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Economic Development Minutes 2011 09-06-11 APPROVED 10/4/11 UNITED CITY OF YORKVILLE ECONOMIC DEVELOPMENT COMMITTEE Tuesday, September 6, 2011, 6:30pm City Conference Room In Attendance: Committee Members Chairman Marty Munns Alderman Jackie Milschewski Alderman Chris Funkhouser Absent: Alderman Diane Teeling Other City Officials Mayor Gary Golinski City Administrator Bart Olson Community Development Director Krysti Barksdale-Noble Code Official Mark Hardin Other Guests Tony Scott, Kendall County Record Lynn Dubajic, YEDC Stan Free, Castle Bank Art Zwemke, Kendallwood Estates Rick Tollefson, Boombah The meeting was called to order by Chairman Marty Munns at 6:31pm. Citizen Comments: None Minutes for Correction/Approval August 2, 2011 The minutes were approved as read. New Business 1. EDC 2011-31 Building Permit Report for July 2011 No comments 2. EDC 2011-32 Building Inspection Report Summary for July 2011 Many of the plumbing inspections were done by B&F. New Building Code Official Mark Hardin is a licensed plumber in Texas and is seeking his Illinois licensing. The City is looking at other private contracts to assist in the interim inspections. 3. EDC 2011-33 Boombah Incentive Agreement Discussion delayed until later in the meeting. 1 4. EDC 2011-34 Kendallwood Estates Bank Proposal and Impact Fee Changes Krysti Barksdale-Noble presented background on this item and said Mr. Art Zwemke is acting as a consultant for Castle Bank. He is trying to package this property to sell to a new developer. The property is east of Rt. 47, between Van Emmon and Rt. 126. Items being considered are: 1) Letter of credit reduction, 2) Tree preservation and replacement reduction, 3) Impact fee reduction. Ms. Barksdale-Noble said the City has been working with Mr. Zwemke on the letter of credit reduction. Some amounts have been reduced for work that has been completed. The tree preservation portion was discussed at length. Ms. Barksdale-Noble said there is approximately $600,00 worth of tree replacement fees. Staff has looked at the plans and is recommending monetary donations if the trees are not replaced. The parcel is very heavily wooded even though the original developer removed several trees. Zwemke noted the current tree ordinance was adopted after this development was approved. The property was annexed into the City in the late 1970’s with no annexation or development agreement. The fees agreed to at the time of original development were in a much healthier market and the lot prices were much higher. The original fees were $600,000 for landscaping, which equates to$7,000 per home site with 83 lots. Mr. Olson reiterated that this is one of the most heavily wooded areas in Yorkville and said the previous developer had cut down 200 trees. This prompted the current replacement ordinance. Any decision on the tree aspect would be a policy decision. Zwemke detailed the number of trees required in the plans vs. ordinance requirements. He estimated the cost at about $200,000 to meet the requirements. He asked for a reduction of $200,000 and compliance only with the ordinance. Two water lines run through the development---one that loops and one that dead ends. Zwemke proposed creating a fund of a per house cost of $10,000 at closing which the city would hold and when 50 closings are completed, the water main extensions would be finished. Mr. Olson said the City does not want dead end water mains since they require flushing. Zwemke asked for a delay on finishing these. The original plan called for an exit onto Rt. 126 and a connection with the existing street Wooden Bridge. The cost of building this would be $750,000. To improve the marketability, Mr. Zwemke proposed a right in/right out at a lower cost of $250,000. Mr. Zwemke also noted that there are no SSA’s and no legacy for this parcel. Zwemke said that he is looking for a letter of understanding addressed to Castle Bank from the city stating: $10,000 per house towards finishing the water main and that a right in/right out is acceptable to City. He is hoping for some relaxation for extra trees since there are so many trees already. Mr. Olson said such a letter is not binding for future developers. 2 Mr. Olson then discussed his impact fee memo. He said the fees could possibly be reduced if a developer asked for an annexation amendment. He addressed the land cash impact fee and said it was approved in 1976, but the amount has increased. A $1,500 study will be needed to determine the current land cash impact fee. Mr. Zwemke discussed various scenarios for the land cash fees. Mr. Olson said all impact fees apply such as Library, police etc. Zwemke said a request will also be made to the schools for some relief. YBSD fees were also discussed briefly as well as other fees detailed on an analysis of fees and donations report he compiled. Water and sewer fees will be paid upon closing. He also said relief is needed on both terms and fees. Committee Discussion of Kendallwood Presentation Impact Fees Alderman Munns said he had no issues with the presentation if there are no upfront fees for the City and if there is a letter of credit. Mr. Zwemke suggested a lien or second mortgage be posted on the property until the closing, resulting in less administrative function. Mr. Olson said there could be legal issues with liens in terms of administrative time and this will need to be reviewed by the attorney. And, it may require Council action to administer it properly. Chairman Munns summarized the committee’s position that they are in agreement with the concept and with deferring certain payments. Tree Issue Chairman Munns said there were already many trees cut by the original developer and Mr. Zwemke said additional ones may be cut where necessary, however, preservation is desired. Replacement trees will compensate and the landscape plans may be revised also. There was a discussion of the tree replacement vs. the ordinance requirement. Alderman Funkhouser said that if the Council compromises on the tree issue, it will set a precedent. Mr. Zwemke said they are not asking for a compromise, but rather consideration for the recommended excess of trees. Zwemke pointed out that the ordinance was not in effect when this development was originally planned. He added that the size of the trees as well as species/quality were important factors. Alderman Milschewski asked if a tree audit had been done. None was done. She summarized that some of the trees are already gone, now the City must work with what is left and that the ordinance resulted after this property was being developed. Chairman Munns suggested the alternative that Kendallwood could contribute a certain dollar amount to the tree bank. The majority of the committee agreed to a reduction of trees, however, Mr. Funkhouser expressed his concern about setting a precedent. Water Main Discussion The committee then discussed the idea of $10,000 fee per house for the first 50 houses. Mr. Olson said this concept might not be feasible from a legal standpoint and would require more research. 3 Right In/Right Out Discussion Mr. Zwemke said there is an easement for access and for the water mains. Bart Olson said the City is supportive of this, but it must be discussed with IDOT. Alderman Milschewski asked about a bike path proposed for this site, however, Mr. Olson said it was planned to be adjacent. In conclusion, the committee recommended that staff prepare a letter of understanding for th the September 27 Council meeting for further discussion. Administrator Olson said the City and Attorney will prepare this draft and will clearly state the impact fees and tree issue. He asked if the committee wishes to reduce some of the other fees and land cash fees, dependent on a study. Alderman Funkhouser said he would like the 2009 plan to be the basis to start. He said a revised landscape plan could be done and include requirements (out of sequence) 3. EDC 2011-33 Boombah Incentive Agreement A draft memo and draft incentive agreement were included in the packet. There was a brief discussion of the suggested tax rebates and proposal that TIF money could be used at the City’s discretion. The committee also discussed the various conditions and terms in the memo. Alderman Funkhouser questioned the fact that some of the buildings on the property did not meet code. As part of the agreement, the City would accept this. In the event the company makes improvements, Mr. Olson noted that permits were pulled before 2009 prior to the new codes going into effect. Alderman Milschewski asked about the rebates and also benefits to the City, especially since no infrastructure is being gained. Mr. Olson said 90 new jobs will be gained, City will acquire a corporate headquarters and a vacant building will be re-purposed. A 12,000 square foot building renovation will also add to the tax rolls. Mr. Tollefson, owner of the company, said additional employees could be hired. He said the company turned down 1% rebates from another city in favor of moving to Yorkville. Ms. Dubajic added that industry is very important to the City and helps attract other industries. By consensus, the committee recommended this should move forward to the September th 13 Council meeting. 5. EDC 2011-35 Tourism a. Baseball Tournaments Chairman Munns commented it would be beneficial to offer packages to tournament attendees as a way to partner with businesses and to generate money. He suggested a coupon booklet in the packages. The tournament coordinators could distribute the info packets. 4 Alderman Milschewski also questioned the money paid to Aurora for the Tourism Bureau and how it benefits Yorkville. No report of the expenditures has been received for many years. Ms. Dubajic said she had expressed 2 concerns to the new Tourism Director: the need for total cooperation and that a Raging Waves rep should sit on the Tourism Board. Mayor Golinski commented that there is a marketing firm in Yorkville, which suggested the City and whitewater area in general, could be marketed more effectively. The Tourism Bureau will be asked to give a presentation to the Council. Currently, Yorkville is contracted with the Tourism Bureau through 2012. Alderman Milschewski noted that tourism brochures should be available inside local hotels, whitewater area and other locations. Also noted was that Oswego’s EDC oversees their tourism. 6. EDC 2011-36 Annexation of Certain Properties Pursuant to Section 7-1-13 of the Illinois Municipal Code Administrator Olson said there are 2 areas near the City limits that the City should consider for possible annexation. The areas are south of the Sunset Motel and near McHugh Road. Mr. Munns also said businesses there benefit by being next to the City. The matter would go the City Council for a vote of consent to begin the process. Notices would then be sent to the property owners and Public Hearings would be required. The committee approved of moving this forward. Old Business None Additional Business Ms. Dubajic noted that the Cobblestone Bakery is now open. There was no further business and the meeting adjourned at 8:27pm. Minutes respectfully submitted by Marlys Young 5