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City Council Packet 2022 02-22-22 - Supplemental Packet #2 Have a question or comment about this agenda item? Call us Monday-Friday, 8:00am to 4:30pm at 630-553-4350, email us at agendas@yorkville.il.us, post at www.facebook.com/CityofYorkville, tweet us at @CityofYorkville, and/or contact any of your elected officials at http://www.yorkville.il.us/320/City-Council Agenda Item Summary Memo Title: Meeting and Date: Synopsis: Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: Council Action Requested: Submitted by: Agenda Item Notes: Reviewed By: Legal Finance Engineer City Administrator Community Development Purchasing Police Public Works Parks and Recreation Agenda Item Number Mayor’s Report #1 Supplemental Information Tracking Number CC 2022-05 Bright Farms Development Agreement City Council – February 22, 2022 CC – 01/25/22 CC 2022-05 None Informational Bart Olson Administration Name Department Supplemental Information – distributed 2/18/22 Summary Review of the status of the Bright Farms development agreement, and feedback on specific components of the agreement. Background This item was last discussed by the City Council at the January 11th City Council meeting, when the City Council reviewed a development status memo, heard a presentation from Sean O’Neill of Bright Farms, approved a grant application for $1m in sewer funding on behalf of Bright Farms, and authorized a design engineering agreement with EEI to design a sewer out to Bright Farms. Since that meeting, the grant application has been submitted to the state, the developer has worked on their water use and well analysis, the staff have continued the planning and design efforts on the sanitary sewer and recapture areas, the developer has put up additional funds to keep the design engineering agreement moving, the staff have briefed the YBSD board on the project and funding request to generally positive reception, and the development agreement draft has begun. Water Well We expect that Sean O’Neill of Bright Farms will be present (remote vs. in person TBD) to discuss the data shown from his test water well and his analysis of how a permanent well would impact other wells in the region. The offshoot of this presentation will be a detailed discussion of their operational water use and recycling on the property. Bright Farms understands the questions already posed by the City Council and the greater concern for agricultural and residential wells in the region, and they are expected to answer any questions from the City Council or residents in advance of development agreement approval. Updated Sewer Design and Cost Breakdown The staff has updated the conceptual sewer design, refined the cost estimate, and determined the recapture value for each tributary property. The total cost of the entire sewer project is still estimated in the $2.866m range. One way to look at this total project is by sewer pipe cost breakout: 1) Sewer cost, in full - $2,866,000 a. 30” pipe - $665,000 i. Funded by Bright Farms Infrastructure Participation Fees and YBSD $158,000 contribution Memorandum To: City Council From: Bart Olson, City Administrator CC: Date: February 16, 2022 Subject: Bright Farms Development Agreement b. 16” pipe - $1,999,480 i. Funded by Bright Farms ~$300,000 responsibility, Bright Farms $1,000,000 payment towards other properties’ responsibilities, and ~$700,000 in funding shortfall TBD c. 12” pipe - $200,000 i. Funded by Bright Farms ~$175,000 responsibility, Bright Farms $25,000 payment towards other properties’ responsibilities. Another way to look at this project is by party responsibility breakout: 2) Sewer cost, in full - $2,866,000 a. YBSD will pay $158,000 b. Bright Farms will pay $2,000,000 i. Of which, around $975,000 is their responsibility and $1,025,000 is payment towards other properties obligations and would be recapturable by Bright Farms in the future c. Funding shortfall, TBD $700,000 In an effort to move the project along, the Mayor and staff have offered a total City contribution of $150,000 towards the $700,000 funding shortfall, if Bright Farms could initially cover this amount and allow the City to repay Bright Farms over a four-year period. Bright Farms has not accepted this offer, and they seek to make the pitch to City Council directly to increase that City contribution. YBSD Participation The staff has briefed the Yorkville Bristol Sanitary District Board on the City’s project proposal and funding request. The YBSD board was generally receptive to the City’s requests to: 1) Allow the City to design the entire sewer project including the 30” sewer section that would normally be a YBSD responsibility, as long as YBSD has input / sign-off on the design 2) Allow the City to construct the entire project including the 30” sewer section that would normally be a YBSD responsibility, as long as YBSD has input / sign-off on the construction process 3) Allow the infrastructure participation fees (IPF) paid by Bright Farms in an estimated amount of $507,000 to YBSD to eventually be sent to the City to offset the City’s cost to construct the project 4) Have YBSD pay the difference of the cost of the 30” sewer and the Bright Farms IPF to the City, currently estimated at $158,120 5) Memorialize all of the above in a three party development agreement (YBSD, City, Bright Farms) We anticipate all of the above to be completed before the March 14th YBSD Board meeting, in anticipation of their consideration of the agreement at that meeting. Draft Development Agreement Status The draft development agreement is expected to contain the following terms, for your early review and feedback: 1) Bright Farms project commitment – 120 acres with 1.9m total square feet of buildings at final development. Phased construction of four greenhouses of approximately 400,000 square feet each connected to two central processing headhouses of 150,000 square feet each. 2) Approval to drill their own water well (requires City Council review and approval during the development agreement phase) 3) Payment of Bright Farm’s direct costs for the sewer project, estimated at $500,000 for their share of the 12” and 16” sewer lines, $507,000 for annexation fees into the sanitary district, and $507,000 for infrastructure fees into the sanitary district a. The $507,000 for annexation fees do not go to the sewer project; the fees go to the sanitary district to offset the cost of the sanitary district’s general expenses. 4) Payment of tributary properties direct costs for the sewer project, with recapture due to Bright Farms in an amount and method to be determined, based on the ongoing funding gap discussion. 5) An exhibit with the recapture agreement and related provisions due to Bright Farms 6) Reconciliation of design engineering costs and credits for Bright Farms based on their share of the engineering agreement and their deposits to keep the engineering work moving along 7) Clarification that if the CDBG sewer grant application is awarded, that the money will be sent to Bright Farms (they have the burden of providing financial information and project commitments to the state, the City is the pass-through entity) and that the grant application will not be used to offset the share of what other properties will eventually have to pay as recapture 8) Authorize the City to design and construct the sewer project, with YBSD input 9) Authorizes YBSD and Bright Farms to negotiate the timing of the YBSD annexation fees and IPF payments to the district, as long as the City is not at risk for project costs during construction 10) Commitment to complete the sewer project by January 2023, and if that design is not met, a commitment from the City to Bright Farms to allow them to use temporary onsite septic and process water until the permanent sewer is constructed. Recommendation Staff requests feedback on all parts of the memo and attachments provided. !!! ! ! ! ! !!!!!!!!!!! ! ! !BeecherEldenBridgeNath a n JonathanCaledoniaCrestwood RyanS h a d o w W o o d Fontana GabrielGalena B o o m b a hLauren McMurtriePinewoodCorneils W aterp arkCo m m e r c i a lBeecherEldamain%ANNMARIEHAGEMANNHAGEMANNFAMILYTRUSTCOMMONWEALTHEDISONM ARY AUER GARYL&BETTYSBENNETT%LARRYWALLI SNELSONLANDCOM P ANY % A N N M A R I E H A G E M A N N H A G E M A N N F A M I LY T R U S T KATHERINESCHULTZROSENWINKEL FAMILYTRUST ET AL 501 TWOSTARENTERPRISESLLCCOMMONWEALTHEDISONROSENWINKEL FAMILYTRUST ET AL 501ROSENWINKEL FAMILYTRUST ET AL 501% ANN MARIE HAGEMANHAGEMANN FAMILY TRUST ROSENWINKEL FAMILYTRUST ET ALGARY&BETTYBENNETTGARY &BETTYBENNETTKATHERINESCHULTZROSENWINKELFAMILYTRUSTETAL501 ROSENWINKEL FAMILY TRUST ET AL 501ROSENWINKEL FAMILYTRUST ET AL 501ROSENWINKEL FAMILYTRUSTETAL501 M C A R T H U R J O A N T R M C A R T H U R J A M E S B &V IR G IN IA T R & Engineering Enterprises, Inc. 52 Wheeler RoadSugar Grove, Illinois 60554(630) 466-6700 / www.eeiweb.con PROPOSED SERVICE AREA DATE:FEBRUARY 2022United City of Yorkville800 Game Farm RoadYorkville, IL 60560(630) 553-4350http://www.yorkville.il.us UNITED CITY OF YORKVILLEKENDALL COUNTY, ILLINOIS CONSULTING ENGINEERS NO.DATE REVISIONS PROJECT NO.:YO2116 PATH:H:/GIS/PUBLIC/YORKVILLE/2021/FILE: . BRIGHT FARMS 2,000 0 2,0001,000 Feet PROPOSED INTERCEPTOR YO2116-Yorkville - Bristol Sanitary District Sanitary Sewer Improvements Overall 1-17-22 RIM= 640INVERT = 630.80 CORNEILS ROADINTERCEPTOR SEWER Legend EXISTING 30" SANITARY SEWER EXISTING 36" SANITARY SEWER SANITARY TRIBUTARY AREA YORKVILLE LIMITS A A-2 B C D E 1200' 30" @ 0.058% 1980' 16" @ 0.20% 2400' 16" @ 0.20%1400' 16" @ 0.20% RIM= 641INVERT = 634.76 RIM= 654INVERT = 639.56 RIM= 663INVERT = 642.3 RIM= 666.0INVERT = 645.90 700' 12" @ 0.22% LINCOLN PRAIRIE JOHN MEYER JOHN MEYER RIM= 655INVERT = 644.36 1000' 16" @ 0.20% BRIGHT FARMS CONNECTION 630.1 FT EXISTING INVERT Potential Funding Breakdown - Bright Farms February 9, 2022 Preliminary Estimate 30" Interceptor 665,480.00$ YBSD - Infrastructure Fee 507,360.00$ Balance - Potentially To be Paid for by YBSD 158,120.00$ Preliminary Estimate 16" Interceptor 1,999,480.00$ Bright Farms (15% Capacity)299,922.00$ 16" Interceptor Balance 1,699,558.00$ Preliminary Estimate 12" Sanitary 201,900.00$ Bright Farms (0% Capacity)-$ 12" Sanitary Balance 201,900.00$ (Per Code It is the Developer's Responsibility to Extend Sewer to Limits of Property) Total Balance 1,901,458.00$ DCEO Grant (City)1,000,000.00$ Additional Funding Needed 901,458.00$ Potential Funding Summary: Total Cost 2,866,860.00$ YBSD Funding 665,480.00$ Bright Farms Funding 501,822.00$ DCEO Grant 1,000,000.00$ TBD Funding 699,558.00$ Bright Farms Engineering Breakdown February 9, 2022 Preliminary %Portion of Capacity /Portion of Cost of Overall Design PSA Allocation to BF Design PSA - BF Preliminary Estimate 30" Interceptor 665,480.00$ 23%45,842.60$ 7%3,208.98$ Preliminary Estimate 16" Interceptor 1,999,480.00$ 70%137,737.21$ 15%20,660.58$ Preliminary Estimate 12" Sanitary 201,900.00$ 7%13,908.19$ 100%13,908.19$ Totals 2,866,860.00$ 100%197,488.00$ -37,777.75$ Design PSA 197,488.00$ Tributary Area Pipe Capacity Calculations 12" Sanitary Sewer Cost Property Peak Hourly Flow % of Total Flow Breakdown Haggemann Family Trust 535,073 57%14,129.46$ Rosenwinkel Family Trust 365,891 39%9,661.94$ Mary Auer 41,982 4%1,108.60$ 942,945 100% Total Cost of Upsizing 24,900.00$ 16" Sanitary Sewer Cost Property Peak Hourly Flow % of Total Flow Breakdown Haggemann Family Trust 535,073 18%364,989.03$ Mary Auer 41,982 1%28,637.11$ BrightFarms 449,706 15%306,758.08$ Lincoln Prairie 369,423 13%251,994.82$ Katherine Schultz 298,015 10%203,284.97$ Meyer 337,490 12%230,211.70$ Bennett 54,738 2%37,338.29$ Rosenwinkel Family Trust 844,804 29%576,265.99$ 2,931,230 100%1,999,480.00$ Total Cost 1,999,480.00$