & Dental Facilities Financial Institutions Religious and Fraternal Organizations Taverns Movie Theatres Performing Arts Theatres General Purpose Grocery Stores SECTION 2: Central Business District Developments Yorkville's central business district ("downtown") shall be generally described as that area between the north bank of the Fox River south to Van Emmon; west from the eastern edge of the White Oak Subdivision to several hundred feet east of Mill Street; but also containing the region south from Van Emmon to Fox St. and west from South Main to just east of the property which now houses the Old Second Bank. Applications for assistance within the Central Business District shall be subject to the same terms and conditions as retail projects located elsewhere in the community, with the exception that certain businesses, otherwise deemed ineligible for assistance, may receive consideration if locating within the downtown area. These are: Restaurants (including banquet facilities) Auto Repair Beauty Salons/Barbershops Business/Personal Service Uses Medical & Dental Facilities Performing Arts Theatres - 0♦ Cir` Reviewed By: if 0 J= Le al ❑ _1City Council : g Finance II% � a 1836, �=� Engineer ❑ O ® � City Administrator El Agenda Item Tracking Number -1- o Consultant [1] hhC .-) 5" C >) City Council Agenda Item Summary Memo Title: Kendall County Transportation Development Fees Draft Agreement City Council/COW/Committee Agenda Date: EDC 11/17/05 Synopsis: Draft agreement that was at the EDC committee on 9/15/05 and 8/18/05 Council Action Previously Taken: None Date of Action: Action Taken: Item Number: Type of Vote Required: Council Action Requested: Submitted by: Name Department Agenda Item Notes: A POLICY FOR THE COLLECTION OF TRANSPORTATION DEVELOPMENT FEES FOR KENDALL COUNTY HIGHWAYS - VILLAGE OF OSWEGO - DRAFT Background The suburban Chicago region has been experiencing tremendous growth over the past few decades. Kendall County and the municipalities within Kendall have recently become a part of this growth trend, as evidenced by the recent revelation that Kendall County is the 2nd fastest growing county in the nation. Additionally, the Chicago Area Transportation Study(CATS)has now included all of Kendall County in its metropolitan planning area. With this tremendous growth comes a myriad of issues, not the least of which is transportation needs. More population means more traffic on the entire transportation network,including state, county,municipal and township roadways. An evaluation of the historical growth trends reveals that the vast majority of new residential units are located within corporate limits. Kendall is no exception. In fact, in 2004, new residential building starts in the unincorporated region of Kendall County represented less than 10% of the total new building starts county-wide.' The Village of Oswego recognizes this impact on the municipal transportation network, and has taken steps to address the municipal needs through implementation of the Roadway Capital Improvements Cost Allocation &Recovery Program (2004). This program identifies capital costs over a 5-year period and assigns some of this cost to new development, based on an estimated number of new residential starts. Fees collected generally fund improvements on just the municipal transportation system. The Village of Oswego also recognizes that Kendall County, like most counties in Illinois, has limited ability to collect fees from new municipal developments, even though those developments contribute directly to the need for capacity-type improvements on the County Highway System. To remedy this inequity, the Village desires to adopt a policy that will address some of the funding deficiencies on the County Highway System, by collecting fees from new residential developments that will fund capital improvements on County Highways. Fee Guidelines As a rule, all residential developments would be subject to the collection of fees on behalf of the County, even if they don't have frontage on a County Highway. This is because the average trip from nearly every development in Oswego would involve travel on a County Highway. And each new residential subdivision will have an incremental impact on the need for a capacity improvement. In general terms, it is more desirous to have larger developments, with significant frontage on a County Highway, actually install the capacity improvements on the adjacent county highway, rather than pay a fee that is collected by the Village. This tends to be a more efficient means of realizing the capacity improvement. The cost of such a capacity improvement would be credited to the developer, and if the cost is equal to or greater than the fees that would have been collected through cash payments, then there would be no further obligation to pay transportation development fees to the Village. Site specific improvements such as turning lanes, signals, etc. that are directly attributable to the development are exempt from receiving any credit on the transportation development fee. Smaller developments with limited frontage will be more likely to simply pay the transportation development fee. Again, site specific improvements would not yield any credit on the collection of fees. Upon collection of sufficient fees, the County will then have the ability to let a contract for the capacity-type improvement. The Village is supportive of the collection of a transportation fee on behalf of_Kendall. County, but desires to guarantee that said fees will be spent only on improvements that will directly benefit the residents of the Village. Therefore, the Village will collect and hold transportation fees, and will only release fees to Kendall County upon mutual agreement on the scope and extent of work to be completed on the County Highway. Fee Calculation The Kendall County 2005-2030 Transportation Improvement Plan identifies slightly more than $21 million in needed capital improvements in the Oswego area(see Exhibit 1)2. These costs do not include routine maintenance, but are all generally capacity-type improvements. The Village of Oswego's Roadway Capital Improvements Cost Allocation &Recovery document estimates 2470 new residential units in the 2004-2008 time period. In reviewing that document today, the number of units appears under-estimated, since 890 new residential building permits were issued in 2004.3 Another source of information that provides insight on anticipated development is the Village of Oswego Comprehensive Plan, which is currently being updated by the Lannert Group. Although the plan will probably only be relevant for the next 5-years due to the rate of development,it does identify the ultimate expected build-out for Oswego, considering current municipal boundary agreements and assumed residential densities. That build-out would yield a total Village population of approximately 70,000 people.4 The 2005 population is estimated at nearly 20,000, so approximately 50,000 additional people could move to Oswego in the coming years. In an attempt to marry the County Transportation Plan to the Village Comprehensive Plan, this policy assumes that the Village will, for all practical purposes,reach "build-out" by 2030. Therefore, all the transportation projects identified in the County Plan will need to be constructed, at a cost of$21,050,000 in 2005 dollars. 50,000 people = 2.79 people/units = ± 17,921 units $21,050,000 = 17,921 units = $1175/unit Conclusion An efficient transportation network will undoubtedly be one of the key issues facing Oswego for the foreseeable future. And both Village of Oswego and Kendall County will need to partner their efforts to insure the necessary steps are taken to provide a safe and efficient transportation network that will continue to stimulate the local economy. For these reasons, the Village of Oswego hereby agrees to negotiate in good faith with new residential developments in an attempt to collect transportation development fees consistent with the context herein. Specifically, the Village will attempt to negotiate the collection of not less than $1175 per residential unit for all new developments negotiated in the years 2005 or earlier, or will negotiate the actual construction of the capacity-type improvement by the developer. An inflator of 3% per year, effective January 1, 2006 and each subsequent January 1st shall be added to the $1175 (see table below). This policy will be reevaluated as agreed by both the Village of Oswego and Kendall County. Year Negotiated Fee 2005 or earlier $1,175 2006 $1,210 207 $1,246 2008 $1,283 2009 $1,321 2010 $1,361 2011 $1,402 2012 $1,444 2013 $1,487 2014 $1,532 2015 $1,578 Source: Kendall County Record 2 Source: Kendall County 2005-2030 Transportation Improvement Plan 3 Source: Oswego Building Department Source: Oswego Community Development Department 5 Source: 2000 Census E,(�C' 1 Reviewed By: ? O Legal ❑ City Council sgr Finance ❑ EST.kw 1836 Engineer ❑ v1 City Administrator ❑ Agenda Item Tracking Number it Consultant ❑ PhC" aCyN- C , 4LE INS` ❑ City Council Agenda Item Summary Memo Title: Feasibility of relocating overhead power lines to underground City Council/COW/Committee Agenda Date: EDC—Nov. 17th, 2005 Synopsis: Discussion of policy to require relocating overhead utility lines to underground Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: N/A Council Action Requested: N/A—Postponed to December EDC Submitted by: Bart Olson Admin Name Department Agenda Item Notes: Staff has set up a meeting with ComEd representatives for Friday,Nov. 18th, and is looking to set up a meeting with SBC representatives the following week. Once staff has met with the representatives and prepared some information, it will be presented to EDC.