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Joint Review Board Minutes 2014 11-25-14APPROVED 11/24/15 Fiscal Year 2014 Annual Joint Review Board for TIF Districts Tuesday, November 25, 2014 3:00 p.m. Yorkville City Hall Conference Room 800 Game Farm Road, Yorkville, Illinois 60560 Committee Members in Attendance: Dean Romano, Asst. Supt. for Finance & Operations – Yorkville CUSD 115 Bruce Hartmann, Dir. of Accounting - Waubonsee Community College Tom Lindblom, Deputy Chief – Bristol Kendall Fire Protection District City Officials in Attendance: Rob Fredrickson, Finance Director - United City of Yorkville Kathleen Field Orr, City Attorney – Kathleen Field Orr & Associates Krysti Barksdale-Noble, Community Development Director – United City of Yorkville Chris Heinen, Planner – United City of Yorkville Bart Olson, City Administrator – United City of Yorkville Other Attendees: No other attendees Elect Public Member Krysti Barksdale-Noble was nominated; it was seconded by Dean Romano; unanimously carried viva voce. Elect Chair Person Ms. Noble made a motion to elect Mr. Romano as Chairperson. Mr. Lindblom seconded; the motion was unanimously carried viva voce. Mr. Romano took roll and called the meeting to order. He opened the annual meeting by asking for approval of the minutes from the November 26, 2013 meeting as presented. Mr. Olson made a motion to approve; motion was unanimously carried viva voce. Annual Reports for U.S. Route 34 & IL Route 47 Countryside and Downtown Redevelopment Project Areas: Mr. Romano asked Mr. Fredrickson to provide a brief summary of the reports. Mr. Fredrickson opened by referring to page 6 in the packet – Countryside TIF - which showed a beginning fund balance amount of $1,572,335 as of May 1, 2013. Total revenues and expenditures for the year were $1,235,107 and $3,341,529, respectively, resulting in an ending fund balance of negative $534,087 at the end of fiscal year 2014. As indicated on the activities statement for the Countryside TIF (page 19), there were two major things that occurred over the course of the fiscal year. First, was the opening of NCG Cinemas, which resulted in an initial incentive payout of $1.8 million to the developer, as stipulated by the development agreement. The remaining $200,000 ($2.0 million total) will be rebated from NCG Cinema amusement tax receipts out of the City’s General Fund. The other major activity that happened in the current fiscal year was the partial refunding of the 2005 Countryside bonds. These bonds were refunded for the purposes of mitigating negative equity in the fund and to ease cash flow constraints. It is management’s hope that as the other outlots develop, they (along with the movie theater) will generate enough property tax increment to eliminate the negative fund balance and also meet the debt service requirements for the fund. Ms. Orr then furthered explained that the City initially issued $3.5 million worth of bonds in 2005 and that the amount shown in beginning fund balance ($1.5 million) is what was left of the bond proceeds. In 2013 the City entered into a new redevelopment agreement; had given the new developer the remaining bond proceeds as part of a development incentive; refinanced it; and, from here-on-out, is hoping that the new theater along with the undeveloped outlots, will generate sufficient increment to pay the debt service. The City has been planning on (if there hadn’t been development) paying it because the bonds are General Obligation backed. So the City is very, very pleased – as the purpose of this entire project was to re-do that (NW) corner of IL Route 47 & US Route 34. Mr. Olson added that staff has done some calculations (as part of the upcoming budget process) and they think that the theater is going to generate enough property taxes to be ‘just above’ where the base used to be for the actual TIF. So, we’ll be generating revenue from the theatre construction itself, so then everything coming from Lighthouse Academy will also go towards paying down the bonds. Then if a couple of other out-lots develop, the City should have enough to make debt service payment without any further issue. Ms. Orr said they have nine years down on the bond and Mr. Romano asked if the TIF went through 2029. Ms. Orr said that was correct. Mr. Fredrickson then went on to the Downtown TIF, which shows a beginning fund balance of $216,937. Revenues for the year were $53,045 and total expenditures were $46,953, resulting in a Fiscal Year 2014 ending fund balance of $223,029. He continued on to the Activities Statement which showed that the City has entered into several development agreements with Imperial Investment over the last two fiscal years. Several new store fronts (mainly restaurants) have been added to the downtown area. The other main activity going on is the IL Route construction expansion. The cost of the project that is applicable to the Downtown TIF district is approximately $200,000. Ms. Orr added that although this is not shown in the report, the board should be aware of that the City has declared Imperial Investment’s property a Business District and has imposed an additional 1% sales tax rate. The area was eligible because it was blighted before the redevelopment took place. Mr. Romano had a question regarding the residential component that had gone dormant. Is there any activity that the City may have heard as far as whether or not there is going to be any residential coming back up? Ms. Orr answered that she has there are no immediate plans for that. Mr. Olson said that more likely what will happen is there will be a mixed-use building probably before the residential subdivision itself gets built out. They will be working through a variety of things relating to environmental concerns and overall TIF assistance on the F.S. property and a couple of other properties in the downtown, owned by Imperial Investments. Mr. Romano said they still have an outstanding obligation of $500,000, is that correct? Mr. Olson said the TIF agreement was a little looser than that – that is the upper end of the potential disbursement amount. There are several variables. The term of the TIF is not likely to pay out their full incentive over the remaining life of the TIF. They have expressed some interest in either extending the existing TIF to allow it, which would require us to go back to the taxing entities and seek approval and then go to the State to actually get it approved, or even creating another TIF. Those things are all several steps away. Ms. Orr added that they are not concerned about developing the residential property as much as the F.S. property and they really want to ask you for an extension of the TIF to give them a potential revenue stream to do the environmental clean-up. They have come to us and we will not venture a guess as to where the other taxing districts would stand on the issue. Mr. Romano asked what the expiration was on the TIF and Ms. Orr said 2029-30 would be the last year, so they still have fifteen years to go. Mr. Romano then asked if anyone else had any questions or further comments with regard to the Downtown TIF. No one did so he asked for a motion to adjourn the meeting; Mr. Olson seconded it; motion was unanimously carried viva voce and the meeting was adjourned at 3:14 p.m. Minutes respectfully submitted by: Bonnie Olsem Administrative Secretary