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EDC Minutes 2004 03-18-04 Page 1 of 9 APPROVED 4/19/04 UNITED CITY OF YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE Conference Room March 18, 2004 In Attendance: Committee Members & City Staff Alderman Richard Sticka Alderwoman Wanda Ohare Alderwoman Valerie Burd Alderman Joe Besco Mayor Art Prochaska City Administrator Tony Graff Attorney Kelly Kramer Guests: Peter Raphael (William Blair & Company) Chicago Rob Gamrath (Quarles & Brady) Chicago Marvin DeLahr (Independent Engineer) Frankfort Peter Hyink (SEC Engineering) John Philipchuck, Attorney (representing MPI) Tim Winter (Pasquinelli) Gregg Ingemunson, Attorney Bruce Sperling (Triangle Investments) Yorkville Lynn Dubajic (YEDC) Yorkville Al Dubajic, Yorkville The meeting was called to order at 7pm. 1. APPROVALICORRECTION OF MINUTES: FEBRUARY 19, 2004 One correction was noted on page 2, 3 rd paragraph from bottom, wording should be "...the Yabsleys will have part..." The minutes were then approved. PRESENTATION: FINANCIAL PLANNING FOR NORTHEAST LAND USE PLAN AREA FOR PUBLIC INFRASTRUCTURE OF WATER, SEWER AND ROADS BY PETER RAPHAEL Tony Graff introduced Peter Raphael to the committee. Mr. Graff explained that Mr. Raphael would present a financial alternative to the committee, concerning land planning and land use. This works similar to the SSA policy to plan more efficient land use and infrastructure improvements. Mr. Graff showed a map of the sanitary sewer for Rob Roy Creek. A temporary solution is to install a pump for service to this area or a permanent solution can be implemented at a cost of $15.5 million. Page 2 of 9 Creating another policy like SSA would be desirable so there would be a policy in place when future developers encounter a similar situation. Graff & Raphael have met with many developers in the last 8 months. If the developers could all join forces, there could be a joint venture for monetary resources. The sanitary interceptor will reach to County Line Road, Dickson Road and Eldamain. There would be an estimated 10,000 units developed north of the railroad tracks. Mr. Graff then turned the presentation over to Mr. Raphael. Mr. Raphael: This is a $15.5 million dollar project and one developer cannot pay for it alone. The following alternatives were explored: 1. General obligation bonds are not a good option. 2. Sewer and water revenue bonds are tapped out and there are no revenues being generated from this area at this time. This type of bond would not have city backing. 3. Special service areas must have contiguous parcels, which are not present in this case. The special services area was studied and it was decided to have the persons who live there and benefit from the interceptor, pay for the bonds. Those people would pay a fee, which then could help pay for the bond issue, issue the bonds up front, reserve capacity in the plant and have enough money to build the interceptor. Mr. Raphael further stated the study looked at how many acres are involved and how many houses would be built. Each property owner would be allowed to opt into a "facilities expansion agreement" which would be a legal document. Then each developer would pay a quarterly fee to be used to retire the bonds. With a $15 million price tag, the fee would be based on the area being broken down by the number of units. Then the following would occur: 1. Bonds would be issued 2. A portion of the bonds would go to Yorkville /Bristol in a 30/15 infrastructure participation fee to reserve a portion of the plant capacity for all the parcels 3. The remaining money would build the project 4. The quarterly fees would be credited against the sewer connection fees 5. Each developer would end up paying about a $2600 fee. If more were paid, there would be recapture fees. i Page 3 of 9 Advantages for the developers and the problems being solved: 1. They will have reserve capacity 2. Enough money to build entire Rob Roy Creek interceptor 3. The developers would agree because of payment plan to pay fee 4. Bonds would be revenue bonds, thus no liability to City 5. To sell bonds, a few "bells & whistles" would be added 6. Developer could put up I year letter of credit, so if the quarterly fees are not paid, the letter of credit could be drawn upon 7. If there is a failure to pay the fee, a lien could be placed on property Alderman Besco questioned how this might affect property owners not under contract with the developer. Mr. Raphael stated that the developers are publicly traded companies who would most likely pay their infrastructure fees regardless of individual owners. Alderman Rich Sticka asked if the fee paid would be based on the size of the property. Formulas would be used to determine the fee amount and the quarterly fee would effectively be a credit against the developer's $2600 sewer connection fee, according to Raphael. It was noted by Mr. Graff that developers have not signed off 100% on the "reserve capacity" issue, however, they realize it is probably the best way to proceed. Reserve capacity is granted when the pipe is installed and connected and the IEPA permit is applied for. An intergovernmental agreement would be desirable at this time, which contains language ascertaining certain criteria have been met. An inquiry was made by Alderwoman Ohare if there are any properties in the area being discussed, which are still privately owned. The Mayor stated that the area is still farmland, but many owners have agreed to be annexed to the City and the sanitary district. There are about 2200 acres under contract or whose owners have intent to sell to a developer. The 60 -acre Schultz farm is not under any agreement. Mr. Raphael further stated that property owners do not have to opt in and they would not be forced. When a building permit is applied for by the developer, the $2600 sewer connection fee will be paid The homeowner does not pay it directly. A general 10 -year time frame is used for all the fees to be paid but, if the developer finishes a development within 5 years, the bonds would be paid for at that time. Alderman Sticka asked what the City's position is on this. According to Mr. Raphael, the City will issue the bonds, but will not have to guarantee them since they are not a City obligation. Low interest general obligation bonds could support them if the City would so desire. Mr. Raphael feels the builders will be in favor of this plan, however, the IEPA will want to examine it first. Mayor Prochaska also pointed out that many developers have had discussion with him to ask how they could obtain funds. He said that the City does not have the funds to finance this project. An affiliation of developers was desired which did not come to fruition, however, the city would avoid liability by using Mr. Page 4 of 9 Raphael's plan which is a developer driven project. Once the development begins to grow, Mr. Graff stated that the fee would most likely be paid on a permit -by- permit basis. A concept plan was delivered for the Sexton property, which is north of Fox Hill and is under review for the Plan Commission in April. Collins Ridge and Kendall Hill have already paid fees so the $15 million project becomes more viable. The $15 million figure was provided by Deuchler who did the calculations after studying the topography maps.. Developers will be asked for an upfront fee to pay for the engineering, which will be returned when the bonds are issued. All easements will be acquired so bondholders will know it is a viable project. Three - quarters of a million dollars will be front funded by developers but, will also be returned when bonds are sold. That is about $640 per acre. Mr. Sticka asked if this plan would affect the debt limit. It does not affect the limit because it is a true revenue bond and does not fall back into the general obligation of the City. In addition, there is the ability to lien the property. This type of bond can also be used for water and a southwest interceptor that will be built south of the river on 1500- 1600 acres which are under contract. He wondered if approval of this project would send a message that this is a good plan? Ms. Ohare asked whether the 10 -year time frame could be longer. Mr. Raphael stated that it could, but in reality it should be less than 10 years. Refinancing could be done if the economy were to slow down. If a developer were to file bankruptcy, Mr. Besco asked if the City holds the lien. The City would file a lien and then wait until the property was sold. Mr. Raphael explained that the property would have to be transferred and then paid off. He further stated that the debt service reserve funds and the lien provided additional layers of protection before the bonds would be in jeopardy. The discussion turned to the capacity of the interceptor. Mr. Philipchuck wondered if it had enough capacity and also asked about developers building south of the river. Ms. Kramer felt there was enough capacity. Once the IEPA is signed, the capacity is available. The question of having capacity available depends on the signature, according to the Mayor. The sanitary district is already planning further expansion. Mr. Graff offered that under their current IEPA permit, they can add another 9,000 more PE. Another plant expansion project will follow that addition. In order to move forward, Alderman Sticka stated he supported this project. The Mayor left the meeting at 7:38pm i Page 5 of 9 2. FACADE REVISIONS More details are needed and Alderwoman Burd and Attorney Kramer will review this ordinance. 3. BUILDING PERMIT REPORTS FOR FEBRUARY 2004 After review of the report, it was noted that fiscal year 2003 showed 7 permits and calendar year 2003 and 2004 showed zero permits. Since the number of building permits did not add up, Alderman Sticka said additional review was needed along with a full explanation of the report. 4. PC2001 -16 FOX HILL REZONING Attorney Rob Gamrath was present to represent developer Paul Dresden. He asked the board to consider two factors as they weighed his proposal: 1. What economic impact this rezoning would have if the zoning remains the same 2. The hardships on the developer if zoning remains the same He also pointed out this request is being driven by the developer. Mr. Gamrath gave an overview of the background for this request. Over the last 10 years, there have been significant changes in this area. When the site was redesigned, the intent was to square off the property line between the northerly commercial parcel and the southerly residential parcel. Some zoning changes would then be requested for the north side, with more on the south side. At issue, however, is the residential portion. He handed out a matrix of the changes over the last 10 years. The following items have changed significantly. When the original zoning was approved: 1. There were no plans for development 2. No plans for widening Eldamain Road 3. No plans for footbridge to the south 4. Rob Roy Creek was not designated a floodplain Now in 2004, during final plat approval, the City requested the configuration be reconsidered as the City was getting ready to map Rob Roy Creek. Four lots were lost due to the widening of the floodplain area. The re- engineering cost for the developer was $95,000. The developer approached the City again and in the meantime the large development came into Plano. The City stated they thought the access points along Eldamain Road should line up due to the Plano development. With that realignment, another 6 lots were lost with another $65,000 being spent for re- engineering. At this point, a total of 10 lots were lost at a loss of $750,000 to $800,000. Page 6 of 9 Mr. Gamrath went on to say this site then no longer made sense as a single family development due to the proposed widening of Eldamain Road, thus increaseing traffic. A commercial area is now anticipated for this area and he feels that what worked 10 years, no longer works for this area. He stated Mike Schoppe drew the plans for the multi- family housing and that Mr. Schoppe believes (in his professional opinion) that the Plan Commission no longer thinks the original plan is satisfactory for the area. Mr. Gamrath then turned the discussion over to Marvin DeLahr. Mr. DeLahr agreed the single family plan no longer made sense. He based his opinion on the following. Since the entrance to the area being discussed had to be realigned with the entrance to the new Lakewood subdivision and due to the increased floodplain, additional building lots were lost. He stated Mr. Schoppe presented several reasons for recommending multi - family. A revised layout was done based on his views and more commercial area was also added. The developer is seeking approval for this plan. To summarize the discussion, Mr. Gamrath pointed out that 96 units could be built under the R4 zoning, however, the developer is only asking for 72. The developer is trying to recoup some of the expenses he has incurred as a result of these changes. He described the apartment complexes as being 2 floors and at a higher elevation than the commercial portion. Ms. Ohare stated that she and Alderman Sticka had walked the property and were surprised that the apartments would be quite far from the single family homes. In addition, there is a very dense tree line, which will be preserved and also serve as a buffer. The tree line area is being deeded to the Park District according to Attorney Kramer. At the present time, there is only one entrance into this proposed property, which is off Eldamain. However, as the area is developed another entrance will be added. Alderman Besco had a concern for the farm to the south being buffered from the development. Mr. DeLahr stated there would be a berm bordering the farm. Alderman Sticka added that the City has pushed for street alignment. As part of the boundary agreement with Plano, the City will attempt to make the access points equal on Eldamain Road. He pointed out that the Lakewood access could not be moved due to poor soils and in addition, they wanted to maximize their commercial opportunity. Mr. Sticka pointed out that single family areas are almost always buffered by townhomes. He also asked if the developer would be willing to follow some architectural standards with those townhomes. Mr. Gamrath pointed out that ultimately i Page 7 of 9 his client might not be the builder on this property. Some brick may be used in the front, but any changes would be attached to the PUD amendment conveying the desired standards, according to Mr. Graff. He also said The Fire Department would like to see an upgrade to the sprinkler system. Alderman Besco pointed out that these units would be worth more than the neighboring single family units. At this point in the discussion, Mr. Sticka said that the committee would recommend moving ahead with the R4 zoning from R2. Mr. Graff then stated the following items needed to be firmed up: 1. Language to address landscaping 2. Architectural standards 3. Language to address fire safety /sprinklers The original agreement asked the developer to pay up to 20% of the Eldamain improvements. When it was single family zoning, his contribution would have been $50,000. In consideration of the hardships, credits for Eldamain improvements would no longer be a requirement. The Mayor asked for committee approval on this point. It was noted that Eldamain is currently a county road, and that it will need maintenance in the next 2 -3 years. Since there will be a public hearing, further decisions were tabled and the PUD amendment will go back to the Council. Mr. Graff stated that whenever there is a PUD amendment, normally the City asks the developer to pay the school transition fee. The current fee is $3,000 per unit. Alderman Sticka felt that any decisions on other fees should originate with the City Council. Mr.Graff stated that no sales tax incentive program was in place when this PUD was begun. It was asked by Ms. Ohare if the PUD being discussed would now be subject to any new current agreements in place. They would not. The Plan Commission did approve the final plat pending the completion of the floodplain. S PC 2004 -02 TRIANGLE INVESTMENTS REOUEST TO REZONE CORNERSTONE Mr. Gregg Ingemunson, Attorney gave a presentation on behalf of Triangle Investments for Cornerstone Development. He stated the development would have approximately 18 acres of commercial and 18 acres of residential (41 lots). The Plan Commission would like the lots to be 12,000 square foot. The request is to change from R4 to R2 zoning and some of the R4 will change to B3. I Page 8 of 9 The area was described as follows. The commercial area entrance will be off Rt. 47, which has been earmarked for a stoplight when the traffic warrants it. Single - family homes will butt up next to the commercial area, but people purchasing homes nearby will be aware of the location of the commercial portion. And last, the treeline in Greenbriar will be preserved. This item will move forward for a public hearing. 6. PC 2001 -06 GRANDE RESERVE UNITS 1, 2, 3, 4 & 6 FINAL PLATS John Philipchuck, Attorney displayed a concept plan which he noted had been previously approved. A well is currently being drilled at the corner of Bristol Ridge and Kennedy. Alderman Ohare asked about the visible water on Rt. 34 due to a large amount of water in the area. Dewatering is being done in that location and the water will flow to a detention facility. People in the area are concerned about wells being drilled and the effect it might have on their individual water sources. Mr. Philipchuck stated the municipal well being drilled will draw water from a deep aquifer. Alderwoman Burd asked if a decision had been made regarding the high school location. According to Mr. Graff, Hinsdale Nursery is under contract with Pulte and has met with Art Zwemke and Dr. Engler. An elementary school is under consideration for the nursery area. Dr. Engler suggested the schools might take the cash and find another suitable school site (80 -100 acres) for the high school as there is an issue.with the wetlands in the area. An extension was given to MPI for a high school site decision, as a decision was to have been made by January l All the other school sites were given a one year extension. The grand entrance for this development will be off Rt. 34 according to Mr. Philipchuck and he produced the concept drawing for this entrance. There will be a waterfall similar to the one in Oswego on Rt. 34 and there will be additional signage along Kennedy Road. The committee approved the final plats and this item will be moved forward. I 7. REVIEW OF THE LANDSCAPE ORDINANCE It was noted by Alderman Sticka that he had attended a meeting where a local landscaper stated the ordinance was difficult to interpret. However, at the same meeting two landscape architects from other companies said they found the ordinance easy to follow and far less restrictive than some other communities. The committee will review the ordinance and also focus on existing landscaping, tree preservation and lighting. At present, a minimum number of trees is required in the parkway. Several years ago, trees were frowned upon in the parkway, however, this is not an issue now as the sewer pipes in subdivisions are much deeper and are not affected by tree roots. i Page 9 of 9 One issue which needs to be addressed when a new business opens, is the existing landscaping —credit needs to be given for existing plantings. Mr. Graff suggested a pre- conference with the landscape designer as a way to assess the landscaping. An example given was Carriage I located in the old Fox Valley Shopper building. The owner asked to be given permission to waive plantings until the Rt. 47 engineering is complete. The close physical location to Rt. 47 was mentioned as a factor in the types of plantings. Alderman Burd pointed out that too many trees could obstruct the view of a business. She also encouraged the use of flowering shrubs and flowers, however, maintenance and road salt are potential issues in the planting of these types of vegetation according to Attorney Kramer. Some business owners would like to plant flowers, however, no credit is given for them. The ordinances in Geneva and Batavia will be reviewed to assist in revising Yorkville's ordinance. This item will be brought back to the committee for further review. 8. RESCHEDULING OFAPRIL EDCMEETING The next meeting will be scheduled for Monday, April 19 due to Alderman Sticka being out of town on the regular meeting day. 9. ADDITIONAL BUSINESS Ms. Ohare thanked Mr. Sticka for walking the Fox Hill property {earlier agenda item} with her. This gave her a better understanding of the property after she received many calls from that ward. In addition, Ms. Ohare asked when the wards would be re- districted. Mr. Graff will speak with Paul Anderson who recommended the City obtain the demographic census counts so that re- districting can be done. The meeting was adjourned at 8:50pm. Minutes respectfully submitted by Marlys Young, Minute Taker i I I PLEASE SIGN IN MEETING: Cr DATE: I NAME STREET ADDRESS CITY )Aa -5 '12 i z c L F!5TACA o � o�`f l (� R 17? �� � v��.�i� /d' W/ //c xliracfz ?e c� 2 ,l �; �� s t AVZ- 1