City Council

MINUTES CITY OF DEKALB COMMITTEE OF THE WHOLE MEETING NOVEMBER 27, 2017 The City Council of DeKalb, Illinois held a Committee of the Whole meeting on November 27, 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 5:01 p.m. A. ROLL CALL City Clerk Susanna Herrmann called the roll and the following members of the City Council were present: Alderman Bill Finucane, Alderman Mike Marquardt, Alderman Pat Fagan, Alderman Kate Noreiko, Alderman Mike Verbic, Alderman Tony Faivre, and Mayor Jerry Smith. Alderman Jacobson arrived at 5:54 p.m. Also present were: City Manager Anne Marie Gaura, Assistant City Manager Patty Hoppenstedt, City Attorney Dean Frieders, Finance Director Molly Talkington, Assistant Finance Director Bob Miller, Police Chief Gene Lowery, Fire Chief Eric Hicks, Community Development Director Jo Ellen Charlton, Public Works Director Tim Holdeman, Information Technology Director Marc Thorson, Human Resources Director Cris Randall, Management Analyst Aaron Stevens, Management Intern Blerta Greicevci, Economic Development Planner Jason Michnick, Principal Planner Dan Olson, and City Clerk Susanna Herrmann. Mayor Smith mentioned that Alderman Jacobson would be late to the Committee of the Whole (COW) Meeting. B. ITEMS ALSO ON THE REGULAR AGENDA There were none. C. CONSIDERATIONS 1. Public Hearing: 2017 Annual Property Tax Levy. Mayor Smith opened the Public Hearing at 5:02 p.m. Finance Director Talkington explained the relationship between the value of a home and the property tax levy, which will continue to hold the same rate established in 2016. Melissa Burlingame spoke in support of the City and the Alderman funding the pension obligations. Committee of the Whole Minutes November 27, 2017 Page 2 of 5 Mr. Fritz referred to a notice that he read in the paper regarding the next property tax increase which he interpreted to be 5.2%. Finance Director Talkington stated that it is based on the value of a home and provided a detailed explanation. Mr. Fritz continued, pointing out that his property taxes continue to raise despite no repairs being done on his home. He discussed the school district (D428) demographics and stated that he is uncomfortable with the way it negatively impacts the property tax rate. He shared his opinion that if taxes continue to rise, residents will no longer be able to afford to stay in the City. He encouraged Council to bring in a private consultant to perform an audit of the district and find out where the resources are being spent. Mayor Smith acknowledged Mr. Fritz’ concerns. Mr. Fritz asked Mayor Smith if it would have been more practical for the school district to consider the economic impact before breaking ground on the new high school. Finance Director Talkington explained the procedure that staff follows in order to establish the property tax levy. Mr. Fritz asked where the growth in the EAV is coming from. Finance Director Talkington explained that there is often a delay between the issuance of a building permit and the time that it appears on tax documentation. Michael Haji-Sheik discussed the mathematical aspect of the EAV in regard to the property tax levy and provided a summary of that relationship. Mayor Smith closed the Public Hearing at 5:28 p.m. 2. Strategic Plan FY2017 Third Quarter Update. Using a Power Point Presentation, Management Intern Blerta Greicevci provided an overview for this item stating that the 82 items included in the Strategic Plan are categorized as not started, on track, off track, at risk, achieved, not achieved or completed. She listed and summarized all of the action items while highlighting key accomplishments. During her presentation, she showed a brief video of the Public Works department remediating a sink hole located in the City. Mayor Smith mentioned that all of the information in the presentation is available on the City’s website. 3. Park 88 Development Agreement Update. Committee of the Whole Minutes November 27, 2017 Page 3 of 5 Using a Power Point presentation, Community Development Director Charlton provided an overview of this item and stated that Park 88 is a large commercial/industrial park located at the southeastern edge of the City that was initially annexed into the City by virtue of a series of annexations and development agreements between the City and a prior developer. She explained that the prior developer ultimately underwent bankruptcy and the property underwent management by the lender that had financed the project. That lender employed the services of Venture One to assist in project management, and Venture One ultimately bought the development. Since their acquisition of the development several years ago, the City has worked closely with Venture One to advance the project, most recently through the delivery of 3M’s new 987,000 square foot logistics center located at 1650 Macom Drive. Through the course of continuing discussions of the new regulations, the City and Venture One have developed a draft amendment to the Park 88 development agreement that would apply to any sites in the development that are presently undeveloped and are still owned by Venture One. The amendments are as follows: • Relaxation of building appearance and landscaping standards: Through the use of enhanced setbacks and changes in building configuration and orientation, the City will be able to match the appearance of existing buildings (such as the recent 3M building) and maintain appropriate building appearance expectations, while significantly reducing some of the unrealistic costs that are associated with strict compliance with the existing development agreement standards. • Realignment of road improvement requirements: The existing development agreement contemplated the construction of an internal north-south road connecting Macom Drive and Fairview Drive, roughly located where the most current 3M building was constructed. That road will no longer be required, saving the developer roughly $1.5 million. The current agreement also contemplates the construction of an internal road network connecting Industrial Drive to Macom Drive, and potentially connecting the Algus property east to Peace Road. The City believes that these interior roads are critical for a number of reasons. First, in the event of a public safety incident in Park 88, it is critical to have a direct and expeditious second route into the development, as there are frequent car accidents at Peace Road and Route 38. Having a second point of connectivity (beyond going down to Fairview Drive) is a significant public safety concern - particularly if fire station locations are reconsidered in the future. Second, the City has a significant need for ‘smaller’ industrial buildings, potentially built on speculation. The Algus property provides an ideal setting for such buildings in the future, but they cannot be constructed if they lack adequate road access. Providing interior access to Macom Drive, Peace Road, and ultimately Route 88, enables these parcels to be meaningfully developed in the future. In the absence of such internal roadways, it will not be possible to develop the Algus property in a beneficial fashion. It should also be noted that under the current development agreement, the City is obligated to provide such internal roadway connections to Algus. Committee of the Whole Minutes November 27, 2017 Page 4 of 5 • Contribution towards Peace Road improvement: Park 88 is heavily reliant on Peace Road to provide connectivity to I-88 and other major truck routes. Park 88 also generates a significant volume of trucks that generates substantial wear on the condition of Peace Road. As Park 88 has never previously made any contribution to Peace Road other than intersection improvements, it is recommended the City seek contribution from Park 88 towards these costs. As part of a traffic analysis to be conducted, this cost will also be shared by adjoining property owners who will also benefit from the improvements when they are completed. The City has proposed in the amended agreement that Park 88 could satisfy its contribution obligation by qualifying for other grant funding, such as job-creation infrastructure grants that are available from time to time, thereby reducing the ‘cash out of pocket’ cost to the developer. • Donation of municipal site: The original development agreement requires the developer to dedicate a 3.3 acre site to the City for use as a future fire station. This dedication as a municipal site is required to have occurred but has not yet occurred. It is recommended to require that dedication to occur immediately, to provide the City with the greatest possible flexibility. • Preservation of commercial development along Lincoln Highway: A portion of the Park 88 development has frontage along Lincoln Highway, in one of the last few undeveloped areas with such frontage. The developer has proposed to locate storm water detention in this area, which would not be a very advantageous use of this prime frontage. It is recommended to require such area to be preserved for future commercial development, to allow for the continued provision of developable commercial sites on Lincoln Highway, particularly at this entryway to the City. • Provision of a pedestrian/bikeway path along Fairview Drive. The original agreement required the developer’s provision of a pedestrian/bike path improvement on Fairview Drive from the railroad tracks on the west end of the project, to Peace Road at the east end of the project. Due to the costs associated with the challenges of retrofitting this path within the available right-of-way that is improved with a ditch cross section, the City has been negotiating for a path that would extend only as far east as the western-most Panduit entrance. This would provide access from the west for all people needing to gain access to this area as presently developed. Community Development Director Charlton concluded her presentation. D. PUBLIC PARTICIPATION Melissa Burlingame requested that Council reconsider discussion pertaining to the STEAM Learning Center. She also requested action from Council in an effort to make City Council Meetings easier to attend for residents with young families and children. She discussed the potential funding cuts presented in the budget and urged Council to fund the City’s obligations to its employees who serve the community. Committee of the Whole Minutes November 27, 2017 Page 5 of 5 Richard Riley spoke in regard to item G7 on the Regular City Council Meeting Agenda and asked that Council continue this item to a meeting in January in order for him to have enough time to respond to findings that were presented to him over the holiday weekend. Mayor Smith informed Mr. Riley that the item will be discussed in accordance with its placement on the Regular City Council Meeting agenda and notified the public that the Regular City Council Meeting will begin at 6:20 p.m. E. RECESS FOR EXECUTIVE SESSION OF THE CITY COUNCIL There was none. F. ADJOURNMENT MOTION Alderman Verbic moved to adjourn the Committee of the Whole Meeting; seconded by Alderman Fagan. VOTE Motion carried on an 8-0 voice vote. Aye: Jacobson, Finucane, Marquardt, Fagan, Noreiko, Verbic, Faivre, and Smith. Nay: none. Mayor Smith declared the motion passed and the meeting adjourned at 6:10 p.m. ________________________________ SUSANNA HERRMANN, City Clerk Approved by City Council: January 8, 2018.