City Council Packet 2022 02-22-22 - Supplemental Packet #2
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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.
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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$