Ordinance & Legal Review Committee

CITY OF BELLEVILLE, ILLINOIS ORDINANCE AND LEGAL REVIEW COMMITTEE SEPTEMBER 17, 2020 5: 00 PM VIA TELECONFERENCE Alderman Wigginton called the meeting to order. Aldermen present on roll call: Alderman Pusa, Alderman Randle, Alderwoman Stiehl and Alderman Wigginton. Alderman absent on roll call: Alderman Hazel. Guest Aldermen: Alderman Elmore, Alderman Rothweiler, Alderwoman Schaefer, Alderman Ferguson, Alderman Barfield. Staff Present: Mayor Eckert, City Clerk Meyer, City Attorney Hoemer, City Treasurer Hardt advised present verbally after meeting). Mayor Eckert made the following comment: Several months ago, several Aldermen spoke up about a proposal to tax storage units. I said it is not my initiative, but yes, we are always looking for possible new revenue sources, especially at a time when revenues are down. After taking many calls and emails, I have rethought my original spontaneous comments. With COVID- 19 still very active, and with so many residents till out of work or still hurting in different ways, I do not believe we should increase any fees or taxes at this time. Maybe we should revisit this later, a year or so down the road. Mayor Eckert excused at 5: 04 p.m. PUBLIC PARTICIPATION Joanie Schaefer, Illinois Self-StnraHe Association Many people who use self-storage are in a crisis. They are usually short-term and before/after COVID there will downsizing, and this proposed tax will hurt those people when they are also struggling. feet. It would raise both their cost and add to the stress and difficulties getting back on their Even if a customer is not in a crisis; and need storage this proposal creates a long-term monetary hit for residents of Belleville. Statistics show people rent storage for approximately I1 months. There are many storage facilities just outside the city limits and we all know Google is good at helping people find the best price. As a result, customers will just go outside Belleville for storage. One of Belleville' s goals is to fill empty commercial buildings.  Ordi..& Legal aevuw M- ums Sepmmber 1], 2020 This proposed tax harms an industry that helps the City ofBelleville when no other industry would come in and build the building. She understands some people do not want self-storage in the City; however, these businesses have become the highest and best use for large vacant buildings and should not be penalized. The rules should not change once these businesses are in place and have invested their time and resources. Alex Erb Owner of Gateway Storaee Mall He has three( 3) locations in the Belleville city limits. He thanked everyone for taking their phone calls. This will be devasting for their current tenants. Tammy Elbe Owner of Ashland Storaee Center She and her family want to make Belleville a better place. Their facility and Cube Smart adds value to the City. People who rent are going through a lot with COVID. They can go to bordering cities to rent. She is asking for the committee to vote no. MINUTES Alderwoman Stiehl made a motion seconded by Alderman Randle to accept the minutes of August 11, 2020. Members voting aye on roll call: Pusa, Randle, Stiehl, Wigginton. ( 4) UNFINISHED BUSINESS Possible motion to approve an ordinance on self-storage unit( s) use tax. City Attorney Hoemer advised at the direction of the committee at the August 11, 2020 meeting he prepared the draft ordinance amending Chapter 34 of the Revised Code of Ordinances by adding Section 34. 048 which is the self-service storage accommodation tax. This draft mirrors what was previously discussed with a similar ordinance from the Village of Tinley Park with corrections that were noted by the administration. Alderwoman Stiehl Alderwoman Stiehl stated she spoke with Joanie Schaefer and discussed the reasons why people have storage units. Her position is a no. Alderman Randle Alderman Randle stated the owners of the storage facilities expected their investment to provide both significant capital appreciation as well as cash flow. He is not sure how much you anticipated Page 2 of4  Ordr..& Leggy Review Minutes, September 1], 2020 the project to increase on the total building and land cost upon completion and is not sure what was anticipated with consistent quarterly cash flow. Historically storage has been a recession resistant business. This entire idea originated from an owner of a storage facility. Question for staff: how much net rentable square footage is in the City? What is the difference between regular storage, climate control and RV. The latter climate controURV appeals to affluent clientele. To address items that were raised previously by both the Mayor and speakers from public participation. Regarding occupancy he has been told they are at 40%. The Mayor stated with COVID this is not an appropriate time to impose a tax and can be revisited. Alderman Puss Alderman Pusa recommended on holding off due to COVID. Alderman Rothweiler Alderman Rothweiler stated he opposes taxes and fees on any business in Belleville; however, this is a matter of fairness and necessity. Fairness... storage facilities require police and fire protection just like anything else does and m a result they use city services and they should pay for those city services. Yes, they do pay property tax and so does every homeowner and business. They also pay sales tax i.e. Wal-Mart, Target, car dealers, retailers downtown etc. Alderman Elmore Alderman Elmore stated many communities surrounding Belleville in Southwestern Illinois have on their property tax bill x,y,z police department; x,y,z fire department. This is a line item on their property tax bill for taxes. Please make sure you remember that you will not find a Belleville Police Department, Belleville Fire Department property tax line item. We do not charge in taxes for our police and fire and then think about how much of our budget is for police and fire and then understand that am revenue for those payrolls comes from retail sales. Retail sales of grocery, goods and storage units. Alderwoman Stiehl asked ifa percentage was discussed; Alderman Wigginton stated it will be 5%. Alderman Randle made a motion seconded by Alderman Wigginton to approve the issuance of Business Licenses and/ or sales tax for self-storage units. Members voting aye on roll call: Randle, Wigginton. (2) Members voting nay on roll call: Puss, Stiehl. ( 2) s• s Alderwoman Stiehl made a motion seconded by Alderman Puss, to approve moving this council an issuance of Business Licenses and/ or sales tax for self-storage units for consideration without a committee recommendation. Pege 3 of4  ordmmwe& Lege1 Review Minutes September 17, 2020 Members voting aye on roll call: Pusa, Randle, Stiehl, Wigginton. (4) OLD BUSINESS None. ADJOURNMENT Alderman Randle made a motion seconded by Aldemoman Stiehl to adjourn the meeting at 5: 38 p.m. Members voting aye on roll call: Puss, Randle, Stiehl, Wigginton. ( 4) AldermarfRoger Wiggi tton, Chairman Pege 4 of4