Economic & Community Development Committee

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Monday, December 11, 2023 7:00 PM Village Hall Economic & Community Development Committee Anthony Puccio, Chairperson Brian LaVaque, Alternate Chairperson Dennis McNicholas, Garrick Nielsen, Matthew Pike, Paula Dillon, Laine Vant Hoff, Gregory Ladle and Patrick Kennedy Staff Liaison: William Heniff Economic & Community Minutes December 11, 2023 Development Committee 1.0 Call to Order and Pledge of Allegiance The meeting was called to order by Trustee Puccio at 7:00 p.m. The Pledge of Allegiance was recited. 2.0 Roll Call Present 6 - Anthony Puccio, Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent 2 - Paula Dillon, and Gregory Ladle Also present: William Heniff, AICP Community Development Director 3.0 Public Participation None 4.0 Approval of Minutes A motion was made by Mr. Pike, seconded by Mr. McNiicholas, the minutes of the November 13, 2023 meeting were approve. The motion carried by the following vote: Aye: 5- Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent: 2- Paula Dillon, and Gregory Ladle 5.0 New Business 230418 108 W. St. Charles Road (Kyo): Grant Request 1. A Downtown Renovation and Improvement Grant (Façade Grant) for the proposed façade modifications in an amount not to exceed $50,000 or 50% of the eligible costs, whichever is less, for modifications to the exterior façade of the commercial building. 2. A Restaurant Forgivable Loan for the proposed interior buildout modifications to the currently vacant building in an amount not to exceed $100,000 or 33.3% of the eligible costs, whichever is less, for interior modifications to the existing restaurant space. (DISTRICT #1) William Heniff, Community Development Director, stated that with the Downtown Lombard TIF District expiring at the end of 2023, the ECDC would likely receive a number of additional grant applications. This Village of Lombard Page 1 Economic & Community Minutes December 11, 2023 Development Committee latest request will be the final downtown TIF grant request for the downtown area. Randy Pruyn, architect for the property/business owner of 108 W. St. Charles Road, Kyo Restaurant offered a summation of the grant request and introduced Mingli Dai, the new property owner and proposed restaurant operator of Kyo Ramen & Poke Bowl Restaurant. He stated that they are intending to undertake a complete remodel of the existing restaurant, but saving as much of the kitchen space as they can. The front of the restaurant will have a new look. They propose to expose the existing tin ceiling, which was a part of the original construction. The project will include a sushi bar and a small liquor bar. They intend to have a pass-through window to the outside sidewalk, where she plans to sell and dispense bubble tea and beverages. The existing Chinese exterior elements will be removed. William Heniff referenced the plan submittal and the staff memorandum. Staff met with the applicants to review all possible items that could be grant eligible. Separate quotes were offered for the façade grant and the restaurant forgivable loan requests. In addition to the requested grant amounts, the applicant can also request reimbursement of requisite permit costs up to $1,500. He noted that some of the depicted elements on the plan set would not be grant eligible (such as furniture), and the grant funds would be applied only to those eligible capital improvements. The applicant submitted estimated price quotes and staff found them to being in the realm of reasonableness. If there are elements that are not included as part of the request, the proportionate grant funds would be adjusted accordingly. Garrick Nielsen noted that we have had three or four grant requests in a row in which the three quotes minimum requirement is being asked to be waived. Pruyn noted that being up again the deadline for the TIF expiration was an issue. He also noted that the property was acquired in September and the plan design took a fair amount of time that also delayed securing additional quotes. It is also hard to get contractors to bid on projects at this time. Heniff stated that the applicant put a lot of detail into their drawings which also helps reduce uncertainty in developing reasonable cost estimates. Permits are in and under review, so the only issue is selecting the final project contractors. Nielsen asked if the DuPage County Health Department will have Village of Lombard Page 2 Economic & Community Minutes December 11, 2023 Development Committee issues with the pass-through window. Pryn said they will not. Heniff said that the design will be similar to the downtown Lombard Dairy Queen. Mingli Dai confirmed how they were going to use the window. Laine Vant Hoff asked about construction timelines. Pruyn said they hope to start construction activity at the beginning of 2024. They are anticipating a 10-12 week construction schedule, with potential opening in late March if all goes well. After the vote, Heniff stated that this would be considered by the Village Board at their December 21 meeting, to ensure its adoption before year’s end. A motion was made by Mr. Nielsen, seconded by Mr. Kennedy, The ECDC unanimously recommended approval of the grant request. The motion carried by the following vote: Aye: 5- Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent: 2- Paula Dillon, and Gregory Ladle 6.0 Unfinished Business 230349 Text Amendments to Section 36.30 to 36.74 of Village Code: With the expiration of the Lombard Downtown Tax Increment Financing (TIF) District, several code changes are being introduced striking all references to the Downtown TIF District, removing all grant requirements, and referencing the adopted Program Policies adopted by the Village Board. (DISTRICT ALL) Heniff offered a summary of the various actions to be undertaken with the end of the Downtown Lombard TIF District. The actions would consist of striking all references to the Downtown TIF within Code. He stated that the approach being undertaken with these pending actions was reviewed by Village Counsel. A motion was made by Mr. Pike, seconded by Mr. Nielsen, The ECDC unanimously recommended approval of the text amendments. The motion carried by the following vote: Aye: 5- Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent: 2- Paula Dillon, and Gregory Ladle 230367 Amendments to the Renovation & Improvement Grant, Retail Business Grant, Restaurant Forgivable Loan Program, Business Relocation Grant, and Art Grant Programs: Amendments striking all references to the Lombard Downtown TIF Village of Lombard Page 3 Economic & Community Minutes December 11, 2023 Development Committee District, adding the program eligibility to the St. Charles Road TIF- 2 East District properties for each of the applicable programs, and amending applicability and grant provisions. (DISTRICTS# 1 and 4) Heniff stated that at the November ECDC meeting there was discussion about the lien provisions and whether this should be discretionary or required for the Restaurant Forgivable Loan Program or Retail Business Grant Programs. Staff reviewed the ECDC minutes archives from 2013 to see how the current lien language was derived. At that time was a decision regarding use of the term “may”. Last month, the ECDC members expressed a desire for a document to be recorded against the given property the possibility of a lien for non-compliance. Given the history and discussion, staff prepared amended language stating that a notice of lien recording shall be required, unless otherwise approved by the Village Board. Dennis McNicholas confirmed that the proposed polices would be dated “2024”. A motion was made by Mr. McNicholas, seconded by Ms. Vant Hoff, The ECDC unanimously recommended approval of draft Policy amendments. The motion carried by the following vote: Aye: 5- Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent: 2- Paula Dillon, and Gregory Ladle 230368 Second Amendment to the Business Retention Economic Incentive Policy: Proposed Policy amendment to incorporate the properties previously identified within the Downtown Lombard TIF and as within the Key Development Sites Listing. Companion applicability amendments specific to the added downtown areas will be referenced as well. (DISTRICT ALL) Heniff stated that with the expiration of the Downtown Lombard TIF, there are no grant incentive policies in place for properties within the downtown area. To create the grant opportunity potential, a further amendment to the existing Business Retention Economic Incentive Policy is recommended. Responding to a question by Nielsen, grant funding availability would be subject to annual appropriations by the Village Board, which differs from traditional TIF funding approaches. The intent is to apply the same approach and methodology that we used when the TIF District was in place. Individual projects to not need to mee the “but-for” Village of Lombard Page 4 Economic & Community Minutes December 11, 2023 Development Committee standard, but there would still be the same level of scrutiny by the ECDC and Village Board as has been done in the past. The amendments identify Downtown Lombard and Lilacia Park as a key development site. Further text amendments to the Policy are included to the Policy to address the uniqueness of downtown properties and the limited applicability of the “but for” term. McNicholas stated these actions demonstrate the Village’s desire to attract business opportunities. If we continue to emphasize that the Village is not only attempting to attract businesses but also to allow them to grow through the use of these grants, and that is desirable. The Village deserves credit, and we should do what we can to highlight that effort. Vant Hoff asked why the grant area geography ended at Ash and does not go all the way down to the Library? Heniff stated that the demarcation goes to the past boundaries of the Downtown TIF District. Expanding the boundaries may be an item that will be considered in the future. Using the Economic Development Fund and our Policy is easier to amend than changing a TIF District boundary, which is about a 9-month effort. A motion was made by Mr. McNicholas, seconded by Mr. Kennedy, The ECDC unanimously recommended approval of the draft Policy amendment. The motion carried by the following vote: Aye: 5- Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent: 2- Paula Dillon, and Gregory Ladle 230369 Downtown Grant Program Policy The Economic and Community Development Committee submits its recommendation to approve a Downtown Grant Program Policy (DGP). The Policy provide for a new downtown grant program utilizing the Village’s Economic Development Fund in lieu of the Lombard Downtown TIF Fund. (DISTRICTS #1 and #4) Heniff described the proposed new program, stating that downtown businesses may not care about the source of the grant funds by the Village. But the past grant programs have been successful. Rather than changing everything up, the intent is to mirror the framework of the five TIF grant policies and make the structure a single source document. If approved and implemented, this Program would be subject to annual Village Board appropriations. Village of Lombard Page 5 Economic & Community Minutes December 11, 2023 Development Committee He summarized the Program components. The three-quote provision is included in the draft, but the ECDC and Village Board will have the authority to waive the provision if warranted. Nielsen asked about the program boundaries and if would take in the Lombard Veterinary Hospital property. Heniff stated that as that property is still within the St. Charles Road TIF 1 - West area, it does not need to be included in the new Program. A motion was made by Mr. Nielsen, seconded by Mr. McNicholas, The ECDC unanimously recommended approval of the draft Policy. The motion carried by the following vote: Aye: 5- Dennis McNicholas, Garrick Nielsen, Matthew Pike, Laine Vant Hoff, and Patrick Kennedy Absent: 2- Paula Dillon, and Gregory Ladle 7.0 Other Business Regarding the Development Team Update, McNicholas asked questions regarding the tenant occupancy status for Lilac Station and also Eastgate Shopping Center. Heniff said that Lilac Station coffee shop tenant (MOTW) is building out their space. Apartment tenancies are proceeding well and exceeding expectations. They will likely be able to get a partial incentive for one year of occupancy as set forth in their economic incentive agreement. Other possible tenant negotiations are continuing, but nothing is confirmed. For Eastgate, staff continues to work with PFC on their federal grant application request and the draft Village incentive grant introduced to the ECDC in April, 2023. Regarding the meeting ECDC start times, there is support to change the meeting start time to 6:00 pm starting with the January, 2024 ECDC meeting. 8.0 Information Only 9.0 Adjournment On a motion by Mr. Nielsen and a second by Mr. Pike, the meeting adjourned at 7:39 p.m. Village of Lombard Page 6