Economic & Community Development Committee

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Monday, October 14, 2024 6:00 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, Patrick Kennedy and Lindsay Brown Staff Liaison: William Heniff Economic & Community Minutes October 14, 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 9 - Anthony Puccio, Brian LaVaque, Dennis McNicholas, Garrick Nielsen, Matthew Pike, Paula Dillon, Laine Vant Hoff, Patrick Kennedy, and Lindsay Brown Absent 1 - Gregory Ladle Also present: William Heniff, AICP Community Development Director, Leslee Keri Board President of Prairie Food Co-op, and Bob Bachner, Village of Lombard Trustee District 6. 3.0 Public Participation None 4.0 Approval of Minutes A motion was made by Mr. Pike, seconded by Mr. McNicholas, that the 8-12-24 meeting minutes be approved. The motion carried by the following vote: Aye: 8- Anthony Puccio, Dennis McNicholas, Matthew Pike, Paula Dillon, Laine Vant Hoff, Gregory Ladle, Patrick Kennedy, and Lindsay Brown Abstain: 1- Brian LaVaque Absent: 1- Garrick Nielsen 5.0 Unfinished Business 230131 Prairie Food Co-op Business Retention Economic Incentive Agreement Request The Economic and Community Development Committee recommends approval of the Business Retention Economic Incentive Agreement Request for Prairie Food Co-op at the Eastgate Shopping Center at 837 S. Westmore-Meyers Road, Unit A4-1. Staff and PFC to offer project status updates. (DISTRICT #5) William Heniff, Community Development Director, provided background regarding the past recommendation by the Economic and Community Development Committee to direct staff, Village Counsel Village of Lombard Page 1 Economic & Community Minutes October 14, 2024 Development Committee and PFC to prepare a revised economic incentive agreement for their proposed co-op grocery store at Eastgate Shopping Center. He noted efforts to complete the draft Agreement that was shared with the ECDC members for reference. This item was placed on the October 3 Village Board agenda for consideration. Subsequent to the placement, staff and Board members were informed of questions pertaining to the store opening and PFC funding status. Through subsequent discussion, the Village Board tabled consideration of the Agreement to the November 7, 2024 Board meeting. Additionally, it was suggested that PFC provide the ECDC with a status update regarding their activities. Leslee Keri of PFC provided a memo and discussed the various updates over the summer with a focus upon the tenant space buildout activities. She discussed the federal and state grants which supplement their own project funding activities. The grants cover much of their construction activities to date and they have been paying contractors to perform the construction activities. However, securing reimbursement funding from the grants has taken longer, which presents a cash-flow issue. In response, they sought supplemental bridge loan funding to cover the funding gap to pay bills while construction is completed. This request did raise questions amongst owners and others regarding the project. She stated that in its simplest terms, they requested interim bridge funds. Many owners have stepped up to provide bridge loans for the project, raising $450,000 in three weeks. This shows how passionate their owners are to the project. They recognize that this funding is temporary and is guaranteed by the previously approved grants, so it is just a matter of when the funds will be released. The project is fully funded and their spending is spot-on. They hope to open right after the first of 2025, possibly in February. Nielsen asked and Keri confirmed that the grants are written commitments for funding. Puccio asked about the timeframe the grants must be paid out. Keri noted that the State of Illinois was late in their initial issuance of all approved grant requests for projects by the State, so most entities had to request an extension letter request for their respective project budgets. This has caused some processing delays. The State will grant the extension. The federal grant would be paid by February/March, 2025 and they are not concerned. Village of Lombard Page 2 Economic & Community Minutes October 14, 2024 Development Committee Brown asked about the $1,200,000 bank loan. Keri said they will have a discussion tomorrow on that item but noted that they did not expect the owner cash influx, so this loan is not as significant in the short term. She said they have enough money to open. The loan will help them pay for initial operating expenses in the first year. Nielsen asked if they are talking to multiple backs. Keir said that they have been talking to a few banks. Co-op business models are unique which reduces options, but they have a few lenders to provide project financing. 6.0 New Business None 7.0 Other Business 8.0 Information Only Downtown Lombard Grant Status Updates William Heniff offered updates on a number of the downtown grants that were considered by the ECDC in and approved by the Village Board, noting that 2023 was the last year in which such grants could be approved using Tax Increment financing funds, given the Downtown Lombard TIF termination. Regarding 10-12 South Park Avenue, the property owner completed the grant related exterior façade work and accessibility accommodations for the existing building. Staff released the grant funds totaling $68,100 in late August. The owner is marketing the site to prospective sit-down restaurants. For 118 West. St. Charles Road (Performance Real Estate Appraisers), citing cost concerns, they scaled back some of the grant components associated with their approved $49,618 Renovation and Improvement Grant. They will be submitting for reimbursement for those items identified in the grant that were constructed and are submitting paid invoices and lien waivers to staff for reimbursement consideration (in the amount of $26,000). Elements that will not be constructed or installed this year (such as their proposed sidewalk overhang, and signage) will be subtracted out of the grant reimbursement on a 50%/50% basis. Village of Lombard Page 3 Economic & Community Minutes October 14, 2024 Development Committee For Punky’s at 16 South Park Avenue, exterior façade work continues on the modified exterior facades per their grant approval, and plan to have the work completed in this Fall. Heniff also stated that staff has been meeting with the owner of the proposed Grove Tavern as they are completing the expanded restaurant concept at 2-8 W. St. Charles Road. The hope is that the project can be completed by year’s end and staff will be engaged in this build out effort. Lastly, while not located within the Downtown TIF District, the Village released the $50,000 Renovation & Improvement Grant for Lombard Veterinary Hospital’s relocation and burial of overhead utility lines for their project at 244 E. St. Charles Road. The funding source for this grant was the St. Charles Road TIF 1- West account. The veterinary hospital opened late last month. Municipal Analytics Program - Roosevelt Road Corridor Heniff referenced that market data was shared with the ECDC in August for the downtown area using Choose DuPage’s Market Analytics Program (MAP) Data. Upon a request from elected officials, staff also requested data for the Roosevelt Road corridor. He referenced the market data for a 1, 3 and 5-mile radii of the Roosevelt Road/Main Street intersection, which has been shared some of the Roosevelt Road corridor shopping center owners such as Fort Union and Brixmor. The data informs prospective tenants of population characteristics within the market radii commonly used by brokers to determine target markets for retail business segments. This analysis is also helpful as it is independent from municipal boundaries and best reflects potential population datasets in close proximity to a given location. He shared corridor analytical data in graphic and table form about the commercial real estate market profile for the Roosevelt Road corridor. While some of this information is high level analyses collected for brokers and investors, it can also provide insight for specific tenant investors as they are comparing the corridor against other retail opportunities. He explained the data is from CoStar and discussed how they collect and compile market data inquiries and noted some of the key points from the report, which can be used to compare the Roosevelt Road corridor with other corridors in the region like Ogden Avenue and Butterfield Road. Village of Lombard Page 4 Economic & Community Minutes October 14, 2024 Development Committee He noted general comments reference the report cover page which provides a summation of the findings, stating that vacancy rates have been declining in the corridor. He stated that some of the perceptions regarding vacancies in the corridor are a result of a few larger vacant tenant spaces like the former Ultra Foods, Office Depot and the like. They are in the process of backfilling spaces in respective centers. He also noted interest in the former Dania site. He noted the report takeaways. Roosevelt Road does not have a lot of larger corporate or REIT ownership and that a majority of spaces are privately owned. This is a significant differentiation from other retail oriented corridors. So when promoting or marketing the corridor, it may pose different challenges than those which have a stronger corporate broker and marketing presence. McNicholas inquired about Eastgate Shopping Center tenancies and the Secretary of State’s Divers License Facility. Heniff stated that they have been working with a couple of shopping center owners, but nothing can be disclosed yet by the State. Vant Hoff asked about the turn around time for the report generation. Heniff stated that base information was provided within a week, but a few back-and-forth efforts occurred to refine the and clarify the data. So in total the data was made available within a two week period. They also offered base data of all retail commercial properties in the corridor. Responding to a follow-up question, additional updates do not need to occur on a monthly basis as the data will not significantly change, but a semi-annual or annual update may be more reflective of larger market trends. The ESRI demographic data will only significantly change a few times over a decade. 9.0 Adjournment On a motion by Ms. Vant Hoff and a second by Mr. Pike, the meeting adjourned at 6:26 p.m. Village of Lombard Page 5