EDC Minutes 2005 12-15-05 Paae 1 of 3
APPROVED 2/16/06
ECONOMIC DEVELOPMENT COMMITTEE
Thursday, December 15, 2005
7:00 pm
City Hall Conference Room
Present:
Alderman Marty Munns Dan Kramer, attorney
Alderman Jason Leslie Michael Krause, MPI Communities
Alderman Joe Besco John Phillipchuck, MPI Communities
Alderwoman Valerie Burd Roberto Guzman, Pasquinelli
Lynn Dubajic, YEDC Scott Harmon, resident
City Administrator John Crois Tony Scott, Record
City Attorney John Wyeth (arrived at 7:30)
The meeting was called to order at 7:00 pm by Chairman Munns.
1. Approval/Correction of Minutes: November 17, 2005 — The minutes were
approved.
7. PC 2005 -52 Kleinwatcher — Annexation and Zoning — This is a 9.81 acre parcel on
the West side of 47 south of Legion Road. There is an existing brick home with a long
driveway. Mrs. Kleinwatcher has been running daycare out of her home for some
time and would like to build a day care center on the proposed south lot. The half
closest to Rt. 47 (470 to 500 feet back) would be zoned B3 for offices and Retail
development with the preference that it would be restricted to offices, and the back
half would be zoned R2 residential with 14,000 square foot lots.. The driveway would
be closed off and a road would go out to 47 and there would be a North South street
dividing the two uses. They wondered if there could be flex zoning where it could be
zoned B3 for the whole property for 6 or 7 years, and then if there was no interest, the
back half would revert to R2. The Plan Commission voted 9 -0 in favor of annexing
and 8 -1 in favor of the dual zoning. Alderman Leslie had a concern about co- mingling
R2 and B3. It could be zoned B2 but keep the B3 setbacks. This will move on to
COW.
2. EDC 2005 -01 SSA Tax Policy — Scott Harmon, a resident said the homeowners do
not benefit from SSAs. He said the SSA tax rate for Raintree would vary from 8.5%
and 9.7% while non SSA parcels would have a tax rate of 6.87 %. He said the SSA
makes things more confusing to the homebuyer about what the real cost of the home
is, and does not make it more affordable to the homeowner. He feels the only people
benefiting from the SSAs are the developers and investors. He also said the city
would get more in real estate taxes if there was no SSA because the property values
would be higher.
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John Phillipchuck from MPI said that MPI has had meetings with the sales staff at
Grande Reserve to stress the importance of proper disclosure of the SSA in a timely
manner. He said that the 1.5% annual increase refers only to the maximum payment,
and the homeowner's annual payment may be less than the maximum. So if the
homeowner pays less than the maximum one year, and then the next year
circumstances dictate that they must pay the maximum payment the following year,
the payment would look like it increased more than the maximum of 1.5 %, but MPI
assures the homeowner that his maximum payment will not increase more than 1.5%
per year for the length of the obligation.
John Phillipchuck also said MPI strongly believes the SSA in Grande Reserve has
made positive and lasting impacts that will be enjoyed by Yorkville residents for years
to come. He said Grande Reserve is a model for SSA developments.
There has been confusion about active SSAs for maintenance of common areas and
backup or dormant SSAs put in place if the Homeowner's Association should fail. The
SSA tax is for front funding infrastructure improvements.
Alderwoman Burd commented that the Grande Reserve SSA was done well, and that
other SSAs have not done as well.
Right now the city is only approving dormant SSAs.
There was a comment about homeowner frustration and lack of understanding from
the salespeople.
Each project will need to be evaluated individually.
In the annexation agreements there is no clause that states they will automatically get
an SSA, but they may request one.
An idea was to payoff the SSA as the home is purchased, and roll it into the mortgage.
A list of what SSA dollars can be used for needs to be drawn up.
There needs to be more education about SSAs between the developer and the buyer.
An SSA could be used if there would be extraordinary infrastructure needs.
John Crois suggested getting information about what Grande Reserve used the SSA
for.
This will come back in January.
3. EDC 2005 -08 Building Permit Report for October 2005 — This will move on to
COW on Consent Agenda.
4. EDC 2005 -07 Feasibility of Relocating Overhead Power Lines to Underground —
This will come back to EDC in January.
5. EDC 2005 -03 Kendall County Transportation Development Fees Draft
Agreement — This will come back to EDC in January.
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6. EDC 2005 -09 Facade Improvement Agreement — The funding has been expanded to
include the whole city, but it has been prioritized. The #1 priority is the downtown
area and the #2 priority is along major highways. This year Sawmill Pizza and the
Bridge Street Cafe have applied for this program. It is a matching program for major
facade improvements and the owner must spend at least $1,000. They will only be
able to get what is in the fund at budget time. There was $20,000 budgeted for the
Facade Fund. There is a committee that decides how much to give each applicant if
the money is available. If the facade is changed before the 5 years is up, there needs to
be an enforcement provision. It should be recorded as a matter of record on the title of
the property so a new owner would know if the property was sold after this program
was used. This will go to January EDC.
8. Additional Business
Joe Besco asked if anyone was interested in the Economic Incentives yet. Lynn Dubajic
said there was a Retail Developer who got the information from the city. They
commended the city for moving in that direction.
The meeting was adjourned at 8:05 pm.
Minutes submitted by Laura Leppert.
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