City Council

MINUTES CITY OF DEKALB COMMITTEE OF THE WHOLE MEETING JUNE 26, 2017 The City Council of DeKalb, Illinois held a Committee of the Whole meeting on June 26, 2017, in the City Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Smith called the meeting to order at 5:00 p.m. A. ROLL CALL Deputy City Clerk Scott called the roll, and the following members of the City Council were present: Alderman Bill Finucane, Alderman Michael Marquardt, Alderman Patrick Fagan, Alderman Kate Noreiko, Alderman Michael Verbic, Alderman Tony Faivre, and Mayor Jerry Smith. Alderman David Jacobson was absent. Also present were: City Manager Anne Marie Gaura, Assistant City Manager Patty Hoppenstedt, City Attorney Dean Frieders, Police Chief Gene Lowery, Fire Chief Eric Hicks, Interim Finance Director Jeff Wilkins, Community Development Director Jo Ellen Charlton, Public Works Director Tim Holdeman, Information Technology Director Marc Thorson, Human Resources Director Cris Randall, Economic Development Planner Jason Michnick, Principal Planner Dan Olson, IT Technician Jeff Birtell, and Deputy City Clerk Ruth Scott. B. ITEMS ALSO ON THE REGULAR AGENDA There were none. C. CONSIDERATIONS 1. Incentive Program for New Home Construction. Community Development Director Charlton provided an overview of this item. She stated that in 2016, City Council discussed possible fee waivers and incentives intended to stimulate the construction of owner-occupied homes on the City’s existing platted lots. The proposal considered involved waiving specific impact fees and providing up to a $1,000 sales tax rebate on construction supplies, landscaping, appliances, and home furnishings purchased from DeKalb businesses. If authorized, the City’s program would complement a program initiated by the Kishwaukee Water Reclamation District last year, in which they proposed to waive district fees for two years. In the year since the issue was last discussed, only one single-family new construction permit has been issued. Additionally, as part of City staff’s discussion at the Business Coordination meetings, the DeKalb County Building and Development Association Committee of the Whole Meeting Minutes June 26, 2017 Page 2 of 4 (DCBDA) has conducted some additional research and would be providing Council with that information separately. Ken Andersen of the DCBDA stated that the DCBDA has met with City staff, providing them with thoughts and ideas on how to stimulate home building within DeKalb. The DCBDA feels that this endeavor will create jobs and bring more revenue to the City in the form of real estate, sales tax, and other monies spent by home builders and the buyers of new homes. He added that staff has also been given two studies that were paid for by the DCBDA through their membership with the National Association of Home Builders. Mr. Andersen stated that both studies would be provided to Council via Community Development Director Charlton. Mr. Andersen encouraged Council to react quickly regarding the topic of impact fee waivers. Chuck Shepard of Shepard Construction, and also a DCBDA member, reiterated Mr. Andersen’s comments, adding that something needs to be done to jumpstart the minuscule housing over the last few years. Jim Work, a local home builder, stated he supports an incentive program. He provided some historical data about building homes in DeKalb versus building homes in Sycamore. He stated it’s sad to see what’s happening to some of the subdivisions in DeKalb, adding that the likelihood of building in DeKalb is zero with the current fee structure. Alderman Fagan stated he thinks an incentive program is a great step forward. There was a brief discussion between Alderman Finucane and Community Develpoment Director Charlton regarding the unplatted part of Rivermist. Alderman Noreiko stated she supports the idea of an incentive program and asked Community Development Director Charlton how long it would take to see the impact. Community Development Director Charlton replied approximately two to three years. Alderman Noreiko suggested putting something in place to check the progress after that time frame. Community Development Director Charlton suggested starting with offering the incentives to the first 50 permits, keeping the program open as long as those permits were available. Council would be provided with an update each year, perhaps as part of the budget. Mr. Shepard agreed with Community Development Charlton’s suggestion, as did Alderman Faivre. Discussion ensued regarding incentive programs being used in other communities. Mayor Smith stated that the consensus of Council is that they’re interested in helping home building and construction in DeKalb. Discussion ensued regarding rebates.  Committee of the Whole Meeting Minutes June 26, 2017 Page 3 of 4 Mayor Smith asked Mr. Andersen, Mr. Shepard, and Mr. Work collectively that if the City were to move forward with a sales tax rebate, would it provide enough to incentive for buyers to look at DeKalb. Mr. Work stated it would be a great start. Mr. Shepard stated it’s a great starting point to build on. Discussion ensued regarding the time frame of putting an incentive program in place. It was the consensus of Council to move forward with an incentive program, to be presented at an upcoming Council meeting. D. PUBLIC PARTICIPATION There was none. E. RECESS FOR EXECUTIVE SESSION OF THE CITY COUNCIL There was nothing scheduled. F. ADJOURNMENT MOTION Alderman Verbic moved to adjourn the Committee of the Whole meeting; seconded by Alderman Faivre. VOTE Motion carried by a 7-0-1 voice vote. Aye: Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Absent: Jacobson. Mayor Smith declared the meeting adjourned at 5:46 p.m. _____________________________________ RUTH A. SCOTT, Deputy City Clerk Approved by City Council: July 24, 2017. Committee of the Whole Meeting Minutes June 26, 2017 Page 4 of 4