Finance Legal Administrative General Government

I have reviewed the minutes, and they accurately represent the actions taken by the Finance, Legal, Administrative, and General Government Committee. Lisa Petersen Lisa Petersen Director of Finance Finance Legal Administrative General Government Minutes of November 25, 2025 CALL TO ORDER The Finance Legal Administrative General Government meeting was called to order at 6:00 p.m. by Trustee Bieschke. ROLL CALL Members Present: Brian Bieschke Jamie Clar Jack Sullivan Member(s) Absent: none Staff Present: Brian Townsend, Village Manager Lisa Petersen, Finance Director Alex Thorpe, Assistant Finance Director Matt Frank, Economic Development Director Elizabeth Dechant, Assistant Economic Development Director Tiana Weiler, Director of Cultural Services Mark Rogers, Jay R. Flynn, Dipen Kachhiapatel, Brewster’s Franchisee Casey Kenny, LPC Acquisition Company LLC Joe Nitti, Nitti Group Nico Nitti, Nitti Group Roxanne Benvenuti, Special Events Coordinator APPROVAL OF MINUTES: A motion was made by Trustee Sullivan, seconded by Trustee Clar, to approve the minutes of October 20, 2025. Voice vote 3-0. All Ayes. MOTION CARRIED 1|Page Finance Legal Administrative General Government November 25, 2025 - Meeting Minutes NEW BUSINESS: 1. Finance Department Monthly Report – October 2025 Ms. Petersen reported the distribution of excess reserves that were calculated after the close of fiscal year 2025 was $16.2 million. They were distributed as per the fund balance policy. $250,000 went to each of the public safety pension funds, and then about $7.8 million to the CIP and to the Building Replacement fund. General fund revenues are exceeding budget, mostly related to sales and home real sales tax. Ms. Petersen stated that in the report the General fund expenses look a little higher than usual, that's because there are three payrolls in the month of October and we budget for that throughout the year. Ms. Petersen also noted that Use tax is decreasing. We're fully aware of this and that it is replaced with sales tax. Part of the increases in Sales and Home Rule sales are due to the Use taxes dropping off and then being treated as sales taxes instead. We are investigating various options because the Use tax has always been 100% used in the CIP fund and we're looking at options for how we will replace that funding in the CIP. Lastly Ms. Petersen pointed out that some of the indices that we include in the report were not updated due to the government shutdown. Those are old figures that are in the report but next month we hope to have them back to date. A motion was made by Trustee Clar, seconded by Trustee Sullivan, to recommend the Village Board accept the Monthly Report for October 2025. Voice Vote 3-0. All Ayes 2. Recommendation to Accept the Septemberfest 2025 Final Report Ms. Weiler reported the 54th annual Septemberfest was a huge success. Some of the new things we put in play went well. There was a new location for craft beer and arts and crafts. Those were both well received. We did receive some negative feedback about ADA access, which was moved off of Summit for the crafts. An item of note is we still did provide 80 spaces in the lot, and some events don't provide any ADA parking at their fest. The fest was 21% favorable to budget. Ms. Weiler informed that we did still lose $186,764, which if you think about a free community fest, that's about $2.37 a resident. We were up in Carnival and VIP tickets for the main stage and food and beverage and sponsorship. We exceeded not only our budget, but also our 2024 actual. One area of note is we had a 40% increase in business sponsorship, from 67 up to 94. Our sponsorship team did a fantastic job. We kind of laid out our marketing and sponsorship new efforts, and they were successful. Ms. Weiler explained that for 2026, we have some recommendations since we know we'll still be having some construction. Some suggestions included shortening the parade, obviously keeping the beer garden and crafters area in the same location. Finally, we may look at a drone show versus fireworks just to be in better alignment with the church. Jay Flynn, who is a co-chair, and Roxanne Benvenuti were available for any questions. Trustee Bieschke asked since there were fewer crafters this year will there be more in 2026? 2|Page Finance Legal Administrative General Government November 25, 2025 - Meeting Minutes Ms. Weiler answered that it depends on construction and use of grass for Crafters. Trustee Bieschke stated that is was a fabulous event with very positive feedback. Trustee Clar agreed that it was a great event with lots of very good feedback. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to recommend the Village Board accept the Septemberfest 2025 Final Report. Voice Vote 3-0. All Ayes MOTION CARRIED 3. Recommendation to Approve the Illinois Municipal League Membership Dues Mr. Townsend explained that the village has received its renewal notice for the 2026 Illinois Municipal League membership dues. For more than a century, the Illinois Municipal League (IML) has worked continuously to protect the interests of the 1,294 cities, villages and towns in Illinois. The strength of a statewide organization advocating for municipalities like Schaumburg at both the state and federal levels is a valuable investment. IML members are provided with various informational mailings, publications and resources such as Statehouse Briefing, Illinois Municipal Review Magazine, reports, handbooks, and surveys. The membership dues for 2026 have not increased. President Dailly is a member of the board of directors for the IML. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to approve Illinois Municipal League Membership Dues. Voice vote 3-0. All Ayes. MOTION CARRIED 4. Recommendation to Approve a TIF Redevelopment Agreement between the Village of Schaumburg and LPC Acquisition Company, LLC for the Long Avenue Redevelopment Mr. Frank stated that the TIF term sheet that was presented in September, lays the foundation for the redevelopment of the unincorporated Long Avenue properties. LPC has been working with us to work through these terms. We've come to agreement of assistance in the amount of $19 million that will have an interest rate of 6.125%. This is the same interest that we just got with Urban Street Group and Bob Burke with the 90N development. Mr. Frank explained that the redevelopment agreement lays out the foundation for what the assistance can be used for. Obviously LPC is investing a significant amount here. They're using $60 million to develop the property, build the two buildings, and an additional $10 million for tenant improvements. Mr. Frank informed that they anticipate starting commencement of construction here in June 2026 and wrap up by April, 2028. At that time the two buildings would be complete and we'll have the infrastructure in place and then hopefully by that time they'd be able to identify tenants and work on some of those tenant improvements and with the redevelopment agreement, we've got clauses in here for investment and jobs and so forth. Trustee Bieschke asked if there was a schedule of anticipated payments? 3|Page Finance Legal Administrative General Government November 25, 2025 - Meeting Minutes Mr. Frank answered that looking at roughly 13 to 14 years to pay back that original $19 million with the interest. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to approve a TIF Redevelopment Agreement between the Village of Schaumburg and LPC Acquisition Company, LLC for the Long Avenue Redevelopment. Voice vote 3-0. All Ayes. MOTION CARRIED 5. Recommendation to Approve Cook County Class 6B Request for LPC Acquisition Company, LLC, for the Long Avenue Redevelopment Mr. Frank stated that this is built upon the redevelopment agreement that we just discussed. With new construction, especially in Cook County, Class 6B is necessary to attract the appropriate investment in employers. They anticipate 150 full-time employees. The application also talks about the economic impact of those employees that could generate close to $600,000 a year in sales for the community. That's gas, entertainment, soft goods, groceries, and so forth. Also the homes out there right now, they're paying about $130,000 in property taxes. With the 6B, they'd be paying roughly $1.7 million. Without the 6B, it'd be over $4 million. Mr. Kenny expressed that he is thankful for the support they have received from the Village of Schaumburg. A motion was made by Trustee Clar, seconded by Trustee Sullivan to approve Cook County Class 6B Request for LPC Acquisition Company, LLC, for the Long Avenue Redevelopment. Voice Vote 3-0. All Ayes. MOTION CARRIED 6. Recommendation to Approve the TIF Term Sheet between the Village of Schaumburg and Nitti Group, LLC, for the Loeber Farm Development Mr. Frank explained that this is a 33-acre property on North Meacham Road. We've been working with several developers, and we think we found the right partner with Nitti here to undergo residential development. We are running parallel paths here with the TIF incentive as well as the development review process. In regards to the TIF, we've been studying Nitti's analysis and then working through our consultant, SB Friedman, to talk about TIF eligible costs and the need and what type of rate of return is fair for the developer. Mr. Frank continued that there are significant challenges with the site. There's unsuitable soils, lack of utilities and significant investment needs to be made to bring water and sanitary service to the site. There'll be a sanitary lift station associated with this development as well as a bridge. This is very different than a typical residential development that we've seen throughout the community. The Loeber Property is not currently in the North Schaumburg TIF. We are working through the process to amend the boundaries of the TIF to incorporate not only this property but a couple others into the North Schaumburg TIF. We’ve started that process and we anticipate that it will occur late in the first quarter of 2026. Joe and Nico Nitti are in attendance for any questions. Trustee Bieschke asked is this the same process as a TIF? 4|Page Finance Legal Administrative General Government November 25, 2025 - Meeting Minutes Mr. Frank answered yes, we must do all the notifications, certified mailings to the residents and owners, conduct public hearings, convene the joint review board and so forth. Trustee Clar asked if properties are added does the TIF time extend? Mr. Frank answered no, the TIF is done in 2038. A motion was made by Trustee Sullivan, seconded by Trustee Clar to approve the TIF Term Sheet between the Village of Schaumburg and Nitti Group, LLC, for the Loeber Farm Development. Voice Vote 3-0. All Ayes. MOTION CARRIED 7. Recommendation to Approve a Class 7B Property Tax Incentive for 1821 W. Irving Park Road (Brewster's Real Ice Cream) Ms. Dechant stated that this is a property down in the south part of the village that's been vacant for a long time. It formerly was IHOP. It's been vacant since 2013. Ms. Dechant introduced Mr. Dipen as a Schaumburg resident, and he'd like to rebuild and bring in Brewster's Ice Cream. The property would actually be built in two phases. One would be Brewster's first, 1,600 square feet and they will have outdoor seating. The second phase would come a few years later, 2,400 square feet with future retail use. Mr. Kachhiapatel underwent a study by Gruen and Gruen and found the property was in blighted condition, which is one of the four conditions the county has for a 7B incentive. There's going to be a lot of work that needs to be done on the site to prepare for it. They have to reconnect an abandoned sanitary line. So he's anticipating putting $2 million into the project. And his request for the 7B property tax incentive will help with that. Trustee Bieschke asked if the 7B versus the 7C is because of all the extra work that needs to be done? Ms. Dechant answered yes, because it's commercial instead of industrial manufacturing. Mr. Frank stated that with the significant obstacles you must overcome with the infrastructure and the $2 million investment. That is why we're recommending the 12-year and not the 5-year incentive. A motion was made by Trustee Sullivan, seconded by Trustee Clar to Approve a Class 7B Property Tax Incentive for 1821 W. Irving Park Road (Bruster's Real Ice Cream). Voice Vote 3-0. All Ayes. MOTION CARRIED 8. Recommendation to Approve a Fourth Amendment to the Redevelopment Agreement for the Towne Center at Veridian Development Mr. Frank explained that we've extended this in the past due to Urban Street not having another location to go to. Now with the district at Veridian under construction and that mixed-use building they will eventually relocate the management and leasing offices there. What we have is an extension for the amendment from 2025 to December 31, 2027 so hopefully in two years we won't have to do this again and we'll be done. Then this will give us an opportunity to plan for that municipal parcel and what we want to do with those five acres. 5|Page Finance Legal Administrative General Government November 25, 2025 - Meeting Minutes A motion was made by Trustee Clar, seconded by Trustee Sullivan, to recommend the Village Board to Approve a Fourth Amendment to the Redevelopment Agreement for the Towne Center at Veridian Development. Voice Vote 3-0. All Ayes MOTION CARRIED 9. Recommendation to Approve a Second Amendment to the Redevelopment Agreement between the Village of Schaumburg and TUF Partners, LLC and DST Veridian, LLC and DST Commercial, LLC and DST Retail, LLC for The District at Veridian Development Phase 1 Mr. Frank stated that this involves the mixed-use development in the district at Veridian. In the original agreement, we had conditions outlining certain milestones that they had to meet. One specifically involved the creation of a special service area. This was complex and working through legal and their consultants as well as ours. We did not hit the October deadline. Therefore, we are requesting an extension to April 30, 2026. It gives us an opportunity to finalize some of the legalese and work through the public hearing process. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to recommend the Village Board approve a Second Amendment to the Redevelopment Agreement between the Village of Schaumburg and TUF Partners, LLC and DST Veridian, LLC and DST Commercial, LLC and DST Retail, LLC for The District at Veridian Development Phase 1. Voice Vote 3-0. All Ayes MOTION CARRIED 10. Recommendation to Approve the Second Amendment to the FY25-26 Budget - Mid-Year Amendment Mr. Thorpe stated that earlier in the year, the Village Board approved an amendment for CIP projects. We have a first amendment to CIP projects and now we have our second amendment which incorporates new CIP amendments as well as operating revenues and expenses and these are for all the funds. There’s a $20 million increase in the TIF fund related to Veridian moving faster than anticipated. It’s more of a timing issue than it is any sort of cash issue. The revenues are coming in stronger than expected. We look at this every year during budget time and monthly in the Finance report, we analyze what is trending and actual results, so we are receptive to what's happening in the markets and locally. There’s no stress test that we put together that would cause us to not increase our sales tax numbers, so we feel confident those two revenues will outpace budget by $7.9 million in both home rule and sales tax. Mr. Thorpe explained that we're looking at a positive position going up, $7.7 million is essentially extra surplus from how we originally budgeted. Other funds are also being adjusted, as mentioned there is a $20 million increase in expenses in the North Schaumburg TIF, and the amendment in the Olde Schaumburg Historic District has to do with the second payment to Tony’s, which was budgeted last year, but paid this year. We have detailed attachments for both the operating adjustments and the capital adjustments. Trustee Bieschke stated that everything looks good. Mr. Townsend mentioned that he noticed a couple of entries in the CIP sheet got truncated and asked the Committee if they had any questions. 6|Page Finance Legal Administrative General Government November 25, 2025 - Meeting Minutes Trustee Bieschke stated that prior to Covid we amended the budget quarterly. Mr. Thorpe answered that we try to focus on the more substantial items and not nitpick the small things that could be managed within departmental budgets. A motion was made by Trustee Sullivan, seconded by Trustee Clar, to recommend the Village Board to Approve the Second Amendment to the FY25-26 Budget - Mid-Year Amendment. Voice Vote 3-0. All Ayes MOTION CARRIED UNFINISHED BUSINESS: None DEFERRALS: None COMMENTS FROM THE AUDIENCE: None ADJOURNMENT: A motion was made by Trustee Clar, seconded by Trustee Sullivan to adjourn the Finance Legal Administrative General Government at 6:32 p.m. Voice vote 3-0. All Ayes. MOTION CARRIED 7|Page