Committee of the Whole

1 COMMITTEE OF THE WHOLE Monday, June 23, 2014 7:00 p.m. City Hall Council Chambers 109 James Street Geneva, IL 60134 Ald. Chuck Brown, Chair AGENDA 1. Call to Order 2. Consider Consent Agenda *3. Approve Committee of the Whole Minutes from June 9, 2014 and Special Committee of the Whole Minutes from June 16, 2014. 4. Items of Business a. Recommend Removal of Four (4) Homes from Proposed TIF District Based on Amended Downtown Master Plan. b. Recommend Draft Resolution Expressing Official Intent Regarding Certain Expenditures to be Reimbursed from the Special Tax Allocation Fund and/or from Proceeds of Debt Issued, if any, in Connection with a Proposed Tax Increment Financing District. 5. Policy Discussion on the City’s Current Coyote Population 6. New Business 7. Upcoming Meetings: Committee of the Whole Policy Discussion: Mon., June 30, 2014. 8. Closed Session on the Purchase or Lease of Real Property for the Use of the Public Body. 9. Adjournment  2 COMMITTEE OF THE WHOLE MINUTES June 9, 2014 Present: Mayor Burns, Ald. Brown, Bruno, Flanagan, Kilburg, Maladra, Marks, Simonian, Singer, Seno Absent: Ald. Cummings Also Present: McKittrick, Dinges, Buffington, Schiber, Mexin, Maduzia, Nash, VanGyseghem 1. Call to Order Chairman Maladra called the meeting to order at 7pm noting that Ald. Cummings was absent. 2. Consider Consent Agenda Moved by Ald. Singer, second by Ald. Brown V/V: 9‐0 Motion carried. *3. Approve Committee of the Whole Minutes from May 27, 2014 (approved on Consent Agenda) 4. Items of Business a. Present Rate Review/Rate Survey and Consider Draft Ordinance Amending Title 9, Chapter 2, Article B (Service, Rate and Charges) of the Geneva City Code. Moved by Ald. Marks, second by Ald. Simonian Energy/electric consultant Gary Price provided information on the city’s rate structure and comparisons with other communities. The presentation covered a general rate review, class cost of service study, proposed rate designed changes (going to a flat rate), rate impact of Prairie State price adjustment, and typical bill comparisons. Geneva resident Bill Scown asked how higher rates affect the current budget. McKittrick noted that if budget amendments are needed, they are brought to council during the course of the fiscal year as needed. Scown also stated that it was his belief that back in 2008 the city’s rates were competitive, but not any longer. Ald. Simonian stated that based on what data we currently have, he supports the rate adjustments. Roll call: 9‐0 Motion carried. b. Recommend Draft Resolution Authorizing Execution of Memorandum of Understanding Retaining Legal Representation for Prosecution of Local Code Violations. Moved by Ald. Marks, second by Ald. Singer V/V: 9‐0 Motion carried. COMMITTEE OF THE WHOLE MINUTES ‐ JUNE 9, 2014 1  3 c. Recommend Draft Resolution Authorizing Purchase of Two (2) 2015 Ford Interceptor Police Cars from Morrow Brothers Ford and Related Conversion Costs Not to Exceed $69,860. Moved by Ald. Singer, second by Ald. Marks V/V: 9‐0 Motion carried. d. Recommend Certificates of Acceptance for Delnor Cancer Center and Geneva Bank & Trust. Moved by Ald. Brown, second by Ald. Seno V/V: 9‐0 Motion carried. e. Recommend Draft Resolution Authorizing Purchase of Jaeger 6‐Inch Pump Through the National Joint Powers Alliance at the Cost Not‐to‐Exceed $30,905. Moved by Ald. Flanagan, second by Ald. Bruno V/V: 9‐0 Motion carried. f. Recommend Draft Resolution Declaring Surplus Property for Jaeger 6‐Inch Pump. Moved by Ald. Singer, second by Ald. Flanagan V/V: 9‐0 Motion carried. g. Recommend Approval of Swedish Days Class E Liquor Licenses for Gratto, Chianti’s and American Legion as Presented. Moved by Ald. Seno, second by Ald. Marks V/V: 9‐0 Motion carried. h. Recommend Draft Ordinance Adopting 2014 Prevailing Wages. 5. Policy Discussion on Outdoor Seating Liquor License Fencing Regulations This item was taken off the agenda to be discussed at a later date. 6. New Business Ald. Brown noted the recent passing of former Alderman Renee Brenner. 7. Upcoming Meetings: Committee of the Whole: Mon, June 23, 2014. 8. Adjournment On a motion by Ald. Bruno, second by Ald. Singer, the meeting was adjourned by unanimous voice vote at 7:45pm. COMMITTEE OF THE WHOLE MINUTES ‐ JUNE 9, 2014 2 4 SPECIAL COMMITTEE OF THE WHOLE MINUTES JUNE 16, 2014 Present: Ald. Brown, Bruno, Cummings, Flanagan, Kilburg, Maladra, Marks, Simonian, Singer, Seno Absent: Mayor Burns Also Present: McKittrick, Dawkins, Radovich, Dinges, Mexin, Maduzia, Wright, Schiber 1. Call to Order Chairman Kilburg called the meeting to order at 7pm noting that Mayor Burns could not be in attendance. Kilburg then read a statement regarding the sudden death of Elec. Supt. Mike Buffington. Following the statement, a moment of silence was held. 2. Items of Business a. Recommend Resolution No. 2014‐46 Authorizing Labor Contract with InTren in the Amount of $23,540.00 for Electric Line Reconfiguration on Ford Street and Intersection of Fox River. Moved by Ald. Marks, second by Ald. Singer Roll Call: 10‐0 Motion carried. b. Waive elected official meeting fees Moved by Ald. Bruno, second by Ald. Singer V/V: 10‐0 Motion carried. 3. New Business 4. Adjournment On a motion by Ald. Bruno, second by Ald. Marks, the meeting was adjourned by unanimous voice vote at 7:08pm. 5 AGENDA ITEM EXECUTIVE SUMMARY Boundary selection for proposed Tax Increment Financing district Agenda Item: near the intersection of IL Rt 38 and IL Rt 25 Presenter & Title: Ellen Divita, Director of Economic Development Date: June 23, 2014 Please Check Appropriate Box: X Committee of the Whole Meeting Special Committee of the Whole Meeting X City Council Meeting Special City Council Meeting Public Hearing Other - YES Estimated Cost: Budgeted? X NO If NO, please explain how the item will be funded: Executive Summary: The City’s adopted Strategic Plan calls for use of incentives. At a September 30, 2013 policy discussion the Committee of the Whole confirmed general consensus on support for the use of Tax Increment Finance District (TIF) as a tool to assist with redevelopment of commercial property near the intersection of IL Route 38 and IL Route 25. On December 20, 2013 the Council directed Staff to release a “Request for Proposal” to investigate a new TIF District on the east bank of the River and adopted an Inducement Resolution which declared the City’s intent to consider formation of a TIF District (“District”) and reimburse the General Fund for eligible Redevelopment Project costs from the Special Tax Allocation Fund for the District and/or with proceeds of debt to be issued by the City, if any. SB Friedman (SBF) was hired on March 24, 2014 to conduct the eligibility analysis and write the “Redevelopment Plan and Project.” At that time there was discussion on whether or not to include the four homes, on the east bank of the River immediately south of the Oak Street ROW, in the study area. On November 18, 2013 the Downtown Master Plan was amended to reflect no redevelopment was intended for these homes. The study area did include the homes and the width of IL Route 25 with the intent to revisit the boundary after initial research was completed by the TIF consultant. Therefore, SBF considered two scenarios (the entire study area with the four homes and without the four homes). SBF has completed the eligibility analysis and determined the area studied qualifies in either scenario, with a slightly different set of factors; the factors are listed below. To qualify as a Conservation Area, the TIF Act requires that at least 50% of the buildings are 35 years or older and that at least three of thirteen potential eligibility factors for improved land are present to a meaningful extent and reasonably distributed throughout the Study Area. 6 Initial Eligibility Findings – Original Study Area (4 homes included). Initial findings for the proposed East Bank TIF, based on the current Study Area boundary, are:  Approximately 70% of the buildings are 35 years or older; and  Evidence supporting the presence of up to four potential eligibility factors: 1. Lack of Growth in EAV – Study Area EAV (on whole) has declined for the past five consecutive year-to-year periods (2008-2013). 2. Deterioration – Building deterioration was observed on approximately 38% of buildings and surface deterioration was observed on approximately 74% of parcels during fieldwork. 3. Deleterious Land Use and Layout – SBF observed residential land uses present on commercially-zoned land, residential land uses on state-designated highways (Route 38 and Route 25), and a lack of sidewalks for residential properties on Route 25. These conditions apply to approximately 28% of total parcels. 4. Inadequate Utilities – Information from the Water and Wastewater Department suggests there may be a lack of detention or other facilities to regulate storm water runoff (which flows unrestricted through the manholes and pipes, and may not be managed to the full extent required by the Kane County Storm water Ordinance). SBF is following up with City of Geneva Public Works. Initial Eligibility Findings – Alternate Study Area Boundary (4 homes removed)  Approximately 66% of the buildings are 35 years or older; and  Evidence supporting the presence of up to four potential eligibility factors: 1. Lack of Growth in EAV – Study Area EAV (on whole) for the Alternate Boundary has also declined for the past five consecutive year-to-year periods (2008-2013). 2. Deterioration – Building deterioration was observed on approximately 43% of buildings within the Alternate Boundary. Surface deterioration was observed on approximately 73% of parcels within the Alternate Boundary. 3. Excessive Vacancy – Fieldwork, analysis of broker property listings, and a conversation with the ownership of Geneva Place regarding current occupancy levels indicate that between 15% and 30% of that building square footage is vacant. SBF is following up with the ownership of Geneva Place and final numbers will be included in the Eligibility Report which will push up the vacancy percentage. Based on the initial number, SBF expects vacancy in the area to be “excessive.” 4. Inadequate Utilities – Information from the Water and Wastewater Department suggests there may be a lack of detention or other facilities to regulate storm water runoff (which flows unrestricted through the manholes and pipes, and may not be managed to the full extent required by the Kane County Storm water Ordinance). SBF is following up with City of Geneva Public Works. 7 Recommendation We know that the proposed East Bank TIF Study Area would qualify for TIF district designation as a Conservation Area under both boundary scenarios. The Council is asked to determine if they would like to include the four homes in the District boundary. The recently amended Downtown Master Plan is the official development policy of the City and it does not envision redevelopment of the four homes. The TIF Act provides that TIF funds may be used to install, repair, construct, reconstruct or relocate streets, utilities and site improvements essential to the preparation of the redevelopment area for use in accordance with the redevelopment plan even if such improvements are outside the TIF district. Therefore we recommend the Council adopt the boundary without the four homes. Advance notice of this meeting was sent to those in the Interested Parties Registry and the owners of the four homes in question. Brian Baugh will be with us this evening to answer any questions you may have. Attachments: (please list)  2 - SBF maps documenting eligibility factors in each alternative boundary configuration Recommendation / Suggested Action: (briefly explain) The Committee of the Whole should determine whether or not they would like to include the four homes in the District boundary. Staff recommends the four homes be removed based on the recently amended Downtown Master Plan which is the official development policy of the City.  8 Eligibility Study Jeffers Howard Hamilt on St on St Legend St N Rive r Ln Wall St  "
 
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  Ln U V 25 25 Kane St Nebraska St Geneva S River Kansas St Park District ´ Frank lin St p Spring k j Ram St Spring St S Harrison St 0 600 Fulton St Feet Chalme rs St June 2014 South St DRAFT Union Pacific Railroad Forest Preserve Preliminary Distribution of Eligibility Factors - Alternate Boundary Proposed East Bank Tax Increment Financing District CONSERVATION AREA DESIGNATION CITY OF GENEVA, IL www.sbfriedman.com 10 AGENDA ITEM EXECUTIVE SUMMARY Inducement Resolution to reimburse the General Fund for eligible costs from the Special Tax Allocation Fund and/or proceeds of debt Agenda Item: issued, if any, in conjunction with a proposed Tax Increment Financing district for the Southeast Master Plan planning area of the City (bounded IL Route 38, County Line, Fabyan, and Kirk Roads) Presenter & Title: Ellen Divita, Director of Economic Development Date: June 23, 2014 Please Check Appropriate Box: X Committee of the Whole Meeting Special Committee of the Whole Meeting X City Council Meeting Special City Council Meeting Public Hearing Other - YES Estimated Cost: Budgeted? X NO If NO, please explain how the item will be funded: Executive Summary: In November 2012 the City Council adopted the Southeast Master Plan (SEMP) which identifies barriers to development of a new business park in the area bounded by IL Route 38, the County Line, our Fabyan boundary with Batavia, and Kirk Road. The SEMP calls for identification of a financing method for infrastructure construction. The City’s adopted Strategic Plan calls for use of incentives. One available tool is Tax Increment Financing (TIF). At a September 30, 2013 meeting the City Council Committee of the Whole confirmed through a policy discussion that the Council is generally favorable of consideration of use of TIF, on a case by case basis. On February 18, 2014 the Council held a policy discussion on funding engineering work and equipment purchase for the Electric Utility (engineering and equipment) which would help achieve the SEMP vision of a new business park. TIF was discussed but no action taken. Subsequently, the FY 14-15 Capital Improvement Plan adopted by the City Council includes a goal of evaluating the feasibility of a vacant land TIF to fund infrastructure extensions to the Southeast Master Planning area in FY 15-16. Per Illinois State Statute, TIF Districts for vacant land are determined by a different set of factors than those used as a tool to redevelop aging commercial areas. Two different scenarios can be met. The first set requires documentation that, if vacant, the sound growth of the redevelopment project area is impaired by a combination of 2 or more of the following factors, each of which is (i) present, documented and (ii) reasonably distributed: 1. Obsolete Platting 2. Diversity of Ownership 3. Tax and Special Assessment delinquencies 11 4. Deterioration of structures or site improvements in neighboring areas adjacent to the vacant land 5. In need of environmental remediation 6. Total EAV has declined 3 of 5 calendar years or not matching pace of the balance of municipality Or, the second set of factors requires documentation that if vacant, the sound growth of the redevelopment project area is impaired by one of the following factors that (i) is present, documented to a meaningful extent, and (ii) is reasonably distributed: 1. Unused quarries, mines, or strip mine ponds 2. Chronic flooding 3. Unused or illegal disposal site 4. 50 – 100 acres in size, 75% vacant, designated in a Comp Plan adopted prior to 1982 as a Town Center 5. Qualified as a blighted improved area immediately prior to becoming vacant (unless substantial private investment in surrounding area) Two of the property owners in the southeast master plan have asked if the City would conduct an eligibility analysis for a SEMP TIF district earlier than FY15-16 if they were to fund the study. The City would issue a Request for Proposal (RFP). Only the eligibility analysis would be done with a Redevelopment Plan and Project to follow at such time a development is identified. As documented in the SEMP study, the area is challenged, with utilities at the north but no road connection to the arterial road system, and roads to the south but no utilities readily available. The question remains to be answered whether the SEMP study area will qualify under state statute for use of TIF. This evening, it is recommended that the City: 1) Approve the attached Inducement Resolution declaring the City’s intent to consider formation of a Tax Increment Finance District and reimburse the General Fund for eligible Redevelopment Project costs from the Special Tax Allocation Fund for the District and/or with proceeds of debt to be issued by the City, if any. The attached map shows the recommended study area, the same area studied in the SEMP: bounded by Route 38, the County Line, our Fabyan border with Batavia, and Kirk Road. A recommendation for the boundary of a TIF district would be determined later in the process, if the area does qualify. The study area is consistent with current planning documents. Consistency is key in providing a “pro-business” environment and communicating the Council’s intent. Consistency in planning documents allows for layering of needed finance, confirms direction and goals established in previous plans, and increases a level of confidence in the development community – they know what to expect when approaching a community with a development proposal when goals are confirmed across multiple documents. The recommendation to pro-actively conduct the eligibility study for a TIF District is being made in advance of any developer initiated request for assistance. Engaging consultant services to pro- actively determine eligibility would help the City respond quicker to requests for utility extensions and ultimate development. It also sends the message the City is actively interested in redevelopment of the area. At such time that a contract is brought forth for consultant services for a TIF eligibility study, a Memorandum of Agreement (MOA) would be signed by the property owners acknowledging 12 their obligation to pay for the eligibility study. With the passing of the Inducement Resolution, the City could recapture costs of the study via future increment. If no district is created, and therefore no funds available, the City would not be liable to re-fund their expenditure. Properties would need to be annexed before a TIF District is created; properties in question are in the City’s planning jurisdiction, per the boundary agreements with our neighboring communities. Attachments: (please list)  Map identifying study area  Inducement Resolution Recommendation / Suggested Action: (briefly explain) Recommend the Committee of the Whole approve the attached Inducement Resolution declaring the City’s intent to consider formation of a Tax Increment Finance District and reimburse the General Fund for eligible Redevelopment Project costs from the Special Tax Allocation Fund for the District and/or with proceeds of debt to be issued by the City, if any. 13 RESOLUTION NO. 2014-__ A RESOLUTION EXPRESSING OFFICIAL INTENT REGARDING CERTAIN EXPENDITURES TO BE REIMBURSED FROM THE SPECIAL TAX ALLOCATION FUND AND/OR FROM PROCEEDS OF DEBT ISSUED, IF ANY, IN CONNECTION WITH A PROPOSED TAX INCREMENT FINANCING DISTRICT WHEREAS, the City of Geneva (the “City”) is contemplating a formation of a tax increment financing district (the “District”) for certain real property described on Exhibit A attached hereto and made a part hereof (the “Property”); and WHEREAS, certain expenditures relating to projects to be undertaken in the District will be paid on or after the passage of this Resolution but prior to establishment of the Special Tax Allocation Fund for the District and/or the incurrence of debt by the City referred to below, including, but not limited to, eligible “Redevelopment Project Costs” (the “Expenditures”) defined by the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq., as amended, (the “Act”) to prepare the District for commercial, retail and/or residential redevelopment projects (“Projects”), and such Expenditures may be initially paid from the general fund of the City; and NOW THEREFORE, Be It and It Is Hereby Resolved by the City Council of the City of Geneva, Kane County, Illinois, as follows: Section 1. That the foregoing recitals are incorporated herein by this express reference. Section 2. That City reasonably expects to reimburse the Expenditures from the Special Tax Allocation Fund for the District and/or with proceeds of debt to be issued by the City, if any. 14 Section 3. That the maximum principal amount of debt expected to be issued, if any, for reimbursement of the Expenditures in connection with the Projects is $10,000,000.00. Section 4. That this Resolution is a declaration of official intent under Treas. Reg. Section 1.150-2 and under the Act. Section 5. That the officials, officers and employees of the City are hereby authorized to take such further actions as are necessary to carry out the intent and purpose of this Resolution. Section 7. This Resolution shall be in full force and effect immediately upon its passage and approval. PRESENTED to the City Council of the City of Geneva, Illinois, this ____ day of __________, 2014. PASSED by the City Council of the City of Geneva, Illinois, this ____ day of __________, 2014. APPROVED by the Mayor of the City of Geneva, Illinois, this ____ day of __________, 2013. ________________________________ MAYOR ATTEST: Filing Acknowledged this ____ day of __________, 2013: ____________________________ CITY CLERK AYES: __ NAYS: __ ABSENT: __ ABSTAINING: __ HOLDING OFFICE: __ 15 EXHIBIT “A” (Legal Description to be attached. Study area is the area documented by a solid line in the map below of the Southeast Master Plan study area: the area bounded IL Route 38, County Line, Fabyan, and Kirk Roads)