Joint Review Board

AGENDA Joint Review Board Meeting October 28, 2022 1:00 P.M. DeKalb Police Department 700 W. Lincoln Highway 2nd Floor Training Room DeKalb, Illinois A. Call to Order B. Roll Call City of DeKalb – Bill Nicklas* DeKalb Community Unit School District #428 – Cindy Carpenter* DeKalb County – Brian Gregory* (Chair) DeKalb County Forest Preserve – Terry Hannan DeKalb Park District – John Shea* DeKalb Public Library – Emily Faulkner DeKalb Township – Mary Hess* DeKalb Township Road and Bridge District – Craig Smith Kishwaukee College #523 – Laurie Borowicz* Kishwaukee Water Reclamation District – Mark Eddington Public Member – Larry Berke* C. Approval of the Agenda D. Approval of the Minutes 1. Minutes of the Joint Review Board Meeting of July 22, 2022. E. Public Participation F. Presentation of the Third Quarter FY2022 TIF Financials G. Update on Current TIF #3 Projects H. FY2023 Draft Budget I. Next Meeting: January 27, 2023 J. Executive Session 1. Approval to Hold an Executive Session in Order to Discuss the Purchase or Lease of Real Property as Provided for in 5 ILCS 120/2(c)(5). K. Adjournment *Voting Members of the Joint Review Board  MINUTES CITY OF DEKALB JOINT REVIEW BOARD MEETING JULY 22, 2022 The Joint Review Board (JRB) of the City of DeKalb, Illinois, convened on July 22, 2022, at 1:00 p.m. at the DeKalb Police Department, located at 700 W. Lincoln Highway, DeKalb, Illinois. A. CALL TO ORDER Chair Brian Gregory called the meeting to order at 1:00 p.m. B. ROLL CALL Executive Assistant Ruth Scott called the roll, and the following members of the JRB were present:  City of DeKalb – Bill Nicklas*  DeKalb Community Unit School District #428 – Cindy Carpenter*  DeKalb County – Brian Gregory*  DeKalb Park District – John Shea* The following members of the JRB were absent:  DeKalb Township – Mary Hess*  Kishwaukee College – Laurie Borowicz*  Kishwaukee Water Reclamation District – Mark Eddington  DeKalb Public Library – Emily Faulkner  DeKalb Township Road and Bridge District – Craig Smith  DeKalb County Forest Preserve – Terry Hannan  Public Member – Larry Berke* Others present included Finance Director Carrie Dittman. C. APPROVAL OF THE AGENDA MOTION: Mr. Shea moved to approve the agenda; seconded by Ms. Carpenter. VOTE: Motion passed by a voice vote of the majority of members present. D. APPROVAL OF THE MINUTES 1. Minutes of the Joint Review Board Meeting of April 22, 2022. MOTION: Ms. Carpenter moved to approve the minutes; seconded by Mr. Shea. VOTE: Motion passed by a voice vote of the majority of members present. E. PUBLIC PARTICIPATION There was none. F. PRESENTATION OF THE SECOND QUARTER FY2022 TIF FINANCIALS Ms. Dittman provided an overview of this item based on the information provided in the agenda packet, which included the TIF Project Tracker as of June 30, 2022, the TIF #3 Income Statement Summary as of June 30, 2022, the Revenue & Expenditure Report (from City’s accounting Joint Review Board Meeting Minutes July 22, 2022 Page 2 of 2 system) for TIF #3, the Audit Report on Compliance with Public Act 85-1142 as of December 31, 2021 by Sikich LLP, the Annual FY2021 TIF Report filed with the Illinois Comptroller – TIF #1, and the Annual FY2021 TIF Report filed with the Illinois Comptroller – TIF #3 Brief discussion ensued. G. UPDATE ON CURRENT TIF PROJECTS Mr. Nicklas provided an overview of this item based on the information provided in the agenda packet, which included Agora Tower, the Illinois Route 38 (Lincoln Highway) reconfiguration in the downtown area, and 223 S. Fourth Street – City Hall Suites. He added that one or two more small AIP projects may be awarded in the near future for La Calle at 263 E. Lincoln Highway, ad Fargo Skateboarding at 641 E. Lincoln Highway. Mr. Nicklas also briefly discussed the possibility of extending the TIF map for the AIP program. Brief discussion ensued. H. NEXT MEETING The next meeting of the JRB will be scheduled for October 28, 2022. I. ADJOURNMENT MOTION: Ms. Carpenter moved to adjourn the meeting; seconded by Mr. Shea. VOTE: Motion passed by a voice vote of the majority of members present and the meeting was adjourned at 1:12 p.m. Respectfully submitted, _____________________________ Ruth A. Scott, Executive Assistant Click here to view the agenda packet for the July 22, 2022, JRB meeting. TO: City of DeKalb – Bill Nicklas* DeKalb Community Unit School District #428 - Cindy Carpenter* DeKalb County - Brian Gregory* (Chair) DeKalb County Forest Preserve - Terry Hannan DeKalb Park District - John Shea* DeKalb Public Library - Emily Faulkner DeKalb Township - Mary Hess* DeKalb Township Road and Bridge District - Craig Smith Kishwaukee College #523 – Laurie Borowicz* Kishwaukee Water Reclamation District - Mark Eddington Public Member - Larry Berke* FROM: Carrie Dittman Finance Director DATE: October 7, 2022 RE: Background Notes for the October 28, 2022 Agenda * Indicates voting membership The following notes provide background to the items on the published JRB agenda. Approval of Minutes. The minutes from the July 22, 2022 JRB meeting are attached for the Board’s review and approval. Presentation of Third Quarter FY 2022 TIF Financials. The following reports are attached for the Board’s review:  TIF Project Tracker as of 9/30/2022  TIF #3 Income Statement Summary as of 9/30/2022  Revenue & Expenditure Report (from City’s accounting system) for TIF #3 Update on Current TIF #3 Projects Architectural Improvement Program (AIP) Summary Property owners whose properties fall within the TIF #3 district boundaries may apply for limited incentives up to a maximum of $25,000 based on a three-tiered list of reimbursable expenses. The tiers are shown in the following table: Major Capital Improvements – 50% Reimbursement: ADA Compliance Façade Renovations Life Safety Equipment Electrical, Mechanical, and Architectural Design Fees Restoration of Historic Plumbing Upgrades Architectural Features Fire Alarm and Suppression Tuckpointing Systems Minor Capital Improvements – 25% Reimbursement: Exterior Lighting Exterior Painting Window & Door Replacement Screening of Unsightly Utilities Deferred Maintenance – 10% Reimbursement: Roof Repair or Replacement Gutter Replacement Stair and Handrail Replacement Floor Surface Repair Water Damage Repair According to the terms of the AIP program, the City “forgives” 20% of the value of the matching funds each year for five years. In FY2022, the AIP budget allocated $70,000 for 5 qualified projects on a first-come, first-served basis. The City Council amended the budget in May 2022 to add $47,000 for qualifying AIP projects, offset by the higher property taxes expected due to final EAV numbers. Between July – September 2022, the City Council approved three AIP grants: 1. La Calle, 263 E. Lincoln Highway = $11,821 (ADA compliance, life safety equipment, electrical, mechanical, and plumbing upgrades) 2. Fargo Skateboarding, 641 E. Lincoln Highway = $8,616 (façade/exterior signage) 3. Chilton’s Sporting Goods = $1,388.30 (roof repair). The first two were paid out during the quarter along with a previously approved $25,000 award to Aurora Music Company for major interior upgrades. Major Project Summary  Agora Tower. The Project’s developer, John Pappas, and general contractor, Weaver Construction, are approaching full occupancy in about another month. Tenants are already slowing moving into the north/south portion which was given a tentative occupancy in late September. The project funding was approved in September 2019. The sixth payout request, for $281,376, was received and paid during the quarter.  IL Rt. 38 Reconfiguration. The reconfiguration was essentially completed on time before the Corn Fest weekend. One lingering and annoying task remains: the completion of the Page |2  storm water inlets which require cast iron grates that have been on back order since June. By the end of October, a “Plan B” must be completed if alternative grates cannot be found.  223 S. Fourth Street: City Hall Suites. This redevelopment project will be an “earner.” The one-block area has been off the tax rolls since the late 1960s so once the property is occupied all of the assessed valuation will count toward the calculation of the increment. The former city hall has been razed, the excavator has crushed and removed the masonry debris for recycling (except what has been used on the site), and the main building “pad” has been prepped. The general contractor, Pappas Development, has also replaced old water and sewer mains as well as electrical and natural gas services. To date, $502,846 of the $750,000 TIF #3 grant has been allocated. No additional reimbursement requests have been received in the last quarter. The developer, John Pappas, is racing to complete his other large project, Agora Tower, and will shift to the S. Fourth Street site if weather permits this fall or defer further construction until the Spring of 2023. FY 2023 Draft Budget The City is underway with budget planning for FY 2023, and the tentative budget for TIF #3 is attached. Revenues include property taxes, interest income and the remaining transfer of fund balance left in TIF #1. The amount will be transferred once any outstanding tax appeals are closed. Administrative expenditures include the annual TIF audit, Union Pacific land lease payment (parking lot), annual legal review of the TIF and other required legal notices and TIF surplus distribution (30% of property tax revenue). Private property rehabilitation/redevelopment expenditures include $100,000 for future AIP grants and $247,154 carried over for the 200 S. Fourth Street project, which is in progress as noted above. Lastly, $500,000 is a placeholder for other potential major capital projects. Executive Session to Discuss the Purchase or Lease of Real Property as Provided for in 5 ILCS 120/2(c)(5). Adjournment Page |3  TIF 1 & TIF 3 ‐ Central Business District Estimated Cumulative Pay Out Schedule ("Project Tracking") Period Ending 9/30/22 Applicable Party Income Statement Year of Total RDA/TIF Approved Paid to Date to Remaining Redevelopment Project PINS (Developer) Expense Category RDA Commitment Eligible 9/30/22 Obligation Administrative (Non‐Project) Not allowable under IGA Debt Service TIF 1 City of DeKalb Debt Service 2021 $ 2,385,800 N/A $ 2,385,800 $ ‐ Agora Tower TIF 3 Private ‐ For Profit 2019 $ 3,000,000 Y $ 2,605,387 $ 394,613 206 E. Lincoln Ave. apartments TIF 3 Private ‐ For Profit 2020 $ 216,800 Y $ 216,800 $ ‐ 200 S. Fourth Street TIF 3 Private ‐ For Profit 2020 $ 750,000 Y $ 502,846 $ 247,154 AIP ‐ 121 N. Second Street ‐ Hillside TIF 3 Private ‐ For Profit 2020 $ 18,076 Y $ 5,503 $ ‐ AIP ‐ 135 N. Second St ‐ Egyptian Theater TIF 3 Private ‐ For Profit 2021 $ 4,314 Y $ 4,314 $ ‐ AIP ‐ 115 N 1st St ‐ R.A.M.P TIF 3 Private ‐ For Profit 2021 $ 1,675 Y $ 1,675 $ ‐ AIP ‐ 218 W. Lincoln Hwy ‐Hickeys Private ‐ For Profit 2021 $ 1,185 Y $ ‐ $ 1,185 AIP ‐ 151 N 4th St (property sold, project not completed) Private ‐ For Profit 2021 $ 25,000 Y $ ‐ $ ‐ AIP ‐ 509 Oak St ‐ Acculab TIF 3 Private ‐ For Profit 2021 $ 25,000 Y $ 25,000 $ ‐ AIP ‐ 201‐203 E. Locust St TIF 3 Private ‐ For Profit 2021 $ 1,850 Y $ 1,850 $ ‐ AIP ‐ 518 E. Lincoln Hwy ‐ KJ's Tap TIF 3 Private ‐ For Profit 2022 $ 2,415 Y $ 2,415 $ ‐ AIP ‐ 126 S. 5th St‐ Stagecoach Players TIF 3 Private ‐ For Profit 2022 $ 9,500 Y $ 9,500 $ ‐ AIP ‐ 137 E Lincoln Highway ‐ Aurora Music TIF 3 Private ‐ For Profit 2022 $ 25,000 Y $ 25,000 $ ‐ AIP ‐ 641 E Lincoln Highway ‐ Fargo Skateboard TIF 3 Private ‐ For Profit 2022 $ 8,616 Y $ 8,616 $ ‐ AIP ‐ 263 E Lincoln Highway ‐ La Calle TIF 3 Private ‐ For Profit 2022 $ 12,925 Y $ 11,821 $ ‐ AIP ‐ 248 E Lincoln Highway ‐ Chilton's TIF 3 Private ‐ For Profit 2022 $ 1,388 Y $ ‐ $ 1,388 IL Route 38 Downtown TIF 3 City of DeKalb Infrastructure 2021‐22 $ 1,800,000 Y $ 1,622,285 $ 177,715 Electric Car Charging Station ‐ Palmer Ct. TIF 3 City of DeKalb Infrastructure 2021 $ 15,000 Y $ 14,994 $ ‐ Fire Station #1 TIF 1 City of DeKalb Infrastructure 2021 $ 181,554 Y $ 180,284 $ ‐ DeKalb‐Taylor Municipal Airport* TIF 1 City of DeKalb Infrastructure 2021 $ 200,000 Y $ 159,395 $ ‐ Total Project Expenses $ 8,686,098 $ 7,783,485 $ 822,055 *Total RDA Commitment estimated based on the Municipal Share of Grant Activity to Rehabilitate Airport Facilities blue font = preapproved as part of TIF IGA 12/14/2020  TIF 3 ‐ Central Business District TIF Income Statement Summary TIF # 3 (esta. 2/11/2019) Tax Year for Base EAV for TIF Increment 2019 2020 2021 2022 TIF Year 0 1 2 3 Tax Year 2019 2020 2021 2022 Year Tax Due 2020 2021 2022 2023 Year Surplus Distributed (by 3/31) 2021 2022 2023 2024 Fiscal Year 2019 2020 2021 2022 Beginning Balance ‐ January 1 ‐ (500,000) 1,271,337 3,626,801 YTD Revenue Actual Actual Actual 9/30/2022 Revenue ‐ Property Tax Increment ‐ 300,640 458,809 468,811 Revenue ‐ Transfer from Other TIFs ‐ 4,275,000 2,650,000 ‐ Revenue ‐ Interest Income ‐ 202 1,097 14,264 Revenue ‐ Bond Proceeds ‐ ‐ ‐ ‐ Revenue ‐ Refunds/Reimbursements ‐ ‐ ‐ 8,712 Total Revenue ‐ 4,575,842 3,109,906 491,787 Total Available (Rev. + Beg. Balance) ‐ 4,075,842 4,381,243 4,118,588 Expenses Incurred (Paid) Expenses ‐ Non‐Project (Admin) ‐ ‐ ‐ ‐ Expenses ‐ Other Capital‐Public Infrastructure ‐ ‐ 127,053 1,510,226 Expenses ‐ Not‐for‐Profit ‐ ‐ ‐ ‐ Expenses ‐ Private For‐Profit 500,000 2,803,802 624,588 363,728 Expenses ‐ Debt Service ‐ ‐ ‐ ‐ Expenses ‐ Other ‐ ‐ ‐ ‐ Expenses ‐ Engineering Services ‐ ‐ ‐ ‐ Expenses ‐ Financial Services (TIF audit) 703 556 8,660 Expenses ‐ Legal & Notices ‐ ‐ 2,245 555 Expenses ‐ Surplus Other ‐ ‐ ‐ ‐ Total Expenses (excl IGA Surplus Pmt) 500,000 2,804,505 754,442 1,883,169 Expenses ‐ Surplus IGA (Note 1) ‐ ‐ ‐ 140,643 Ending Balance/(Deficit) ‐ December 31 (500,000) 1,271,337 3,626,801 2,094,776 IGA % of Surplus 0% 0% 30% (2019 levy) (2020 levy) (2021 levy) Note 1 ‐ surplus to be paid in following year according to IGA; begins with 2021 levy year (collected 2022) 10/07/2022 10:11 AM REVENUE AND EXPENDITURE REPORT FOR CITY OF DEKALB Page: 1/2 User: CARRIE.DITTMA Balances for quarter ending 09/30/2022 DB: Dekalb % Fiscal Year Completed: 74.79 Fund 262 - TIF FUND #3 ACTIVITY FOR 2022 YEAR-TO-DATE QUARTER ENDED Available % Account Description Amended Budget THRU 09/30/22 09/30/2022 Balance Used Revenues Department 00-00: GENERAL 30300 PROPERTY TAX - TIF 07/21/2022 CR /PROPERTY TAX REVENUE 07/21/2022 7,114.57 PROPERTY TAX REVENUE 07/21/2022 08/18/2022 CR /PROPERTY TAX REVENUE 08/18/2022 20,643.88 PROPERTY TAX REVENUE 08/18/2022 09/16/2022 CR /PROPERTY TAX REVENUE 09/16/2022 198,152.44 PROPERTY TAX REVENUE 09/16/2022 30300 PROPERTY TAX - TIF 507,000.00 468,811.26 225,910.89 38,188.74 92.47 37100 INVESTMENT INTEREST 07/31/2022 GJ JULY 2022 INTEREST 2,240.01 JE# 3874 07/31/2022 GJ JULY 2022 INTEREST 317.76 JE# 3874 08/31/2022 GJ AUGUST 2022 INTEREST 3,051.29 JE# 3964 08/31/2022 GJ AUGUST 2022 INTEREST 435.22 JE# 3964 09/30/2022 GJ SEPTEMBER 2022 INTEREST 3,407.97 JE# 4008 09/30/2022 GJ SEPTEMBER 2022 INTEREST 290.00 JE# 4008 37100 INVESTMENT INTEREST 250.00 14,263.67 9,742.25 (14,013.67) 5,705. 38200 REFUNDS / REIMBURSEMENTS 0.00 8,712.59 0.00 (8,712.59) 100.00 Total - Dept 00-00 507,250.00 491,787.52 235,653.14 15,462.48 96.95 Total Revenues 507,250.00 491,787.52 235,653.14 15,462.48 96.95 Expenditures Department 00-00: GENERAL 62100 FINANCIAL SERVICES 07/14/2022 AP SIKICH LLP/FY2021 AUDIT FEES 8,660.00 Inv #: '2248' Vendor '000943' 62100 FINANCIAL SERVICES 750.00 8,660.00 8,660.00 (7,910.00) 1,154. 63800 CONTRACTED SERVICES 6,111.00 0.00 0.00 6,111.00 0.00 65300 LEGAL EXPENSES & NOTICES 08/16/2022 AP ALLEN GALLUZZO HEVRIN LEAKE LLC/DEKALB - EXTERNAL REVIE 296.00 Inv #: '11601' Vendor '172368' 65300 LEGAL EXPENSES & NOTICES 0.00 555.00 296.00 (555.00) 100.00 68600 TIF SURPLUS DISTRIBUTION 138,000.00 0.00 0.00 138,000.00 0.00 69199 PRIV PROP REHAB / REDEVELOP 07/19/2022 AP PNG DEVELOPMENT LLC/AGORA TOWER DEVELOPMENT INCENTIVE 281,376.15 Inv #: 'PAYOUT #6' Vendor '002567' 07/19/2022 AP SKATEBOARD LOVE LLC/TIF AIP 50% REIMB - ILLUMINATED SIG 8,615.85 Inv #: 'RES 2022-061' Vendor '172526' 08/26/2022 AP YESENIA GALINDO/TIF AIP 50% REIMB - RENOVATIONS 11,820.68 Inv #: '082522' Vendor '172541' 09/16/2022 AP AURORA MUSIC COMPANY INC/AIP GRANT 137 E LINCOLN HIGHWA 25,000.00 Inv #: 'RES 2022-046' Vendor '172563' 69199 PRIV PROP REHAB / REDEVELOP 1,401,571.00 363,727.68 326,812.68 1,037,843.32 25.95 83900 OTHER CAPITAL IMPROVEMENTS 07/29/2022 AP ELLIOTT AND WOOD INC/LINCOLN HWY LANE RECONFIGURATION C 747,812.85 Inv #: 'EPE2' Vendor '000344' 09/02/2022 AP ELLIOTT AND WOOD INC/LINCOLN HWY LANE RECONFIGURATION C 487,921.92 Inv #: '3' Vendor '000344' 83900 OTHER CAPITAL IMPROVEMENTS 1,800,000.00 1,510,226.17 1,235,734.77 289,773.83 83.90 10/07/2022 10:11 AM REVENUE AND EXPENDITURE REPORT FOR CITY OF DEKALB Page: 2/2 User: CARRIE.DITTMA Balances for quarter ending 09/30/2022 DB: Dekalb % Fiscal Year Completed: 74.79 Fund 262 - TIF FUND #3 ACTIVITY FOR 2022 YEAR-TO-DATE QUARTER ENDED Available % Account Description Amended Budget THRU 09/30/22 09/30/2022 Balance Used Expenditures Department 00-00: GENERAL Total - Dept 00-00 3,346,432.00 1,883,168.85 1,571,503.45 1,463,263.15 56.27 Total Expenditures 3,346,432.00 1,883,168.85 1,571,503.45 1,463,263.15 56.27 NET OF REVENUES AND EXPENDITURES (2,839,182.00) (1,391,381.33) (1,335,850.31) (1,447,800.67)  FY 2023 DRAFT BUDGET TIF FUND #3 2021 2022 2022 2022 2023 2023 2023 ACTIVITY AMENDED ACTIVITY PROJECTED REQUESTED REQUESTED REQUESTED GL NUMBER DESCRIPTION BUDGET THRU 09/30/22 ACTIVITY BUDGET AMT CHANGE % CHANGE ESTIMATED REVENUES Dept 00‐00 ‐ GENERAL PROPERTY TAXES 262‐00‐00‐30300 PROPERTY TAX ‐ TIF 458,809 507,000 468,811 507,254 519,935 12,935 2.55 PROPERTY TAXES 458,809 507,000 468,811 507,254 519,935 12,935 2.55 OTHER INCOME 262‐00‐00‐37100 INVESTMENT INTEREST 1,097 250 14,264 20,000 6,000 5,750 2,300.00 262‐00‐00‐38200 REFUNDS / REIMBURSEMENTS 8,713 8,713 OTHER INCOME 1,097 250 22,977 28,713 6,000 5,750 2,300.00 TRANSFERS IN 262‐00‐00‐39260 TRANSFER FROM TIF #1 FUND 2,650,000 19,471 19,471 TRANSFERS IN 2,650,000 19,471 19,471 Totals for dept 00‐00 ‐ GENERAL 3,109,906 507,250 491,788 535,967 545,406 38,156 7.52 TOTAL ESTIMATED REVENUES 3,109,906 507,250 491,788 535,967 545,406 38,156 7.52 APPROPRIATIONS Dept 00‐00 ‐ GENERAL CONTRACTUAL SERVICES 262‐00‐00‐62100 FINANCIAL SERVICES 556 750 8,660 8,660 8,830 8,080 1,077.33 262‐00‐00‐63800 CONTRACTED SERVICES 6,111 6,111 6,294 183 2.99 262‐00‐00‐65300 LEGAL EXPENSES & NOTICES 2,245 555 1,000 5,304 5,304 262‐00‐00‐68600 TIF SURPLUS DISTRIBUTION 138,000 152,176 155,981 17,981 13.03 262‐00‐00‐69199 PRIV PROP REHAB / REDEVELOP 624,588 1,401,571 363,728 794,174 347,154 (1,054,417) (75.23) CONTRACTUAL SERVICES 627,389 1,546,432 372,943 962,121 523,563 (1,022,869) (66.14) EQUIPMENT 262‐00‐00‐83900 OTHER CAPITAL IMPROVEMENTS 127,053 1,800,000 1,510,226 1,800,000 500,000 (1,300,000) (72.22) EQUIPMENT 127,053 1,800,000 1,510,226 1,800,000 500,000 (1,300,000) (72.22) Totals for dept 00‐00 ‐ GENERAL 754,442 3,346,432 1,883,169 2,762,121 1,023,563 (2,322,869) (69.41) TOTAL APPROPRIATIONS 754,442 3,346,432 1,883,169 2,762,121 1,023,563 (2,322,869) (69.41) NET OF REVENUES/APPROPRIATIONS ‐ FUND 262 2,355,464 (2,839,182) (1,391,381) (2,226,154) (478,157) 2,361,025 (83.16) BEGINNING FUND BALANCE 1,271,337 3,626,801 3,626,801 3,626,801 1,400,647 (2,226,154) (61.38) ENDING FUND BALANCE 3,626,801 787,619 2,235,420 1,400,647 922,490 134,871 17.12