 |
|||
|
VILLAGE OF LINDENHURST SPECIAL MEETING OF THE VILLAGE BOARD |
|||
|
CALL TO ORDER: Mayor Betustak called The Special Meeting of the Village Board to order at 6:00 p.m. ROLL CALL: Roll call showed those present were: Mayor Betustak, Trustees: Czyzewicz, McCarthy, Messmer, Norlin, Wayne and Zerba. Also in attendance were Administrator Stevens, Attorney Phillips, Treasurer Neubauer, Police Commander Kevin Klahs and Clerk Bauschke. PLEDGE OF ALLEGIANCE: Before Mayor Betustak moved to NEW BUSINESS, he gave a brief history of the Village Green project. Back in 2004 two individuals, Tim O’Leary of the O’Leary Companies and Rick Swanson of Westminster Swanson Land Partners LLC came to visit Mayor Betustak and Administrator Stevens. They proposed the possible development and annexation of 245 acres of property which has come to be known as the Village Green. What they proposed for that particular project was a downtown district for the Village of Lindenhurst, a downtown district that we didn’t have, and it would give the Village a special identity. They presented it as a place to live and work, to shop and dine, to socialize and gather, a place like no other in northeastern Illinois. In 2005 the Village invited numerous people from the community, taxing districts, schools, park district etc. and introduced the Village Green concept, which received overwhelming support from the community. Mayor Betustak announced “tonight March 21, 2007, about 2 ½ years after Village Green was first proposed, this Board has the opportunity to decide the future of this Village. This is by far the largest single project Lindenhurst has ever decided upon. Before us tonight are a number of Ordinances, which if approved by the Village Board, will begin the first steps toward opening a premiere center for our Village as well as the region and so we culminate with what is before us this evening.” NEW BUSINESS: A. ORDINANCE: AUTHORIZING MAYOR TO SIGN ANNEXATION AGREEMENT FOR PARCELS REFERRED TO AS LINDENHURST VILLAGE GREEN – Attorney Phillips stated they went through 9 drafts of the Annexation Agreement and there has been a lot of give and take as to the provisions. The Attorney reported the Village Board was very familiar with the terms of the Agreement but there had been a few changes since the last draft. The main change was the addition of a provision in regards to the Horvat parcel. Attorney Phillips clarified the Horvat parcel was not part of the annexation proposal. The provision would provide the Horvat’s the opportunity, if the State takes away one of their legal entrances to their property off of Route 132, to attach to the Spine Road or Main Road through Village Green. There would be no cost so long as they do not redevelop the property in any way or change the present use on the property. The Horvat’s could however do more with the green houses, such as putting up temporary green houses and/or removing them etc.. That is the limitation and until such point as there is a change in use on the property or a change in ownership they will not have to pay any of the recapture costs for the road, utility construction, etc. Attorney Phillips said that was the major change from the last draft of the Annexation Agreement along with some minor “cleanup” of different items. General discussion occurred. Trustee Norlin mentioned the final Annexation Agreement stipulated that all the roads in the Village Green development would be private and not maintained by the Village. Administrator Stevens stated that this was very important for the Village. He elaborated and said that in the future the Village would not have to repair or replace the sidewalks, gutters, curbs or roads. The Village won’t have to pay the energy costs for streetlights or traffic signals or plow the snow. Over time this will be a significant monetary savings for the residents of the Village. He added that all of the private roads will have to be built to Village standards. MOTION: A motion to adopt AN ORDINANCE AUTHORIZING EXECUTION OF ANNEXATION AGREEMENT FOR PROPERTY KNOWN AS LINDENHURST VILLAGE GREEN was made by Trustee Messmer and 2nd by Trustee Czyzewicz. ORDINANCE NO. 07-3-1614
ON ROLL CALL THE VOTE WAS: The Mayor announced the motion carried unanimously. B. ORDINANCE: ANNEXING PROPERTY REFERRED TO AS LINDENHURST VILLAGE GREEN – MOTION: A motion to adopt AN ORDINANCE ANNEXING PROPERTY REFERRED TO AS LINDENHURST VILLAGE GREEN TO THE VILLAGE OF LINDENHURST, LAKE COUNTY, ILLINOIS was made by Trustee Wayne and 2nd by Trustee Zerba. ORDINANCE NO. 07-3-1615
ON ROLL CALL THE VOTE WAS: Mayor Betustak proclaimed the motion carried unanimously. C. ORDINANCE: REZONING PROPERTY KNOWN AS LINDENHURST VILLAGE GREEN (E) ESTATE RESIDENTIAL TO (R-4) MULTIPLE FAMILY AND (CBR-2) COMMUNITY BUSINESS RESIDENTIAL–2 – Attorney Phillips said the Board had previously established the new (CBR-2) Community Business Residential–2 and the (R-4) Multiple Family zoning classifications. The Plan Commission reviewed the proposed zoning map for the Village Green property which showed that the parcel was divided into (CBR-2) zoning and (R-4) zoning areas and they recommended approval of the rezoning to the Village Board. MOTION: A motion to adopt AN ORDINANCE AMENDING THE ZONING MAP OF THE VILLAGE OF LINDENHURST, LAKE COUNTY, ILLINOIS, FOR PROPERTY KNOWN AS LINDENHURST VILLAGE GREEN was made by Trustee McCarthy and 2nd by Trustee Norlin. ORDINANCE NO. 07-3-1616
ON ROLL CALL THE VOTE WAS: Mayor Betustak declared the motion carried unanimously. D. ORDINANCE: DESIGNATING THE VILLAGE OF LINDENHURST ROUTE 45/ GRAND AVENUE BUSINESS DISTRICT NO.1 AND IMPOSING A RETAILER OCCUPATION AND SERVICE OCCUPATION TAX THEREIN APPROVING A DEVELOPMENT AGREEMENT FOR THE VILLAGE OF LINDENHURST ROUTE 45/ GRAND AVENUE BUSINESS DISTRICT NO.1 – Attorney Phillips reported two Public Hearings were held by the Village Board on the establishment of the Business District No. 1 on January 22, 2007 and 2-12-07. The 2-12-07 Public Hearing was also held open for further public comment by the Board at its 2-26-2007 meeting. This is a 1% extra sales tax solely within the Village Green property that would be on goods purchased within the Village Green. It doesn’t apply anywhere else in the Village. The proceeds from the Business District tax by State Law must be used for payment of costs of public improvements within the Village Green. MOTION: A motion to adopt AN ORDINANCE DESIGNATING THE VILLAGE OF LINDENHURST ROUTE 45/ GRAND AVENUE BUSINESS DISTRICT NO.1 AND IMPOSING A RETAILERS’ OCCUPATION TAX AND SERVICE OCCUPATION TAX THEREIN was made by Trustee Wayne and 2nd by Trustee Messmer. ORDINANCE NO. 07-3-1617
ON ROLL CALL THE VOTE WAS: The Mayor announced the motion carried unanimously. E. ORDINANCE: AUTHORIZING EXECUTION OF THE DEVELOPMENT AGREEMENT REGARDING THE BUSINESS TAX PROCEEDS OF THE VILLAGE OF LINDENHURST ROUTE 45/ GRAND AVENUE BUSINESS DISTRICT NO.1 – Attorney Phillips requested Phil McKenna briefly explain what this entails. Mr. McKenna the President of Kane, McKenna and Associates, Inc. said he has represented OliverMcMillan throughout this process. As they’ve negotiated with the Village, what is before the Village tonight in this the Development Agreement is the procedures that would allow the issuance of notes to put in public improvements in Village Green and to later recoup through the Business District sales tax only, an amount of up to $17,373,405. One of the alterations as this moved through negotiations was that OliverMcMillan consent to fund the project by financing all of it through notes. By financing this through notes they are incurring the risk and all of the improvements must be public improvements by statute. Once they reach the following basic milestones, one in respect to the lease of square footage; and the other is market related, whereas they have to demonstrate that they have occupancies and firm leases, etc., the things that the market would insist upon in order to have a bond issue. Then those notes can be converted to a bond issue in the future, which again the sole revenue source is the Business District 1% sales tax. Phil McKenna noted the other point of negotiation between the Village and OliverMcMillan was the sales tax area within the Village Green Business District, which would be pledged by the Village to the repayment of the notes or bonds. The Development Agreement includes the sales tax only from the OliverMcMillan Village Green piece that is approximately 450,000 sq. ft. It does not include the Swanson / O’Leary piece of the property. OliverMcMillan is basically entitled to recoup, again for public improvements only, monies that are generated based upon this additional 1% Business District sales tax from their area of the Village Green. Attorney Phillips reiterated the Village of Lindenhurst has no obligation to either pay off the note or pay off the bonds that are going to be sold to pay off the note. No other security sources other than the 1% Business District sales tax would be used. Bridget Lane, Vice President of Business Districts, Inc. who was retained by the Village of Lindenhurst stated this project is totally internally funded; no outside Village funds are involved. The second point she wanted to make was the Village found a developer strong enough to finance the construction upfront, which was a positive for the Village Green Project. MOTION: A motion to adopt AN ORDINANCE AUTHORIZING EXECUTION OF THE DEVELOPMENT AGREEMENT WITH OLIVERMcMILLAN LINDENHURST LLC REGARDING THE BUSINESS TAX PROCEEDS OF THE VILLAGE OF LINDENHURST ROUTE 45/ GRAND AVENUE BUSINESS DISTRICT NO.1 was made by Trustee Norlin and 2nd by Trustee McCarthy. ORDINANCE NO. 07-3-1618
ON ROLL CALL THE VOTE WAS: Mayor Betustak reported the motion carried unanimously. F. ORDINANCE: APPROVING THE BUSINESS DISTRICT REVENUE NOTE – Attorney Phillips asked Phil McKenna to explain this item. Mr. McKenna reported he and Christopher Knight of Foley and Lardner, which is Bond Counsel for the Village, put this Ordinance together. It was drafted in accordance with the provisions of the Development Agreement and also in accordance with tax laws. This Ordinance is basically providing the authorization for a note not to exceed $17,373,405 to be issued in terms of a draw note. That means as costs are incurred, for public improvements within the area, the Village will go through normal procedures to make sure the public improvements have been done properly. Once they are approved and if money from the Business District sales tax has been received by the Village, the cost of the public improvement will be paid from the Business District sales tax revenue in the way that’s provided for in the Redevelopment Agreement. Phil McKenna complimented the Village on the fact that the Village has no obligation to pay for these public improvements other than through the Business District sales tax and referred the Board to the specific language in this proposed Ordinance under Attachment A, Page 3, in big bold letters which states as follows: “THIS NOTE IS NOT A GENERAL OR MORAL OBLIGATION OF THE VILLAGE BUT IS A SPECIAL LIMITED OBLIGATION OF THE VILLAGE, AND IS PAYABLE SOLELY FROM SALES TAXES ON DEPOSIT IN THE ALLOCATION FUND, AND SHALL BE A VALID CLAIM OF THE REGISTERED OWNER HEREOF ONLY AGAINST SAID SOURCES. THIS NOTE SHALL NOT BE DEEMED TO CONSTITUTE AN INDEBTEDNESS OR A LOAN AGAINST THE GENERAL TAXING POWERS OR CREDIT OF THE VILLAGE.” This authorization also goes on top of the note and makes it clear to anyone that would ever look at this, that this is secured only by the Business District sales tax. MOTION: A motion to adopt AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $17,373,405 BUSINESS DISTRICT REVENUE NOTE (VILLAGE GREEN PROJECT) SERIES 2007, OF THE VILLAGE OF LINDENHURST, LAKE COUNTY, ILLINOIS was made by Trustee Zerba and 2nd by Trustee Messmer. ORDINANCE NO. 07-3-1619
ON ROLL CALL THE VOTE WAS: Mayor Betustak proudly stated the motion carried unanimously. He announced, “In my opinion this is the most important day in the history of Lindenhurst. It happens on the first day of spring, 2007 when hope springs eternal. We have secured our financial future and we are living up to our Village motto: Developing today for tomorrow.” Mayor Betustak proclaimed there are many individuals who have worked tirelessly to make the initial Village Green vision a reality. He gave special thanks to the following: Tim O’Leary of the O’Leary Companies; Charlie Hickcox of OliverMcMillan; Village Administrator, Jim Stevens; Village Attorney, Paul Phillips; Village Consultant Bridget Lane of Business Districts, Inc. and asked them to come forward and witness the signing of the Annexation Agreement. Rick Swanson of Westminster Swanson Land Partners LLC and Village Consultant Kon Savoy of Teska Associates, Inc. were unable to attend this evening. The Mayor also thanked the Village Board of Trustees and the citizens of Lindenhurst. He asked everyone in the audience to stand and join him in thanking everyone who made this quality project possible. Mayor Betustak declared, “Thank you and welcome to Lindenhurst!” Administrator Stevens proudly stated Village Green would be the economic engine to fuel the costs of running Lindenhurst and rebuilding the Village’s infrastructure. Each Trustee stated their heartfelt comments. G. ADOPTION OF TENTATIVE FISCAL YEAR 07/08 BUDGET – Budget Officer Stevens reported on March 19, 2007 the Village Board held the FY 07/08 Budget Review Session. He read aloud the totals of the FY 07/08 Budget that starts May 1, 2007. (Please see attached Table A titled “Tentative – FY 06/07 and 07/08 Budget Comparisons.”) The grand total of the Tentative Budget is $13,042,485. Once adopted, the Fiscal Year 07/08 Tentative Budget will be available for public inspection on Thursday, March 22, 2007 at 10:00 a.m. The Public Hearing for the Budget is set for Monday, April 9, 2007 during the regular Village Board Meeting. MOTION: A motion to adopt the tentative Fiscal Year 07/08 Operating Budget for the Village of Lindenhurst was made by Trustee Wayne and 2nd by Trustee Zerba.
ON ROLL CALL THE VOTE WAS: The Mayor declared the motion carried unanimously. Mayor Betustak mentioned this Budget includes a proposed addition of a new Police Officer. The Village Budget Officer, Jim Stevens had indicated at the March 19, 2007 FY 07/08 Budget Review Session that revenues were not keeping pace with expenses thus compromising the Village’s ability to support the additional position. Unbeknownst to the Village Board or Staff the Mayor shared this condition with the Village Green developer, Paul Buss. Charlie Hickcox proudly announced, “Project developer OliverMcMillan, would generously donate $65,000 to the Village towards the first year funding of the new Police Officer position.” He then thanked the Mayor, Village Board and Staff for this great opportunity to become part of Lindenhurst. PUBLIC PARTICIPATION: Susan Lahr, 408 Stafford Ct., Lindenhurst understands that all of the roads in Village Green will be private. What will that cost the residents and business owners that are part of Village Green? Would the developer absorb the entire cost of the maintenance etc. and not pass it on to the residents and business owners? Charlie Hickcox, Development Director for OliverMcMillan stated the roadways will be private and Oliver McMillan will do the construction. Tim O’Leary and Rick Swanson will pay for the roads in their part of the development. The business owners, through the business district tax and sales tax will pay for part of those roadways. Otherwise, Oliver McMillan will take care of the roadways and take care of the construction of the roadways. There will be no additional taxes to those residents. Susan Lair also inquired about the .5% municipal sales tax to be given to the developer. Was that off of the table or would it come up again in the future? Attorney Phillips explained there is another 1% of local sales tax; the Village will be keeping .5% of that 1% using the other .5% for some of the costs of the developer. He further stated there is an intricate financial plan that was put in place and we are hoping to keep more of our sales tax as the project becomes more successful. Then we’d be able to pay off the local sales tax obligation with the excess business district tax revenue first. Also the Village will retain all of the business tax and sales tax off of any of the commercial development of the Swanson / O’Leary piece. Phil McKenna reported we couldn’t set up the Local municipal sales tax Ordinance tonight because we set up the business district tax and the Villages Bond Counsel the firm of Foley & Lardner, LLP advised the 2 Ordinances could not be adopted on the same evening. Ms. Lair asked what the total dollar amount was projected at? Mr. McKenna replied “approximately $10,000,000.00.” In closing Susan Lair asked about all of the Public Works employees at tonight’s Board meeting and how long haven’t they had a contract and what the situation was that was making them all upset? Mayor Betustak stated under the advice of Special Counsel for labor contract negotiations, he has been advised not to discuss this issue. He did clarify that there was no contract before and this would be the first and they have been negotiating for 2 1/2 to 3 years. Ken Edwards, Chicago IL stated he is the Union Representative for Local 150 Operators. Mr. Edwards wanted to make a couple of comments. He quoted the Mayor “hope springs eternal” and added, “the Public Works employees have that hope.” Ken Edwards said it’s not about the brick and mortar, it’s about providing the Village services and he has been working with these 19 guys for 3 years trying to get their first contract. He continued, “these are the guys when it is snowing out on Christmas, they are out plowing the snow; when a water main breaks day or night, these are the guys repairing it.” Ken Edwards asked all of the Village’s Public Works employees to stand up so they too could get recognized for all of their hard work. Everyone applauded. Alex Horvat, Owner of Horvat Nursery, 19414 W. Grand Avenue, Lake Villa stated he read over the Agreement and in it there is language stating he cannot alter any of his buildings except for the greenhouses. He asked, “does that mean I can’t put an addition on my store or I’d have to pay the recapture fee? Or could I put an addition on the showroom area without having to pay that fee?” Attorney Phillips responded, “It is going to depend on exactly what you do. We’ve worked hard in our negotiations with the developer to get that provision in the Annexation Agreement so that you would not have to pay any recapture for the present use on your property if the State of Illinois does close one of your access points as a result of the Village Green Project. We did what you had asked us, we provided through our negotiations, that the developer was not going to get any recapture. Now if you are going to change the use of your property that would certainly change the situation. You never asked us to do that. We did what we could to protect you. The developer was reluctant and not happy about the provision but we forced the change in the Annexation Agreement that protected you.” Mayor Betustak suggested we don’t discuss this any further tonight. This situation should be handled by the Attorneys and not during a Village Board Meeting. ADJOURNMENT: A motion to adjourn the Special Village Board meeting was made by Trustee Wayne and 2nd by Trustee McCarthy. Upon voice vote, the motion carried. Adjournment was at 7:20 p.m. |
|||