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Planning & Zoning Commission

Regular Meeting

DeKalb, IL · January 7, 2015

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Minutes

MINUTES CITY OF DEKALB SPECIAL PUBLIC MEETING OF THE PLANNING AND ZONING COMMISSION January 7, 2015 The City of DeKalb Planning & Zoning Commission held a special public meeting on January 7, 2015 in the Westminster Presbyterian Church at 830 North Annie Glidden Road, DeKalb, Illinois. Chair Welsh called the meeting to order at 6:00 p.m. ROLL CALL Planning & Zoning Commission members present: Christina Atherton; David Castro; Roger Ruehling; Matthew Crull; and Chairman Michael Welsh. Planning & Zoning Commission members absent: Adam Katz; Deborah Nier. Also present: Derek Hiland, Principal Planner, Jared Heyn, Planning and Zoning Intern, and Pat Klein, Administrative Associate, Mr. Bryon Gongaware, and Mr. Steve Teselle, Security Properties, and Mr. Stephen Rappin and Ms. Polly Kuehl of Evergreen Management. APPROVAL OF AGENDA Chairman Welsh called for an approval of the agenda. Chris Atherton made a motion to approve the agenda. Mr. Roger Ruehling seconded the motion. The agenda was approved by voice vote. APPROVAL OF MINUTES There were no minutes for approval. OLD BUSINESS None NEW BUSINESS None The sole item on the agenda is a work session with Security Properties regarding University Village. City Attorney Dean Frieders spoke regarding University Village. Mr. Frieders presented some background on the property and the intent of Security Properties to purchase it and utilize Evergreen Management to manage the property. The purchase is dependent on State and Federal funds and tax credits that require zoning changes. University Village originally met the zoning requirements when it was built. Over time, the zoning standards have changed and the property does not meet current zoning regulations. The petitioner believes that the zoning needs to change if it is to be redeveloped. Security Properties has come to the City in regards to these zoning changes. Security Properties has proposed to keep the same number of units and will explain the proposed improvements and changes in management and maintenance. Their plan is to retain the present tenants while renovating the property. Mr. Frieders explained that this is an informational meeting and will be followed by formal public hearings before the Planning and Zoning Commission. It will then go to the City Council for consideration. All these meetings will be public opportunities for questions and comments. Mr. Frieders welcomed other City representatives present including Mayor Rey, Aldermen Bill Finucane, Ward 2, Bob Snow, Ward 4, David Jacobson, Ward 1, and Alderwoman Kristen Lash, Ward 3. Also present City Manager Anne Marie Gaura, Police Chief Gene Lowery, Fire Chief Eric Hicks, Public Works Direction TJ Moore, Community Development Director Ellen Divita, the Planning and Zoning Commission and Tiara Huggins of the University Village Tenants Association as well as representatives from NIU and other community organizations. Security Properties and Evergreen Management then made their presentation for the purchase and redevelopment of University Villages. Bryon Gongaware from Security Properties spoke of their proposal to acquire and rehab University Villages including new management with Evergreen Management. Mr. Gongaware presented some background on Security Properties. They have been around for more than 40 years. They are based in Seattle, WA but have also had a presence in Illinois for more than 40 years. They specialize in affordable housing as well as conventional and Section 8 housing. Stephen Rappin, President of Evergreen Real Estate Services of Chicago, IL, spoke of the opportunities for improvement of University Villages. He spoke of Evergreen Real Estate Services and their expertise with affordable housing. Steve Teselle of Security Properties then presented slides of the proposed improvements including kitchens and baths, HVAC and mechanical systems, apartment entries, common stairwells, exteriors, as well as ADA compliance. This will be a “Tenant in-place” rehab that will not displace residents overnight, minimizing tenant disruption. Mr. Teselle presented pictures of proposed rehabbed exteriors including new windows, siding, roofs, entry-store fronts, balconies, and sliding doors, for different phases of University Villages. He also presented pictures of rehabbed kitchens including new lighting, cabinets, counters, sinks and faucets, appliances, and flooring and bathrooms with new medicine cabinets, refinished tub surrounds and 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.2 tubs, new countertops, sinks and faucets, vanities, lighting, and flooring. Mr. Kozel also presented pictures of rehabbed apartment entries, landings, and stairs. Pictures of two proposed tot lots were shown as well as a gazebo area and splash park that would replace the present pool. An expansion of a Community Building was also shown. Ms. Polly Kuehl of Evergreen Real Estate Services then spoke of their plans to form a team with the residents of University Villages to involve them in the proposed improvements. They also want to involve them in the wider community. Ms. Kuehl spoke of both the responsibilities of Evergreen Real Estate Services and the responsibilities of the residents. She said that they plan to meet with the residents and the resident’s council to determine the needs of the property and the residents. Mr. Steve Teselle spoke of the requested zoning variances, most importantly retaining the current density and parking spaces. Landscaping, lighting, and ground signs also require exceptions to the current zoning codes via waiver requests. Mr. Teselle spoke of the timeline involved in this project. They are hoping for City Council action at the February 23, 2015 meeting. After that approval, the next four months will be spent finalizing financing and rehab plans and specs. They hope to close on the property by the end of the second quarter or the beginning of the third quarter of 2015. It should take approximately 18 months to complete the rehab. Mr. Teselle also outlined some frequently asked questions with answers including is Section 8 staying (yes), will my rent go up (for Section 8, the majority of the residents, no). All units will have their rent capped. Will I have to move? (he does not expect any Section 8 tenants to be displaced). Attorney Dean Frieders spoke of the timeline and pointed out that the City has not yet agreed to this timeline it is dependent on future meetings. Mr. Bryon Gongaware then recapped Security Properties’ three intentions: • Substantially rehab University Villages, • Integrate the new management with the tenants, to give them a voice and integrate them into the community as a whole • Make sure the infrastructure and systems are in place to allow for community space and supportive services to actively be involved to benefit the tenants. Mr. Gongaware then opened the meeting to public discussion. Ms. Tiara Huggins spoke on behalf of the University Village Tenants Association and welcomed the potential new owners. She expressed the desire to meet and discuss residents’ concerns. The Tenants Association would like to have a space within the complex to meet with residents, and a multipurpose center/resource room for residents and surrounding community to come together. Lizzie Broger asked about the marketing of the rent. It will be capped at $1,000.00. Ms. Huggins asked about the low income vs. the Section 8 rent. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.3 Ms. Kuehl explained that the rent will stay the same for the Section 8 renters. Another resident asked what “delivered” kitchens and bathrooms were and where the residents would go during the remodeling. Mr. Gongaware said these will be fully remodeled kitchens and bathrooms and there will be a hospitality room available for the tenants during the day while remodeling is being done. The residence will be functional (though perhaps not 100% complete) for living at the end of the day. Mr. Joseph Mitchell, 360 Longvalley Lane, DeKalb asked if residents are typically employed as part of the management staff. Ms. Kuehl said they do not prohibit residents from applying for these positions; however they are concerned with confidentiality issues as well as the electronic keys. They will hire the best people for the jobs. Niki Cox asked about the living room areas of the apartments and the thin floors that allow them to hear neighbors in other apartments. Mr. Gongaware said they will consider this request. Kimberlin Carter of 731 Russel Road, DeKalb asked how long the renovation process would take. Mr. Teselle responded that it will take approximately 18 months. Ebony Glass, 819 Russell Road, questioned the mold in the washroom and if this would slow the remodeling process. Mr. Gongaware said each unit would be individually assessed in advance for different conditions that would be in addition to the remodeling. The mold should be addressed immediately and would be evaluated to find its source and could necessitate alternative housing to remediate. Ms. Glass also asked about banned guests and if the new management will investigate the existing list and reevaluate it. Ms. Kuehl said if a resident requested an appeal, they would look into why the guest was on the barred list, and if there were no documents to support the ban, they would meet with the parties involved to discuss removal from the list. Mr. Gongaware added that they would work directly with the DeKalb Police Department regarding criminal activity. Pat Bragg, 24000 North First St., Sycamore, spoke about her student rental properties that abut University Village. She wondered if Security Properties might move into the student rental market in addition to low income housing. She was concerned with possible competition. Mr. Teselle said that 100% of the property would be restricted to low income residents and a very small percent of students qualify. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.4 Ms. Kuehl added that tax credits, and section eight as well, have very strict restrictions on students living there. Ms. Bragg also asked if the City is going to rezone all apartment buildings to ensure that if other buildings are destroyed, condemned, or razed, would the present density of 12.5 units per acre be waived for them also? Attorney Dean Frieders responded that the zoning consideration that will be before the Planning and Zoning Commission and the City Council would be a special use for the University Village property only. The zoning standards for other property would be governed by the current UDO unless the owners petitioned for a variance as well. Ms. Tiara Huggins questioned the current leases and if they would remain in effect with new management. Ms. Kuehl said that the section 8 twelve month lease with a month to month extension would remain in effect and would not change. The other units that are not section 8 would have annual leases. Existing leases remain in effect regardless of ownership. This was further clarified. Ms. Huggins also questioned the credit score requirements for residency. Ms. Kuehl said no, Evergreen Management would do an annual criminal and sexual predator screening, but they do not do a credit screening for existing tenants. Ms. Huggins spoke of working with Trans Vac to provide a shuttle bus on Saturdays and asked if Evergreen Management would assist with this. Ms. Kuehl said that yes, they would work with various agencies and advocate for services for the residents. Ms. Huggins spoke of the resident group and their accomplishments with acquiring the shuttle. Mary asked about the remodeling of the bathrooms and kitchens and inquired if other parts of the residences would be remodeled especially the doors and windows that leak cold air and snow. Mr. Teselle replied that the interior renovation is focused on the kitchens and baths but the outer renovations will include doors, windows, and sliding doors. Michelle Perkins asked if there were dedicated dollars for supportive services. Ms. Kuehl responded that Evergreen Management coordinates with existing community services. There is not a lot of hard money to provide services themselves, but they would look to outside community groups to provide services and a dedicated staff person could facilitate this. Ms. Perkins asked if there would be additional staff added. Ms. Kuehl said there would be approximately 18 staff members; about 7 or 8 would be janitorial or maintenance staff. There may be outside contractors doing mowing, snow removal, etc. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.5 Ms. Perkins asked about video surveillance. Ms. Kuehl said there are cameras in place now. Part of the rehab will be working with the City and the Police Department to enhance those. Mr. Teselle said that part of the rehab will include funds to upgrade the video surveillance and they have met with the Police Department to discuss these upgrades. Shaylanda of Crane Drive said that she has three children in a two bedroom apartment and asked if there is the possibility of upgrading to a larger apartment. Ms. Kuehl explained the transfer list for residents that have outgrown their present apartment. Ms. Shaylanda also asked about the locks on the doors and said they are not secure. Mr. Teselle replied that upgrades to all the locks are included in the rehab. Rochelle Baker also inquired about the transfer list and said some current residents have larger apartments than others with larger families. Ms. Kuehl said the transfer list would work both ways; both upsizing and downsizing dependent on the family size. Misty Haji-Sheikh asked how many local jobs this renovation would create. Ms. Kuehl said that Evergreen Management has budgeted for 18 full time positions. Existing staff can apply for these positions. Mr. Gongaware said that this size rehab would typically add one to two hundred full time jobs during the 18 month construction period. They try to utilize local individuals. Jennifer Groce of NIU said she appreciates the coordination between Security Properties and Evergreen Management with the City of DeKalb and NIU police departments. She questioned if broad band, Wi-Fi and this type of technology will be included in the upgrades. Mr. Gongaware said that this would be the time to upgrade the technology. The Community Center would provide wireless access and computer learning labs would be incorporated. This would be a resource for the community. They need to understand the needs of the community. Ms. Groce said that NIU would love to be a part of this. She then asked about different accesses for the Community Center and what would be built in the Community Center. NIU and other partners in the community want to provide residents with resources that are available. Mr. Gongaware said they have just begun and will explore the various community needs and resources available. Ms. Groce asked about the timeline for the Community Center expansion and asked that Security Properties share this timeline. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.6 Mr. Gongaware asked if Ms. Groce would be the point person for collecting feedback from local supportive service groups to provide information regarding what services are available specific to the local community. Ms. Groce said there are other individuals present that could better serve this purpose. Mr. Gongaware asked individuals representing various support groups to contact him regarding their services. Kendal Thu – 609 Parkside Drive, Sycamore, faculty member of NIU and Chairman of the Department of Anthropology spoke regarding his interviews in University Villages the past four months. He spoke of the importance of listening to the residents’ needs and concerns. The University Village residents are isolated and need to be brought into the Community. Transportation is critical, not only to grocery stores and schools, but also to job sites. They have worked with TransVAC and discussed the cost of regular services. The prohibitive cost could be doable with the assistance of Security Properties and NIU. There needs to be a cultural transformation as well as a brick and mortar transformation. Mr. Kuehl replied that Evergreen Management also wants to work with the various service providers that work with the residents; churches, healthcare clinics, as well as NIU to find ideas to involve residents in these ideas. Resident 1 (name descript) of 706 No. Annie Glidden Road spoke of concerns regarding the townhomes’ windows and the carpet maintenance. The carpet is not cleaned frequently enough. She also asked if professionals will be hired to maintain the units and will there be choices for cable providers. There is currently one cable provider. Mr. Teselle said that yes, all windows will be replaced. Ms. Kuehl said she was not aware of other cable franchises in the area. There may be legal obligations with the Comcast franchise. Ms. Kuehl spoke of cyclic replacement of carpet with hard surface flooring. They prefer the hard surface flooring that is both attractive and durable. They sometimes purchase carpet cleaning equipment for resident’s use. The Resident 1 also inquired about painting each unit. Ms. Kuehl said each unit will be inspected and prioritized for all needs. Not everything can be done at once but they try to come up with a reasonable process for upgrades. They do do cycle flooring replacement and painting. Resident 1 spoke regarding the isolation of University Village residents. She said students were more likely to be hired for jobs. Ms. Kuehl thought seasonal employees like students were less likely to be hired. It would help if residents had the skills required in the job market. Assistance could be given to gain skills such as computer and reading skills as well as interview and resume writing skills. A resident questioned the outdoor lighting and the safety. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.7 Mr. Gongaware said that the property does have a fair amount of lights but several lights are burned out. This is an ongoing maintenance item that needs to be addressed. The onsite lighting actually exceeds the current zoning requirements. Resident 1 also said that a lot of the towing signs are not clear. Ms. Kuehl said that signs need to be clear and understood. There would be a parking policy for both residents and guests. They would require stickers for residents and guests would be provided with guest passes. Parking would be monitored and vehicles without stickers or passes would be towed. Residents would be involved in developing a parking policy. It was asked if the same management would remain in place. Ms. Kuehl said there is an Evergreen Management regional supervisor on staff that would supervise the University Village staff; the other positions will be open. They will seek a manager, an assistant manager, recertification people, clerical people, etc. Existing staff could apply for these positions. The current staff could aid in the transition. Security issues were brought up including night patrols. Ms. Kuehl said there will be two full-time security positions. Their hours will change with the seasons with increased hours during warmer months. Mr. Gongaware added that they have had conversations with the Police Department to incorporate more security. This is still preliminary; there may be more police presence on site. It was mentioned that the current maintenance and management staff have keys to all residences and if they are no longer employed, will the keys be returned. Ms. Kuehl stated that all the locks will be changed and there will be an electronic key cabinet that they can monitor. Resident 1 asked if the appliances shown would be the actual appliances installed. Mr. Kozel said that these appliances have worked very well and are Energy Star compliant. The type of stove (gas or electric) will be the same as what is installed now. There was concern regarding anyone breaking into a residence and stealing belongings. Ms. Kuehl encouraged residents to get renters insurance and said they have worked with insurance companies to obtain affordable renters insurance packages for other properties. William Heinisch asked about the City’s permitting and inspections of all the units and will Safe Built be handling these inspections? Will each unit be a separate permit fee? Attorney Dean Frieders said there will be no change to existing City policy for permits or inspections; it will be the same as any other multi-unit property. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.8 Tiara Huggins asked about the two Tot Lots and asked if one could be for tots and one for adolescents thereby separating the children by ages. They also would like a bike trail leading to the parks to avoid bike riding in the parking lots. Bike shelters would be a desired improvement over the existing bike racks due to the weather. Mr. Teselle said these are all good suggestions and they are open to working with the needs of the residents. It may be difficult to restrict ages in the park areas. Ms. Huggins also brought up suggestions for a resource room and a lounge area for the children during inclement weather that could also be used for after school programs or summer camp. Workshops for resume writing and interview skills or parenting would also be helpful and could use the multipurpose room. Jim Mason, Mason Properties, spoke of successes with other properties. He said he attempted to purchase University Village a year ago but was turned down. He said there is no need for rehab money to fix up the property. If he bought the property, he would not ask the City for any zoning variances. The stake holders in this Community will lobby the Council to keep University Villages the way it is and he could purchase it and rehab it with no money from the government using his own people. He would also fence the entire property for security. Resident 2 (name nondescript) asked what the response was from Security Property and Evergreen Management regarding Jim Mason’s statements. Mr. Gongaware said they have met with Mr. Mason and this is his perspective. The property is currently under contract with Security Properties and that is the business plan at hand. An allowance for the current density and parking is required for the financing to move forward. Their business plan is for the long term preservation and ownership of this property. University Villages is 40 years old and it is time for a redevelopment. Mr. Mason’s statement that he did not require government money to redevelop the property was questioned. Mr. Gongaware said he could not assess Mr. Mason’s statement. He said they have walked the entire property and they know what is required to be upgraded. Their plan addresses these needs but is dependent on the zoning variances to acquire financing. It was asked why Security Properties did not come forward before this. Mr. Gongaware said that they have no ownership of the property and cannot control current operations. The current owners have now decided to put the property for sale to a qualified and capable company who will be able to redevelop it. Resident 2 asked if Security Properties, after researching the concerns, questions, and needs of University Villages, is still interested in purchasing it. Mr. Gongaware said yes, he is even more excited about the purchase and feels that it has huge potential. They are successful in this type of rehab and the residents are pleased with the results. He takes pride in these changes. 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.9 It was questioned if the residents will be treated equally with respect by the new management. Ms. Kuehl spoke for Evergreen Management and said each resident is treated fairly with dignity and respect. Their goal is to provide the best product possible and involve residents in that process. Michelle Perkins asked if there would be restrictions on the property to remain as affordable housing regardless of ownership. Mr. Teselle replied that there are long term restrictions in place that will assure it remains affordable housing. Ebone Glass voiced a request for bus shelters and concern regarding the laundry room hours. These requests were noted by both Security Properties and Evergreen Management. Mr. Mason again spoke regarding the costs stated by Security Properties to rehab University Villages and said he could do it for much less. He also offered busing to his Laundromat and reiterated the need for security. Attorney Dean Frieders invited those present to stay for refreshments and ask any other questions following the meeting and clarified the various parties involved in the acquisition of University Villages and the City’s responsibility concerning only the zoning. Tiara Huggins asked to make the doors and windows a priority in the rehab. Chairman Welsh thanked all for coming and spoke of future meetings. The motion to adjourn was made by Matt Crull and seconded by David Castro. The meeting was adjourned at 8:20 p.m. Pat Klein, Recorder Administrative Associate 010715 Planning and Zoning Commission Special Workshop Meeting Minutes/p.10

Agenda

PLANNING AND ZONING COMMISSION SPECIAL PUBLIC MEETING WESTMINSTER PRESBYTERIAN CHURCH 830 NORTH ANNIE GLIDDEN RD, DEKALB IL WEDNESDAY – JANUARY 7, 2015 - 6:00 P.M. MICHAEL WELSH, CHAIR CALL TO ORDER ROLL CALL APPROVAL OF AGENDA (Additions or Deletions) APPROVAL OF MINUTES (None) CITIZEN COMMENTS (OPEN FLOOR TO ANYONE WISHING TO SPEAK ON RECORD) OLD BUSINESS (None) NEW BUSINESS (None) CONSIDERATIONS 1. Worksession with Security Properties regarding University Village and their interest in purchasing the property that would preserve and rehabilitate the apartment community. FUTURE CONSIDERATIONS (NONE) REPORTS / ITEMS FOR NEXT MEETING (NONE) ADJOURNMENT Assistive services will be provided upon request PC081-14 UNIVERSITY VILLAGE PLANNING AND ZONING COMMISSION WORKSHOP Agenda o Security Properties Overview o Evergreen Overview o University Village Rehabilitation Overview o Management Overview o Planned Development Proposal o Timeline o Q&A Security Properties Overview o Founded in 1969 o National portfolio o 16,500 units o 31 states o Affordable Housing Group o Focus of the acquisition, recapitalization, rehabilitation and operation of low income housing o Affordable housing portfolio of over 9,000 units Evergreen Overview o Founded in 1999 o Under Management: o 41 properties in 5 states o 4,386 units o 78% of portfolio is “affordable” housing o Section 8, LIHTC and other programs o Management presence in Elgin, Naperville, Addison o Executive staff members have 25+ years of experience in management and development o Provides quality living environments to diverse population groups o Specializes in turning troubled properties “around” o Resident involvement in the process - this is their home Rehabilitation Overview o Hard cost budget over $14M o Rehab includes: o Site work and amenities o Apartment interiors o Apartment HVAC/Mechanical systems o Apartment common entries o Building envelope and exterior o ADA modifications and upgrades o Tenant in-place rehab o Residents return home each evening o Delivered functioning kitchen/bath Rehab Overview – Building Exteriors Current Exterior P3 Current Exterior P1 New Exterior P2 Rehab Overview – Building Exteriors New Windows New Roof (P3) New Siding New Entry Storefront Rehab Overview – Building Exteriors Current Exterior P1 New Exterior P2 Rehab Overview – Building Exteriors New Sliding Doors New Siding New Balconies Rehab Overview – Apartment Interiors Current Kitchen Current Kitchen Rehab Overview – Apartment Interiors New Siding New Lighting New Cabinetry New Countertops New Sink/Faucet New Appliances Plank Flooring Rehab Overview – Apartment Interiors Current Bathroom Current Bathroom Rehab Overview – Apartment Interiors Medicine Cabinet Refinish Surrounds Tub Seal Coat New Countertops New Sink/Faucet New Vanity/Lighting Plank Flooring Low flow toilet Rehab Overview – Apartment Entries Repaint/Lighting Vinyl Landings Rubber Stair Treads New Entry Storefront Repair Buzzer System Rehab Overview – Site Improvements Tot Lot Community Room Expansion Splash Park Tot Lot Gazebo Area Evergreen Management Plan o Responsibility to owners and residents to: o Maintain/improve the property o Provide a quality living environment for the residents o Key Initiatives: o Treat residents fairly with dignity and respect o Encourage resident feedback and involvement in the management and planning– it is their “home” o Wants properties to be “good neighbors” to the wider community o Encourage residents to become involved in the programs and services available within the community o Expect residents to treat their apartments as their “homes” o Care for the apartments and property o Promptly report maintenance needs o Cooperate to ensure regulatory compliance and protection of the property and other residents o Evergreen promptly investigates and takes action when lease violations occur in order to ensure a quality living environment for all residents Planned Development Proposal o Planned Development Submission o Retain current density o Retain current parking count o Retain current landscaping plan o Retain current lighting plan o Allow for 5 ground signs, no greater than 40 square feet o Why is the Planned Development Necessary? o Site currently legal nonconforming use o In event of significant loss, must be rebuilt under MFR-2 o Results: • Loss of 144 apartment units o Property can not receive necessary financing as-is Development Timeline February 23, 2015 End Q2/Start Q3 2015 End 2016 City Council Meeting Acquisition Closing Stabilized Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Ongoing 2 Months 4 Months 2 Months 18 Months Zoning Rehab Plans Financing Construction Construction and Specs Approvals Mobilization FAQ o Is Section 8 staying? o Yes – new 20-year contracts o Will my rent go up? o Section 8 – No o Section 236/Market Rate • All units will be capped at local 60% AMI maximum rent: o 1BR- $784 2BR- $942 3BR- $1,087 o Will I have to move? o All residents must qualify at 60% of area median income • Section 8 – Very rare (87% of property) • Section 236/Market – Based on individual tenant incomes Questions and Comments