City Council

MINUTES SPECIAL MEETING OF CITY COUNCIL OCTOBER 30, 2017 The City Council of DeKalb, Illinois, held a Special meeting on October 30, 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 4:00 p.m. Mayor Smith led the Pledge of Allegiance for those present. A. Roll Call Deputy City Clerk Scott called the roll and the following members of City Council were present: Alderman David Jacobson, Alderman Bill Finucane, Alderman Mike Marquardt, Alderman Pat Fagan, Alderman Kate Noreiko, Alderman Mike Verbic, Alderman Tony Faivre, and Mayor Jerry Smith. 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, Community Development Director Jo Ellen Charlton, Public Works Director Tim Holdeman, and Deputy City Clerk Ruth Scott. B. Ordinance 2017-043 Authorizing the Acquisition and Stabilization of Real Property Located at 912 Edgebrook Drive, and Authorizing an Amendment to the FY2017 Budget. Mayor Smith read Ordinance 2017-043 by title only. Mayor Smith asked that anyone present wishing to speak to this item, or an item not listed on the agenda, complete a Speaker Request form and give it to Deputy City Clerk Scott. He further stated that anyone wishing to address Council regarding this item would be allowed to speak prior to discussion by Council. MOTION Alderman Verbic motioned to consider Ordinance 2017-043; seconded by Alderman Faivre. Community Development Director Charlton provided an overview and history of this item, stating that in the fall of 2014, the City became aware of building code violations at the subject property during Northern Illinois University’s (NIU) move-in weekend. As a result of those violations, the City gained access to the property at the invitation of the tenants and then at the consent of the property owner. During those visits, the property was determined to be in an unsafe condition and posted as uninhabitable. The tenants were then relocated to alternate safe housing. Special Meeting Minutes October 30, 2017 Page 2 of 9 Community Development Director Charlton continued, stating that the property remained posted as uninhabitable for at least two years, with the owner not making any effort to remediate or renovate the property. The owner would not consent to further inspection of the property by the City, so the City obtained a search warrant and completed a full inspection of the property in 2016. That inspection showed significant mold growth within the property and the presence of material containing asbestos. As part of that process, the City undertook a complex evaluation of the building in the months to follow. The results of that evaluation were that the building was unsafe and the cost to repair it exceeded the fair market value of the building. In April of 2017, with authorization from City Council, the City filed for demolition of the building. The property has been offered for sale at various times over the past few years, but remains unremediated. The owner contacted the City at some point with an inquiry into the ability to renovate the property and redevelop it as a high density residential use. More recently, the City was offered the option to purchase the property at a greatly reduced price. The ordinance before Council at this time provides the cost of the property at $192,500. In the court demolition proceeding, the court has already granted the owner time to complete a voluntary sale. This item is being brought before Council to provide two options to determine different outcomes for this property. The first would be to direct staff to purchase the property, and in that case, the City would expend the purchase price and incur additional costs for asbestos remediation and potential renovation or demolition of the property. Further, acquiring the property would provide the City the ability to completely control and dictate the future of the properties future. The second option would be that Council could choose to not acquire the property, which may result in the City prevailing in the demolition action described earlier, but demolition costs would have to be incurred by the City. This option could result in the property being sold to a third party who may redevelop the property as high density residential. Community Development Director Charlton indicated that Council’s decision at this meeting does not determine if the property will be redeveloped or demolished. It merely determines whether or not the City purchases the property, which is the only method available to control the future potential outcome of the property. The timing of this property acquisition is based on the timeline of this matter, which is scheduled to go to court on November 3, 2017, for further action. City staff had only learned of the potential to acquire the property at a steeply discounted price a little over a week ago. The City does not have an identified funding mechanism for this property acquisition. However, based the on potential for this property to have a significant impact on the Annie Glidden North (AGN) area, staff brought this item forward for Council consideration for acquisition using the General Fund balance. She added that it’s at Special Meeting Minutes October 30, 2017 Page 3 of 9 Council’s discretion and preference. From a staff perspective, it is believed that the potential for an adverse impact on the neighborhood if the property were reopened as high density residential outweighs the impact on General Fund balance. Through the FY2018 budget, the City is also looking at ways of meaningfully addressing the long term budget concerns, but that’s a much broader discussion than this topic. It should also be considered that the City’s credit rating is influenced by more than just the General Fund balance. If the this property is redeveloped it will have an impact on surrounding properties and could impact community development and property values in ways that has far broader impacts on the City’s credit rating and the quality of life for residents in the area. Community Development Director Charlton noted that she had a brief conversation with Finance Director Talkington prior to this meeting, who evaluated the $250,000 authorized by this ordinance and has determined that the City will not fall below the 25% fund balance for either FY2017 or FY2018. Community Development Director Charlton asked Police Chief Lowery to provide Council with some of the safety measures we feel are important as part of this recommendation. Police Chief Lowery offered his perspective on public safety concerns the community is dealing with regarding crime. He stated there’s been a variety of measures undertaken to address those in the past, and they are still ongoing. One of the recent measures was a proactive enforcement campaign where about 243 people were arrested in in 27 days, as well as serving a variety of search and arrest warrants. He noted that putting those proactive measures in place is just one component, and that’s what the Council, and the community, needs to hear. There’s a mindset in one group of the community that feels that all the City’s problems can be solved with law enforcement. Another group feels it can be solved by addressing social needs, specifically, mental health, poverty, rental property surplus, and others, adding that neither side is right and neither side is wrong. Police Chief Lowery continued, stating that he has inspected the subject property, finding the conditions disturbing and deplorable. Police Chief Lowery also recalled a meeting he arranged earlier this year with Police Chiefs from major public university communities to address the significant spike in crime in 2016, bearing in mind that from 2012 – 2015 there was a significant decrease in crime except for one caveat, weapons related offenses and gun violence. The Police Chiefs in attendance also agreed that the most significant impact on crime is rental property surplus. This property isn’t going to do anything for the community by putting more people back in to it, especially if people are put back in to it after making only minor surface repairs. He feels the City should follow the example of neighboring communities, such as Elgin, Special Meeting Minutes October 30, 2017 Page 4 of 9 who’ve done a vast amount of project renovations and/or tear downs, and their crime rate has diminished. Police Chief Lowery stated he isn’t an advocate of taking property without due process, but he does feel that people who don’t take care of their property should not have the right to own it. On behalf of the DeKalb Police Officers, he hopes this becomes an opportunity to put this property in the City’s control, making it our choice what happens. He also hopes that to other property owners this is a message. While 90% of property owners in this community are doing the right thing, there’s a minority that aren’t. It’s time to take action and this is the first step. Community Development Director Charlton stated that Police Chief Lowery painted a very descriptive picture of the building and hopes it sticks in them minds when considering the acquisition of the property. She knows there are those in the community that question whether the City should acquire property from people who have chosen to defer maintenance, rewarding them with purchasing their property. However, the City needs to take a positon on this property in order to have a positive impact. The court ordered demolition process is happening now. The property owner will either find someone to purchase the property and then the City will have to take its chances with whomever that is to renovate and end up with the addition of another high density property back into that area. The alternative is that the City is successful in the litigation and still obligated to spend money to demolish the property. That demolition then sets what happens to the property. There are people in the room that think the property should be demolished, while others feel maybe there’s some other use for it. Acquiring the property at this point puts the City in the driver’s seat with the ability to decide which way to go. Mayor Smith opened the meeting to the public for comments. Lynn Fazekas provided her opinion that this meeting is in violation of the Open Meetings Act (OMA), stating that the public notice of a meeting should list the time, date and location of a meeting, and putting an agenda on letterhead doesn’t fulfill that requirement. She added that she will be taking action on the matter. Ms. Fazekas also offered her opinion regarding the City’s purchase of the subject property. Mayor Smith addressed Ms. Fazekas’ comments, stating that he discussed the matter with City Attorney Frieders, as well as reviewing prior agendas of City Council. He noted that the agenda for this meeting was very similar to past City Council agendas, whether they were Regular or Special meetings, adding that it’s a forgone conclusion that meetings of City Council are held at City Hall in Council chambers. Mayor Smith expressed to Ms. Fazekas his appreciation of her input and concerns. Ms. Fazekas commented that Special meetings of City Council have not always been held in Council Chambers, but in various locations throughout the community such as the DeKalb Public Library, the Police Department, Northern Illinois University, and at the Special Meeting Minutes October 30, 2017 Page 5 of 9 DeKalb High School. She also indicated that providing an agenda on letterhead simply isn’t the same as explicitly stating the location of a meeting. Will Heinisch stated that he sent an email to about 60 people who he felt might have an interest in offering their opinion on what happens with the subject property. He then shared some of the responses he received, some of which were in favor of the City purchasing the property, and some not. Mr. Heinisch offered his opinion that no decision should be made by Council until three things happen: 1) the City should consult stakeholder groups including DARA, the AGN Taskforce, NIU, citizens, and others; 2) an appraisal should be done; and 3) a very clear plan of the development of the property should be in place. If there is no clear plan, the City should not purchase the property. Bessie Chronopoulos concurred with Mr. Heinisch’s comments regarding the purchase of the subject property. She also indicated that she’s in agreement with Ms. Fazekas’ comments regarding Council meeting notification. Ms. Chronopoulos then provided her opinion regarding the topic of the subject property, stating that before Council makes a decision, perhaps a vetting of the details should be completed. She also stated that as a point of procedure, the subject ordinance has three to four items on it – the purchase of the property, stabilization of the property, the amendment of the FY2017 budget, and the establishment of a posted no parking zone – and indicated that each of these items should have been addressed separately. John Anderson stated that he agrees with Ms. Fazekas’ comments regarding Council meeting notification. He then offered that he could think of a lot better things the money could be spent on rather than purchasing the subject property. Mayor Smith shared portions of emails and phone calls he had received throughout the day, including comments from Ron Naylor, Mark Charvat, and Scott Campbell, who indicated their opposition of purchasing the property, and another from Acting NIU President Lisa Freeman supporting the purchase. Mayor Smith then opened the discussion to Council members. Alderman Verbic asked if the charge for stabilization would be required if the property is demolished right away. Community Development Director Charlton replied that if the City purchases the property and decides to not take any further remediation or demolition action right away, it would be proposed to spend some of that money to secure windows, doors, etc. Alderman Faivre asked if it was decided to demolish the building on the property, would asbestos remediation have to take place first, with Community Development Director Charlton replying it would. Alderman Faivre also stated that he would like to see what the AGN Task Force and the community might have in mind for the building on the property. While he realizes that Special Meeting Minutes October 30, 2017 Page 6 of 9 everyone wants to remove density from the area, he expressed his preference in seeing the building repurposed, perhaps housing an immediate care clinic, grocery store options, and/or a community center. Alderman Faivre further commented that he would like to see some of the monies spent for the purchase of the property taken from the FY2018 budget. Alderman Noreiko asked how many other properties in DeKalb are in the process of being condemned at this time. City Attorney Frieders replied that there are number of smaller residential units, and some larger properties going through code enforcement issues but not at the point that they are demolition eligible. There was a brief discussion between Alderman Noreiko and City Attorney Frieders regarding the steps taken prior to taking legal action on property issues. Mayor Smith asked if the condemnation process would stop if someone came forward wanting to purchase the property. City Attorney Frieders replied that in cases such as this, judges will give the owner every opportunity to remediate, repair or sell the property prior to ordering the demolition. Alderman Fagan pointed out that Council doesn’t want to take money from the General Fund that isn’t budgeted. Nor do they want to take property off tax role or be real-estate speculators. However, at times hard decisions have to be made, not only for the safety of the neighborhood, but also for the City’s Police Officers, Firefighters, and Building Inspectors. This building has been a problem and if decisions are stalled, it may cost even more money to fix the problem. Alderman Jacobson stated that he’s very well aware of the issues regarding the subject property because it’s in his ward. He then stated that the first question he would ask residents is “what would you do if this was the property next door to you?” He further stated that the property has been in legal limbo for years. It’s a nuisance and a public safety issue. As he’s looked at comments left on blogs and newspaper articles, the prevailing thought seems to be, “stop talking and do something about it”. The community has asked the City to do something about the increased rate of crime and now that it has an option, people are asking Council to slow down their decision. That’s frustrating to him. Alderman Jacobson continued, providing his thoughts on the situation at hand and commenting on why the City is moving quickly on this item. He added that purchasing the property gives the City the best opportunity to control the outcome of its future. Mayor Smith commented on the AGN Taskforce, stating that he’d like to get their input on the future of the property. Alderman Noreiko stated that initially she was not in favor of the City becoming a landlord. However, she has become convinced, especially since it’s in the AGN area. She thinks that the purchase of the property is a proactive step in the right direction. Special Meeting Minutes October 30, 2017 Page 7 of 9 Alderman Verbic stated that an important lesson to him is how the City got here and asked if the City is doing things now to help avoid this type of situation moving forward, where perhaps a property owner is having trouble maintaining all of the codes that are required. Alderman Marquardt left the dais at 5:11 p.m. and returned at 5:13 p.m. City Attorney Frieders replied to Alderman Verbic’s question, stating he thinks this a good opportunity for Council to have a meaningful discussion on what their policy direction is in regard to code enforcement, with City departments providing a variety of perspectives. The City continues to take immediate action in every circumstance where something is found that poses an immediate threat to public safety. In the course of doing so, more and more properties are being posted as uninhabitable on an annual basis. It’s a growing trend rather than a reducing trend. The City is doing things differently than it did years ago and continues to increase the effectiveness to use resources it has for code enforcement Alderman Finucane stated that as the AGN area is trying improve, here’s an opportunity to remove some of the density. He further stated that there was mention of a building a park for children to play in. He believes the property should be purchased. Alderman Marquardt stated that he appreciates everyone’s comments on the subject property. He believes that time and opportunity have been given to the owners to remediate the issues for years and far past the point of doing anything else with it. If the City purchases the property, it will provide potential to do something with the neighborhood and the area and eliminate a potential for further issues. He agreed with Alderman Jacobson in that it’s time to take action. MOTION TO AMEND Alderman Jacobson motioned to amend Ordinance 2017-043 by adding that the budget for FY2017 and FY2018 shall not be caused to drop below a twenty-five percent (25%) general fund reserve by virtue of the acquisition and purchase of this property; seconded by Alderman Faivre. Community Development Director reiterated her comments from the beginning of the meeting stating that she had a brief conversation with Finance Director Talkington prior to this meeting, who evaluated the $250,000 authorized by this ordinance and has determined that the City will not fall below the 25% fund balance for either FY2017 or FY2018. Alderman Jacobson stated that he just wants to make sure that the fund balance doesn’t go below 25%. There was brief discussion regarding the motion. Special Meeting Minutes October 30, 2017 Page 8 of 9 VOTE ON AMENDMENT Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. VOTE Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. City Attorney Frieders stated that given the timeline, staff requests the waiver of second reading and passage of Ordinance 2017-043. MOTION Alderman Finucane motioned to waive Second Reading, and the passage of Ordinance 2017-043; seconded by Alderman Noreiko. VOTE Motion carried by an 8-0 roll call vote. Motion carried by an 8-0 roll call vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed. C. Public Comment Mr. Heinisch commented on Alderman Jacobson’s thought of an RFP or RFQ for private industry to revitalize the subject property. He asked that when that idea is presented to the AGN Task Force that there be some back up material or information of how that would work and some items of what’s put together for the RFP or RFQ. Mayor Smith added, and Alderman Finucane confirmed, that the next AGN community meeting will be held on November 2, 2017, at Westminster Church. Mayor Smith also added, with Alderman Finucane confirming, that the next AGN Task Force meeting will be held on November 7, 2017, at the DeKalb County Outreach Building. D. Adjournment MOTION Alderman Jacobson motioned to adjourn the meeting; seconded by Alderman Verbic. VOTE Special Meeting Minutes October 30, 2017 Page 9 of 9 Motion carried by an 8-0 voice vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, Smith. Nay: None. Mayor Smith declared the motion passed, and adjourned the meeting at 5:22 p.m. _____________________________________ RUTH A. SCOTT, Deputy City Clerk Approved by City Council: November 27, 2017.