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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. Paae 2 of 3 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. i Paae 3 of 3 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. PLEASE SIGN IN i �h"L El i DATE: I. -1 ,�; vx NAME BUSINESS PHONE # I pis 11 ► cis 3 C U 77 I ' I I I I I