Special Meeting Board of Trustees

Village of Lombard Village Hall 255 East Wilson Ave. Lombard, IL 60148 villageoflombard.org Minutes Thursday, April 27, 2017 8:45 AM Board 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 April 27, 2017 I Call to Order The Special Meeting of the President and Board of Trustees of the Village of Lombard held on Thursday, April 27, 2017 in the Board Room of the Lombard Village Hall was called to order at 8:45 am by Village President Keith Giagnorio. II Pledge of Allegiance Village Manager Scott Niehaus 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 Assistant Village Manager Nicole Aranas Executive Coordinator Carol Bauer Other Village Attorney Tom Bayer Attorney Mike Gesas IV Public Participation A motion was made by Trustee Reid Foltyniewicz, seconded by Trustee Bill Ware, that the Village Board approve moving the Executive Session to before the discussion of the item on the agenda. The motion carried by the following vote: Aye: 6- Dan Whittington, Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware A motion was made by Trustee Mike Fugiel, seconded by Robyn Pike, that the Special Meeting of the President and Board of Trustees of the Village of Lombard held on Thursday, April 27, 2017 in the Board Room of the Lombard Village Hall be recessed to Executive Session for the discussion of Probable or Imminent Litigation at 8:47 am. The motion carried by the following vote: Village of Lombard Page 1 Special Meeting Board of Trustees Minutes April 27, 2017 Aye: 6- Dan Whittington, Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware The recessed Special Meeting of the President and Board of Trustees of the Village of Lombard held on Thursday, April 27, 2017 in the Board Room of the Lombard Village Hall was called to order at 9:44 am by Village President Keith Giagnorio. Present 8 - Keith Giagnorio, Sharon Kuderna, Dan Whittington, Mike Fugiel, Reid Foltyniewicz, Bill Johnston, Robyn Pike, and Bill Ware V Agenda 170188 101 -109 S. Main Street Discussion and request for direction with regard to the potential sale and redevelopment of the 101-109 S. Main Street property, which is owned by the Village of Lombard. The discussion and direction will include issues relating to the potential sale of the property, including, but not be limited to, the desired land uses, the process for determining the value of the property, the process for seeking purchase and redevelopment proposals, and the process for considering any proposals that are submitted to the Village. (DISTRICT #4) Trustee Bill Johnston, Chairperson of the Economic & Community Development Committee reported that Director of Community Development Bill Heniff would provide an update on the property. and noted as follows: the property location is 101-109 S. Main Street and is the site of the former DuPage Theatre; the property is owned by the Village and was donated to the Village by Big Idea Productions; the parcel is 2.19 acres; zoning is B5; the existing use is vacant land along with a Village commuter parking lot; the Village Comprehensive Plan indicates the property as mixed Use Community Commercial; the Downtown Revitalization Guidebook also notes interim land uses as well as a possibility for civic elements. He then reviewed the history of the site, including the 2000's Requests for Proposals were undertaken to solicit interest in the property/project; the key focus was upon restoration of the DuPage Theatre and shops; companion development on-site intended to general additional TIF increment to offset renovation/restoration costs; in 2006, the life of the downtown Lombard TIF was extended to 2024 (2023 tax year) through State legislation to provide for site redevelopment with the ability to utilize/generate TIF increment; TIF life extended property not subject Village of Lombard Page 2 Special Meeting Board of Trustees Minutes April 27, 2017 to reimbursement to other taxing bodies; all future EAV increment would return to the TIF; the theatre was razed in spring of 2007; the real estate market collapsed shortly thereafter; the property was regraded, landscaped and has been maintained by the Village; the parking lot was retained for commuter parking purposes. Village Board discussion introduced at the 2013 Strategic Planning Session included: keep or dispose of the real estate; market timing issues reviewed; Village ownership provides a great opportunity to steer use and design; desirability for varying uses for property; impacts of development; Downtown TIF District desirability to incentivize development; Village Board directed staff to prepare a Request for Interested Parties (RFIP) to solicit interest levels for development; staff prepared RFIP, marketed the opportunity, met with development community; met with Elmhurst regarding comparable project (Hahn Street development) to learn from their experiences; a Special Meeting of the Village Board was held in 2015; the Village Board heard analysis by Tracy Cross & Associates regarding market considerations for the parcel; presentation focused upon strength of multiple-family residential house market; no formal action/direction was taken by the Village Board; in 2016 the Village undertook two real estate market appraisals, undertook environmental testing activities and engaged in initial discussion efforts relative to development opportunities for the site. Options to the Village Board include: (1) status quo and keep the site as a parking lot and green space, or (2) issue an RFP for the property to solicit development proposals. Village Board desires to pursue a private development project; implementation of the Downtown Lombard Redevelopment Guidebook; sale of the property would put the property back on the tax rolls; provides increment to Downtown TIF; and can be a catalyst for new bricks and mortar development in the downtown. Director of Community Development Bill Heniff then noted the policy questions that need to be addressed before an RFP is issued. RFP Policy Question 1 - Land Use Options (all or combination): (1) apartment/condominium units; (2) rowhouse/townhomes units; (3) retail commercial use; (4) single-user retail commercial uses (including offices, service uses and the like); (5)non-traditional uses (including civic use, open space, etc.); (6) other. RFP Policy Question 2 - Price Options: (1) no minimum asking price; (2) set a minimum asking price of $500,000; (3) set a minimum asking price of $1,000,000; (4) other/to be negotiated. As the property is within a TIF District, greater financial flexibility can be considered by the Village Board (i.e., the Board does not have to sell the property for at least 80% of the appraised value. RFP Policy question 3 - Review Criteria: (1) seek the best market deal; (2) set the best lane use fit for downtown/community. The draft RFP will identify specific review parameters. This will be finalized prior to formal release. Staff requested the following: (1) provide direction to Village of Lombard Page 3 Special Meeting Board of Trustees Minutes April 27, 2017 the three questions; (2) staff will prepare the final RFP and begin marketing and outreach efforts; (3) goal is to have RFP issued by June 1. Trustee Bill Johnston thanked Director of Community Development Bill Heniff and Assistant Director of Community Development Jennifer Ganser for their their review and insight into the property and its history. Overall the Village has owned the property for 17 years. Trustee Johnston reviewed several maps prepared by staff relative to grocery stores within a three-mile radius; convenience stores; map depicting area grocery stores. It was noted that there seemed to be a void of grocery stores in the area of this site; this area represents 47% of the population; site is two plus acres in the downtown; total TIF since 2013 is $1 billion invested; the development of the property would be an investment in downtown; the development would provide an opportunity to supplement residents' needs and desires; staff will look at market; in 2017, $121 million will be spent in grocery stores; the Village will be looking at trying to fill a void; significant parcel in the downtown; RFP to be published June 1st with the Board to advise staff what they want included as potential uses. Response to Question #1: look at single-use retail commercial use with retail grocery store preference with the RFP for 90 days; Response to Question #2: not to set a minimum price, but looking for at least market value; Response to Question #3: the Board will review the criteria and seek the best land use fit for the downtown/community. Trustee Foltyniewicz questioned grocery store or other commercial use and asked about how many grocery stores the Village can attract to respond to the RFP. Trustee Johnston indicated the RFP responses will be reviewed after the 100 days and the the Board can reevaluate. President Giagnorio noted that the 90 days can be extended for the RFP. Village Manager Niehaus indicated the 90 day deadline would be to August 31. the Board can then decide to put back on the market if no responses are received or responses are not deemed to be the best use for the property. The appraised value of the property is $1 million. Trustee Ware felt the market can decide the price for the property. The Board hoped to get not less than $1 million. Board seeking to get best land use for the downtown. Village Manager Scott Niehaus indicated staff will review criteria and look at best fit for the property. He noted that staff will reach out to surrounding property owners, the Chamber and Brust Funeral Home relative to the RFP to make them aware of the direction of the Village. Village of Lombard Page 4 Special Meeting Board of Trustees Minutes April 27, 2017 VI Executive Session VII Reconvene 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 Fire Chief Richard Sander Assistant Village Manager Nicole Aranas Executive Coordinator Carol Bauer VIII Adjournment A motion was made by Trustee Bill Johnston, seconded by Trustee Mike Fugiel, that the Special Meeting of the President and Board of Trustees of the Village of Lombard held on Thursday, April 27, 2017 in the Board Room of the Lombard Village Hall be adjourned at 10:12 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 5