Special Meeting Board of Trustees

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Thursday, March 19, 2015 6:00 PM Lorraine G. Gerhardt Community Room Special Meeting Board of Trustees Village President Keith Giagnorio, Village Clerk Sharon Kuderna, Trustee Dan Whittington, Trustee Mike Fugiel, Trustee Reid Foltyniewicz, Trustee Bill Johnston, Trustee Robyn Pike and Trustee Bill Ware Special Meeting Board of Trustees Minutes March 19, 2015 I Call to Order The Special Meeting of the President and Board of Trustees of the Village of Lombard held on Thursday, March 19, 2015 in the Community Room of the Lombard Village Hall was called to order by Village President Keith Giagnorio at 6:02 p.m. II Pledge of Allegiance Village Clerk Sharon Kuderna led the Pledge of Allegiance. III Roll Call Present 8 - Keith Giagnorio, Sharon Kuderna, Dan Whittington, Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware Staff Present: Village Manager Scott Niehaus Director of Finance Tim Sexton Director of Community Development Bill Heniff Director of Public Works Carl Goldsmith Chief of Police Ray Byrne Assistant Village Manager Nicole Aranas Assistant Director of Community Development Jennifer Ganzer Communications Coordinator Avis Meade Executive Coordinator Carol Bauer IV Public Participation V Agenda 150119 101-109 S. Main Street Workshop Discussion and overview of various marketing and development strategies prepared by Tracy Cross & Associates for the property located at 101 S. Main Street. (DISTRICT #4) Village Manager Scott Niehaus introduced Tracy Cross and HollyAnn Eageny of Tracy Cross and Associates who were hired by the Village to do a market analysis of the property located at 101-109 S. Main Street. He spoke of differences in the market since the last market analysis; possible different development opportunities; and factors influencing the office and retail markets. He noted that the Board was not being asked to make any decision on the property at this time or to provide any direction to staff relative to the property. He indicated staff will look later at receiving input from the community as part of the Village of Lombard Page 1 Special Meeting Board of Trustees Minutes March 19, 2015 analysis of the potential for the property. Tracy Cross proceeded to provide an overview and PowerPoint his company had developed relative to the property. He encouraged the Village Board to ask questions and wanted them to understand the market. Tracy Cross indicated he had been in business since 1980 and would provide a market analysis of what his company felt was the best use for the property. He noted that the property was located within walking distance of downtown and the Metra station. He felt the market was improving. He provided an overview of the retail market and spoke of businesses already in the downtown area. He highlighted the retail alignments in downtown Lombard; commercial vacancies in Lombard; reviewed the demographic and household characteristics of Lombard; residential building permit trends in the US and Chicago metropolitan area; trends in new homes sales in the Chicago Metropolitan Area; trends in total new home sales in the Chicago Suburban Area; single family sales trends by area; townhome/condominium sales trends by area; townhome/ condominium sales trends in suburban Chicago; the townhome/condominium sales leaders in 2014 in the Chicago Suburban Area; Sales by Product Type in the Lombard Competitive Market Area; Competitive Alignments in the Lombard Competitive Market Area; Rental Apartment Vacancy Trends in Suburban Chicago; Monthly Rent Trends in Suburban Chicago; the Rental Apartment Absorption Trends in Suburban Chicago; the Apartment Absorption Trends in Programs Built since 1985; the Historical Absorption Trends in the Lombard Competitive Market Area in Projects Built since 1995; the Rent/Value Analysis Composite Summary; Residential Projects in Planning in the Lombard Competitive Market Area; Product Considerations - South Main Street Property Rental Apartments; Product Recommendations for South Main Street Property; the Rent/Value Positioning for the South Main Street Property. Tracy Cross noted as follows: this area is not growing as fast as other metropolitan areas; market started to fall in 2005 when interest rates climbed and 20,000 people were laid off; new home sales fell; the entire region was adversely affected; condo and townhome sales are down 90%; rent should not be more than 25% of income. Mr. Cross felt that a 120+ unit apartment complex would most likely be best suited for the 101-109 S. Main Street site based on his market analyses; the Village should look at rent levels that can be fully absorbed in twelve months; you can make this work without the use of TIF Funds. Trustee Ware questioned apartments versus condos. Trustee Foltyniewicz questioned the number of apartment vacancies. Tracy Cross indicated 5% on all projects. Trustee Whittington asked if there was any change in the trend. Tracy Cross indicated that the 45 year olds and older look at having homes in Florida or Arizona, and a turn-key operation here where they Village of Lombard Page 2 Special Meeting Board of Trustees Minutes March 19, 2015 can pick up and leave. He felt the retail market would sustain itself. Trustee Johnston inquired if some type of amusement or entertainment-based activity could be put on the property that would tend to attract people to downtown. He referred to property close to the airport that offers ice skating and other activities. Tracy Cross did not feel this was the site for this type of use, and could not compete with Yorktown. Trustee Foltyniewicz asked how long the study would be good for. Trustee Ware asked if this was a good time to move forward or should the Village wait a year and so and see how the market is. Tracy Cross felt this was a good time to move forward and that there were developers and lenders that would be willing to move forward. President Giagnorio stated he thought there were already a lot of apartments and some just being constructed. Tracy Cross felt this would be a good use for the property close to the Metra station and downtown even based on the other projects. Tracy Cross indicated this was a completely different lifestyle than other projects; the unit would be four stories with parking under the building. Trustee Fugiel questioned the vacancy at The Grove. Trustee Whittington inquired how long it would take to be 100% occupied. Tracy Cross felt about a year or less. Deb Dynako indicated the snowbird concept was interesting. Tracy Cross indicated access to the train and downtown makes this an ideal location. Scott Niehaus spoke about the 88 corridor and with large companies along that route, people are more transient in that area coming and going for jobs. Tracy Cross felt this location gave a sense of being in the root of downtown Lombard. Trustee Whittington questioned some retail space; talked about the additional number of residents, and how they might affect downtown. Trustee Johnston suggested looking at the bigger picture and not just staying focused on the 101-109 S. Main property. He felt the Village needed something to attract people. He inquired about the vacant property across from Walgreens at Elizabeth and St. Charles that he believed was to be developed into apartments or condos and is still sitting vacant after many years. He felt the community needed a commercial and residential balance. He talked about this property being just a piece of the puzzle and that the Board needed to look at the larger picture. He indicated he wanted to see something on the site that would attract people and not just apartments. Tracy Cross spoke of the 120 apartments with 1.6 average household size and those residents spending money in downtown. Trustee Johnston talked of this site being a catalyst and felt the apartments could be placed on the outskirts of downtown. Village of Lombard Page 3 Special Meeting Board of Trustees Minutes March 19, 2015 Trustee Foltyniewicz questioned how much the 101-109 S. Main property cost the Village yearly. Village Manager Niehaus indicated the cost was offset by parking fees generated. He suggested the Board not rush into making a decision, but to begin thinking and looking at development in the future. He stated that Tracy Cross was just providing the Board and staff with what he felt the market would justify. President Giagnorio also indicated this was a piece of the puzzle and that the Board needed to look at the bigger picture. Village Manager Niehaus talked about what came first the chicken or the egg and what brings people to the downtown - do people bring revenue or does retail bring people. He stated that the suggested use, according to Tracy Cross, could be supported without financial assistance from the Village. He indicated this was a base line for discussion and that the Board take time to think about what was presented and this matter would again be reviewed. He felt that the residents should be allowed to provide input along with Lombard Town Centre and other organizations. Deb Dynako stated the residents have been waiting since 2000 for downtown to build up. As a resident, she wanted amenities and something unique, a better mix. She talked of being able to walk to town with her family and having amenities. She felt residents wanted more things to do downtown versus having more apartment buildings. Sarah Richardt questioned the architecture of a building to be erected on the site with all of the older architecture in downtown Lombard. VI Adjournment A motion was made by Trustee Bill Ware, seconded by Trustee Bill Johnston, that the Special Meeting of the President and Board of Trustees of the Village of Lombard be adjourned at 7:25 p.m. The motion carried by the following vote: Aye: 6- Dan Whittington, Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware Village of Lombard Page 4