Economic & Community Development Committee

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Monday, August 12, 2024 6:00 PM Village Hall - Community Room Economic & Community Development Committee Anthony Puccio, Chairperson Brian LaVaque, Alternate Chairperson Dennis McNicholas, Garrick Nielsen, Matthew Pike, Paula Dillon, Laine Vant Hoff, Gregory Ladle, Patrick Kennedy and Lindsay Brown Staff Liaison: William Heniff Economic & Community Minutes August 12, 2024 Development Committee 1.0 Call to Order and Pledge of Allegiance The meeting was called to order by Chair Puccio at 6:00 p.m. The Pledge of Allegiance was recited. 2.0 Roll Call Present 8 - Anthony Puccio, Dennis McNicholas, Garrick Nielsen, Matthew Pike, Paula Dillon, Gregory Ladle, Patrick Kennedy, and Lindsay Brown Absent 1 - Laine Vant Hoff Also present: William Heniff, AICP Community Development Director 3.0 Public Participation 4.0 Approval of Minutes A motion was made by Mr. Pike, seconded by Mr. McNicholas, that the 6-10-24 meeting minutes be approved. The motion carried by the following vote: Aye: 8- Anthony Puccio, Dennis McNicholas, Garrick Nielsen, Matthew Pike, Paula Dillon, Gregory Ladle, Patrick Kennedy, and Lindsay Brown Absent: 1- Laine Vant Hoff 5.0 Unfinished Business 6.0 New Business 240258 Business District 1: Economic Incentive Further Funding Request Introduction Pacific Retail Capital Partners (PRCP) is requesting an economic development incentive utilizing projected BD1 funds collected during the 2024-2029 period which would be allocated toward current and future development projects slated within its geographical boundaries. The ECDC is asked to review the request and direct staff and Village Counsel to work with PRCP to prepare a further incentive agreement for future Village Board consideration. Pacific Retail Capital Partners (PRCP) is requesting an economic development incentive utilizing projected BD1 funds collected during the 2024-2029 period which would be allocated toward current and future development projects slated within its geographical boundaries. Village of Lombard Page 1 Economic & Community Minutes August 12, 2024 Development Committee The ECDC is asked to review the request and direct staff and Village Counsel to work with PRCP to prepare a further incentive agreement for future Village Board consideration. William Heniff introduced the staff report and a PowerPoint presentation that will correspond to his presentation. Josh Dean with Pacific Retail Capital Partners (PRCP) was introduced. He stated by providing an overview of what a Business District is and how Business District #1 (BD1) was established. From there, he introduced the pending actions associated with BD1. Business District funds are generated from retail sales within the defined geographical area, those funds are placed in a special Village fund and are then distributed per the terms of a 2006 incentive agreement that would help reimburse costs for selected capital expenditures that were previously constructed within the defined area. Within that agreement, the funding reimbursement would continue to be paid out until July, 2024. This item is being brought before the ECDC as the BD1 life does not terminate until 2029, to there would need to be a discussion as to how to allocate those collected funds during the remaining 5-year period. He also stated that the Village’s economic incentive policies provide guidance on the policy framework. Some of the capital improvements that could be considered as part of a BD1 incentive and the types of improvements that were previously done. He shared information collected to dated within BD1 to date. He noted that previous projections did not meet projected revenues due to many market related issues such as the Great Recession and the changing nature of retail. He also reference the sale of the center in 2012 and additional investment that occurred within the center and in the area, most of which did not receive incentives. Josh Dean introduced the proposed investments sought by PRCP using BD1 funds over the next five years. Such improvements are pertaining to potential restaurants and retail as well as overall site capital improvements and infrastructure upgrades. Heniff then discussed the policy elements and the need for an incentive. He stated that the Village’s economic development consultant Ryan (former Kane McKenna) has been engaged with PRCP at the Village’s request to help determine the need for any future incentive. In closing he emphasized the discussion as to how rather than if funding should be considered. As with other incentive requests, staff would be seeking direction from the ECDC to work with PRCP on a Village of Lombard Page 2 Economic & Community Minutes August 12, 2024 Development Committee BD1 incentive agreement. Garrick Nielsen asked about the projected revenue over the next five years. Heniff said that they are making about a $3,400,000 request for business construction over the next five years, but that is a variable and subject to generated sales tax revenue that is created during the period. Following Nielsen’s additional question, there are also site capital improvements that could also be considered as being eligible. Dean stated that what they are most interested in is a determination of what qualifies to be eligible for BD1 funding. Heniff stated that the goal is not to create 10 or 15 incentive request to come before the ECDC in the future, but rather to set up the funding stricture for future project funding based upon a new incentive agreement. McNicholas asked about comments offered in the Ryan report pertaining to real estate valuation increases and the like. Heniff confirmed that their efforts did not look at that larger issue or potential benefit, but it is a real possibility. He also stated that those increases could also benefit the Butterfield Yorktown TIF District. Lindsay Brown look for clarification on proposed project #9, which was identified in the PRCP memo as entertainment. Heniff responded that the site in question (former Yorktown Furniture Stire) was identified for possible consideration, but that is no longer a part of the discussion and request. Responding to a question from Chair Puccio, Dean stated that there is some active engagement with other prospective entertainment and restaurant establishments. They see the existing activity and proposed projects as p positive sign. Also responding to a question, he states that there is a decline in retail interest nationally but they believe with the additional activity occurring, that will draw more retail interest. Separate but related to the pending request, Heniff stated that Synergy, Yorktown Reserve developer, will be seeking approval of a third amendment to their agreement to provide for a short-term amended closing date for project financing. He also stated the status of project building permits. Responding to a McNicholas question, Heniff also talked about some of the greenspace programming activities. Village of Lombard Page 3 Economic & Community Minutes August 12, 2024 Development Committee A motion was made by Mr. Ladle, seconded by Mr. Pike, that this Economic Incentive Request be approved by the committee. The motion carried by the following vote: Aye: 8- Anthony Puccio, Dennis McNicholas, Garrick Nielsen, Matthew Pike, Paula Dillon, Gregory Ladle, Patrick Kennedy, and Lindsay Brown Absent: 1- Laine Vant Hoff 7.0 Other Business 8.0 Information Only 240198 Choose DuPage Presentation - Municipal Analytics Program August, 2024 Update and Initial Data Request As represented to the ECDC members at the June 10, 2024 meeting, Choose DuPage has access to data analytics for local business entities, prospective businesses and local governments. The ECDC unanimously authorized staff to become a MAP partner with Choose DuPage and staff will provide an update on this action . Heniff referenced the market data for a 1, 3 and 5-mile radii of the downtown area, which has started to be shared with interested parties. Such data is valued as the downtown has many smaller businesses and the data will help them with their market assessment efforts in a cost-effective way. Responding to a question by Nielsen, the base point for the radii data is Park and St. Charles. He also stated that the Village has seen over 11,000 visits to the “Lombard Development Web Page” since its inception in February. Chair Puccio introduced an audience member, Awais Jakvani, who spoke to the ECDC regarding his proposed retail clothing store to be located at 109 S. Main Street. He mentioned that he knows that Holladay Properties received an incentive for the development, funds would not be available for his tenant buildout. He said that he may not need assistance to get the business started but if the Village can offer something, he could do more to enhance his buildout and branding efforts. He closed by stating that he talked with Heniff and he noted that there would have to be policy modifications and discussions to consider such a request. Puccio noted that any such discussions would have to occur at a future Committee or Board meeting. 9.0 Adjournment Village of Lombard Page 4 Economic & Community Minutes August 12, 2024 Development Committee On a motion by Mr. Nielsen and a second by Mr. Ladle, the meeting adjourned at 6:43 p.m. Village of Lombard Page 5