COW Minutes 2007 09-25-07 Page 1 of 9
Approved 11/13/07
UNITED CITY OF YORKVILLE
COMMITTEE OF THE WHOLE
CITY COUNCIL CHAMBER
September 25, 2007
7:05 P.M.
ELECTED OFFICIALS PRESENT:
Mayor Valerie Burd Alderman Arden Plocher
Joe Besco Alderman Rose S
Alderman J ears p
Alderman Gary Golinski Alderman Robin Sutcliff
Alderman Jason Leslie Alderman Wally Werderich
Alderman Marty Munns City Treasurer Bill Powell
City Clerk Jackie Milschewski
CITY STAFF PRESENT:
City Administrator McLaughlin Police Lieutenant Hart
Assistant City Administrator Olson Superintendent of Recreation Swithin
City Attorney Roth Community Development Director Miller
Public Works Director Eric Dhuse City Engineer Wywrot
Police Chief Martin Human Resource Manager Kasper
GUESTS:
See attached list.
PRESENTATIONS
1. Richard Bissonette, Arthur Prochaska and Ernie Stumbo —Found Missing Two -Year- Old
Mayor Burd read and presented Richard Bissonette, Arthur Prochaska and Ernie Stumbo with
plaques acknowledging and thanking them for their Citizen Police Academy Alumni assistance in
the two hour search of a missing two - year -old girl. The trio located the girl and notified law
enforcement officials.
Mr. Prochaska stated that they wanted the public to understand that it was not just the three of
them who were searching for the girl; many people including law enforcement staff and other
members of the CPAA were involved in the search. He stated they all were proud to be part of
the Citizen Police Academy Alumni.
Mr. Bissonette thanked the Police Department and Bristol - Kendall Fire District for their
preliminary work and for calling in the CPAA to assist in the search.
2. Behr Pfizenmaier — Completion of Associates Degree
Mayor Burd presented a plaque to Police Cadet Behr Pfizenmaier in recognition of his
completion of his Associates Degree with a 3.82 grade point average from Waubonsee
Community College.
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3. Raymond Mikolasek — AAIMAward for DUI Enforcement
Mayor Burd presented a certificate of appreciation to Raymond Mikolasek from AAIM for his
efforts with DUI enforcement.
4. Hamman Farms Yard Waste Facility — PowerPoint by Diane Pobol
Ms. Pobol was not present for her presentation.
DETAILED BOARD REPORT — BILL LIST
There were no comments or questions.
The Bill List was placed on to the September 25, 2007 City Council agenda for approval.
ITEMS RECOMMENDED BY COMMITTEE FOR CONSENT AGENDA
None.
MAYOR
1. COW 2007 -24 Library Bond Tax Discussion
Mayor Burd reported that this was postponed from an earlier meeting and turned the floor over to
Attorney Roth. Attorney Roth explained that this item arose from community inquiries about the
Library Tax Levy which was not applied correctly thus creating a higher than normal levy this
year. He stated that he researched this further and felt that the tax could not be waived but needed
to be uniformly applied. He did note there could be alternatives to remedy the matter and further
explained that the City Council could offer a credit on water bills to those residents whose homes
were not built in 2005. He estimated the credit for a $350,000.00 home would be $70.00. He
stated that this would not pose a large fiscal risk for the city.
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There was some discussion regarding indentifying and notifying the residents this would apply to.
Various suggestion made were: staff researching property tax bills to identify residents; any
resident who feels they are due the credit be encourage to contact the city regarding the matter;
putting the information on the new water bill format; automatically crediting residents who closed
in 2006 with an averaged amount; etc. Administrator McLaughlin suggested that staff research
the different methods and report back to the Council.
Alderman Spears thanked Elsie Morganegg for bringing this matter to her attention.
This item was placed on the September 25, 2007 City Council consent agenda for approval.
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2. COW 2007 -26 Ad Hoc Citizens' Advisory Committee on Senior Issues
Mayor Burd reported that Alderman Spears requested the formation of this ad hoc committee.
Alderman Spears commented that this will be a great asset to the community and suggested that
the group be made up of seniors as well as others from the community. She asked anyone
interested to either contact her or Mayor Burd.
3. COW 2007 -25 Request for Mechanical Amusement Device License —Taylor Street Pizza
Mayor Burd reported that the business was requesting a Mechanical Amusement Device License.
The business was evaluated and met all the building requirements of the city.
There were no questions or comments. This item was placed on the September 25, 2007 City
Council consent agenda for approval.
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ECOMOMIC DEVELOPMENT COMMITTEE
1. EDC 2007 =35 Monthly Building Permit Report for August 2007
Alderman Leslie reported that building is down this year. Director Miller added that the low
numbers are not a surprise due to the national and local climate.
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2. EDC 2007 -36 Monthly Plan Commission Report for September 2007
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Alderman Leslie reported that the Autumn Creek final plat was discussed at the September
meeting.
3. PC 2007 -29 Autumn Creek Unit 2 Final Plat of Subdivision
Alderman Leslie reported that staff recommends the approval of the final plat as there is nothing
outstanding or inconsistent with the plat. He stated that the Economic Development Committee
asked for the deed to the ten acre school parcel. Director Miller added that final plat includes the
park and school site and the right -of -ways (ROW) for two streets. He stated that the Plan
Commission reviewed the final plat and was in favor of it.
Alderman Spears stated that there was an article in a 2006 newspaper addressing Special Service
Area (SSA) fees, the park site and the ROWs. The article stated that the SSAs would be used to
construct the park at the beginning of the project however sixty homes have been constructed and
the park hasn't been started. She asked for a date when the park will be constructed. Chuck
Byram, attorney for Pulte, and Jason Polakow, Director of Land Development for Pulte were
present. Mr. Polakow indicated that the construction of the park was underway and most of the
improvements will be in by the end of this year with an opening event in the spring. He stated
that the delay was due to the park contractor being involved in the construction of three other
Yorkville parks.
Alderman Spears asked if funds were available to complete the ROWs Mr. Polakow stated that
the funds are available however they cannot start on the streets until the plat is approved. Once it
is approved, the work will begin in a few weeks. Alderman Spears asked what the time frame
was for completion. Mr. Polakow estimated that they could be completed by Thanksgiving.
Alderman Spears asked when the SSA discussion was to take place. Mayor Burd stated that it
was at the Council's pleasure as to when they wanted to have the discussion. It was the
consensus of the Council to move up Item #2 — COW 2007 -30 Autumn Creek SSA Discussion
from the City Council Requests with the understanding there would be no further discussion at
the City Council meeting.
1. COW 2007 -23 Autumn Creek SSA Discussion
Thomas Payne, 1545 Orchid, commented on the blatant misrepresentation of the builder
regarding the Autumn Creek SSA. He gave a brief family background to put a personal face on
what the residents in Autumn Creek are going through. He stated that the homeowners are in the
situation because the city allowed SSA subdivisions and Pulte is taking advantage of this. He felt
that deciding to pay the SSA for some but not others is underhanded and hurtful to the
community. He stated that when negotiating the sale of his home he asked the builder if they
would pay the SSA. He was told that this would not happen because it was a SSA community and
all homeowners will pay the SSA. He stated that all the residents present at the meeting were told
similar half truths and misrepresentations.
He listed several of these misrepresentations and the actual facts:
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1. Each homeowner will have to pay the SSA — current buyers do not have to pay the
SSA
2. Pulte cannot/does not pay off SSA providers
3. There is no early payment penalty — a 3% penalty does apply
4. There is no interest; its just a tax — there is a 6% interest rate on the tax
5. Buyers were told that the tax on a townhome would be $20,000.00; $24,000.00 for a
single - family home — the actual cost is $24.554.00 for townhomes and $28,869.00 for
a single - family home when all the associated fees are added in
6. The payoff term would be twenty -years — the actual term is twenty -eight years. With
the term length and interest rate a townhome buyer will be paying $56,611.00 and a
single - family rate is $68,928.00.
7. Payment will be $150.00 /month — it is actually a line item on the real estate bill and
doesn't show up until the second year of ownership
8. The SSA is tax deductible — new infrastructure SSAs are not deductible and cannot be
escrowed.
Mr. Payne felt that these misrepresentations which were to increase corporate profit during a
market down turn, hurt the community and the residents who have to pay them. He stated that the
builder did not reduce the price of the houses or give cash incentives but rather changed the rules
of the game at the resident's expense.
Shannon Hunter thanked the City Council for allowing the Autumn Creek residents to speak. He
thanked Pulte for accepting the invitation to discuss the issue. He stated that he purchased his
town home approximately a year ago and is pleased with living in Yorkville. He discussed how
the no -SSA situation affects current homeowners; it steals equity from those whose homes carry
the SSA tax. He gave a demonstration of how the SSA versus no -SSA affects the sale of homes
in Autumn Creek. Homeowners with the SSA either have to pay off the SSA before listing their
house or reduce the selling price of their home and leave the SSA tax. ,Either way the seller who
has an SSA loses equity. He stated that when the subdivision is built out there will be 550 homes
so there will be several homes like his without SSAs that he will be competing against. The
bottom -line is that he will never be able to sell his home for the market value. He did not feel that
Pulte should treat their customers unfairly in order to obtain future sales. The homeowners who
have already invested in Autumn Creek in the beginning want equality. He stated that whether
Pulte stops using the no -SSA fee to lure buyers and discounts the price of the homes; pays off the
SSA for all homeowners or develops an alternative solution, the current homeowners want an
equal playing field. He noted that Pulte has an annual income of $14 billion and that the eighty
homeowners make up about 15% of the total Autumn Creek subdivision. It would cost Pulte
approximately 1 /10 of a percent of its annual revenue to cover the SSA for these residents. He
compared this to a household with an income of $65,000.00 /year who will be paying 39% of their
annual earnings to cover the cost of the SSA.
Mike Siddon, 1551 Orchid, commented that the SSA 2005 -108 states that Autumn Creek is an
SSA community however there are signs posted stating "No SSA Fees ". He asked Pulte to correct
the situation for the current residents.
Amy Collins, 1486 Orchid, stated that when her family move here it was to downsize and reduce
their housing costs so she could stay home with her sons. They had never heard of SSAs so they
asked many questions of Pulte before they felt comfortable purchasing their home. They felt they
could trust Pulte's assurances that every homeowner would incur the same SSA tax. Now she
finds it incomprehensible that Pulte is penalizing the first families to establish the neighborhood
with an SSA payoff for new buyers that will handicap their ability to sell their homes. She noted
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that Pulte's advertising materials state that they are committed to building quality homes and life-
long partnerships. She felt that now Pulte is building a climate of distrust and negative feelings in
the neighborhood. She hoped that their advertising slogans are words that will be put into action
to correct this situation. She hoped that the city would stand alongside the Autumn Creek
residents to help but an end to the SSA mess. She felt that the city has the power to pressure Pulte
to do the right thing and she asked them to do this.
Cheryl Puetz, 1404 Orchid, noted that the community is united in frustration over the SSA
situation. She commented that in 2001 Dateline did a story on Pulte's quality and since then
Pulte instituted a customer service program to resolve problems. She noted that in Scottsdale,
Arizona there is a lawsuit against Pulte for misrepresentation of buyer's information about an
airport. She stated that what Pulte is doing in Yorkville is similar. She asked the City Council to
help end this misrepresentation by Pulte.
Chris Youssi, 12455 Bellingham Road, Caledonia, Illinois addressed the Council and explained
he was a real estate developer. He stated as a developer it would be unconscionable for him to do
what Pulte is doing; telling people their home is worth a certain price and then telling them the
next day that due to a need to meet production goals, their home is worth less. He stated that
products should be priced to the market regardless of market conditions. He stated he was
boggled by Pulte's choice to harm these families. He stated that most of the homeowners who
have purchased in Autumn Creek are first -time home buyers and do not have a lot of equity. If
they are forced to sell they are at a disadvantage. The payoff on the SSA is about $2 million and
if Pulte can pay off future home buyers they should be able to help the homeowners who started
the community. He felt their actions were unethical and he asked the City Council to hold Pulte
to a higher standard.
Joe Santoro, 1539 Coral Drive, stated that he met a fellow resident of Autumn Creek who told
him that they bought a townhome and closed the same day as a neighbor. Two weeks before the
closing, the neighbor received a call from a sales representative telling them that the SSA was
going to be paid for. The other homebuyer did not receive a similar call. Mr. Santoro verified
this by speaking with the resident who got the SSA paid. He asked who decides who pays the
SSA and who does not.
Alderman Leslie thanked the residents for attending the meeting and sharing their concerns. He
noted that he; Alderman Besco and Alderman Spears have been against SSAs. He stated that this
is the worst case scenario for an SSA and that he spoke with the president of Pulte Homes and
would like to see them pay back the residents.
Alderman Munns stated that he appreciated the resident's comments and he hoped Pulte realizes
the problem they are causing and how it affects their business.
Alderman Besco stated that he and Alderman Spears went to a meeting with Autumn Creek
residents and Pulte must be doing something right because they have good quality people buying
their homes. He stated that the waiving of the SSA does not leave homeowners in the subdivision
on a level playing field and he felt horrible that the SSA originated with the City Council's
approval. He urged Pulte to review this policy and show that they are a quality developer. He
suggested that it would be more professional to offer discounts or free upgrades.
Alderman Spears referred to a January 2006 newspaper article which noted her question to the
developer regarding what they would do if the SSA wasn't approved. The developer stated they
would look at their legal rights and obligations. She asked the City Attorney to review the
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Annexation Agreement to check the "rights and obligations" of the city. She questioned if the
"No SSA" signs were legal. Attorney Roth noted he would review the documents to verify this.
Alderman Spears also noted that the developer had installed unauthorized "no parking" signs in
the development. She stated that she was disappointed with Pulte for the signs and she did not
feel that they were treating the residents of Autumn Creek fairly. She further quoted from the
2006 article regarding a comment from Peter Raphael, bond consul for the city. Mr. Raphael
stated that the developer was still working out details of the SSA proposals to make sure that the
tax was fair. She asked if Mr. Raphael could be called in to advise the Council on how fair the
discontinuing of the SSA tax is. She also commented that she heard that Pasquinelli and
Kennedy homes are also discounting SSAs. City Administrator McLaughlin stated that Assistant
City Administrator Olson was making calls to verify this. He noted that the Pasquinelli SSA is
paid off before ownership of the property transfers. Alderman Spears noted that the meeting was
being video - recorded and will be shown throughout five communities. She felt that with this type
of information going out regarding Pulte may put a damper on their sales. She asked Yorkville as
well as the other four communities to discontinue any type of SSAs in their communities.
Mayor Burd noted that she has requested staff to look into the matter. When asked if he had done
so, Director Miller indicated that he had reviewed the Annexation Agreement but not from a legal
standpoint. He noted that the city's SSA policy was changed to avoid this type of situation.
Mayor Burd noted that she saw a sign by Windett Ridge stating no SSA. She stated that SSAs
were presented to the City Council as a tool to finance infrastructure. When they were initially
begun, there wasn't information available to research them. She stated that after receiving
resident's complaints about SSAs, the policy regarding them was amended. She stated that that
SSAs are a tool that in the long run is not beneficial to the community and she hoped that their
use would be stopped.
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Alderman Leslie encouraged the representatives from Pulte to speak on their own behalf. Mr.
Byram commented that this is an issue that Pulte takes serious and they thought long and hard
before making this decision. He turned the floor over to Brian Bruenhofer, president of the
Illinois division of Pulte. Mr. Bruenhofer thanked the Council for the opportunity to address
them. He stated that this matter is not something Pulte takes lightly and they have sympathy and
empathy for their homeowners. He explained how the current market conditions are affecting
property values nationwide and that Pulte is using this marketing strategy to accomplish the build
out of the community. He stated that the development opened in 2005 and shortly afterward they
started to feel the market decline. He stated that Pulte has to increase incentives to sell homes.
The dollar amount for the incentives was in access in the SSA amount. He stated that whether it
is paying off SSA fees or reducing the base price of the home, there is action the developer needs
to take. He noted statistics on the housing market and stated that Pulte is trying to respond to
them. He explained that some builders are walking away from unfinished subdivisions and this is
not something Pulte wants to do. He commented that he was not in the position to say that Pulte
will continue to pay the SSA for the remainder of the community however this is the current
incentive being used to spark sales. He hoped that there may be a point in time to discontinue this
incentive. He stated that Pulte is not in the position to pay off the SSA for those who have
already closed on their homes.
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Alderman Spears commented that a Pulte is off to a poor start in their efforts to build out a great
community. She expressed her disappointment that Pulte can't do anything for the current
residents. She commented on the decline in the market which Mr. Bruenhofer noted the company
was aware of in 2005. She noted that the majority of the people present did not purchase their
homes more than seventeen months ago and she wondered why the SSA wasn't discounted
earlier.
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Alderman Leslie stated that he understood the market and the need to reduce costs however he
did not understand why they were trying to circumvent the stigma they created by requesting the
SSA.
Alderman Munns noted that Pulte will probably lose money after this so he suggested that the
builder give the current homeowners some money back.
Alderman Besco commented that this is a poor way to start a development. He felt that the
payoff of the SSA is a slap in the face of those who already closed. He agreed with Alderman
Munns that what they did will generate negative publicity. He stated that it is not up to the
Council to decide but rather Pulte to decide and do the right thing.
3. PC 2007 -29 Autumn Creek Unit 2 Final Plat of Subdivision (continued)
Alderman Leslie noted that this item is totally removed from the SSA issue. He stated that staff
recommended that this move forward and the Economic Development Committee agreed.
Attorney Roth explained that he and the staff evaluated the final plat and it is their
recommendation that the final plat be approved.
Alderman Spears suggested postponing the plat approval until the City Attorney reviews the
Annexation Agreement. Alderman Leslie stated that he was contacted by the School
Superintendent Dr. Engler who explained that there is a timing issue with the land dedication of
the school. If this is delayed, the school district will have to look for another site to stay on track
for the building of a school. Director Miller agreed that plat approval is needed for the
construction of the school to proceed. He noted that Pulte prepared the plat at the city's request
which was made on behalf of the school district.
There was a brief discussion on the building of the school and how it affects residents. Alderman
Leslie suggested keeping the approval of the plat and the SSA matter separate and move ahead
with the plat.
The City Council agreed and this item was placed on the September 25, 2007 City Council
consent agenda for approval.
4. ZBA 2007 -19 Sega Variance Request — Building Height
Alderman Leslie commented that originally he was not in favor of this variance however after he
went by the home and researched the area he approves of it. Aldermen Besco and Plocher agreed
with Alderman Leslie stating that the two -story garage will fit in the neighborhood. Clerk
Milschewski noted she is a neighbor of the Sega's who own a Victorian home. She commented
that the garage the Sega's plan to build was probably similar to the original garage and she noted
that she herself has a two -story garage that was originally a barn. Clerk Milschewski also
commented that the Sega's have done wonderful restorations on their home and the garage will
benefit the neighborhood.
It was the consensus of the City Council to place this item on the September 25, 2007 City
Council consent agenda for approval.
PARK BOARD
No report.
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PUBLIC WORKS COMMITTEE
1. PW 2007 -142 202 River Road — Dedication and Vacation of Utility Easement
Alderman Besco reported that this received a positive recommendation from the Public Safety
Committee. He explained that this will vacate an existing water main easement which runs under
a structure and dedicates a new sanitary sewer easement.
Attorney Roth commented that he reviewed the document and has spoken to the applicant's
counsel. Attorney Roth recommended some form and minor substantive changes to the
document. He asked that this be approved subject to legal review and final approval.
The City Council agreed and this item was placed on the September 25, 2007 City Council
regular agenda for approval.
PUBLIC SAFETY COMMITTEE
No report.
ADMINISTRATION COMMITTEE
1. ADM 2007 -68 Employee Drug Testing Policy
Alderman Munns reported that after much research and discussion it has been decided to add pre-
employment drug testing for new employees. When an offer of employment is made to a
candidate, one of the conditions of employment will be passing a drug and alcohol screening.
Also, screening will be done after any work related accidents however there will be no random
testing.
Alderman Werderich asked if since the test was for drugs and alcohol would someone who has a
drink the night before the test be denied employment or fired. Alderman Munns explained that a
drink the night before won't affect the test. There was discussion regarding the wording of the
policy, adding the state's legal limit (.08) to the policy, Department of Transportation (DOT)
standards, etc.
Chief Martin suggested that the policy be reviewed by the labor attorney before the legal alcohol
limit is added as he felt it might not be a good idea to add specific numbers to the policy. Mayor
Burd suggested that in the future any employment issues be reviewed by the labor attorney before
coming to the Council for a vote. Alderman Munns explained that the labor attorney advised
against the policy. The Council agreed that the policy could be approved subject to legal review.
This item was placed on the September 25, 2007 City Council regular agenda for approval.
CITY COUNCIL REOUESTS
COW 2007 -29 City Shirt Order
Alderman Golinski stated that he had requested that this item be removed from the agenda. He
stated that he felt it was a good idea for the newly elected officials to have city shirts especially
with the Illinois Municipal League Conference coming up however he did not want to "open a
can of worms ". Alderman Spears noted that the elected officials were allowed $60.00 /year for
apparel and it was a good idea for all of them to have city shirts. Alderman Besco stated that he
would pay for his own shirt when a style and color is decided. After some discussion a shirt style
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(Port Authority shirt #K501 in red from Fox Valley Trading Company) was decided on and the
Council was advised to give Mr. Olson their sizes so the shirts could be ordered.
ADDITIONAL BUSINESS
Sycamore/Route 34 Traffic Light
Alderman Munns asked for an update on the traffic light status. City Engineer Wywrot noted that
the plans are at IDOT in Ottawa, Illinois and the city has not received a response yet. Alderman
Munns asked who the contact at IDOT was and Mr. Wywrot stated he would get this information
for him.
Oktoberfest
Alderman Leslie reported that tickets for the first Oktoberfest in Yorkville were on sale. The
event will be held on September 29`" from noon to 10:00 p.m. and there will be children's
activities, a beer tent, German food, local venders and bands. The duck race which was
postponed from Hometown Days will also be held. Tickets are $5.00.
Somonauk
Alderman Sutcliff asked about a stop sign on Somonauk Street, east of Route 47. She noted the
high amount of vehicles that travel down on Somonauk and the parked cars on the road. She
requested that this be looked into.
There was no further additional business.
PRESENTATIONS con't
Hamman Farms Yard Waste Facility — PowerPoint by Diane Pobol
Ms. Pobol, who arrived after the presentation section of the agenda was over, gave her
presentation on the Hamman Farms Yard Waste Facility. She requested that the city pursue a
public nuisance lawsuit against Mr. Hammon and asked that the operation of the facility be
stopped until rules and regulations for the facility are set.
After Mrs. Pobol's presentation there was some discussion regarding an IEPA inspection of the
facility. Mrs. Pobol indicated that the results of the inspection will be available in three weeks.
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Also discussed were different methods of application, grass clippings being prohibited, the
benefit of the facility to citizens, etc.
The meeting was adjourned at 9:35 P.M.
Minutes submitted by Jackie Milschewski, City Clerk
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Petition to be Compensated
We, the undersigned, residents of Autumn Creek Fields in Yorkville Illinois. Petition that Pulte Home Corporation compensate all homeowners of
single family homes and town homes which have a SSA Tax attached to it. Pulte Dome Corp.'s decision to pay off the SSA Tax on new sales, wi'1
cause a severe financial disadvantage to the future sale of all existing property which has the SSA T AX attached to it.
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Autumn Creek Homeowners — re! SSA
c/o Mr. Joe Santoro & c/o Mrs. Amy Collins
1536 Coral Drive 1486 Orchid Street
Yorkville, IL 60560 Yorkville, IL 60560
September 17, 2007
Mr. Richard J. Dugas, Jr.
President and Chief Executive Officer
Pulte Homes, Inc.
100 Bloomfield Hills Parkway
Bloomfield Hills, MI 48304
via USPS express mail
Dear Mr. Dugas:
As homeowners in the Pulte Autumn Creek subdivision in Yorkville, IL we have recently
been placed in a position by Pulte Homes that makes it difficult, if not impossible, to
maintain competitive value in our properties - a situation any American homeowner
would find seriously troubling.
The homeowners of Autumn Creek believe it is within your power as Pulte Homes' CEO
to help restore a sense of fair play to the existing homeowners' relationships with Pulte,
provide every property owner the opportunity to maximize the value of their home, and
make property ownership in Autumn Creek prosperous and financially rewarding for
everyone.
The circumstances are these:
Our homes were purchased with an obligation to pay an SSA (Special Service Area) tax
until the year 2035, and it was made absolutely clear to us that every homeowner in the
entire community would incur this SSA tax. Understanding that this special tax provides
vital support to the new infrastructure, we abided, and accepted Pulte's assurances as
accurate and honorable that the SSA tax would be a uniform obligation incurred by every
buyer in Autumn Creek.
As we now discover, Pulte's assurances of uniform SSA taxation were not accurate, and
indeed, misleading. Needless to say, a revelation that does nothing to enhance Pulte's
relationship with its current Autumn Creek homeowners and renders Pulte's commitment
to "building quality homes and lifelong partnerships" somewhat hollow.
Prospective Autumn Creek buyers are now being offered "NO SSA" purchases. This
renders the value of SSA -taxed homes instantly uncompetitive, arbitrarily and
capriciously assigns "taxability" to some but not others, and creates a kind of "value
discrimination" which is to us wholly unethical in light of Pulte's prior and apparently
baseless assurances that the tax playing field would remain level and fair for all
homeowners in Autumn Creek. Additionally, it is concerning that Pulte is advertising
Autumn Creek as a "No SSA" community when in reality there is still an SSA in place.
The affected homeowners called a meeting Wednesday, September 12 to discuss this
issue. At this meeting approximately 60 homeowners were in attendance along with two I
Yorkville City Aldermen (Rose Spears and Joe Besco). Pulte employees in attendance
were Chris Naatz, VP of Sales - Chicago Division, and Maria Wilhelm, Area Sales
Manager.
The sum total of Pulte's contribution to this discussion was for Mr. Naatz and Ms.
Wilhelm to attend the meeting unprepared, uninterested and unwilling to listen to our
concerns. Neither Mr. Naatz nor Ms. Wilhelm took notes to document our concerns to
pass along to the appropriate Pulte personnel. Mr. Naatz essentially informed us that
nothing would be done to change Pulte's position on this matter.
The disadvantage for an SSA -taxed property relative to a non - SSA -taxed property now
becomes essentially this:
If SSA -taxed owners opt to sell, they each lose a minimum of $20,000.00 (depending
on what year of the SSA tax "term" the sale is made) in order to make their homes
price- competitive selling against homes with no attached SSA tax obligation. In
essence, SSA -taxed owners looking to sell will either pay cash out -of- pocket to cover
the SSA so that their homes are in line with market prices or will be forced to lower
the actual sale price in order to relieve the incoming buyer of the financial burden of
the SSA tax. Currently, regardless of where the market stands in 2, 5 or 10 years, a
home carrying an SSA tax obligation has no choice but to take a serious value hit.
We are asking that Pulte Homes, Inc. be proactive in devising fair and reasonable options
for homeowners now carrying the SSA tax -- options that will put us back on level
ground with the rest of our community. This may be an SSA pay -off for all homeowners,
or the offer by Pulte of a completely alternative incentive for new prospective buyers.
It is our unanimously firm position that each homeowner must either be uniformly SSA -
taxed or uniformly non - SSA - taxed. Period. If the price of a home needs to be discounted
to account for the market slump, so be it — that is market driven.
That said, we are all extremely happy with our Pulte homes and our growing community.
It would be disheartening if this issue went on to divide Autumn Creek against itself - and
perhaps more disheartening to contemplate that the issue was created by the very builder
that promised to partner with homeowners to create a vibrant new community.
We do hope that a representative of Pulte will meet with us at the next Yorkville City
Council meeting — Tuesday, September 25, 2007 to discuss this further and work toward
an equitable resolution. We understand that the Yorkville City Council has extended an
invitation to Pulte as well.
Any correspondence and /or contact can be made through Joe Santoro (phone: 630 -301-
1928) and Amy Collins (phone: 630 - 882 - 6679). We look forward to seeing a Pulte
representative at the council meeting.
Sincerely,
utumn Creek Homeowners re: SSA
c/o Joe Santoro and Amy Collins
ACH /phh
enc. - copy of signed petition
I
cc:
William J. Pulte - Founder and Chairman of the Board, Pulte Homes, Inc.
Roger Cregg - EVP & CFO, Pulte Homes, Inc.
Steven C. Petruska - EVP & COO, Pulte Homes, Inc.
James R. Ellinghausen - EVP, Human Resources, Pulte Homes, Inc.
Board of Directors - Pulte Homes, Inc.
Brian Bruenhofer - Illinois Division President, Pulte Homes, Inc.
Lisa Madigan - Illinois Attorney General
Patricia Lindner - Illinois State Representative
Rose Spears - Alderman Ward 4, Yorkville, IL
Joe Besco - Alderman Ward 4, Yorkville, IL
Autumn Creek Homeowners - Yorkville, IL
IC I
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