D. Committee of the Whole

APPROVED SPECIAL COMMITTEE OF THE WHOLE MEETING VILLAGE OF LAKE ZURICH BOARD OF TRUSTEES MARCH 26, 2008 1. ROLL CALL AND CALL TO ORDER Meeting was called to order at 7:04 pm. Present were Village President Tolomei, Trustees Branding, Callahan, Johnson, Poynton and Taylor. Also present was Village Administrator Vitas, Village Planner Gadde and Building/Zoning Director Peterson. Trustee McAvoy was excused. 2. PRESENTATION FROM MORNINGSIDE EQUITIES GROUP PROPOSAL FOR DOWNTOWN REDEVELOPMENT Mary Ellen Martin, Senior Development Manager of Morningside Equities Group, introduced team members David Strosberg, President of Morningside and Jon Talty, Chairman and CEO of OKW Architects. Morningside Equities Group is a real estate development group specializing in one thing – developing mixed use of retail and multi-family in suburban downtowns. They are not an architectural firm but feels strongly their development firm is distinguished by the quality of the design and materials they use. Morningside states they are a vertically integrated firm; meaning they perform every step in the chain by constructing their own products to selling their own products. By doing so, allows for better control over expenses. Mr. Jon Talty from OKW Architects has been working in the Chicagoland area for 49 years and employs a professional staff of 80. Mr. Talty has been working closely with Morningside the last ten years developing mixed uses in suburban downtowns. Morningside/OKW provided a slide show of mixed use projects they developed in Elmhurst, Oak Lawn, Downers Grove, LaGrange Crossing, Lincolnshire, Park Ridge, and in Royal Oak, Michigan. Developments in Palatine and Mt. Prospect are still in the construction phase. Ms. Martin explained the procedures in creating a partnership with Morningside/OKW to begin construction in downtown Lake Zurich.  Special Committee of the Whole meeting minutes, March 26, 2008 2 3. DISCUSSION RELATED TO THE PROPOSAL Upon completion of the presentation, the Board was allowed time to ask questions and submit their comments. Village President Tolomei inquired about Morningside Equities roll, timing and tasks in order to proceed. If chosen as the developer of the downtown, the development team would first need to establish a partnership with the Village by reconciling mutual goals, along with establishing a redevelopment agreement. Meetings would be held with staff and Village officials to review the master plan and determine a strategic plan to achieve these goals. Simultaneously, public forums would be held to collect input from the residents. Construction would begin on the Grandview property and work their way east to Old Rand Rd. Marketing could begin as early as spring/summer of 2009. Mr. Talty feels the biggest challenges will be to create adequate parking and make the downtown pedestrian friendly. Downtown will consist of non-traditional retail with services and parking behind the buildings, and hopefully without the need of a giant parking garage. Mr. Talty believes the existing plan is sound and would not require starting from the beginning. They would most likely recommend building the Grandview similar in size and scale using some elements as previously drawn by the previous architect. Trustee Johnson questioned how financing would be handled. Mr. Strosberg stated Morningside is the general contractor and construction management company; no third parties are hired. They finance projects with equity from their own sources, along with securing construction loans from banks. Any financial gap in the proforma will need to be discussed and refined to a mutual agreement. Trustee Taylor asked whether any of their previous projects were developed in communities where public transportation was not near by. In all of their developments in metro Chicago, every project was built near a mode of public transportation. They realize this aspect is not in Lake Zurich, but feel the lake will be the catalyst for getting this started. Condominiums could be build with 1, 2, and 3 bedrooms with an average 2 bedroom/2 bath at 1100/1200 square feet. Retail areas would be small to accommodate franchisees and local businesses. A demographic study and additional market research would need to be completed to determine price points. President Tolomei thanked them for their presentation and for coming this evening.  Special Committee of the Whole meeting minutes, March 26, 2008 3 4. ADJOURNMENT MOTION was made by Trustee Johnson, seconded by Trustee Branding, to adjourn the meeting. Meeting adjourned at 8:30 pm. Respectfully submitted: Gloria M. Palmblad, Village Clerk Approved: 4/17/08