Arlington Economic Alliance

Regular Meeting

Arlington Heights, IL · November 20, 2024

Minutes

APPROVED MINUTES OF THE MEETING OF THE ARLINGTON ECONOMIC ALLIANCE HELD ON NOVEMBER 20, 2024 AT 7:30 A.M. AT THE VILLAGE HALL MEMBERS PRESENT: MEMBERS ABSENT: Andrew Stengren – Chairman Tonia Etoh Tony Guido Ellen Para Terry Iverson John Toliopoulos Heather Larson Michael Mulder Kerri Oots Marc Poulos Brian Roginski Andi Ruhl STAFF PRESENT: Michael Mertes – Business Development Manager ALSO PRESENT: Keith Moens, Resident Call to Order Chairman Andrew Stengren called the meeting to order at 7:32 AM. Approval of Minutes – September 18, 2024 The meeting minutes of September 18, 2024 Arlington Economic Alliance meeting were reviewed. HEATHER LARSON MOVED AND MARC POULOS SECONDED A MOTION TO APPROVE THE DRAFT SEPTEMBER 18, 2024 ARLINGTON ECONOMIC ALLIANCE MEETING MINUTES. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Development Update The Arlington Gateway development broke ground in October. An extension until May 2025 for Arlington 425’s PUD approval was approved by the Village Board. The Board also approved a plan to engage a sign contractor on the development of two sign features in the Downtown, one in Harmony Park and the other at Clock Tower Plaza. Installation is anticipated in early 2025. Longtime Director of Planning & Community Development, Charles Perkins, retired last week after 35 years in that position for the Village. Also, Rich Casey has resigned from the Economic Alliance. Mr. Iverson suggested future electronic signage that would capture the attention of Metra riders, in addition to the one currently at Arlington Heights Road and Northwest Highway. Mr. Guido asked if other Downtown signage is being considered, and Mr. Mertes responded not at this time. Ms. Larson and Chair Stengren like the clock tower signage concept, but Chair Stengren asked for clarification about the branding for the Harmony Park sign. Mr. Mertes explained that “DtA” is the Downtown Arlington Heights Business Alliance’s brand, and the concept sign was an effort to promote Downtown in alignment with that organization’s marketing efforts. Mr. Iverson suggested adding a QR code to the Harmony Park sign, allowing visitors to tag to their social media posts or access information on the Downtown. Mr. Mulder referenced a past campaign, “I (heart) Arlington Heights.” as a previous effort to support the community and its businesses. Page 1 APPROVED Zero Interest Loan Program The Village Board unanimously approved modifications to the Zero Interest Loan program, reflecting the recommendations from the Economic Alliance. This will expand the program to three options for applicants, the current Standard Loan, the Mega Loan for large projects, and the Microloan for smaller projects. Staff is updating applications and a flyer for these programs. Once complete, staff will promote via social media, e-newsletters, and other channels. Staff is also planning to present the program via an Arlington Heights Memorial Library webinar in February. Chair Stengren inquired about any feedback from the Village Board, and Mr. Mertes explained that discussed was positive and supportive of the changes. Economic Alliance Work Plan – 2024 An Alliance-sponsored manufacturing program was held on November 13. Eight local high school students and one teacher attended. The event started at Village Hall with presentations by Mr. Iverson and District 214 apprenticeship program representatives. Attendees toured JTEKT Machinery and Hommer Tool, then came back to Village Hall for lunch and open discussion. There is an opportunity to build on this program in 2025 with Alliance support, and hopefully attract more students and parents as well. Small business profiles were part of the Alliance’s work plan, but were postponed primarily due to Staff turnover and other more immediate priorities. But staff is looking to reassess this item for 2025. Additionally, notes of appreciation to businesses celebrating five-year and ten-year anniversaries in Arlington Heights were sent out after the Commission’s July meeting. Regarding the manufacturing program, the students in attendance seemed much more engaged following the tours, said Mr. Iverson. Still, proactive outreach to parents is needed to grow such a program, beyond what the schools are already doing. Chair Stengren sees the program as a step in the right direction and Mr. Iverson agreed, emphasizing the importance of attracting a diverse group of students. Mr. Poulos asked about outreach to parents. Mr. Iverson said that School District 214 does a great job, but that working professionals also need to make concerted efforts in promoting their respective industries to parents. In regards to the manufacturing program specifically, Mr. Mertes stated it was promoted through channels such as social media and the Village’s resident e-newsletter. Ms. Oots asked about setting up tables at school events, such as parent-teacher conferences, to promote career paths. Ms. Ruhl added that children don’t always communicate information, and that it’s more helpful when programs and resources are organized in one place easily accessible to parents. The best time to reach parents and students might be at the middle school level, around eighth grade, educating them on career options if they are looking for a pathway and unsure of their interests. Chair Stengren wondered if the manufacturing program could serve as a template to promote other industries to students. Mr. Mulder discussed the value of mentorships and determining what motivates students individually, and that a career fair might be a good opportunity. Ms. Larson feels that any program should be sure to complement District 214’s efforts, not duplicate them. On another note, a “State of the Village” program in 2025 could also generate a great amount of interest. Economic Alliance Work Plan – 2025 Mr. Mertes explained that advisory and working Commissions are asked to provide an annual letter to the Board outlining what they have accomplished over the past year and what their work plan is for the coming year. This will allow the Mayor, Village Board, and Staff to weigh in on the work plan in advance and add potential projects or provide other guidance as needed. Staff would like to create realistic expectations of what can be achieved while handling the immediate needs of prospective and existing businesses in addition to conducting year-round marketing efforts. This is so that staff and the Alliance are not overpromising and under-delivering on what can be feasibly achieved. Page 2 APPROVED Mr. Mertes asked the Commission if they would like to carry 2024 programs over to 2025. Other ideas include providing a letter to the Village Board of economic development areas of focus and a “Buy Local” program that incentivizes demand among residents and the general populace. Ms. Ruhl suggested an event where students can speak face-to-face with people who work in various industries (“career pathways”), and Mr. Mulder likes the idea of students being able to experience an actual work environment. Chair Stengren asked for specification on what staff needs for the 2025 work plan, and Mr. Mertes explained that it is a list of goals that the Commission can strive to accomplish, but are not mandatory. Chair Stengren favored carrying over small business seminars, and notes of appreciation, from the 2024 work plan to 2025, and have staff focus on small business profiles on their own. He also feels that two or three seminars are reasonable, and supports a “State of the Village”. A career expo or manufacturing program would be good as well. Mr. Iverson suggested supporting existing events, that already have an established audience, and get several industries involved. Mr. Mulder would like to highlight reasons why people come back to Arlington Heights, namely for quality of life and job opportunities. Mr. Iverson and Mr. Poulos agreed, seeing this as an opportunity to create profiles of residents and business owners. Showcasing resources available to small businesses was also suggested by Mr. Poulos. Ms. Ruhl spoke to the goal of the Commission, building community by supporting businesses, and Mr. Guido added that vacancies and what neighboring communities are doing to help businesses shouldn’t be overlooked. The Village needs to retain existing businesses and help them grow. Ms. Ruhl emphasized the value of learning what assistance existing businesses need. If diversity is desired, there needs to be proactive efforts to attain it. She also referenced growth with the Library’s “Coffee & Connect” program. Mr. Roginski asked about a potential happy hour event to accommodate business owners not able to attend a breakfast. Mr. Poulos referenced the Chamber’s Leadership Center as another channel for business assistance. Mr. Mertes discussed a past Economic Alliance Breakfast that covered business resources, but it wasn’t as well attended as other breakfast programs. But that information could work better to supplement a program, rather than being the primary focus. Ms. Ruhl stressed the importance of having a good speaker, which attracts a larger audience. Ms. Larson has seen seminars featuring local legislators that draw significant attendance. Mr. Guido inquired about industry-targeted events. Adding to that, Ms. Ruhl sees that as an opportunity for each Alliance member to offer assistance to local businesses within their respective industry, as well as for the business owners to share their thoughts and needs. She added that the event could have a keynote speaker, with separate roundtable breakout sessions afterward. Mr. Mertes asked if smaller events, targeted to certain industries, were preferred, or if a larger event was ideal. Mr. Guido referenced past open house breakfasts that were hosted by businesses and sponsored by the Chamber. Ms. Ruhl sees value in the Alliance members being able to introduce themselves to the business community and serve as a channel for business needs to the Village. Chair Stengren suggested the Commissioners could sit at tables prior to the keynote, and business owners can approach them individually to discuss any concerns or assistance needed. Adding to this, Mr. Mulder suggested assigning a different Alliance member to each table to generate feedback from the attending businesses, and each Commissioner can take notes from discussion and bring back anonymously to the Alliance for consideration. Ms. Ruhl has seen this with each table having a different topic, and attendees could move among various tables. Mr. Mertes suggested having general projects on the 2025 work plan, but specifics can be determined as the year goes along. This would give the Alliance flexibility on how to implement the various programs. Page 3 APPROVED Ms. Ruhl requested that any audience accessibility needs are taken into consideration. Also, if there are unused funds from the Alliance budget, that the Commission consider hiring a professional speaker for an ensuing event. Chair Stengren asked the Commissioners to consider their own industry, and any challenges it currently faces. Then action items can be created around that industry need. Other Business and Public Comment No other business was discussed and there was no public comment. Adjournment HEATHER LARSON MOVED AND MARC POULOS SECONDED A MOTION TO ADJOURN. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. The meeting adjourned at 8:57 AM. Andrew Stengren, Chair Arlington Economic Alliance Prepared by Department of Planning & Community Development Page 4

Agenda

Packet

AGENDA ARLINGTON ECONOMIC ALLIANCE Community Room, 3rd Floor Arlington Heights Village Hall, 33 S. Arlington Heights Rd. Arlington Heights IL 60005 November 20, 2024 7:30 AM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. APPROVAL OF MINUTES A. Minutes 9/18/2024 IV. REPORTS V. OLD BUSINESS A. Zero Interest Loan Program B. Economic Alliance Work Plan - 2024 VI. NEW BUSINESS A. Economic Alliance Work Plan - 2025 VII. OTHER BUSINESS VIII. PUBLIC COMMENT Anyone wishing to speak on a subject not on the Agenda may speak at this time. Please limit your comments to three minutes. IX. ADJOURNMENT Persons with disabilities requiring auxiliary aids or services, such as an American Sign Language interpreter or written materials in accessible formats, should contact Erin Mercado, at 33 S. Arlington Heights Road, Arlington Heights, IL 60005, emercado@vah.com or 847/368- 5793. Page 1 of 8 DRAFT MINUTES OF THE MEETING OF THE ARLINGTON ECONOMIC ALLIANCE HELD ON SEPTEMBER 18, 2024 AT 7:30 A.M. AT THE VILLAGE HALL MEMBERS PRESENT: MEMBERS ABSENT: Andrew Stengren – Chairman Kerri Oots Rich Casey Ellen Para Tonia Etoh Brian Roginski Tony Guido John Toliopoulos Heather Larson Terry Iverson Michael Mulder Marc Poulos Andi Ruhl STAFF PRESENT: Michael Mertes – Business Development Manager ALSO PRESENT: Mary Ellen Graf, Township High School District 214 Keith Moens, Resident Call to Order Chairman Andrew Stengren called the meeting to order at 7:31 AM. Approval of Minutes – July 17, 2024 The meeting minutes of July 17, 2024 Arlington Economic Alliance meeting were reviewed. MARC POULOS MOVED AND TONIA ETOH SECONDED A MOTION TO APPROVE THE DRAFT JULY 17, 2024 ARLINGTON ECONOMIC ALLIANCE MEETING MINUTES. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Development Update Spent Grain Brewing was approved for a Special Use by the Village Board to operate a brew pub at 17 N. Vail in the Downtown. The Moorings, a senior living facility, intends to move forward on an expansion at the northeast corner of their property, which entails the development of a five-story 70-unit independent living facility. A Cook County Class 6b property tax abatement for Shanley Pump, at 616 E. Brook Drive, received municipal approval from the Village Board. The company is purchasing a warehouse building across the street from their current facility, in order to expand their operations. The request now goes to Cook County for final approval. The Alliance inquired about an offer on 1000 W. Northwest Highway. Mr. Mertes said that he would look further into this. Arlington Alfresco Arlington Alfresco concludes on Monday, September 23rd. Businesses will need to remove their tables, seats, and décor by the end of the day. Streets will remain closed that week for Harmony Fest featuring the Taste of Arlington Heights on Friday the 27th and Saturday the 28th. The streets will be re-opened to vehicular traffic the following morning. Restaurants approved for sidewalk dining may continue to do so through October 31st. Chair Stengren asked if Staff has received any responses regarding the change of dates to Sounds of Summer this year. Mr. Mertes said that he has not received any direct feedback, but was not aware of negative feedback received by Staff. Ms. Ruhl stated that she had heard input from business owners regarding their concerns about changes to the dates. Mr. Page 1 Page 2 of 8 DRAFT Iverson suggested surveying the business community, adding that the Village should note that they are looking to make the concert series better moving forward. Ms. Larson recommended looking at tax revenues and visitor data. Chair Stengren would like to know if extending into August was a benefit, or if crowds were smaller due to school being back in session later in the month. Ms. Ruhl noted that the summer was longer this year for some schools, and concurred that surveying the businesses is a good idea. Mr. Poulos asked if overcrowding was primarily on Fridays. Mr. Mertes said that data showed that overcrowding was a bigger issue on Fridays last year, although there were instances of large crowds on Thursdays as well, just not to the extent of the Friday shows. Ms. Ruhl asked if the Sounds of Summer stage could be used for young local talent, with Mr. Iverson suggesting they could serve as opening acts for the concert headliners. Economic Alliance Work Plan – 2024 The business appreciation cards signed by the Alliance members at the July meeting were mailed out. Staff added an insert with the Commissioners’ names to help the recipients identify who wrote them the note. Also, Mr. Mertes has been working with Mr. Iverson on a manufacturing promotion program. The thought is to have an open house event at multiple Arlington Heights manufacturers, with outreach aimed at youth and their parents. Economic Alliance Budget The Economic Alliance was asked to approve a budget for fiscal year 2025. The dedicated amount for the Commission in 2025 is $16,700, a $400 reduction from 2024. Staff’s proposal dedicates the entirety of the funds to “Promote Economic Development”. This is deliberately open-ended to allow flexibility for how Alliance wants to use these funds next year. So far this year, approximately $3,700 from the Alliance’s fund has been spent, with almost the entirety going towards the Alliance Breakfast in June. Chair Stengren asked what happens with unused funds at the end of the year, and Mr. Mertes responded that they are returned to the general fund. ANDI RUHL MOVED AND TONY GUIDO SECONDED A MOTION TO APPROVE THE 2025 ARLINGTON ECONOMIC ALLIANCE BUDGET AS PROPOSED. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Zero Interest Loan Program Mr. Mertes explained that the small business Zero Interest Loan program was initiated by Village staff and the Economic Alliance over ten years ago. The most recent changes to the program were approved by the Alliance and Village Board last year. This involved increasing the maximum loan amount to $25,000, allowing the loan to cover up to 75% of eligible costs, and including a forgivable provision for businesses operating in Arlington Heights for over three years. Four loans have been approved since these changes were implemented. While Village staff continues to receive interest in the program, two key aspects have tended to dissuade potential applicants: the maximum loan amount not being large enough, and/or the applicant not having adequate collateral. In response to these concerns, Staff is seeking to modify the program to provide opportunities for such business owners. Staff’s proposal is to expand the program to allow for three options: the Standard Loan (current program), a Microloan for smaller projects, and a Mega Loan for larger projects. The Microloan would offer a maximum $5,000 towards financing smaller projects, such as new signage or product displays. This incentive would cover up to half of eligible project costs and be repaid over two years via two annual invoices. Only a personal guarantee would be required, instead of a lien on real estate. Microloan requests would be approved administratively by the Loan Committee, as are the current (Standard) loan requests. Page 2 Page 3 of 8 DRAFT Chairman Stengren asked how the program is funded. Mr. Mertes explained that it is primarily a combination of rebates from the Cook County Class 6 and Class 7 programs (10% of the recipients’ property tax savings), as well as ongoing repayments from existing loans. Mr. Mulder asked how an applicant’s ability to repay a loan is considered. Mr. Mertes explained that the Loan Committee looks at credit history and net worth, and the Village places a lien on real estate owned by the recipient until the loan is repaid. Mr. Iverson asked about promotion of the program to new businesses. Mr. Mertes explained that the program is offered on a case-by-case basis to both prospective and existing businesses. It has also been promoted on social media and in the Village’s business e-newsletters. Ms. Etoh inquired about the application timeline. Mr. Mertes explained that he tells applicants about three months, but this really depends on numerous factors including a complete submittal of all required documentation, Loan Committee review, and approval of a warrant register. But it’s possible for the process to take less time. Mr. Guido asked about the repayment timeline for a $100,000 loan. Mr. Mulder believes that a five-year period should be adequate time, and that the structure of the Microloan makes sense. Ms. Ruhl recalls limited interest when the Zero Interest Loan program was first implemented, and feels that the program has now gotten traction since it’s been modified over the years, but wondered if the $5,000 amount for the Microloan is enough incentive for a small business. Chairman Stengren sees value as long as it helps a business. Mr. Mulder referenced a State of Illinois low-interest loan program, which has lots of funds available and where personal recourse is always required. Still, he sees value in the Village’s program, and that the Microloan could help fund a range of business improvements from racking at a retail store to an outdoor café at a restaurant. He believes there should be substantial interest in the Microloan program. In response to questions about increasing the cap amount for the program, Mr. Mertes explained that the thought behind the $5,000 limit was to mitigate risk to the Village since no collateral would be required. However, he asked if it would be worthwhile to start at $5,000 and consider changes if there is no demand at that amount. Mr. Casey suggested moving forward with the proposal as-is, and then making any changes, as needed, in the future. Additionally, Mr. Iverson suggested obtaining testimonials from past recipients and utilizing their network to help promote the program. The Mega Loan would still require collateral and could be repaid up to five years in quarterly installments. The maximum loan amount would be capped at $100,000 and would cover up to 25% of project costs. Such requests would require Loan Committee review and Village Board approval. The Mega Loan would be reserved for significant projects with a minimum of $250,000 in eligible expenses. Further, the applicant’s property cannot be located within a TIF district. Should the Mega Loan generate more demand than anticipated, preference would be given to properties along key corridors identified in Village’s Comprehensive Plan. Recipients of the Mega Loan who have been located within Arlington Heights for over three years, at time of submittal, would be eligible to have up to 20% of the loan forgiven, assuming the first 80% is paid on time. For this provision, the occupancy rate of the property must exceed 85% in total and must have increased since the loan was applied for. Further, municipal sales taxes and food and beverage taxes must be higher at time of forgiveness than at time of application. The final forgiveness amount would be based upon the difference in taxes generated between the time of disbursement and time of forgiveness, capped at 20% of the loan amount. Mr. Iverson suggested a program to promote the incentive and Ms. Larson felt that a webinar could be such as an opportunity. Mr. Poulos asked about the forgivable provision as Page 3 Page 4 of 8 DRAFT it pertains to industrial businesses, since they typically don’t generate sales taxes or food & beverage taxes. Mr. Mertes said that such businesses would still be eligible. The required increase in tax revenues pertains only to businesses that generate sales taxes. Mr. Mulder recommended metrics to help protect the Village’s interest. MICHAEL MULDER MOVED TO RECOMMEND APPROVAL OF THE PROPOSED CHANGES TO THE ZERO INTEREST LOAN PROGRAM AS PROPOSED. MARC POULOS SECONDED. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION (9-0). Other Business and Public Comment Mr. Moens referenced an Elk Grove Village program that provided pre-loaded gift cards to their residents, with the intention of having the money spent locally. He would like the Alliance to consider ways to support businesses through demand-side efforts. Ms. Ruhl inquired about Arlington Heights Chamber gift cards. Mr. Mulder responded that the Chamber no longer does gift certificates, but does have a couponing program for their members. Ms. Ruhl suggested gift cards to local businesses, which would keep spending in Arlington Heights. Ms. Larson discussed the new Meet Chicago Northwest new visitor guides, and added that Arlington Heights restaurants, hotels, and attractions are featured on their website. Adjournment TONY GUIDO MOVED AND HEATHER LARSON SECONDED A MOTION TO ADJOURN. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. The meeting adjourned at 8:37 AM. Andrew Stengren, Chair Arlington Economic Alliance Prepared by Department of Planning & Community Development Page 4 Page 5 of 8 Approved Zero Interest Loan Modifications Microloan Standard Loan (current) Mega Loan Max Loan Amount $5,000 $25,000 $100,000 Repayment Max 2 years; Max 5 years; Max 5 years; annual invoices quarterly invoices quarterly invoices Coverage 50% of eligible costs 75% of eligible costs 25% of eligible costs Security Personal Guarantee Collateral (Lien) Collateral (Lien) Final Approval Loan Committee Loan Committee Loan Committee; Village Board Forgivable Provision N/A Last 20% forgiven if first 80% Last 20% forgiven if first 80% re-paid on time; must be open re-paid on time; must be open 3+ years in Arlington Heights 3+ years in Arlington Heights; additional stipulations Page 6 of 8 Arlington Economic Alliance 2024 Work Plan – January 2024 Overview Over the course of 2023, the Arlington Economic Alliance has discussed and implemented ways to assist existing businesses in Arlington Heights. There were two key outcomes from these meetings. Firstly, the Alliance recommended modifications to the Village’s interest-free loan program for small businesses, which was approved by the Village Board in June. Interest in the incentive has grown noticeably since the modifications. Secondly, the Alliance supported a breakfast program aimed at assisting local manufacturers. This was held in early November, with approximately 35 people in attendance. Looking toward 2024, the Economic Alliance would like to focus on business retention and has outlined three key initiatives to help support existing businesses in Arlington Heights.  Small Business Seminars The Arlington Economic Alliance would like to plan and execute a series of educational programs bringing our businesses together for networking and learning. Each session would focus on specific segments of the economy and illustrate the interconnectedness of our business community. A networking opportunity for new Arlington Heights businesses to connect is also being considered as part of one of these seminars, or as a separate program.  Small Business Profiles The Economic Alliance would like to profile small businesses in the community as a way to re-introduce the businesses, and their owners, to Arlington Heights residents and visitors. Village staff is currently working on a webpage that would promote diversity within the Village’s business community. The goal of the page is to highlight the participating businesses on an interactive map. The Commissioners could assist in outreach business owners, in order to provide content for staff to publish on the webpage. Establishment of such a page, coupled with promoting it via social media, will serve as a retention program that would offer free marketing to these businesses. Once this site is established with consistent content, the Alliance can explore potential programs to incentivize demand to local small businesses.  Notes of Appreciation to Businesses The Economic Alliance feels that directly acknowledging our individual businesses, and what they contribute to the community, is a way to help owners feel appreciated. A simple note card expressing gratitude for their investment in Arlington Heights would be a channel to accomplishing this, and can also educate the business community about the Alliance and its purpose in advocating for them. The initial target audience would be businesses that are celebrating five-year and ten-year anniversaries of being located in Arlington Heights. The list of recipients would be provided by Village Staff based upon approved business licenses from 2014 and 2019. Summary The Arlington Economic Alliance is eager to continue supporting the small business community, and is willing to work with Village staff to accomplish these projects. In the interim, the Alliance is also willing to provide advisement and recommendations to the Village Board at their request, and discuss economic development matters as needed. Page 7 of 8 11/20/2024 Item: Economic Alliance Work Plan - 2025 Department: Planning & Community Development Item Description: ATTACHMENTS: None Page 8 of 8