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, May 9, 2016 6:00 PM City Hall Training Room A. CALL MEETING TO ORDER Mayor Miller called the Special Meeting/Strategic Session of May 9, 2016 to order at 6:00 p.m. B. ROLL CALL Also present was Interim City Manager Mitchell Bair, Uptown Coordinator/Interim TIF Director Leah Joyce and City Clerk Kim Wasser. 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 Jason Rehg spoke of the Uptown TIF program as being successful in that it helped bring various businesses to the area. He also spoke of amendments to the TIF program. Wendi Valenti, Executive Director of Chamber of Commerce, spoke of the current Uptown TIF program as a way to revitalize the area. She mentioned the former Community Action Group. She again spoke of the TIF 1 expenditures being minimal in the overall TIF budget. She also mentioned the need of the Fire Safety Code within the TIF program as it helps to preserve the buildings and allows older buildings to be used now and in the future. She expressed her opinion that the Uptown area will benefit from this program even after it has expired due to the improvements being done now. She mentioned the program criteria. Linda Rayho, Historic Preservation Commission member, expressed her opinion that this program is a way to revitalize the Uptown area by allowing small business owners to move in and encourages City of Collinsville Page 1 Printed on 6/20/2016 City Council Special Meeting/Strategic Minutes - Final May 9, 2016 Session entrepreneurship. She indicated Fire Safety Code expenses should be permitted in the TIF program and mentioned criteria should be based on the building and not necessarily the business. She also expressed the need of an incentive program to encourage businesses into older buildings in the Uptown area. Robert Thiel indicated he was opposed to the proposed TIF District and inquired of the agreement made with the school district. He also mentioned research he found on the Internet where some are opposed to building water plants near schools due to the chemicals used. D. CITY COUNCIL Continue Discussion of the Uptown TIF District Ordinance and Application Attachments: UptownTIFDistrictOrdAndApplMemo.pdf Overview given by Interim City Manager Mitch Bair, along with Uptown Coordinator/Interim TIF Director Leah Joyce. He explained his overview will include a review of ordinance language and Council can decide on amendments, as needed, establish priorities, determine status of pending applications, and explore ways to involve the boards and commissions in the process. Interim City Manager Bair summarized the intent of the program and suggested amends such as change the wording to include Uptown, remove guidelines and replace with requirements, add in code, safety and structural compliance and establish consideration of same as priorities, and include limitations. These amends would clarify expectations in the application, add in a statement regarding ineligibility for reimbursement of items started before the application process is completed, clarify staff responsibilities, connect program limitations to intent and establish total project award limitations. He also TIF eligible projects and indicated no changes necessary to the Structural Rehabilitation and Facade program. But suggested prioritize items with intent, establish signage as an ineligible item for reimbursement, remove items related to aesthetics or perhaps reword aesthetics as eligible based upon extra business benefits. He indicated the need to include the Fire Safety Code Assistance Program as it is an impactful items to an project and building. He mentioned payment details of the program and included the need to verify work completed, code requirements met with permit and inspection done, and maintain lien waiver requirements. A discussion was had regarding lien waiver requirements. Interim City Manager Bair addressed applications exceeding $15,000 and suggested requiring applicant to submit financial report, business plan, rendering, and keep the seven (7) year requirement in place which includes tenant lease rates, occupancy rate, annual sales tax amount, real estate tax and other revenues. Council members Stehman and Moss indicated more business plan type of information is necessary upfront when making the decision to reimburse based on the TIF program. Need to make sure the business is successful financially not necessarily viable. Councilman Brombolich inquired of design guidelines and Interim City Manager Bair said those will be addressed elsewhere. City of Collinsville Page 2 Printed on 6/20/2016 City Council Special Meeting/Strategic Minutes - Final May 9, 2016 Session He spoke of the need to maintain ownership requirements, lien requirements and mandatory recording, and keep foreclosure language. These requirements need to be enforced and clearly stated in application. He also spoke of criteria and indicated, assuming everything is the same with regards to the award amount of up to $200,000, this amount fails to balance the needs of the middle scale projects, only considers facade awards and fails to take into consideration costly Fire Safety component. Interim City Manager Bair inquired of Council for guidance as to how to proceed with pending projects. A discussion was had and concluded that pending applications should be processed under the current guidelines but a moratorium on new applications or accept but do not process until amendments complete. It was also suggested to revise language to include review and input from boards/commissions. They directed Interim City Manager Bair to draft ordinance before July 2016 with effective date 30 days after passage and implement changes on effective date. Councilman Stehman suggested adding energy code compliance as TIF eligible items. E. ADJOURNMENT A motion was made by Councilman Stehman, seconded by Councilman Kypta.to adjourn at 7:11 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 3 Printed on 6/20/2016