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VILLAGE OF LINDENHURST REGULAR MEETING OF THE VILLAGE BOARD |
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CALL TO ORDER: Mayor Betustak called the Regular Meeting of the Village Board to order at 7:00 p.m. ROLL CALL: Roll call showed those present were: Mayor Betustak, Trustees: Czyzewicz, Norlin, Wayne and Zerba. Also in attendance were Administrator Stevens, Attorney Phillips, Engineer Welsh, Treasurer Neubauer and Clerk Bauschke. Trustee McCarthy was out of town on business and Trustee Messmer absent due to a death in the family. PLEDGE OF ALLEGIANCE: APPROVAL OF THE MINUTES: Regular Board Meeting of September 25, 2006 and Special Board Meeting of January 15, 2007: The Mayor asked for a motion to approve the Regular Board Meeting minutes of September 25, 2006 and the Special Board Meeting minutes of January 15, 2007. MOTION: A motion was made by Trustee Zerba to approve the Regular Board Meeting minutes of September 25, 2006 and the Special Board Meeting minutes of January 15, 2007 and was 2nd by Trustee Norlin. Trustee Norlin requested a change to the Regular Board Meeting minutes of September 25, 2006; on page 4; under NEW BUSINESS: A. AUTHORIZATION TO BID 2006 SIDEWALK CONNECTOR PROJECT; third paragraph. It reads “Staff is asking for authorization to bid those two sections if the value of the project actually exceeds the bid limit.” It should be amended to read “Staff is asking for authorization to bid those two sections if the value of the engineering estimate actually exceeds the $20,000.00 bid limit.” Mayor Betustak stated with the above changes being made the motion carried on a voice vote and the minutes were approved. The Mayor announced he would be taking tonight’s agenda out of order starting with item V. OLD BUSINESS. OLD BUSINESS: A. ORDINANCE: AN ORDINANCE TERMINATING THE CONSIDERATION OF THE ESTABLISHMENT OF LINDENHURST TIF DISTRICT NO. 1 – This item had been discussed at the Special Village Board meeting on January, 15, 2007. MOTION: A motion to adopt AN ORDINANCE TERMINATING THE CONSIDERATION OF THE ESTABLISHMENT OF LINDENHURST TIF DISTRICT NO. 1 was made by Trustee Zerba and 2nd by Trustee Norlin. ORDINANCE NO. 07-1-1600
ON ROLL
CALL THE VOTE WAS: Mayor Betustak stated for the record, both Trustee McCarthy and Trustee Messmer expressed their support for this Ordinance, and the motion carried. NEW BUSINESS: A. FY 05 / 06 MUNICIPAL AUDIT PRESENTATION – Mayor Betustak introduced Doug Taveirne and Randy Callard of Dam, Snell & Taveirne, Ltd., Certified Public Accountants. Doug Taveirne presented highlights of the audit results to the Village Board and referenced Schedules 1, 2, and 3 from the ”Village Of Lindenhurst Summary Financial Information for January 22, 2007 Board Meeting.” (Please see attached.) Village Records were in excellent condition as they have been in past years. The financial records that go before the Village Board on a monthly basis are providing solid information. MOTION: A motion to accept the FY 05 / 06 Municipal Audit as presented by Dam, Snell & Taveirne, Ltd., Certified Public Accountants was made by Trustee Wayne and 2nd by Trustee Czyzewicz.
ON ROLL
CALL THE VOTE WAS: Mayor Betustak proclaimed the motion carried. C. AMENDMENT TO FY 06 /07 MUNICIPAL BUDGET – Administrator Stevens reported at the last Board meeting, the Village joined the Northeast Illinois Regional Crime Laboratory for a cost of $19,927.00. Since this was not budgeted, Staff recommended we amend the Police Department budget line item No. 01-20-5-510, Contractual Services, from $7,680.00 to $27,607.00 and Surplus Revenues need to be increased from $520,305.00 to $540,232.00 in order to balance. MOTION: A motion to amend the Police Department budget line item No. 01-20-5-510, Contractual Services, from $7,680.00 to $27,607.00 and increase Surplus Revenues from $520,305.00 to $540,232.00 in order to fund Northeast Illinois Regional Crime Laboratory was made by Trustee Wayne and 2nd by Trustee Zerba.
ON ROLL
CALL THE VOTE WAS: Mayor Betustak announced the motion carried. COMMUNICATIONS, COMMITTEE, BOARD & STAFF REPORTS: Administrator Stevens reported Bridget Lane of Business Districts, Inc. and Kon Savoy of Teska Associates, Inc. were hired by the Village to assist it’s efforts to review OliverMcMillan’s proposed Lindenhurst Village Green. He referred the Village Board to the 1/19/2007 memo from Bridget Lane and Kon Savoy in tonight’s Board packet. Administrator Stevens introduced Bridget Lane. She said the memo examined project background information provided between October 2006 and today and as the project concept was refined, memo updates would occur. She briefly presented the recommendations and key findings. Recommendations: 1. The Village should invest in the Lindenhurst Village Green project because it is higher quality than a purely market driven commercial center would offer. 2. The Village should act as quickly as due diligence allows because the specialty retail tenants could be attracted to a competing project in another community. 3. The Village must limit its “gap” funding to an amount that leaves new revenue to cover new expenses and provides a cushion for recurring Village expenses. The loss of tax increment financing creates a gap that must be filled by a combination of higher developer investment, lower project costs or additional public investment. 4. Because this project has received so much market interest and the Village potentially could lose significant sales tax revenue if that interest is drawn to a project in another community, the Village must set a deadline for its decision on this project. Key Findings: 1. A commercial development at the intersection of Routes 45 and 132 is likely to attract high volume specialty tenants. 2. Remediating property conditions and meeting high quality construction standards will require a public private partnership. 3. Lindenhurst Village Green will generate new property tax, business district sales tax, and municipal sales tax revenue that would otherwise not be realized. 4. The alternative to this commercial development project, a neighborhood shopping center containing approximately 200,000 square feet of commercial space, will provide considerably less sales tax and property tax revenue. She explained the Village Green project as originally proposed was unable to go forward without a TIF. The Village of Lindenhurst continues to expect a high quality amenity rich Village Green. They anticipate changes in the project and a new project budget that shows different levels of investment. When OliverMcMillan submits a new proposal, Village Staff will evaluate it. NEW BUSINESS CONT.: PUBLIC HEARING: B. PUBLIC HEARING: ROUTE 45 / GRAND AVENUE BUSINESS DISTRICT NO. 1 PLAN – Mayor Betustak called the Public Hearing to order at 7:39 p.m. Attorney Phillips announced that proper notification for this Public Hearing was published in the News Sun on 1-12-07. Notices to surrounding property owners were also sent. The purpose of the Public Hearing was in regards to the Village of Lindenhurst’s use of business districts and the creation of Lindenhurst Business District No. 1. This is the first of two public hearings required. The second is scheduled for February 12th at 7:00 p.m. The Mayor said they would entertain a presentation by Phil McKenna, President and Bob Rychlicki, Executive Vice President of Kane, McKenna and Associates, Inc. Mayor Betustak invited anyone in the audience interested in asking questions or making comments should stand to be sworn in. Audience members along with Phil McKenna and Bob Rychlicki stood up and were simultaneously sworn in. Phil McKenna gave a brief overview in regards to Business Districts. A Business District is a tool that enables a municipality to encourage commercial retail development by virtue of utilizing sales taxes. The Business District Tax constitutes an additional 1% retail sales tax; applies only to the Village Green; does not include food, drink or titled goods; last up to 23 years and is collected by the State of Illinois from the point of purchase. Phil McKenna of Kane, McKenna and Associates, Inc., on behalf of OliverMcMillan, asked the Village Board to consider this Business District. “Their intent is to still try to bring first class retail to the Village.” Bob Rychlicki presented information on how to establish a Business District pursuant to the Business District Act. The proposed Village Green Business District was found to qualify under two criteria: Defective or inadequate street layout; and improper subdivision or obsolete platting. Gewalt Hamilton Associates, Inc. identified deficiencies in the proposed Business District including: requirements for conformance to IDOT access and egress points, traffic signalization, and internal site coordination of roadways, drives and parking fields. They conclude that current access points and circulation are insufficient and satisfy Business District Act standards. Eiden & O’Donnell, Ltd. reviewed the conformance to the Act requirements for obsolete platting and found that parcels are not subdivided. The lack of platting in relation to current standards for development is therefore obsolete. In addition, a subdivision will be required for the property to be in compliance with Village zoning code for proposed uses to be implemented including roadway connection patterns. In addition, the Business District properties in their current condition are found to constitute an economic liability to the Village due to underutilized conditions and lack sales tax producing uses. The Business District has not been subject to growth and development and would not reasonably be anticipated to be redeveloped without the adoption of the Plan. Pursuant to the requirements of the Business District Act the Plan includes: a specific description of the boundaries of the District and a map; a general description of proposed projects and approximate location; the name of the District; estimated Business District costs; anticipated sources of funds to pay Business District costs (expected to be sales tax only); anticipated type and term of any obligations to be issued; and the rate of any tax to be imposed pursuant to the Business District Act and the time period over which the tax would be imposed. Bob Rychlicki finished his presentation with Goals and Objectives of a Business District Plan which included: provide for quality mixed use development within the Village; improve road access and circulation; provide for revitalization of underutilized properties, including significant infrastructure; encourage the redevelopment of underutilized and /or vacant properties; strengthen the property and sales tax base of the Village and provide for certain offsite improvements as required by the project. The Mayor thanked them for the presentation and opened the floor for Public Participation. PUBLIC PARTICIPATION: Larry Herbert, 2317 Rolling Ridge Lane, Lindenhurst asked who reaps the benefit of the 1% Business District tax and what does it go toward and could the Village gain anything from it? Phil McKenna answered yes, but the tax may only be used within the confines of the Business District area itself or on eligible costs. Bob Druktanis, 2202 Lakeshore Drive, Lindenhurst is concerned with the fact that the developer would own the inline business’ buildings and also they would sell the rest of the land for department stores and for out buildings. He wants to make sure the Village defines the word “quality” since it is the developer who gets to make the choice of what kind of business’ go there. Administrator Stevens responded they’ve been working on that with the developer and want certain “inappropriate uses” restricted. The Village is waiting for some framework from the developer in regards to inappropriate uses and the Village Attorney would make sure that it was covered in the Developers Agreement for annexation. “It is easier for a developer to restrict those types of uses than a Village.” Bob Druktanis also asked if we have any control on what they put in the out buildings? He is concerned that something like a McDonalds would bring a ton of traffic on the roads. Attorney Phillips stated we have control in our Zoning Ordinance in what we allow as uses in this area. Administrator Stevens said it is CBR –2 Community Business / Residential zoning classification. Susan Lahr, 408 Stafford Ct., Lindenhurst stated she had several questions to ask. She asked if you had to have the area within the Business District designated as blighted or meeting the TIF criteria in order for it to have a sales tax generated in that particular area? Attorney Phillips stated, “There are no TIF criteria here. That ‘s a completely different financial possibility and the Board is not doing that. There are specific criteria within the Business District Statute.” She asked what the number of the statute was. Attorney Phillips answered 65 5/11-74.3-1 et seq. Susan Lahr asked what is the average sales tax incentive in surrounding communities like Gurnee or Grayslake and do they historically give away the entire 1% or do they determine that they give away ½ of that percentage? Administrator Stevens clarified “this is not sales tax.” There are no communities with Business District taxes that can be used as incentives that way. Attorney Phillips stated it’s also not legal to divide up the Business District tax in such a way; the money must be spent within the confines of the boundaries of the Business District. Administrator Stevens summarized “it’s the Village’s portion of the 1% of the “special” sales tax above and beyond the regular 1% sales tax that the state returns to the Village.” Mike Locke, 2210 Briar Lane, Lindenhurst asked how many houses would eventually be built in this project? Attorney Philips said we are waiting for a new proposal from the developer. Julian Franklin, 3166 Haven Lane, Lindenhurst said during Bridget Lane’s presentation she mentioned it might be necessary to have a contribution from the public sector above and beyond the 1% Business District tax. In the previous incarnation of this, OliverMcMillan had asked for the Business District tax plus ½ of the 1% of the municipal tax. Should Oliver McMillan come back and say they need that ½% would that be Village wide or just in the Business District? Administrator Stevens responded it is self-sustaining in the Business District area and would not affect the rest of the Village. He reported “I know what it costs to run the Village, so I am very sensitive to that ½%.” Julian Franklin stated in his opinion, going with the Business District tax, which would be put on the backs of consumers who choose to shop there, would be a very feasible, plausible way of contributing to the private / public partnership that is necessary to bring this high quality project to Lindenhurst. It would provide a meaningful contribution from the public without it being bourn by everyone in the Village, and still provide a quality project. Mayor Betustak declared the Public Hearing closed at 8:08 p.m. and we would return to tonight’s agenda. EXECUTIVE SESSION: The Mayor stated there would be no Executive Session tonight. Mayor Betustak suggested we postpone the Special Village Board meeting for tomorrow night Tuesday, January 23, 2007 at 6:00 p.m. It is an informational meeting regarding Sewer and Water Projects and if it’s rescheduled the 2 Trustees that are out of town could attend. The Village Board agreed to cancel tomorrows meeting and reschedule the Special Village Board meeting for Monday, February 5, 2007 at 7:00 p.m. Mayor Betustak opened the floor for Public Participation. PUBLIC PARTICIPATION: Kim Dodd, 493 Waterford Dr., Lindenhurst; Larry Herbert, 2317 Rolling Ridge Ln., Lindenhurst; Suzi Schmidt, Lake County Board Chairman, District No. 3 all inquired and commented on issues regarding the new Vista hospital: how to ensure it’s built in Lindenhurst; other communities wanting a hospital; how to show support for Vista etc. Mayor Betustak stated what’s going to be important is that the public contact the people who will make the decision at the Illinois Health Facilities Planning Board. He would ask Staff to put the information on the Village’s website in regards to who to write letters to in support of a hospital coming to Lindenhurst. Lake County Board Chairman Suzi Schmidt clarified, “the Lake County Board is very supportive of Vista Hospital.” She also would provide the upcoming Public Hearing dates to the Village.Suzi Schmidt, Lake County Board Chairman, District No. 3 requested copies of minutes from the January 4, 2007 Joint Revue Board Meeting and also minutes from the January 8, 2007 Public Hearing. They want them for the Revue Board records they are keeping. Luigi De Angelis, 2908 Falling Waters Lane, Lindenhurst, Steve Carlson, Lake County Board District 7, Catherine Finger, Superintendent of Grayslake Community High School District 127, Grayslake; Dean Kehr, 702 S. Green Briar Lane, Lindenhurst and Mike Locke, 2210 Briar Ln., Lindenhurst all asked questions and expressed opinions pro and con regarding the following: the Village Green Project; road improvements; the Ordinance passed tonight; School District issues; gratitude toward the Village Board, etc. ADJOURNMENT: A motion to adjourn the Regular Village Board meeting was made by Trustee Wayne and 2nd by Trustee Norlin. Upon voice vote, the motion carried unanimously. Adjournment was at 8:29 p.m. |
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