Economic Development Commission

Economic Development Commission Meeting Minutes Date: April 17, 2024 EDC MEMBERS PRESENT: Michael Rosen, Chair, Steve Franklin, Jeremy Gleason, Marc Battista, Brian Levinson, EDC MEMBERS ABSENT: Howard Meyer, Vice-Chair, Alexis Barbour, Barbara Carley, Scott Gendell, Trustee Pure-Slovin STAFF PRESENT: Michael Lorge, Corporation Counsel Johanna Nyden, Community Dev. Director, Carol White, Economic Vitality Coordinator Marlene Bargamian, Administrative Asst. (I) CALL TO ORDER A quorum being present, Chair Rosen called the meeting to order at 8:32 AM. (II) APPROVAL OF MEETING MINUTES FROM MARCH 20, 2024 A motion was made to accept the draft minutes of the March 20, 2024 meeting. The motion passed by unanimous voice vote. (III) INTRODUCTIONS Members gave short introductions and welcomed Rodney Tonelli, former City Manager from Joliet, as the new Economic Vitality Manager for the Village of Skokie. Two representatives from the Skokie Chamber of Commerce were present on behalf of Howard Meyer. (IV) OLD BUSINESS a. Economic Vitality Strategy Update – Workshop Schedule The last plan was created in 2015 with workshops held in 2016 where small sub- groups met over an evening session to brainstorm ideas regarding the different economic areas in Skokie and report back to the group. Chairman Rosen asked for feedback from the commission; possibly organizing another evening meeting - he would circulate some dates and times. This is a new team with new staff. Steve Franklin asked who would be involved in these sub-groups. It was thought that it would be a hybrid of Village staff, community members, commission members, marketing staff and business owners. Invitations could be extended to others depending on subject matter (retail, professionals, healthcare, industrial, & research) for different meetings. Everyone involved could have their voice heard. Carol White will take the lead and include Rod Tonelli. # 618960 Economic Development Commission meeting minutes April 17, 2024  Director Nyden added that money has been encumbered from the budget for assistance. She also suggested a regional poll with people participating virtually bringing in international companies into Illinois. b. Video Gaming Corporation Counsel, Michael Lorge, distributed an updated memo and gave a summary of Skokie’s video gaming proposal. He gave a historical timeline of Skokie’s considerations to introduce video gaming in the village dating back from 2017. Now 7 years later, the negative connotations have diminished about video gaming machines and they are more socially acceptable. Nearby communities already have them. Restaurants are still feeling the impact of COVID and as a way to enhance revenue, they have shown interest in having video gaming be considered once again by the Village Board. They don’t want to lose customers by not offering them. Video gaming could promote patrons to stay longer in an establishment or come back more often. Guidelines were discussed with the group which included the general requirements for licensing, site location, interior placement, limitations of number of machines per establishment, prohibiting advertising & signage, and fees. Diana Rumsley, Village Inn owner, joined the group at 8:50 AM. Chairman Rosen stated that the machines are licensed and heavily regulated by the State of Illinois but wondered about game content. Diana added that all machines as well as their content are controlled by the State. Mr. Rosen, from an unofficial interest poll, stated that 3 restaurants in the Village are strongly interested. Not all restaurants are prepared to build out a separate area for the gaming machines. It might take away from the family atmosphere. Initially, 3 machines per establishment was recommended. Steve Franklin asked if the market is too saturated. He also inquired about the reward system from the games. Ms. Rumsley offered that there is an ATM-like machine strictly used to redeem winning slips. The vendor keeps the machine supplied; not the restaurant. A sweepstakes ticket could be used also that the restaurant would redeem (like a free beverage or dessert). Brian Levinson asked if these machines are like slot machines and suggested that they be geographically dispersed through a lottery system rather than targeted in one area. Mr. Levinson asked if the state regulates winnings. If so, does it compete with the state lottery. He also asked if there were requirements for the machine vendors. Mr. Lorge to find out and report back for the next meeting. # 618960 Economic Development Commission meeting minutes April 17, 2024  Ms. Rumsley inquired how regulations would impact Village Inn? The proposal stipulates that a user must be a customer of the restaurant or bar – no walk-ins; but that would be difficult to enforce. An attorney representing Skokie’s Chamber of Commerce offered his strong support and cautioned the Village to take the necessary time to get it right – not like Morton Grove or Niles where they allow 4-5 gaming machines in small storefronts selling liquor only. Mr. Levinson asked about any police input. There has been no increase in crime or petty outbursts according to Mr. Lorge when he conferred with other communities. Chairman Rosen inquired what the next steps would be if the EDC and the Skokie Chamber of Commerce voted favorably to move forward. Mr. Lorge asked for a very informal straw poll of the interest from the commission. Of the members present, 6 were in favor of endorsing the proposal outlined in Corporation Counsel’s memo. Steve Franklin would endorse with further revisions. Marc Battista abstained. Brian Levinson would support it. Jeremy Gleason asked Diana if there was any concern about consumers boycotting her establishment for having them. She responded that the surrounds are 6 ft tall and the locations are tucked away in the back but it could happen. No commissioner voted against it. A target date could be for a June Village Board agenda. Brian Levinson asked how long before it can “go live”. As soon as a build-out is complete, the vendor payment of the $5,000 application fee, the state & Village licenses, a state inspection and camera regulations are met. The 2 Chamber of Commerce representatives left the meeting at 9:35 AM. (V) NEW BUSINESS a. ISTP Update As Barbara Carley was not in attendance, the update has been postponed to the next meeting. (VI) COMMUNICATIONS a. Village Staff Carol talked about the next Skokie event – Track the Torch in time for the Olympics. Johanna spoke of the Old Orchard area projects moving forward. Applications will be coming in June or July for the residential campus at the mall; the construction project for the Portland Cement site – (The Henry); and the Zeller project turning from offices to residential. It is a tough time for small developers and land owners now with interest rates. Materials and construction costs make it challenging to go higher than 5 stories and parking regulations make it difficult too. It was suggested that incentives could # 618960 Economic Development Commission meeting minutes April 17, 2024  be discussed at a future Village Board meeting for going higher and building smaller units. b. EDC Members Steve Franklin asked about the news that Oberweis declared Chapter 11 Bankruptcy. Brian Levinson inquired about an estimate of new housing within the next 5 years. Approximately about 500-2,000 units are expected. Chairman Rosen asked for a hotel update. Mr. Lorge stated that the Village is not a direct player other than the TIF funding. It is an unusual situation – the investment and financing company are not going into foreclosure action. The general contractor locked the project up with high fees and costs. They are out of Iowa working with local sub-contractors. The general contractor, the sub- contractor and finance companies are forced into mediation. The Legal Dept is securing the site and building. Ms. Nyden offered that there is deep interest in a downtown Skokie hotel and as soon as the court issues are settled, a hotel is the only purpose for that site. (VI) ADJOURNMENT Chairman Rosen adjourned the meeting at 9:50 AM. Respectfully submitted, Marlene Bargamian, Administrative Assistant # 618960 Economic Development Commission meeting minutes April 17, 2024