Economic Development Commission

Village of Brookfield Agenda Economic Development Commission Meeting Wednesday, May 21, 2025 @ 8:30 AM Edward Barcal Hall 8820 Brookfield Avenue Brookfield, IL 60513 I. Call to Order II. Roll Call III. Approval of Minutes 1. Meeting Minutes - April 16, 2025 EDC Minutes (04-16-25) IV. Old Business 1. Discussion of Implementation of Potential Economic Development Policy a) Overview of common incentive tools b) Policy Goals c) Review of Property Improvement Program (PIP) Staff Report - Economic Incentive Policy V. New Business VI. Community Development Department Report 1. Update on Brookfield Shops and Grand Opening VII. Commissioner Reports VIII. Public Comment IX. Adjournment Individuals with a disability requiring a reasonable accommodation in order to participate in any meeting should contact the Village of Brookfield (708)485-7344 prior to the meeting. Wheelchair access may be gained through the police department (East) entrance of the Village Hall. Page 1 of 34  Village of Brookfield Economic Development Commission Meeting Minutes of Wednesday, April 16, 2025 Village of Brookfield – Council Chambers 8820 Brookfield Avenue, Brookfield, Illinois 60513 I. Call to Order The regular meeting of the Economic Development Commission was called to order at 8:30 a.m. II. Roll Call Commissioners Present: Curelo, Gatto, Mack, Moore, Pardun, Sharenow Commissioners Absent: Baader, Richard, Valadez Others Present: Trustee Ketchmark, Village Manager Wiberg, Community Development Director Popovic, and Deanne Adasiak III. Approval of Prior Meeting Minutes Chairman Pro Tem Pardun asked for a motion to approve the March 19, 2025 Meeting Minutes. A motion was made by Commissioner Gatto and seconded by Commissioner Mack to approve the minutes of the March 19, 2025 meeting. The motion passed unanimously. IV. New Business 1) Discussion of Property Improvement Grant Request for Koblish Properties LLC dba Hop District Brewing Co at 9509 Ogden Ave Mr. James Koblish, Hop Brewing District, 9509 Ogden Avenue, Brookfield, Illinois Deanne presented the PIP application doing business as Hop District Brewing located at 9509 Ogden Avenue. She indicated that Koblish Properties is requesting funding through the Village’s Property Improvement Program (PIP) for proposed exterior improvements to enhance the building’s façade. She explained the planned scope of work includes repositioning the main entrance to the central archway, power washing, tuckpointing, reinforcing the limestone, and installing new windows and doors. Additionally, the project will include the addition of black steel gooseneck lighting fixtures. She reported that two contractor estimates were submitted as required and that the total estimated cost of the project is $41,000. She indicated that the applicant is seeking 50% reimbursement through the PIP, totaling $20,000. Renderings of the existing and proposed façades were presented highlighting the doorway relocation and façade enhancements. Mr. Koblish explained that while the facility will initially operate as a production-only space the design upgrades are intended to position the building for future retail use. He indicated that Hop District Brewing operates a small brewery and taproom in La Grange Park which has reached capacity. He explained that the Brookfield location will allow for expanded brewing operations and regional distribution. Mr. Koblish expressed that although retail use is not proposed at this time due to limited parking he is open to adding a taproom in the future if parking becomes available. He said the façade improvements are aimed at restoring the building closer to its original design including replacing mismatched brick and removing glass block. Village Manager Wiberg raised the question about the public benefit of the project particularly since the proposed use does not currently include a retail or commercial component that would generate sales tax or increase foot traffic. 1 Page 2 of 34 Village Manager Wiberg recognized that while the improvements would boost the building’s assessed value and enhance the streetscape, grant funding is ideally linked to more direct economic benefits like job creation or retail activity. He also pointed out that the Village owns a parking lot just across Ogden Avenue which could offer opportunities for shared use or leasing to support future retail growth. Staff and Commissioners discussed the idea of taking a phased approach starting with improvements that get the building ready for possible future public use depending on how development and parking plans shape up. help from the Village especially if the building ends up being used only for distribution. Commissioner Sharenow asked the petitioner whether the space was designed to accommodate public events throughout the year and the petitioner confirmed that it was. Commissioner Sharenow then asked if hosting events on-site was a feasible option. Commissioner Gatto commented that the petitioner does not have to implement any changes nor does he have to make improvements to the exterior. He commented that the petitioner is choosing to do so voluntarily in order to enhance the appearance of the block. The discussion also touched on the "but for" test—questioning whether the proposed façade improvements would occur without the requested support. Commissioner Gatto emphasized that the PIP program was established to support economic development through property improvements not solely through retail sales tax generation. The point was made that encouraging private investment in building improvements even without immediate retail activity still contributes to revitalization efforts and could yield long-term benefits such as increased foot traffic and future business development. It was noted that the more success stories the Village accumulates on Ogden Avenue the easier it will be to attract additional investment and support future funding efforts. The Commissioners expressed a desire to see future retail activation such as a taproom to make full use of the building and increase public-facing economic activity. Ideas were floated around using TIF dollars toward future phases of development reiterating a potential taproom or public-private partnership to address the parking challenges that currently limit retail potential. Village Manager Wiberg indicated that the applicant’s building is an in-line property with parking constraints typical of the Ogden corridor. Village staff reiterated that the Village owns a lot across the street from the property and although currently undeveloped it could be considered for future parking solutions. Village Manager Wiberg expressed that Village officials are actively working on long-term planning through the “Energize Ogden” initiative which includes rethinking the corridor's streetscape, parking availability, and pedestrian access. Village Manager Wiberg also pointed out that there is significant upcoming development in the area including the acquisition of nearby properties by the Village with the intent to create space for redevelopment and improved infrastructure. This includes possibilities for angled parking on DuBois Boulevard and removing illegal parking practices along Ogden. The applicant reiterated that at present the facility would be used for brewing and self-distribution only. He expressed that due to the lack of nearby parking, establishing a retail taproom would not be feasible at this time. He also restated that they remain open to adding retail in the future should parking availability and customer access improve. Trustee Ketchmark noted that zoning approval had previously been granted for manufacturing use and the applicant could proceed without any further investment in the façade. He stated that although the proposed use does not generate immediate sales tax, the long-term property tax assessment could increase with improvements to the building which would benefit the Village. Discussion returned to the core purpose of the PIP program: incentivizing private property improvements that enhance the property and support economic vitality. Some Commissioners expressed concern about public dollars subsidizing private improvements without guaranteed public 2 Page 3 of 34 return while others stressed that the visual and structural enhancements alone justify the investment— especially within a designated TIF district. Commissioner Pardun acknowledged that the applicant has already invested significantly in the property, has zoning approvals in place, and has experienced delays due to previous Village administrative issues. He expressed that the PIP grant request is focused solely on exterior enhancements, not operations or internal renovations. Community Development Director Popovic highlighted the need for a bigger conversation to clarify the goals and differences between the PIP and TIF programs and whether the focus should be on retail sales, beautification, long-term revitalization, or a combination. The Commissioners showed interest in having a future discussion to revisit how these incentive programs are used and if their criteria need tweaking. Everyone agreed that being on the same page about the program’s purpose would help make funding decisions clearer and more consistent going forward. The Commissioners voiced support for the project recognizing that while the applicant is not required to make any exterior improvements they are voluntarily investing additional funds to enhance the property’s facade. Commissioner Gatto said that this aligns with the original intent of the PIP program - to improve the appearance of commercial corridors and promote economic development. A motion was made by Commissioner Gatto to advance the PIP application for Koblish Properties LLC dba Hop District Brewing Co at 9509 Ogden Ave to the Village Board for review and further discussion with a non-binding recommendation that a future taproom be considered as circumstances allow. The motion was seconded by Commissioner Curelo. The motion was approved by unanimous voice vote. Staff will place the item on the Village Board agenda for final approval and follow up with the applicant. 2) Discussion of Building & Code Enforcement / Rental Registration – Presented by Village Adjudication Attorney John Kenney and Property Inspector Jordan Isenberg Director Popovic indicated that the next discussion relates to a potential Rental Registration program. She noted that no formal decisions were made at the last meeting and the intent moving forward is to continue exploring the topic over the course of several upcoming meetings before bringing any recommendations to the Village Board later this year. She indicated that at the last meeting there was a request for more information on current challenges related to code enforcement and property maintenance in Brookfield. She said that in order to provide a broader perspective Village staff invited key staff and our Village Attorney to participate in the discussion. She introduced John Kenny the Village Attorney who has been overseeing code enforcement cases in Brookfield for the past 18 month and Jordan Isenberg, the Senior Building Inspector who handles day-to-day property inspections and enforcement activities. Mr. Kenney gave a summary about rental registration programs of neighboring municipalities such as Riverside, Oak Park, and Berwyn. He indicated that those municipalities have rental registration programs in place due to experiencing similar challenges with rental properties. He noted that Brookfield’s number of rental-occupied units has grown significantly from approximately 2,000 units in 2014 to around 7,800 units today. He reported that current projections indicate that about 21% of 3 Page 4 of 34 the Village’s housing stock will consist of rental properties. He pointed out that Village staff have expressed concerns about an increase in deferred maintenance particularly among absentee landlords. Mr. Kenny said that in some cases owners have postponed needed repairs to avoid triggering Village inspections contributing to long-term deterioration of properties. He said the Village has identified four priority zones based on higher concentrations of code and maintenance violations. Director Popovic stated that Jordan and a second inspector conduct ongoing sweeps across nine inspection zones to monitor and respond to these issues. She also reported that staff handles around 40 to 50 property maintenance complaints each month that come from resident calls, emails, inspector reports, and the SeeClickFix app. She then indicated that each month 20 to 40 code violation cases are also processed through administrative adjudication, and currently, five serious cases are in Circuit Court. Mr. Kenny gave an overview of the enforcement tools available to Illinois municipalities noting that even non–home rule communities like Brookfield have a range of options. He said these include issuing citations, placing liens on neglected properties, using administrative adjudication for mid-level issues, and turning to Circuit Court for serious health or safety concerns. He also discussed the Unsafe Buildings Act which allows the Village to address dangerous structures in court sometimes even prioritizing municipal costs over existing mortgages which can get lenders involved. Mr. Kenny also shared how a rental registration program could help the Village be more proactive in identifying and managing rental properties. He said while it is not a one-size-fits-all solution, it can support current enforcement efforts and has worked well elsewhere. He noted that programs vary by community. He said for example, Downers Grove has a commercial rental program, while Lisle recently ended its Rental Registration program. Commissioner Gatto pointed out the metrics staff shared on other communities and he feels such comparisons can negatively impact the perception and value of rental properties in Brookfield. Specifically, he noted that aligning with areas to the east could suppress rental rates and investment potential whereas communities to the west such as those in DuPage County typically command higher rents and valuations. He mentioned that crossing into La Grange leads to a noticeable increase in rental value per square foot. He cautioned that before implementing new property regulations or programs, the Village should consider current market dynamics and long-term economic impacts. He emphasized that La Grange’s success stems not from density alone but from deliberate long-term planning, major redevelopment efforts, and attracting national retail tenants factors that Brookfield currently lacks due to its lot sizes and development patterns. He appreciated that the rental registration discussion is being approached thoughtfully and not rushed. He suggested that rather than using new ordinances primarily for code enforcement the Village should consider using them strategically to support land assembly or attract quality investment. Commissioner Gatto expressed skepticism that a Rental Registration program would result in meaningful redevelopment unless targeted as part of a broader acquisition or redevelopment strategy. He concluded by urging the Commission to be cautious about adding regulatory burdens that could discourage investment especially given high property tax rates. He emphasized the importance of improving the community's housing stock without deterring future development. Village Inspector Isenberg described the current challenge in that most code enforcement is reactive. He indicated that they often only discover serious issues after receiving complaints and even then access to properties is limited. He shared a recent experience where they were only able to inspect a rental property because someone happened to let them in. He explained that if the tenant or owner had refused, they would have been unable to assess the unsafe conditions inside. He expressed that this highlights the difficulty of identifying code violations without a proactive tool in place. 4 Page 5 of 34 Inspector Isenberg said that a Rental Registration program would not fix all issues but it would allow the Village to be more proactive. He said it could help identify rentals more systematically and establish a point of contact for property owners, especially when owners live out of state or are otherwise unresponsive. He went on to say that one major concern is repeat offenders, owners who ignore violations, do unpermitted work, or rent out unsafe spaces. Jordan pointed out that even when enforcement actions are taken some properties are transferred via quick claim deed to family members effectively resetting the process. He also indicated that even when enforcement actions are taken some properties are transferred via quick claim deed to family members effectively resetting the process. He expressed that this makes it extremely difficult to hold anyone accountable or collect fines especially for residential properties where traditional collection tools often do not apply. He concluded by saying that while a rental registration program is not a silver bullet it would give the Village an earlier opportunity to identify issues before they become major safety concerns. Commissioner Pardun shared concerns that while a rental registration program might have some benefits, the broader development community might see it as just another tax or bureaucratic burden. He referenced personal experience owning a commercial building in Berwyn where enforcement was weak and that many property owners did not register their rental properties despite the requirement. He said as a result surrounding neglect made it hard to maintain their own property or implement competitive rents ultimately leading them to sell. Commissioner Pardun feels that if similar policies are introduced in Brookfield property owners might simply walk away rather than invest in required improvements. The Commission agreed to keep the conversation going. They requested that staff look at different program models, best practices from other towns, and what resources would be needed. Libby said staff and legal counsel will continue to gather relevant information and data. 3) Economic Incentive Policy Director Popovic expressed that Brookfield is moving toward creating an official Economic Incentive Policy to support local economic growth. She said the EDC will be the first group to review and discuss it before the proposal goes to the Village Board. She indicated that the goal is to have a clear and structured policy that promotes reinvestment and attracts development across both commercial and residential sectors including property maintenance and rehabilitation. She explained that the purpose of the policy is to support commercial and residential reinvestment, encourage redevelopment of underused or blighted properties, attract new businesses while supporting existing ones, and provide a consistent framework for negotiating with developers. Popovic indicated that staff is currently researching policies from peer communities such as Lombard, Elmhurst, and Hinsdale to help shape Brookfield’s approach. She noted that the proposed policy framework includes three key components: "pay-as-you-go" incentives where developers are reimbursed only after improvements are completed; a 10-year reimbursement cap; and a 50% reimbursement limit. She said these incentives are meant to provide flexibility while protecting the Village’s financial interests. She went on to say that today’s meeting is only an overview and a more detailed policy discussion is planned for a future meeting. She said staff will present additional components, such as sales tax rebate options and explore broader economic impacts. Commissioner Gatto emphasized the importance of considering Equalized Assessed Value (EAV) growth from multifamily developments which can generate significant long-term tax benefits beyond just sales tax revenue. Director Popovic clarified that while Brookfield already has a TIF incentive policy in place, the proposed policy would be distinct and part of a broader approach to economic development. She mentioned that a few of Brookfield’s TIF districts are set to expire, some within the 5 Page 6 of 34  next five years, and this new policy will complement and build upon them. She expressed that clear, front-end guidelines make it easier to attract and work with developers. 4) 2025 – Review of Brookfield Zoning Ordinance for Electric Vehicles (EV) Director Popovic explained that this Ordinance item needs action as it is a component related to Brookfield’s participation in the Metropolitan Mayors Caucus’ EV Readiness program. She explained that a Zoning Ordinance for Electric Vehicles is necessary for Brookfield to meet the requirements for Bronze designation as part of its sustainability plan. The Commissioners agreed and supported moving forward with a zoning amendment related to EV readiness. The Commissioners felt comfortable supporting EV readiness efforts especially since some aspects are already state-mandated. A motion was made by Commissioner Gatto to advance the Brookfield Zoning Ordinance for Electric Vehicles to the Village Board for further review and discussion. The motion was seconded by Commissioner Sharenow. The motion was approved by unanimous voice vote. V. Public Comment None. VI. Adjournment A motion to adjourn was made by Commissioner Gatto and seconded by Commissioner Moore. The motion was approved by unanimous voice vote. The meeting ended at 10:06 a.m. 6 Page 7 of 34  Meeting Date: May 21, 2025 Staff Contact: Deanne Adasiak, Business Development Specialist Department: Community Development Subject: Economic Incentive Policy Background Information: Why Implement an Economic Incentive Policy? An Economic Incentive Policy is a strategic tool to support Brookfield’s efforts to attract investment, retain and grow local businesses, and encourage redevelopment in targeted areas. It provides a structured, transparent approach for evaluating incentive requests and advancing the Village’s long-term economic development goals. Policy Objectives:  Retain, expand, and attract commercial and industrial businesses  Promote business growth and increase municipal revenues  Encourage redevelopment of underutilized or blighted properties  Prioritize incentives for projects with strong public benefit An Economic Incentive Policy would establish clear guidelines for reviewing and evaluating incentive requests based on the specific context of each project. It builds upon existing programs, such as the Property Improvement Program, and introduces more flexible tools to support business needs. Proposed Incentive Structure  Staff is considering a “Pay-As-You-Go” incentive model.  Under this model, developers are reimbursed a portion of the new tax revenue generated by their project—but only after the Village receives it.  Incentives would be capped at 50% of the eligible tax increment.  The incentive period would be limited to 10 years, minimizing financial risk to the Village.  The goal is to balance fiscal responsibility with community benefit. Summary of Village of Brookfield TIF Policy The Village’s Tax Increment Financing Policy aims to promote a stable economic base that supports the delivery of essential community services. It seeks to encourage a balanced pattern of development that fosters well-designed, compatible, and economically sustainable business, employment, and residential areas. The policy focuses on achieving key redevelopment objectives including increasing and diversifying the Village’s property and sales Page 8 of 34 tax base, promoting aesthetic improvements to prevent blight, and supporting redevelopment projects that would likely not occur without TIF assistance. The current TIF policy was established in 2010 and references only the Ogden TIF area. We recommend updating the policy to include references to other applicable areas and to incorporate it as part of a broader, comprehensive economic incentive policy. Additionally, the policy should be integrated into the Village’s Comprehensive Plan, as it currently references an outdated 2020 Master Plan that is no longer in use. The current policy is outdated and limited in scope. The Village does not yet have a comprehensive Economic Incentive Policy that consolidates all available tools under a unified framework. A well-rounded Economic Incentive Policy would encompass a variety of incentives to support and encourage development throughout Brookfield. These could include: 1. Property tax abatements, which offer temporary reductions in property taxes; 2. Sales tax rebates that return a portion of sales tax generated by businesses; 3. TIF assistance, which uses incremental property tax revenue from designated districts to fund project costs; 4. Fee reductions or waivers for building permits or utility connections; 5. Grants or loans providing direct financial support for eligible projects; and 6. Infrastructure assistance involving public improvements such as roads, water, and sewer systems. By combining these incentives under a single, cohesive policy, Brookfield can create a more flexible and effective toolset to promote economic growth and revitalization. Property Improvement Program (PIP) The Village of Brookfield is considering updates to its Property Improvement Program (PIP)—a grant initiative originally launched in 2021 to encourage exterior façade and site improvements within the Village’s TIF districts. The PIP aims to enhance curb appeal, promote property reinvestment, and support strategic economic development by providing financial incentives for qualifying improvement projects. Current Program Highlights Eligibility & Priorities  Properties must be used in whole or in part for commercial purposes and be located within a designated TIF district.  Priority is given to projects located along heavily traveled streets or majorintersections and those that represent comprehensive improvements with significant visual impact.  Routine maintenance items are not eligible, and work started before grant approval will not be reimbursed. Grant Scope  Grants support façade improvements defined as any building or structural elevation that fronts a public roadway or is visible from a right-of-way.  Additional beautification elements, such as landscaping, may also be considered as part of the grant scope. Page 9 of 34   The maximum reimbursement ranges from $500 to $20,000, subject to Village Board approval. Application Process  Applications are reviewed in the order received and must include: o Signed, completed application form o A brief project narrative including:  Current building conditions  Specific areas to be repaired  Proposed work and methods (e.g., chemical cleaning) o Photos of existing conditions o Drawings of proposed work o Material and color samples (if applicable) o At least two contractor bids  Once approved: o Improvements must be completed within 12 months o Receipts and invoices must be submitted for reimbursement o Any changes to the project scope must be reapproved by the Village Board o Properties that receive a grant must wait two years before reapplying Proposed Revamp of the Property Improvement Program (PIP) The Village proposes restructuring the PIP into two distinct tiers to better target support and maximize impact. Tier 1: Signage  Purpose: Provide financial assistance specifically for new and upgraded commercial signage to improve visibility, marketing, and overall appearance of businesses within the TIF districts.  Focus: Encourage new business owners to install appropriate signage and help existing businesses replace outdated or legally non-conforming signs. Priority will be given to replacing legal nonconforming signs.  Grant Details: o Grants will reimburse up to 50% of qualifying expenditures, with a maximum award of $2,000. o Qualifying costs include removal of old signage, fabrication, and installation of new signage. Eligibility & Conditions:  Businesses must be located within the Village’s TIF districts and hold a minimum three- year retail lease on a public street.  Applications must be submitted before obtaining sign permits.  Approved signage must be installed within 6 months of grant approval.  Applications will be reviewed in order received, subject to funding availability  Box signs are excluded from the grant program. Page 10 of 34 Tier 2: Larger-Scale Façade Enhancements This tier is designed to promote revitalization within Brookfield’s key TIF districts by providing financial assistance for significant exterior improvements to commercial buildings. Supports more comprehensive exterior building improvements aimed at revitalizing commercial properties and enhancing curb appeal on a broader scale (details on this tier remain consistent with current PIP guidelines). Eligibility & Purpose  Available to new and existing property owners of single or multi-tenant commercial buildings with first-floor retail or commercial space within the designated development areas.  Business owners may also apply with written consent from property owners, especially if the property owner chooses not to participate.  The program encourages comprehensive façade renovations Grant Details Assistance covers up to 50% reimbursement of verified, qualified expenditures related to:  Grants will reimburse up to 50% of qualifying expenditures, with a maximum award of $20,000.  Building exteriors  Landscaping and site design  Exterior lighting  Screening of utilities Application & Process  Applications are reviewed in the order received, subject to funding availability.  All applications require approval before construction begins and must secure necessary permits.  Approved projects must be completed within 6 months of grant approval.  Properties may only receive façade grant funding once every 10 year  New construction or teardown projects are not eligible This two-tier approach allows the Village to allocate resources strategically offering targeted support for smaller-scale signage upgrades while continuing to encourage substantial façade improvements aligning with Brookfield’s goals for sustainable economic development and revitalization. Financial Impact: N/A Recommendation(s): Page 11 of 34 Staff recommends that the Economic Development Commission provide a recommendation in support of implementing an Economic Development Policy Attachment Description: Village Resolution - Tax Increment Finance Policy; Current PIP Overview: Copy of City of Elmhurst Sign Improvement Program; Copy of City of Elmhurst Facade Improvement Program Attachments: Ordinance-796-Adopting-a-TIF-Policy PIP Overview City of Elmhurst Sign Improvement Program City of Elmhurst Facade Improvement Program Page 12 of 34  RESOLUTION NO. 2010-796 A RESOLUTION ADOPTING A TAX INCREMENT FINANCE POLICY FOR THE VILLAGE OF BROOKFIELD, ILLINOIS PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 10TH OF MAY, 2010 200779-1 Page 13 of 34  RESOLUTION NO. 2010—796 A RESOLUTIONADOPTING A TAX INCREMENT FINANCE POLICY FOR THE VILLAGE OF BROOKFIELD, ILLINOIS WHEREAS, the Corporate Authorities of the Village of Brookfield (“Village") find that sound management principles require that tax increment financing (“TIF”)resources be used prudently and that it support a stable economic base for the Village; and WHEREAS, to assist in maintaining a stable financial base and fostering a competitive business environment, the Village desires to establish a policy to guide the investment and use of public funds within all tax increment financing districts of the Village. NOW THEREFORE, BE IT RESOLVED by the President and the Board of Trustee of the Village of Brookfield, Cook County, Illinois, as follows: Section 1: The Corporate Authorities of the Village hereby determine that it is advisable, necessary, and in the public interest that the Village of Brookfield adopt a Tax Increment Finance Policy (”TIF Policy”); Section 2: There is hereby adopted and approved a TIF Policy, which policy is attached hereto marked as Exhibit A; Section 3: This Resolution shall be in full force and effect upon its passage and approval in accordance with law. ADOPTED this 10‘h day of May 2010, pursuant to a roll call vote as follows: AYES: Trustees Edwards, Towner, LeCIere, Hall, and Prause NAYS: None ABSENT:__EIWUSEK ABSTENTION: None APPROVED by me this 10‘“clay of May 2010, Michael J. Garvey, Presider?‘otthe Village of Brookfield, Cook County, Illinois 200779-1 Page 14 of 34 ATTESTED and filed in my office, this 10‘h day of May 2010. V / , 1A _ , Clerk of the Village of Brook?e d, Cook County, Illinois 200779-1 Page 15 of 34  EXHIBITA VILLAGE OF BROOKFIELD TAX INCREMENT FINANCE POLICY I. Purpose of the TIF Policy The Village of Brookfield finds that sound management principles require that TIF resources be used prudently and that it support a stable economic base for the Village. To assist in maintaining this stable financial base and to foster a competitive business environment, the Village desires to establish a policy that guides the investment of public funds in the Ogden TIF District and any future TIF Districts. lnvested public funds are to facilitate redevelopment projects expected to benefit the Village and that would not otherwise occur, “but for" for the investments. As a policy document, the TIF policy will (a) provide a general framework for the Village Board and President to evaluate proposed uses of tax increment financing and (b) deliver guidance to staff in forming recommendations regarding the use of tax increment financing and negotiating any redevelopment agreements with developers. ll. Goals and Objectives The overall goal of the TIF Policy is to promote a stable economic base that enables the Village to continue to deliver critical services to the community. Further, the TIF Policy supports the overall vision articulated in the 2020 Master Plan, which is the foundation for Village land use and planning. This TIF Policy affirms the 2020 Master Plan goal of “a balanced pattern of development in the community that provides for well designed, compatible, and economically sustainable business, employment, and residential areas.” To further the aforementioned goals, the Village will use tax increment financing to achieve certain redevelopment objectives: - lncrease and diversify the Village‘s property tax and sales tax base; — Promote aesthetic improvements and prevent the onset of blight; and — lnvest in redevelopment projects that, but for TlF assistance, would not othen/vise occur. 200779-1 Page 16 of 34 "I. General Guidelines for Redevelopment Projects A. The Village will comply with the requirements of the lllinois Tax increment Allocation Redevelopment Act (the “TIF Act"), as amended. Among other provisions, the TlF Act limits expenditures for certain types of “redevelopment project costs” as defined in the TlF Act. B. Pursuant to Section N of this policy, the Village will undertake an economic evaluation/risk assessment of proposed redevelopment projects, to ensure that (a) Village assets are safeguarded and (b) the proposed projects satisfy the “but- for” test embodied within the Tax Increment Allocation Redevelopment Act. C. Alternatives, such as “pay—as-you—go” financing and payment of public infrastructure costs with tax increment revenues, are preferable to bond financing. The Village will generaliy not issue general obligation tax increment bonds except when (a) all net bond proceeds are used to directly pay public costs or refinance debt that was previously issued to pay for such costs, (b) the taxable development that willgenerate the tax increment used to pay all or a portion of the debt service on the bonds is fully constructed and assessed by the Cook County Assessor, and (c) the development has met the terms and conditions of a redevelopment agreement with the Village. IV. Economic Evaluation and Risk Assessment A. Proposed uses of tax increment financing willbe subject to rigorous economic analysis and risk assessment. Specific evaluation activities may be established by staff to perform the evaluation and assessment. Based on the recommendation of the Village manager or his/her designee, additional reviews may be undertaken for larger projects involving greater public financial assistance. B. The results of the economic analysis and risk assessment will be presented to the Village Board prior to the request for approval of the proposed use of tax increment financing. C. The need for public assistance must be demonstrated and documented by the developer to the satisfaction of the Village, pursuant to staff procedures. Staff will identify supporting documentation needed (e.g., application for public financial assistance, “proformas” containing project budgets and cash flow projections, market studies in connection with anticipated land uses, and other financial/market information), The Village will perform an independent analysis of the supporting documentation, including project costs, to ensure that the request for assistance is credible. 2007794 Page 17 of 34 D. The developer must be able to demonstrate the ability to execute the proposed redevelopment project, taking into account financial capacity, past experience, general reputation and credit history, E. When the project is intended as a for-sale development (Le, office, retail or residential condominiums), the developer must retain ownership of the overall project until final completion; provided, however, that individual condominium units may be sold as they are completed. For all other projects, the developer must retain ownership of the project until the project is completed, in order to stabilize its occupancy, to establish the project management, and to initiate payment of taxes based on the increase in equalizes assessed value. F. Performance Measures The Village may consider the following performance measures to evaluate a redevelopment project: 0 Projected Revenues The Village willestimate property tax and, if — applicable, sales tax revenue of a project over the period that the TIF District is in effect; 0 Leverage Ratio The Village will endeavor to maximize the amount of — private investment per dollar of public assistance; 0 Financial Gap The Village may perform a “gap analysis" to determine — the difference or gap between project sources and uses; additionally it may compare developer investment return with and without public assistance to determine an appropriate rate of return to the developer (e.g., based upon calculations such as internal rate of return); 0 Developer Equity The Village willconsider the percentage of project — costs financed by developer equity, to determine ifVillage and developer interests are properly aligned. Equity includes cash, unleveraged value in land, or prepaid costs allocated toward the project. 200779-1 Page 18 of 34 V. Prohibited Uses The Village will not provide assistance for a redevelopment project that: 0 Would otherwise result in reimbursement for redevelopment projects costs prohibited by the TIF Act; 0 Exceeds 100% of the incremental revenue associated with the project parcels, unless it furthers a Village goal in addition to the redevelopment objectives identified in Section N of this policy; 0 Does not conform to the Ogden TIF Plan or land use policies as amended from time to time, including the zoning ordinance, 2020 Master Plan, or other land use ordinances of the Village, It is further understood that any and all development projects that occur within the Village’s Tax increment Finance District are subject to all Village ordinances, codes or Regulations that are currently in effect or that may be amended or modified by the Village. Vl. Administrative Responsibilities The Village Manager, Assistant Village Manager, or designee shall be responsible for implementing the TIF Policy, including the development of any procedural manual, guidelines, or applications, 2007794 Page 19 of 34  Property Improvement Program (PIP) 50/50 Grant Program for Façade and Property Improvements PIP Grant Application Process Overview Thank you for your interest in applying for a Property Improvement Program (PIP) Grant. This document outlines the steps of the application process and provides important details to ensure that your submission is complete and timely. Please follow this timeline and guide carefully and ensure that all required documents are submitted to avoid any delays in the process. Purpose The Village of Brookfield has established a Property Improvement Program (PIP) for Façade Improvements to help property owners improve and beautify the exterior façade of their properties. Reimbursement grants are provided to applicants in recognition of the positive impact that individual building improvements can have on the overall appearance, quality, and vitality of the business corridor and Village as a whole. Grant Eligibility To be eligible for a Property Improvement Program reimbursement grant, a building must be used in whole or in part for commercial purposes and must be located within one of the Village’s Tax Increment Financing (TIF) Districts (see TIF maps below). Projects that are comprehensive in nature and have the greatest improvement impact are strongly encouraged to apply for the grant. Properties located on highly traveled streets and at major intersections are of greatest priority for the grant funds. Routine building and property maintenance items are not eligible for the grant program. All work and participation in the program must be pre-approved by the Village and, as a condition of approval, the Village may require changes to the design or scope of the work proposed. Application Process Timeline Submit PIP Application Interested businesses or property owner applicants should schedule a meeting with staff to submit the completed PIP application along with all required documents as specified in the application packet. Please ensure that all required materials are provided at the time of submission including the requirement of two bids to be submitted for each item in the scope of work. Staff will review the application, prepare a report with a brief presentation of the project, review various aspects of the proposal, and make a suggested recommendation to the Economic Development Commission (EDC). The EDC will review all materials and provide a recommendation for revisions or to immediately move the application forward to the next Committee of The Whole meeting. The Village retains the right to approve an entire request, to approve portions of a Page 1 of 5 Page 20 of 34 request, suggest and/or ask for changes/additions to a request before approving, or to deny any request or portion thereof. The EDC and the Committee of the Whole may ask questions of the applicant about the project, so it is recommended that the applicant plan to attend the meetings. Submission Deadline for Economic Development Commission Agenda The application will be scheduled for the next available Economic Development Commission (EDC) meeting agenda for review. To ensure that our application is included in the next EDC meeting, you must submit your complete paperwork well in advance (preferably by the end of the previous month). The EDC meets once a month on the third Wednesday of each month. Provide Before and After Renderings As part of the application, you must provide before and after renderings of the building or area in question. These images should clearly show the existing condition of the property and the proposed work or improvements. This is a critical step to help the EDC understand the scope and impact of your project. Zoning Variance (if applicable) Please be aware that your project may require a zoning variance. For example, if you are proposing signage improvements that exceed the Village's allowable dimensions, you will need to petition the Zoning & Planning Commission for a variance. If your sign exceeds the allowable size or does not comply with other Village codes, you may need approval before proceeding with the grant application. EDC Review and Recommendation Based on the EDC recommendation, the application will move to the next available Committee of the Whole meeting. After discussion by the Committee of the Whole, a decision on the project will be voted on at the next Village Board meeting. The Village Board/Committee of the Whole meets in regular session the second and fourth Monday of each month. (Full schedule can be found at: https://brookfieldil.civicweb.net/Portal/) Funding Guidelines Grants are available to make improvements to a building’s facade. A facade is defined as any building or structural elevation fronting a public roadway or viewable from a right-of-way. Other beautification improvements such as landscaping may be considered. It is not intended to fund routine maintenance items. The grant reimburses up to 50% of the total project’s construction cost, not to exceed $20,000. If costs exceed the original estimates, the property owner or tenant will be responsible for the full amount of the excess. The Village cannot reimburse more than the total amount specified in the agreement executed upon approval. Any work commenced prior to Village Board approval and signing of the Grant Agreement will not be eligible for reimbursement funding. The applicant has one year to complete the work from the date of approval. Applicants may request a six-month extension provided there is a demonstrated hardship. Grant reimbursement will occur upon completion of the improvements and after proof of Page 2 of 5 Page 21 of 34  payment has been received. If the applicant is doing his/her own labor, funding will be reimbursed only for material costs after all the approved work is completed. Upon Village approval, the applicant and Village enter into a formal agreement establishing the scope of work and approved reimbursement amount. The Agreement is signed by the Village and the applicant, after the Village Board has approved the project. Grant project work may commence after the Agreement is signed and necessary building permits are obtained. Property owners will select contractors for the work, and all contracts for improvements are between the owner and contractors. All Village permits necessary for the project must also be secured prior to the work commencing. Grant Reimbursement Grants will be awarded based on how the project meets the program objectives. After the grant is approved and the entire project is completed, invoices and receipts must be submitted to the Village. One reimbursement check will be issued to applicant. In the event the improvements are not maintained for 5 years, the Village will require re-payment of the outstanding amount or an amount necessary to restore the improvements. Once completed, the applicant must maintain, and may not alter or change the improvements for a period of 5 years unless a request for modification is presented to the Village Board and approved prior to commencing such work. The Village will not reimburse for repair, replacement, or other alteration to work completed through the façade improvement program for a period of 5 years. Reimbursement grants are subject to Federal and State taxes and are reported to the Internal Revenue Service on Form 1099. Property owners and tenants should consult their tax advisor for tax liability information. In the event that the applicant receiving Village funds does not maintain the improvements within that period, the owner agrees to reimburse the Village on a pro rata basis, in the amount of the PIP Grant payment, less 20 percent of the amount of the PIP Grant payment for each full year prior to the violation. Please acknowledge that you have read the above and are fully aware of the PIP application process. Page 3 of 5 Page 22 of 34  Brookfield TIF Districts 8 Corners TIF District Page 4 of 5 Page 23 of 34 Downtown TIF District Ogden Avenue TIF District Page 5 of 5 Page 24 of 34 Page 25 of 34 Page 26 of 34 Page 27 of 34 Page 28 of 34 Page 29 of 34 Page 30 of 34 Page 31 of 34 Page 32 of 34 Page 33 of 34 Page 34 of 34