City Council Special Meeting/Strategic Session

125 S. Center Street City of Collinsville Collinsville, IL 62234 Minutes - Final City Council Special Meeting/Strategic Session Councilman Nancy Moss Councilman Jeff Kypta Councilman Jeff Stehman Councilman Cheryl Brombolich Mayor John Miller Interim City Manager Mitch Bair Corporate Counsel Steve Giacoletto City Clerk Kim Wasser Monday, April 25, 2016 6:00 PM City Hall Training Room A. CALL MEETING TO ORDER Mayor Miller called the meeting to order at 6:00 p.m. B. ROLL CALL Present 5 - Councilman Jeff Stehman, Councilman Cheryl Brombolich, Councilman Nancy Moss, Councilman Jeff Kypta, and Mayor John Miller Absent 0 C. SPEAKERS FROM THE FLOOR Bob DesPain spoke of the rules in addressing the Council. He mentioned Public Act 97-60 and spoke of employees salaries as of 12/31/15. Rob Dorman read a letter he wrote to Councilman Kypta regarding phone lines at City Hall. He mentioned his FOIA request in which he filed a complaint for review with the Public Access Counselor. Brad Sewell spoke of the TIF program and how it effects other entities. He mentioned C.A.R.D.'s account balance and debt. Karen McReynolds mentioned TIF reimbursements should not be given if procedures are not followed. She spoke of various TIF procedures. She also mentioned Ordinance 4203 as terminology is broad and the $200,000 cap being to large of a reimbursement amount. She suggested a loan program with a low interest rate instead of the current dispensing of funds procedure. City of Collinsville Page 1 Printed on 6/20/2016 City Council Special Meeting/Strategic Minutes - Final April 25, 2016 Session Joe Ashmann spoke of the Italian Fest and his investment when he organized the festival. He mentioned one-way streets in the downtown area. Phil Astrauskas indicated he would prefer to speak after the Council members discuss the TIF program and would like to have a townhall type meeting. He read an article regarding TIF. He suggested establishing a City advisory board to address TIF issues. A representative from Home Federal announced he was present if anyone has questions. D. CITY COUNCIL Discussion of the Uptown TIF District Ordinance and Application Attachments: Memo - Uptown TIF District Interim City Manager Mitch Bair began an overview of the Uptown TIF District ordinance, application form and policy discussion. Also present to facilitate this conversation was Wendi Valenti, Director of Chamber of Commerce, David Jerome, Chairman of the Planning Commission, and Linda Allen, Chairman of the Uptown Development Commission (UDC). Interim City Manager Bair explained what TIF is and the difference between TIF 1 vs Uptown TIF. He gave an overall review of the program, ordinance, considerations regarding project information requirements, and elements to consider for incentive award amount. He indicated the next step may include amending the intent, ordinance and application. He explained how TIF funds are established. He mentioned various TIF projects (infrastructure improvements, redevelopment, public improvements, etc.) and associated eligible reimbursement costs. He further explained the Uptown TIF is within the TIF 1 boundaries but Uptown TIF was designed to jump start the market in the uptown area, focus on structural issues, code compliance, fire safety, infrastructure and public facilities. He recapped overall expenditures during the 2001-2014 timeframe in which $5.6 million was spent to improve infrastructure, $3.6 million on public facilities (City Hall, Fire Station, Police Station, library, Miner's Theatre, Collins House), and $2.9 million in private and business incentives. Interim City Manager Bair raised concerns that Ordinance 4203 addresses TIF intent but it is not clear. He mentioned various problems with the program and updates that are necessary. He indicated the 40% reimbursement on permanent rehabilitation and facade improvements and the 90% reimbursement on fire safety code issues come into conflict as they can quickly get a project over the $200,000 threshold. The reimbursement cost of 40 and 90 percent are caps and should not be used as a by right approach. He spoke of architectural services expenses as being TIF eligible but an approved site plan is required as part of a development agreement. He also spoke of payment details in which payment is made after certification of completion and lien waivers. He mentioned property ownership term requirements and liens in order to recoup funds. City of Collinsville Page 2 Printed on 6/20/2016 City Council Special Meeting/Strategic Minutes - Final April 25, 2016 Session He spotlighted an evaluation criteria that establishes a point system to determine the maximum amount of reimbursement and the City's expectations. He inquired of Council as to how pending applications should be handled in the meantime and suggested refining the ordinance, clarifying the intent, reevaluate ownership term requirements, and amend amounts and/or totals to address conflicts. He also suggested actively involving the Uptown Development Commission in project evaluation and incentive considerations and increasing Council's role in considering project needs and incentives. David Jerome, Planning Commission Chairman, indicated he understands we are giving money to business that are in direct competition with existing business; however, an incentive is necessary in order to grown and move projects forward. He spoke of the need to control how TIF funds are disbursed and criteria needs in order to see some return on the funds in way of job creation, sales, increased EAV and so forth. He compared TIF program to that of a Business District. He also mentioned the need of establishing liens in order to recoup funds in the event the owner sells the property within the restricted TIF term. Wendi Valenti asked Council to consider pending applications with the current guidelines as these projects are already in the works. She further indicated that TIF payouts for Uptown are minimal when compared to the overall appearance and development projects to the Uptown area. She also mentioned fire safety code issues can be extremely costly to a small business establishment. UDC Chairman Linda Allen also asked Council to consider pending applications and projects by not changing the rules midstream. Councilman Stehman indicated pending applications need to be addressed now and then careful consideration is necessary to restructure our TIF program. Councilman Moss spoke of the previously tabled TIF applications as they were in conflict with existing regulations. Mayor Miller concurred that it would be unfair to hold up the pending applications but suggested a moratorium on future applications until resolved. Interim City Manager Bair suggested scheduling a Strategic Session for May 9 to further discuss TIF issues. E. ADJOURNMENT A motion was made by Councilman Moss, seconded by Councilman Kypta to City of Collinsville Page 3 Printed on 6/20/2016 City Council Special Meeting/Strategic Minutes - Final April 25, 2016 Session adjourn at 7:21 p.m. The motion carried by the following vote: Aye: 5 - Councilman Stehman, Councilman Brombolich, Councilman Moss, Councilman Kypta, and Mayor Miller Nay: 0 Absent: 0 Abstain: 0 City of Collinsville Page 4 Printed on 6/20/2016