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S-1122 - 06/06/2005 - TAX - OrdinancesORDINANCE- 2005 - TIF -EX3 -S -1122 AN ORDINANCE ADOPTING TAX INCREMENT FINANCING FOR THE VILLAGE OF OAK BROOK, COOK AND DUPAGE COUNTIES, ILLINOIS, IN CONNECTION WITH THE DESIGNATION OF THE VILLAGE OF OAK BROOK TIF #1 BUTTERFIELD- MEYERS ROAD REDEVELOPMENT PROJECT AREA WHEREAS, it is desirable and for the best interests of the citizens of the Village of Oak Brook, Cook and DuPage Counties, Illinois (the "Village"), for the Village to adopt tax increment allocation financing pursuant to the Tax Increment Allocation Redevelopment Act, Division 74.4 of Article 11 of the Illinois Municipal Code, as amended (the "Act"); and WHEREAS, the President and Board of Trustees of the Village (the "Corporate Authorities") have heretofore approved a redevelopment plan and project (the "Plan" and "Project ") as required by the Act by passage of an ordinance, and have heretofore designated the Village of Oak Brook TIF #1 Butterfield - Meyers Road Redevelopment Project Area (the "Project Area ") as required by the Act by the passage of an ordinance, and the Village has otherwise complied with all other conditions precedent required by the Act. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, COOK AND DUPAGE COUNTIES, ILLINOIS, as follows: Section 1. Tax Increment Financing Adopted. Tax increment allocation financing is hereby adopted to pay redevelopment project costs as defined in the Act and as set forth in the Plan and Project within the Project Area as described in EXHIBIT A attached hereto and incorporated herein as if set out in full by this reference. The street location (as near as practicable) for the Project Area is described in EXHIBIT B attached hereto and incorporated herein as if set out in full by this reference. The map of the Project Area is depicted on EXHIBIT C attached hereto and incorporated herein as if set out in full by this reference. Section 2. Allocation of Ad Valorem Taxes. Pursuant to the Act, the ad valorem taxes, if any, arising from the levies upon taxable real property in the Project Area by taxing districts and tax rates determined in the manner provided in Section 11- 74.4 -9(c) of the Act each year after the effective date of this ordinance until the Project costs and obligations issued in respect thereto have been paid shall be divided as follows: (a) That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each such taxable lot, block, tract or parcel of real property in the Project Area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing. (b) That portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the Project Area over and above the initial equalized assessed value of each property in the Project Area shall b -e allocated to and when collected shall be paid to the municipal treasurer or to hiIs designee pursuant to Section 207A of the Revenue Act of 1939 of the State of Illinois, as amended, who shall deposit said taxes into a special fund, hereby created, and designated the "2005 Village of Oak Brook TIF #1 Butterfield- Meyers Road Redevelopment Project Area Special Tax Allocation Fund" of the Village, and such taxes shall be used for the purpose of paying Project costs and obligations incurred in the payment thereof. Section 3. Invalidity of Any Section. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 4. Superseder and Effective Date. All ordinances, resolutions, motions or orders in conflict herewith be, and the same hereby are, repealed to the extent of such conflict, and this ordinance shall be in full force and effect immediately upon its passage by the Corporate Authorities and approval as provided by law. Section 5. Transmittal to County Clerks. The Village Clerk is hereby expressly directed to transmit forthwith to the County Clerk of Cook County and the County Clerk of the County of DuPage, Illinois, a certified copy of this ordinance. APPROVED THIS 6t" day of June, 2005. PASSED THIS 6'h day of June, 2005. Ayes:_ Nays:_ Absent: �v Kevin Quinlarf Village President Trustees Craig, Kennedy, Sanford and Yusuf None None 04,f 0 Recuse: Trustees Aktipis and Manofsky ATTE T: Linda K. Gonnella, CMC Village Clerk EXHIBIT A - LEGAL DESCRIPTION Commonly known as: 3001 -3003 and 3121 Butterfield Road, Oak Brook, Illinois PARCEL 1 06 -28- 103 -009 LOT 2 OF BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2 EXCEPT THE WESTERLY 265 FEET THEREOF AS MEASURED ALONG THE NORTHERLY LINE THEREOF, AND EXCEPT THAT PART THEREOF DESCRIBED AS FOLLOWS: THAT PART OF LOT 2, AFORESAID, IN THE NORTH HALF OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JULY 85 1964 AS DOCUMENT R64 -24069 IN DUPAGE COUNTY, ILLINOIS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 2, BEING THE POINT OF INTERSECTION OF THE SOUTH RIGHT OF WAY LINE OF F.A. ROUTE 131 WITH THE EXISTING CENTER LINE OF MEYERS ROAD; THENCE WESTERLY ALONG SAID SOUTH RIGHT OF WAY LINE, A DISTANCE OF 55.4 FEET TO A POINT ON THE EXISTING WEST RIGHT OF WAY LINE OF MEYERS ROAD FOR A POINT OF BEGINNING; THENCE SOUTHWESTERLY ALONG SAID WEST RIGHT OF WAY LINE WHICH FORMS AN ANGLE OF 58 DEGREES 25 MINUTES 31 SECONDS TO THE LEFT WITH A PROLONGATION OF THE LAST DESCRIBED COURSE, A DISTANCE OF 361.1 FEET TO A POINT, SAID WEST RIGHT OF WAY LINE BEING THE EAST LINE OF THE CHICAGO TITLE AND TRUST COMPANY, AS TRUSTEE UNDER TRUST NUMBER 46940 PROPERTY; THENCE NORTHEASTERLY ALONG A LINE WHICH FORMS AN ANGLE OF 176 DEGREES 08 MINUTES 00 SECONDS TO THE RIGHT WITH A PROLONGATION OF THE LAST DESCRIBED COURSE, A DISTANCE OF 347.5 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF F.A. ROUTE 131; THENCE EASTERLY ALONG SAID SOUTH RIGHT OF WAY LINE, A DISTANCE OF 27.5 FEET TO THE POINT OF BEGINNING, BEING THE LAND CONVEYED TO THE PEOPLE OF THE STATE OF ILLINOIS, DEPARTMENT OF TRANSPORTATION BY DEED RECORDED JULY 295 1974 AS DOCUMENT R74- 38411. PARCEL 2 06 -28- 103 -014 THAT PART OF NORTHERN ILLINOIS GAS COMPANY'S 82.5 FOOT RIGHT OF WAY KNOWN AS NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1 (PLAT DOCUMENT 950269) LYING SOUTH OF AND ABUTTING LOT 2 (EXCEPT THE WESTERLY 265, FEET AS MEASURED ALONG THE NORTHERLY LINE THEREOF), IN BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2, OF PART OF THE NORTHWEST QUARTER OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JULY 8, 1964 AS DOCUMENT R64- 24069, IN DUPAGE COUNTY, ILLINOIS; ALSO DESCRIBED AS FOLLOWS: THAT PART OF NORTHERN ILLINOIS GAS COMPANY PARCEL NO. NIG 2 -63, AS SHOWN ON NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF LOT 1 IN GLIDDEN SUBDIVISION, AS RECORDED OCTOBER 3, 1969 AS DOCUMENT R69 -43878 FOR A POINT OF BEGINNING; THENCE NORTH 65 DEGREES 27 MINUTES 37 SECONDS EAST ALONG THE NORTH LINE OF SAID PARCEL NIG 2 -63 {BEING ALSO THE SOUTHERLY LINE OF LOT 2 IN BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2, AS RECORDED JULY 8, 1964 AS DOCUMENT R64- 24069), 517.90 FEET, MORE OR LESS, TO A POINT ON THE NORTHWESTERLY LINE OF NORTHERN ILLINOIS TOLL HIGHWAY PARCEL NO. E -2 -63.5; THENCE SOUTH 04 DEGREES 30 MINUTES 01 SECOND WEST ALONG SAID NORTHWESTERLY LINE OF PARCEL NO. E-2-63.5,94.36 FEET, MORE OR LESS, TO AN ANGLE POINT IN SAID NORTHWESTERLY LINE; THENCE SOUTH 65 DEGREES 27 MINUTES 37 SECONDS WEST ALONG SAID NORTHWESTERLY LINE OF PARCEL NO. E -2 -63.55 465.95 FEET, MORE OR LESS, TO THE INTERSECTION OF THE SOUTHERLY EXTENSION OF THE AFOREMENTIONED EASTERLY LINE OF LOT 1 IN GLIDDEN SUBDIVISION WITH SAID NORTHWESTERLY LINE OF PARCEL NO. E -2 -63.5; THENCE NORTH 28 DEGREES 48 MINUTES WEST ALONG THE SOUTHERLY EXTENSION OF THE EASTERLY LINE OF SAID LOT 1 IN GLIDDEN SUBDIVISION 82.73 FEET, MORE OR LESS, TO THE POINT OF BEGINNING, ALL IN SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN DUPAGE COUNTY, CLLINOIS. PARCEL 3 06 -28 -103 -005 LOT 1 IN GLIDDEN SUBDIVISION NO. 1, BEING A SUBDIVISION OF THE WESTERLY 265 FEET AS MEASURED ALONG THE NORTHERLY LINE THEREOF, OF LOT 2 IN BUTLER COMPANY M -1 INCORPORATED ASSESSMENT PLAT NO. 2 OF PART OF THE NORTHWEST QUARTER OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID GLIDDEN SUBDIVISION NO. 1 RECORDED OCTOBER 3, 1969 AS DOCUMENT R69- 43878, IN DUPAGE COUNTY, ILLINOIS. PARCEL 4 06 -28- 103 -014 t THAT PART OF NORTHERN ILLINOIS GAS COMPANY PARCEL NO. NIG 2 -63 AS SHOWN ON NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 1 IN GLIDDEN SUBDIVISION AS RECORDED OCTOBER 3, 1969 AS DOCUMENT R69 -43878 AND PROCEEDING SOUTH 28 DEGREES 48 MINUTES EAST ALONG A SOUTHERLY EXTENSION OF THE EAST LINE OF SAID LOT 13P A DISTANCE OF 82.73 FEET, MORE OR LESS, TO A POINT ON THE NORTHERLY LINE OF NORTHERN ILLINOIS TOLL HIGHWAY PARCEL E -2 -63.5; THENCE SOUTH 65 DEGREES 27 MINUTES 37 SECONDS WEST ALONG SAID NORTHERLY LINE 265.61 FEET, MORE OR LESS, TO THE INTERSECTION OF THE SOUTHERLY EXTENSION OF THE WESTERLY LINE OF LOT 2 IN BUTLER COMPANY M -1, INC. ASSESSMENT PLAT NO. 2 RECORDED JULY 89 1964 AS DOCUMENT R64- 24069 AND THE AFOREMENTIONED NORTHERLY LINE; THENCE NORTH 28 DEGREES 48 MINUTES WEST ALONG SAID SOUTHERLY EXTENSION, 82.73 FEET, MORE OR LESS, TO THE SOUTHWEST CORNER OF LOT 2 IN THE AFOREMENTIONED BUTLER COMPANY ASSESSMENT PLAT (SAID CORNER BEING ON THE NORTH LINE OF NORTHERN ILLINOIS GAS COMPANY PROPERTY PARCEL NO. NIG 2 -63); THENCE NORTH 65 DEGREES 27 MINUTES 37 SECONDS EAST ALONG SAID NORTH LINE (SAID LINE BEING COINCIDENT WITH THE SOUTH LINE OF AFOREMENTIONED LOT 2), 265.61 FEET, MORE OR LESS, TO THE POINT OF BEGINNING, ALL IN SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN DUPAGE COUNTY, ILLINOIS. PARCEL 5 06 -28 -103 -018 and 06 -28- 103 -019 THAT PART OF THE NORTHWEST QUARTER OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN DUPAGE COUNTY, ILLINOIS, DESCRIBED AS FOLLOWS: BEGINNING AT THE EASTERLY MOST NORTHEAST CORNER OF LOT 5 IN HOMESTEAD VILLAGE, BEING A SUBDIVISION OF PART OF THE NORTHWEST QUARTER OF SAID SECTION 28 AND SECTION 29, ACCORDING TO THE PLAT THEREOF RECORDED SEPTEMBER 1, 1998 AS DOCUMENT R98- 179522, SAID POINT OF BEGINNING BEING ON THE SOUTHERLY LINE OF NORTHERN ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO. NIG2 -63N ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT 950269; THENCE NORTH 65 DEGREES 32 MINUTES 08 SECONDS EAST (NORTH 65 DEGREES 37 MINUTES EAST, RECORD) ALONG SAID SOUTHERLY LINE OF NORTHERN ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO. NIG2 -63N5 A DISTANCE OF 451.02 FEET (450.89 FEET RECORD) TO THE EASTERLY LINE OF SAID NORTHERLY ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO NIG2 -63N; THENCE NORTH 04 DEGREES 34 MINUTES 53 SECONDS EAST (NORTH 04 DEGREES 47 MINUTES EAST, RECORD) ALONG SAID EAST LINE OF THE NORTHERN ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO. NIG2 -63N, AND ALONG AN EASTERLY LINE OF LOT 2 IN BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2 ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT NO. R64- 24069, A DISTANCE OF 191.20 FEET (191.21 FEET RECORD) TO A SOUTHEASTERLY CORNER OF SAID LOT 2 IN BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2; THENCE SOUTH 85 DEGREES 23 MINUTES 50 SECONDS EAST (SOUTH 85 DEGREES 13 MINUTES EAST RECORD), ALONG A SOUTHERLY LINE OF SAID LOT 2 IN BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2, A DISTANCE OF 100.00 FEET TO A SOUTHEASTERLY CORNER OF SAID LOT 2 IN BUTLER COMPANY M -1 INC. ASSESSMENT PLAT NO. 2, SAID POINT BEING ON THE WESTERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY PERMANENT EASEMENT PARCEL NO. E -2 -63.1 ACCORDING TO DOCUMENT NO. 846924; THENCE SOUTH 04 DEGREES 35 MINUTES 51 SECONDS WEST (SOUTH 04 DEGREES 47 MINUTES WEST, RECORD) ALONG THE WESTERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY PERMANENT EASEMENT PARCEL NO. E -2 -63.15 AND ALONG THE WESTERLY LINE OF THE NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1 LOT 8 -2 ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT NO. R64 - 28042, A DISTANCE OF 250.00 FEET TO THE NORTHERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY; THENCE SOUTH 65 DEGREES 32 MINUTES 08 SECONDS WEST (SOUTH 65 DEGREES 37 MINUTES WEST, RECORD) ALONG SAID .NORTHERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY, A DISTANCE OF 349.98 FEET TO THE SOUTHEASTERLY CORNER OF TECHNOLOGY DRIVE AS DEDICATED BY THE PLAT OF SAID HOMESTEAD VILLAGE; THENCE THE FOLLOWING SIX (6) COURSES AND DISTANCES ALONG THE EASTERLY AND NORTHERLY LINE OF SAID TECHNOLOGY DRIVE: 1) THENCE NORTH 24 DEGREES 22 MINUTES 20 SECONDS WEST (NORTH 25 DEGREES 41 MINUTES 17 SECONDS WEST, RECORD) A DISTANCE OF 97.36 FEET TO THE NORTHEAST CORNER OF SAID TECHNOLOGY DRIVE; 2) THENCE SOUTH 65 DEGREES 37 MINUTES 40 SECONDS WEST (SOUTH 64 DEGREES 18 MINUTES 43 SECONDS WEST, RECORD) A DISTANCE OF 80.00 FEET; 3) THENCE SOUTH 24 DEGREES 22 MINUTES 20 SECONDS EAST (SOUTH 25 DEGREES 41 MINUTES 17 SECONDS EAST, RECORD) A DISTANCE OF 15.00 FEET; 4) THENCE SOUTH 65 DEGREES 37 MINUTES 40 SECONDS WEST (SOUTH 64 DEGREES 18 MINUTES 43 SECONDS WEST, RECORD) A DISTANCE OF 4.75 FEET; 5) THENCE SOUTH 13 DEGREES 41 MINUTES 39 SECONDS WEST, (SOUTH 12 DEGREES 00 MINUTES 14 SECONDS WEST, RECORD) A DISTANCE OF 20.78 FEET; 6) THENCE SOUTH 65 DEGREES 32 MINUTES 08 SECONDS WEST, (SOUTH 64 DEGREES 13 MINUTES 11 SECONDS WEST, RECORD) A DISTANCE OF 62.44 FEET TO THE SOUTHEAST CORNER OF SAID LOT 5 IN HOMESTEAD VILLAGE; THENCE NORTH 24 DEGREES 22 MINUTES 20 SECONDS WEST (NORTH 25 DEGREES 41 MINUTES 17 SECONDS WEST, RECORD) ALONG THE EASTERLY MOST LINE OF SAID LOT 5, A EXHIBIT B - STREET LOCATION The Project Area contains acres. The street location of the Project Area is: DISTANCE OF 33.80 FEET TO SAID POINT OF BEGINNING, IN DUPAGE COUNTY, ILLINOIS. EXHIBIT C - MAP EXHIBIT A 2. PROJECT AREA DESCRIPTION The proposed boundaries of the Village of Oak Brook TIF # 1 Oak Brook Promenade Redevelopment Project Area are shown in Figure 1: Redevelopment Project Area Boundary Map (see Appendix A). The Project Area is approximately 19.7 acres in size. A legal description of the Project Area is included as Appendix B of this document. The Project Area includes only those contiguous parcels that are anticipated to be substantially benefited by the proposed redevelopment project improvements and, which, collectively qualify for designation as a "blighted area." The Project Area is irregular in shape and is generally bounded by Butterfield Road on the north, Meyers Road on the east, I-88 East-West Tollway on the south and the Commonwealth Edison substation on the west. The property is designated as ORA-1 on Oak Brook's official zoning map which allows for a variety of retail and office uses. A zoning application is currently being considered by the Village to rezone the Project Area to B-1 Local Shopping Center District. Community Context The Project Area is part of Oak Brook's Butterfield Road business and commercial area. The Commonwealth Edison substation immediately to the west of the Project Area forms a portion of Oak Brook's western boundary. The Butterfield Road corridor is developed primarily with commercial retail and office developments in Oak Brook, Oakbrook Terrace and Lombard. The Illinois Tollway right-of-way separates the Project Area from residential uses to the south. The land use pattern to the north of the Project Area includes Fountain Square Plaza, a retail and restaurant development within the Village of Lombard and the Oak Brook Towers residential complex at the northeast corner of Butterfield and Meyers Road. Office uses are located immediately to the east of the Project Area at the southeast corner of the Butterfield and Meyers Road intersection. Current Land Use and Community Facilities The current land use within the Project Area consists of three office buildings located on two tax parcels. There are two three-story buildings that were built in 1978 and a one-story brick warehouse and office building built in 1969. Over the past few years the occupancy rate of the buildings has dropped below 30%, with approximately 140,000 square feet of office space advertised as for lease within the Project Area. The current configuration of land use is represented in Figure Z Existing Land Use (see Appendix A). The Project Area is currently zoned ORA-1,which accommodates a variety of office and commercial uses. 5 February 2005 EXHIBIT B-STREET LOCATION The Project Area contains acres. The street location of the Project Area is: EXHIBIT B STREET LOCATION The Project Area is approximately 18.5 acres and is bounded by I-88 on the south, Meyers Road to the east,Butterfield Road to the north, and the ComEd substation to the west and is commonly known as: 3001-3003 Butterfield Road Oak Brook, Illinois 60523 3121 Butterfield Road Oak Brook, Illinois 60523 Butterfield Road Oak Brook, Illinois 60523 ExmBIT C-MAP EXHIBIT �Al2 .t;T 9 ave� o e w k 0"S" 4" W 1 — [q +�1 1 M1 .77 f E S vEl, t'D300 rn e z: r ht� N FIGURE 1: REDEVELOPMENT PROJECT AREA BOUNDARY MAP VILLAGE OF OAK BROOK TIF # 1 PLAN DATE: FEBRUARY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING REDEVELOPMENT PLAN AND PROJECT CAM I kOS J EXHIBIT D-PLAN AND PROJECT EXHIBIT ..t VILLAGE OF OAK BROOK TIF #1 OAK BROOK PROMENADE TAX INCREMENT FINANCING REDEVELOPMENT PLAN AND PROJECT Prepared for the Village of Oak Brook By: Camiros, Ltd. February 2005 This plan is subject to review and may be revised after comment and public hearing TABLE OF CONTENTS 1. INTRODUCTION.....................................................................................................................1 2. PROJECT AREA DESCRIPTION............................................................................................5 3. ELIGIBILITY OF THE PROJECT AREA FOR DESIGNATION ..........................................7 AS A BLIGHTED AREA 4. REDEVELOPMENT PLAN GOALS AND OBJECTIVES.....................................................9 5. REDEVELOPMENT PLAN ...................................................................................................10 6. REDEVELOPMENT PROJECT DESCRIPTION..................................................................12 7. GENERAL LAND USE PLAN AND MAP............................................................................13 8.. REDEVELOPMENT PLAN FINANCING.............................................................................14 9. HOUSING IMPACT AND RELATED MATTERS...............................................................24 10. ANNEXATION AGREEMENT PROVISIONS.....................................................................25 11. PROVISIONS FOR AMENDING THE PLAN........................................:.............................26 12. VILLAGE OF OAK BROOK COMMITMENT TO FAIR EMPLOYMENT PRACTICES AND AFFIRMATIVE ACTION......................................................................27 APPENDIX A. FIGURES 1 -3 ............................................................................................A-1 APPENDIX B. LEGAL DESCRIPTION ...............................................................................B-1 APPENDIX C. ELIGIBILITY STUDY..................................................................................0-1 APPENDIX D. INITIAL EQUALIZED ASSESSED VALUE (EAV) .................................D-1 i LIST OF FIGURES FIGURE 1. REDEVELOPMENT PROTECT AREA BOUNDARY MAP...........................A-2 FIGURE 2. EXISTING LAND USE MAP............................................................................A-3 FIGURE 3. LAND USE PLAN............................................:................................................A-4 FIGURE A. STUDY AREA BOUNDARY MAP...................................................................0-2 FIGUREB. PROPERTY TYPE..............................................................................................0-6 FIGURE C. EXISTING LAND USE MAP..............................................................................C-7 ii LIST OF TABLES TABLE 1. ESTIMATED REDEVELOPMENT PROJECT COSTS......................................18 TABLE A. COMPARATIVE INCREASE IN EQUALIZED ASSESSED VALUE- IMPROVED PROPERTY.................................................................................0-18 TABLE B. COMPARATIVE INCREASE IN EQUALIZED ASSESSED VALUE- VACANTLAND...............................................................................................0-21 TABLE C. DISTRIBUTION OF BLIGHTING FACTORS................................................0-22 iii 1. INTRODUCTION This document presents a Tax Increment Financing Redevelopment Plan and Project (hereinafter referred to as the "Plan")pursuant to the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4-1 et seq.) as amended, (the "Act") for the Village of Oak Brook TIF #1 Oak Brook Promenade Redevelopment Project Area (the "Project Area") located in the Village of Oak Brook, Illinois (the "Village"). The Project Area boundaries are delineated on Figure 1: Redevelopment Project Area Boundary Map in Appendix A and legally described in Appendix B. The Project Area boundaries are generally Butterfield Road on the north, Meyers Road on the east, I-88 East-West Tollway on the south and the Commonwealth Edison substation and Technology Drive on the west. The Plan responds to problem conditions within the Project Area and reflects a commitment by the Village to improve and revitalize the Project Area. As described in the Plan, the Project Area has significant potential for new commercial retail development. The Plan summarizes the analyses and findings of Camiros, Ltd. (hereinafter referred to as "The Consultant") which, unless otherwise noted, is the responsibility of the Consultant.. The Village is entitled to rely on the findings and conclusions of this Plan in designating the Redevelopment Project Area as a redevelopment project area under the "Act." The Consultant has prepared this Plan and the related eligibility study with the understanding that the Village would rely: 1) on the findings and conclusions of the Plan and the related eligibility study in proceeding with the designation of the Redevelopment Project Area and the adoption and implementation of the Plan, and 2) on the fact that the Consultant has obtained the necessary information to conclude that the Plan and the related eligibility study are in compliance with the Act. The Plan presents certain factors, research and analysis undertaken to document the eligibility of the Project Area for designation as a "blighted area" tax increment financing ("TIF") district. The need for public intervention, goals and objectives, land use policies, and other policy materials are presented in the Plan. The results of a study documenting the eligibility of the Project Area as a blighted area are presented in Appendix C, Eligibility Study (the "Study"). Tax Increment Financing In adopting the Act, the Illinois State Legislature pursuant to Section 5/11-74.4-2(a) found that: .there exists in many municipalities within this State blighted, conservation and industrial park conservation areas as defined herein; and pursuant to Section 5/11-74.4-2(b) also found that: ...in order to promote and protect the health, safety, morals and welfare of the public, that blighted conditions need to be eradicated... and that redevelopment of such areas 1 February 2005 be undertaken... The eradication of blighted areas... by redevelopment projects is hereby declared to be essential to the public interest. In order to use the tax increment financing technique, a municipality must first establish that the proposed redevelopment project area meets the statutory criteria for designation as a "blighted area," "conservation area" or "industrial park conservation area." A redevelopment plan must then be prepared pursuant to Sections 65 ILCS 5/11-74.4-3, et seq. of the Act, which describes the development or redevelopment program intended to be undertaken to reduce or eliminate those conditions which qualified the redevelopment project area as a "blighted area," "conservation area," or combination thereof, or "industrial park conservation area," and thereby enhance the tax base of the taxing districts which extend into the redevelopment project area. In order to be adopted, a municipality seeking to qualify a redevelopment project area as a "blighted area" must find that a Plan meets the following conditions pursuant to Section 5/11- " 74.4-3(n) of the Act: (1) The redevelopment project area on the whole has not been subject to growth and development through investment by private enterprise and would not be reasonably anticipated to be developed without the adoption of the redevelopment plan; (2) the redevelopment plan and project conform to the comprehensive plan for the development of the municipality as a whole, or, for municipalities with a population of 100,000 or more, regardless of when the redevelopment plan and project was adopted, the redevelopment plan and project either: (i) conforms to the strategic economic development or redevelopment plan issued by the designated planning authority of the municipality, or(ii) includes land uses that have been approved by the planning commission of the municipality; and (3) the redevelopment plan establishes the estimated dates of completion of the redevelopment project and retirement of obligations issued to finance redevelopment project costs (which dates shall not be later than December 31 of the year in which the payment to the municipal treasurer as provided in 65 ILCS 5/11-74.4-8(b) of the Act is to be made with respect to ad valorem taxes levied in the twenty-third calendar year after the year in which the ordinance approving the redevelopment project area is adopted. Redevelopment projects are defined as any public or private development projects undertaken in furtherance of the objectives of the redevelopment plan and in accordance with the Act. The Act provides a means for municipalities, after the approval of a redevelopment plan and project, to redevelop blighted, conservation, or industrial park conservation areas and to finance eligible "redevelopment project costs" with incremental property tax revenues. "Incremental Property Tax" or "Incremental Property Taxes" are derived from the increase in the current equalized assessed value ("EAV") of real property within the redevelopment project area over and above the "Certified Initial EAV" of such real property. Any increase in EAV is then multiplied by the current tax rate to arrive at the Incremental Property Taxes. A decline in current EAV does not result in a negative Incremental Property Tax. To finance redevelopment project costs, a municipality may issue obligations secured by Incremental Property Taxes to be generated within the redevelopment project area. In addition, a municipality may pledge towards payment of such obligations any part or any combination of the following: 2 February 2005 (a)net revenues of all or part of any redevelopment project; (b)taxes levied and collected on any or all property in the municipality; (c)the full faith and credit of the municipality; (d) a mortgage on part or all of the redevelopment project; or (e) any other taxes or anticipated receipts that the municipality may lawfully pledge. The Village will not pledge its full faith and credit nor any source of revenue other than the incremental taxes generated by the redevelopment project. Tax increment financing does not generate tax revenues. This financing mechanism allows the municipality to capture, for a certain number of years, the new tax revenues produced by the enhanced valuation of properties resulting from the municipality's redevelopment program, improvements and activities, various redevelopment projects, and the reassessment of properties. This revenue is then reinvested in the area through rehabilitation, developer subsidies, public improvements and other eligible redevelopment activities. Under tax increment financing, all taxing districts continue to receive property taxes levied on the initial valuation of properties within the redevelopment project area. Additionally, taxing districts can receive distributions of excess Incremental Property Taxes when annual Incremental Property Taxes received exceed principal. and interest obligations for that year and redevelopment project costs necessary to implement the redevelopment plan have been paid and such excess Incremental Property Taxes are not otherwise required, pledged or otherwise designated -for other redevelopment projects. Taxing districts also benefit from the increased property tax base after redevelopment project costs and obligations are paid. The Village authorized an evaluation to determine whether a portion of the Village, to be known as the Oak Brook Promenade Redevelopment Project Area, qualifies for designation as a blighted area pursuant to the provisions contained in the Act. If the Project Area is so qualified, the Village requested the preparation of a redevelopment plan for the Project Area in accordance with the requirements of the Act. Oak Brook Promenade Redevelopment Project Area Overview The Project Area is approximately 19.7 acres in size and includes improved property, vacant land and a portion of Meyers Road that was never publicly dedicated. There are five tax parcels within the Project Area with a total land area of 18.2 acres. Undedicated Meyers Road right-of- way makes up 8.1%of the Project Area. Three tax parcels are classified as improved by the York Township Assessor and are presently located within the Village. The two largest parcels contain three office buildings. There are two three-story buildings that were.built in 1978 and a one-story brick building built in 1969. The third improved parcel is paved for parking and contains above ground and underground utility easements including Commonwealth Edison high tension lines and related utility tower. These improved parcels comprise 85.8% Project Area. There is also a five acre pond that serves as an on-line detention pond for the properties located upstream. Two parcels are vacant land and will be annexed by the Village. These parcels are immediately adjacent to the Tollway and account for 6.1% of the Project Area's acreage. 3 February 2005 The improved portion of the Project Area is characterized by: • Obsolescence • Deterioration • Excessive vacancies • Excessive land coverage or overcrowding of community facilities • Deleterious land use or layout • Lack of community planning • Lagging or declining equalized assessed valuation(EAV) The vacant land within the Project Area was found to suffer from the following factors: • Obsolete platting • Deterioration of structure or site improvements in areas adjacent to the vacant land • Lagging or declining equalized assessed valuation(EAV) As a result of these conditions, the Project Area is in need of redevelopment. In recognition of the unrealized potential of the Project Area, the Village is taking action to facilitate its revitalization. The Project Area, as a whole, has not been subject to growth and development by private enterprise and would not reasonably be anticipated to be developed without the adoption of the Plan. The Eligibility Study, attached hereto as Appendix C, concludes that property in this area is experiencing deterioration and disinvestment. The analysis of conditions within the Project Area indicates that it is appropriate for designation as a blighted area in accordance with the Act. The purpose of the Plan is to create a mechanism to allow for the development of a new retail center on vacant and underutilized property; the improvement of the area's physical environment and infrastructure; and furthering the Village's interest in developing a retail center to serve the community and support the Village's tax base. The Plan has been formulated in accordance with the provisions of the Act. This document is a guide to all proposed public and private actions in the Project Area. 4 February 2005 2. PROJECT AREA DESCRIPTION The proposed boundaries of the Village of Oak Brook TIF # 1 Oak Brook Promenade Redevelopment Project Area are shown in Figure 1: Redevelopment Project Area Boundary Map (see Appendix A). The Project Area is approximately 19.7 acres in size. A legal description of the Project Area is included as Appendix B of this document. The Project Area includes only . those contiguous parcels that are anticipated to be substantially benefited by the proposed redevelopment project improvements and, which, collectively qualify for designation as a "blighted area." The Project Area is irregular in shape and is generally bounded by Butterfield Road on the north, Meyers Road on the east, I-88 East-West Tollway on the south and the Commonwealth Edison substation on the west. The property is designated as ORA-1 on Oak Brook's official zoning map which allows for a variety of retail and office uses. A zoning application is currently-being considered by the Village to rezone the Project Area to B-1 Local Shopping Center District. Community Context The Project Area is part of Oak Brook's Butterfield Road business and commercial area. The Commonwealth Edison substation immediately to the west of the Project Area forms a portion of Oak Brook's western boundary. The Butterfield Road corridor is developed primarily with commercial retail and office developments iri Oak Brook, Oakbrook Terrace and Lombard. The Illinois Tollway right-of-way separates the Project Area from residential uses to the south. The land use pattern to the north of the Project Area includes Fountain Square Plaza, a retail and restaurant development within the Village of Lombard and the Oak Brook Towers residential complex at the northeast corner of Butterfield and Meyers Road. Office uses are located immediately to the east of the Project Area at the southeast corner of the Butterfield.and Meyers Road intersection. Current Land Use and Community Facilities The current land use within the Project Area consists of three office buildings located on two tax parcels. There are two three-story buildings that were built in 1978 and a one-story brick . warehouse and office building built in 1969. Over the past few years the occupancy rate of the buildings has dropped below 30%, with approximately 140,000 square feet of office space advertised as for lease within the Project Area. The current configuration of land use is represented in Figure 2, Existing Land Use (see Appendix A). The Project Area is currently zoned ORA-1, which accommodates a variety of office and commercial uses. 5 February 2005 Transportation Characteristics The Project Area has excellent vehicular regional accessibility. The I-88 East-West Tollway forms the southern boundary of the Redevelopment Project Area. The closest access point to the Project Area is the Highland Avenue interchange. Butterfield Road provides primary access to the Project Area and carries approximately 41,000 vehicles per day with a posted speed limit of 45 miles per hour. Butterfield Road is a major east- west arterial that provides three lanes in each direction in the vicinity of the site with a painted median that is used to provide separate left turn lanes. At its signalized intersection with Meyers Road a separate left and right turn lane is provided on the east and west approaches in addition to the three through lanes in each direction. Meyers Road is a north-south minor arterial with two lanes in each direction. Meyers Road north of Butterfield road has a traffic volume of approximately 22,000 vehicles per day. South of Butterfield Road, the traffic volume is 15,000 vehicles per day. The Project Area cannot be accessed from Meyers Road because of the large detention pond located at the southwest corner of the Meyers and Butterfield Road intersection and the elevated approach to the bridge that spans the Illinois Tollway. Technology Drive provides secondary access to the Project Area. At its signalized intersection with Butterfield Road, it is a north-south local road under the jurisdiction of the Village of Lombard. As it approaches the Tollway right-of-way Technology Road runs east-west parallel to the Tollway and terminates at the Project Area boundary. 6 February 2005 3. ELIGIBILITY OF THE PROJECT AREA FOR DESIGNATION AS A BLIGHTED AREA The Project Area, on the whole, has not been subject to significant growth and development through investment by private enterprise. Based on the conditions present, the Project Area is not likely to be comprehensively or effectively developed without the adoption of the Plan. A series of studies were undertaken to establish whether the proposed Project Area is eligible for designation as a blighted area in accordance with the requirements of the Act. This analysis concluded that the Project Area so qualifies. The Project Area contains a total of five tax parcels. Three of these tax parcels are classified as improved property and account for 85.8% of Project Area. Two small parcels located along the I- 88 East-West Tollway right-of-way are classified as vacant land and comprise 6.1% of the Project Area. The remaining 8.1% of the Project Area consists of Meyers Road right-of-way that was never publicly dedicated. For improved property, the presence of five of the 13 conditions set forth in the Act is required for designation as a blighted area. These factors must be meaningfully present and reasonably distributed within the Project Area. Of the 13 factors cited in the Act for improved property, nine factors are present within the Project Area. All of these factors are meaningfully present and reasonably distributed throughout the Project Area. The following factors were found to a meaningful extent within the Project Area: • Obsolescence • Deterioration Presence of structures below minimum code standards • Excessive vacancies • Inadequate utilities • Excessive land coverage.or overcrowding of community facilities • Deleterious land use or layout • Lack of community planning • Lagging or declining equalized assessed valuation Two tax parcels consist entirely of vacant land. With respect to vacant land within the Project Area, the following factors were found to be present and reasonably distributed: • Obsolete platting • Deterioration of structure or site improvements in areas adjacent to vacant land • Lagging or declining EAV 7 February 2005 For more detail on the basis for eligibility,refer to the Study in Appendix C. Need for Public Intervention Public intervention is needed to achieve the Village's development objectives for the Project Area. In order to maintain the community's image as a premier commercial center, redevelopment of obsolete office facilities is required. A review of building permit activity within the Project Area indicates only minor investments over the past ten years which have not been sufficient to keep the buildings competitive in the marketplace and in productive use. The owner of these buildings would have to rebuild the structures to be competitive: Given that the vacancy rate for office space in the area is 30%, it is -unlikely that a private company would invest in new office buildings when the market is already over-built. In order to support retail growth which currently funds most.Village operations, new retail centers are needed. Redevelopment of the Project Area for retail uses is needed to reduce the amount of vacant office space within the Village and expand the retail tax base. Excluding land devoted to Meyers Road right-of-way, there are 18.2 acres of land within the Project Area. However, only 11.7 acres is available for construction of new commercial facilities. The remaining land contains a five-acre pond that functions as a regional detention pond, 0.5 acres of floodplain that cannot be built upon, and a one acre Commonwealth Edison easement with high-tension wires. Nothing can be built in this easement. In view of the significant portions of the Project Area that are and will continue to be devoted to storm water detention, utility easements and other site impediments, public assistance is needed to offset the cost of demolition and other site improvements. While the equalized assessed value of Oak Brook increased by 32%between 1998 and 2003, the total equalized assessed value of the Project Area grew by only 1.6% for the same period. However, a fact that should be of even more concern for taxing districts that levy property taxes is the 3.2% decline that occurred between 1998 and 2003 in the equalized assessed value of the largest tax parcel in the Project Area with the newest buildings. This trend supports the finding of blight contained in the Eligibility Study and the need for public intervention to ensure that the trend is reversed. 8 February 2005 4. REDEVELOPMENT PLAN GOALS AND OBJECTIVES The proposed Redevelopment Plan and Project is consistent with Village plans for the area. The land uses contained in the General Land Use Plan are consistent with the Oak Brook Comprehensive Plan and Zoning Ordinance. The following goals and objectives are provided to guide development in the Project Area: General Goals • Reduce or eliminate deleterious conditions. • Provide for the orderly transition from obsolete land uses to more appropriate land use patterns. • Enhance the retail sales tax base of the Project Area to support the Village's economic development objectives. Redevelopment Objectives • Encourage private investment within the Project Area. • Facilitate development of underutilized property for uses that have demonstrated market support. • Promote redevelopment that will provide a unique new retail focal point within Oak Brook. • Create an attractive environment that supports commercial redevelopment. • Provide an adequate supply of conveniently located and attractively designed parking to accommodate shoppers, business patrons and employees: Design Objectives • Create an attractive and exciting "town center" environment that is pedestrian-oriented and different from other nearby commercial areas. • Design required storm water facilities as public amenities. • Encourage visually attractive buildings, rights-of-way and open spaces and encourage high standards of design. 9 February 2005 5. REDEVELOPMENT PLAN The Village proposes to achieve its redevelopment goals and objectives for the Project Area through the use of public financing techniques, including tax increment financing, and by undertaking some or all of the following actions: Property Assembly, Site Preparation and Environmental Remediation Site preparation is a significant element of the Plan. All of the buildings must be demolished and grading will be needed to create an appropriate development site. Although not anticipated at this time, to meet the goals and objectives of the Plan, the Village may acquire and assemble property throughout the Project Area. Land assemblage by the Village may be through reimbursement to a developer or by purchase, exchange, donation, lease, or eminent domain, and may be for the purpose of (a) sale, lease or conveyance to private developers, or (b) sale, lease, conveyance or dedication for the construction.of public improvements or facilities. Furthermore, the Village may require written redevelopment agreements with developers before acquiring any properties. As appropriate, the Village may devote acquired property to temporary uses until such property is scheduled for disposition and development. The Village may exercise its powers to acquire real property, including the exercise of the power of eminent domain, under the Act in implementing the Plan, the Village will follow its customary procedures. Acquisition of such real property as may be authorized by the Village does not constitute a change in the nature of this Plan. The acquisition of such property may be paid for using TIF funds. Intergovernmental and Redevelopment Agreements The Village may enter into redevelopment agreements or intergovernmental agreements with private entities or public entities to construct, rehabilitate, renovate or restore private or public improvements on one or several parcels (collectively referred to as "Redevelopment Projects"). Such redevelopment agreements may be needed to support the rehabilitation or construction of allowable private improvements, in accordance with the Plan; incur costs or reimburse developers for other eligible redevelopment project costs as provided in the Act in implementing the Plan; insure that the Redevelopment Project is constructed and operated as delineated in the Plan; and provide public improvements and facilities which may include, but are not limited to utilities, streetscape enhancements, signalization,parking, surface right-of-way improvements, and community amenities. Terms of redevelopment as part of this redevelopment project may be incorporated in the appropriate redevelopment agreements. For example, the Village may agree to reimburse a 10 February 2005 developer for incurring certain eligible redevelopment project costs under the Act. Such agreements may contain specific development controls as allowed by the Act. Financial Impact on Taxing Districts The Act requires an assessment of any financial impact of the Project Area on, or any increased demand for services from, and any taxing district affected by the Plan and a description of any program to address such financial impacts or increased demand. The Village intends to monitor development in the Project Area and with the cooperation of the other affected taxing districts will attempt to ensure that any increased needs are addressed in connection with any particular development. Analysis, Professional Services and Administrative Activities The Village may undertake -or engage professional consultants, engineers, architects, attorneys, and others to conduct various analyses, studies, administrative or legal services to establish, implement, and manage the Plan, or market the land within the Project Area for private development. Provision of Public Improvements and Facilities Adequate public improvements and facilities may be provided to service the Project Area. Public improvements and facilities may include, but are not limited to upgrading existing access within or immediately adjacent to the Project Area, signalization improvements, provision of streetscape amenities, stormwater management, retaining walls, parking improvements, and utility improvements. 11 February 2005 6. REDEVELOPMENT PROJECT DESCRIPTION The Plan seeks to encourage redevelopment of the Project Area as a retail-oriented commercial development. The intent is to develop commercial facilities that act as a coordinated center to replace aging office buildings that reflect a number of poor planning decisions. The Plan recognizes that new investment in commercial property is needed to improve the Project Area. Attracting new private investment will require the redevelopment of existing properties. Proposals for infrastructure improvements will stress projects that serve and benefit the surrounding community. A comprehensive program of aesthetic enhancements will include streetscape improvements and aesthetically compatible new development. The components will create the quality environment required to sustain the revitalization of the Project Area. The major physical improvement elements anticipated as a result of implementing the proposed Plan are outlined below. Commercial Development The Plan recognizes that attractive new commercial retail development will enhance Oak Brook's desirability as a community. Office use is no longer desirable in this location because the market is so over-built and there is a substantial surplus of office space. The current uses produce no sales tax revenues to support Village services. Land Acquisition and Tenant Relocation The developer of the Redevelopment Project will be required to acquire the Project Area. The current owner will sell the land as an improved property with three office buildings. The developer must pay for the office buildings and then demolish them. This will result in an approximately $8 million loss. Additionally, there are a few tenants currently in the buildings. The developer may have to enter into lease termination agreements and pay for relocation expenses, and in some cases,a rent differential. Public Improvements Improvements to public infrastructure and facilities are needed to complement and attract private sector investment. Infrastructure improvements may include: • New water and sewer infrastructure; • New street lighting; • New landscaping in compliance with Village ordinances; • Construction of other public facilities that meet the needs of the community; and - • Storm water management facilities to serve new development. 12 February 2005 i 7. GENERAL LAND USE PLAN AND MAP Figure 3: Land Use Plan (see Appendix A), identifies land use policies to be pursued in the implementation of the Plan. The land use category planned for the Project Area is commercial. This land use designation applies to portions of the Project Area where retail facilities and supportive commercial uses will be used to create a coordinated retail environment. The Land Use Plan allows for a prudent level of flexibility in land use policy to respond to future market forces. The Land Use Plan is intended to serve as a guide for future land use improvements and developments within the Project Area. The Land Use Plan is intended to serve as a broad guide for land use and redevelopment policy. The plan is general in nature to allow adequate flexibility to respond to shifts in the market and private investment. The land uses proposed for the Project Area are consistent with the redevelopment goals of this Plan and are generally consistent with the land use designation contained in the Oak Brook Comprehensive Plan and Zoning Ordinance. These land use strategies are intended to direct development toward the most appropriate land use pattern for the various portions of the Project Area and enhance the overall development of the Project Area in accordance with the goals and objectives of the Plan. Locations of specific uses, or public infrastructure improvements, may vary from the Land Use Plan as a result of more detailed planning and site design activities. Such variations are permitted without amendment to the Plan as long as they are consistent with the Plan's goals and objectives and the land uses and zoning approved by the Village of Oak Brook. 13 February 2005 8. REDEVELOPMENT PLAN FINANCING Tax increment financing ' is an. economic development tool designed to facilitate the redevelopment of blighted areas and to arrest decline in areas that may become blighted without public intervention. It is expected that tax increment financing will be an important means, although not necessarily the only means, of financing improvements and providing development incentives in the Project Area throughout its 23-year life. Tax increment financing can only be used when private investment would not reasonably be expected to occur without public assistance. The Act sets forth the range of public assistance that may be provided. It is anticipated that expenditures for redevelopment project costs will be carefully staged in a reasonable and proportional basis to coincide with expenditures for redevelopment by private developers and the projected availability of tax increment revenues. The various redevelopment expenditures that are eligible for payment or reimbursement Linder the Act are reviewed below. Following this review is a list of estimated redevelopment project costs that are deemed to be necessary to implement this Plan (the "Redevelopment Project Costs"). In the event the Act is amended after the date of the approval of this Plan by the Oak Brook Village Board to (a) include new eligible redevelopment project costs, or(b) expand the scope or increase the amount of existing eligible.redevelopment project costs (such as, for example, by increasing the amount of incurred interest. costs that may be paid under 65 ILCS 5/11-74.4- 3(q)(11)), this Plan shall be deemed to incorporate such additional, expanded or increased eligible costs as Redevelopment Project Costs under the Plan, to the extent permitted by the Act. In the event of such amendment(s) to the Act, the Village may add any new eligible redevelopment project costs as a line item in Table 1 or otherwise adjust the line items in Table 1 without amendment to this Plan, to the extent permitted by the Act. In no instance, however, shall such additions or adjustments result in any increase in the total Redevelopment Project Costs without a further amendment to this Plan. Eligible Redevelopment Project Costs Redevelopment project costs include the sum total of all reasonable or necessary costs incurred, or estimated to be incurred, or incidental to the Plan pursuant the Act. Eligible costs may include, without limitation,the following: 1. Costs of studies and surveys, development of plans and specifications, implementation and administration of the Plan including,but not limited to, staff and professional service costs for architectural, engineering, legal, financial, planning or other services (excluding 14 February 2005 lobbying expenses), provided however, that no charges for professional services may be based on a percentage of the tax increment collected; 2. The cost of marketing sites within the Project Area to prospective businesses, developers and investors; j 3. Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, site preparation, site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination, including, but not limited to parking lots and other concrete or asphalt barriers, and the clearing and grading of land; 4. Costs of rehabilitation, reconstruction, repair or remodeling of existing public or private buildings, fixtures and leasehold improvements; and the cost of replacing an existing public building, if pursuant to the implementation of a redevelopment project, the existing public building is to be demolished to use the site for private investment or devoted to a different use requiring private investment; 5. Costs of the construction of public works or improvements subject to the limitations in Section 11-74.4-3(q)(4) of the Act; 6. Costs of job training and retraining-projects including the cost of "welfare-to-work" programs implemented by businesses located within the Project Area and such proposals featuring a community-based training program which ensures maximum reasonable employment opportunities for residents of the Project Area with particular attention to the needs of those residents who have previously experienced inadequate opportunities and development of job-related skills, including residents of public and other subsidized housing and people with disabilities. 7. Financing costs, including, but not limited to, all necessary and incidental expenses related to the issuance of obligations and, which may include payment of interest on any obligations issued there under, including interest accruing during the estimated period of construction of any redevelopment project for which such obligations are issued and for a period not exceeding 36 months following completion and including reasonable reserves related thereto; 8. To the extent the Village, by written agreement accepts and approves the same, all or a portion of a taxing district's capital costs resulting from the Redevelopment Project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the Plan. 9. Relocation costs, to the extent that the Village determines that relocation costs shall be paid or is required to make payment of relocation costs by state or federal law or in accordance with the requirements of Section 74.4-3(n)(7) of the Act (see "Relocation" section); 10. Payment in lieu of taxes, as defined in the Act; 15 February 2005 11. Costs of job training, retraining, advanced vocational education or career education, including but not limited to, courses in occupational, semi-technical or technical fields leading directly to employment, incurred by one or more taxing districts, provided that such costs: (i) are related to the establishment and maintenance of additional job training, advanced vocational education or career education programs for persons employed or to be employed by employers located in the Project Area; and(ii)when incurred by a taxing district or taxing districts other than the Village, are set forth in a written agreement by or among the Village and the taxing district or taxing districts, which agreement describes the program to be undertaken including but not limited to, the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay for the same, and the term of the agreement. Such costs include, specifically, the payment by community college districts of costs pursuant to Sections 3-37, 3-38, 3-40, and 3-40.1 of the Public Community College Act, 110 ILCS 805/3-37, 805/3-38, 805/3- 40 and 805/3-40.1, and by school districts of costs pursuant to Sections 10-22.20a and 10-23.3a of the School Code, 105 ILCS 5/10-22.20a and 5/10-23.3a. 12. Interest costs incurred by a developer related to the construction, renovation or rehabilitation of a redevelopment project provided that: • such costs are to be paid directly from the special tax allocation fund established pursuant to the Act; • such payments in any one year may not exceed 30% of the annual interest costs incurred by the redeveloper with regard to the redevelopment project during that year; • if there are not sufficient funds available in the special tax allocation fund to make the payment pursuant to this provision, then the amounts so due shall accrue and be payable when sufficient funds are available in the special tax allocation fund; • the total of such interest payments paid pursuant to the Act may not exceed 30% of the total: (i) cost paid or incurred by the redeveloper for such redevelopment project, plus (ii) redevelopment project costs excluding any property assembly costs and any relocation costs incurred by the Village pursuant to the Act; and • up to 75% of the interest cost.incurred by a redeveloper for the financing of rehabilitated or new housing units for low-income households and very low-income households, as defined in Section 3 of the Illinois Affordable Housing Act. 13. The cost of constructing new privately-owned buildings is not an eligible redevelopment project cost,unless specifically authorized by the Act; 14. An elementary, secondary or unit school district's increased costs attributable to assisted housing units will be reimbursed as provided for in the Act; 15. Up to 50% of the cost of construction, renovation and/or rehabilitation of all low-income and very low-income housing units (for ownership or rental) as defined in Section 3 of the Illinois Affordable Housing Act. If the units are part of a residential redevelopment project that includes units not affordable to low-income and very low-income households, only the low- and very low-income households shall be eligible for benefits under the Act; and 16 February 2005 16. The cost of day care services for children of employees from low-income families working for businesses located within the Project Area and all or a portion of the cost of operation of day care centers established by Project Area businesses to serve employees from low-income families working in businesses located in the Project Area, within a municipality with a population of more than 100,000. For the purposes of this paragraph, "low-income families" means families whose annual income does not exceed 80% of the Village, county or regional median income as determined from time to time by the United States Department of Housing and Urban Development. If a special service area has been established pursuant to the Special Service Area Tax Act, 35 ILCS 23510.01 et sect., then any tax increment revenues derived from the tax imposed pursuant to the Special Service Area Tax Act may be used within the redevelopment Project Area for the purposes permitted by the Special Service Area Tax Act as well as the purposes permitted by the Act. Estimated Project Costs A range of activities and improvements may be required to implement the Plan. The proposed eligible activities and their estimated costs over the life of the Project Area are briefly described below and shown in Table.1: Estimated Redevelopment Project Costs. 1. Professional services including planning studies, legal, surveys, real estate marketing costs, fees and other costs related to the implementation and administration of the Plan. This budget element provides for studies and ' survey costs for planning and implementation of the project, including planning and legal fees, architectural and engineering, development site marketing, and financial and special service costs. (Estimated cost: $750,000) 2. Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, and other appropriate and eligible costs needed to prepare the property for redevelopment. These costs may include the reimbursement of acquisition costs incurred by private developers. Land acquisition may include acquisition of both improved and vacant property in order to create development sites, accommodate public rights-of-way or to provide other public facilities needed to achieve the goals and objectives of the Plan. Property assembly costs also include: demolition of existing improvements, including clearance of blighted properties or clearance required to prepare sites for new development, site preparation, including grading, and other appropriate and eligible site activities needed to facilitate new construction, and environmental remediation costs associated with property assembly which are required to render the property suitable for redevelopment. (Estimated cost: $17,000,000) 3. Constriction of public improvements, infrastructure and facilities. These improvements are intended to improve access within the Project Area, stimulate private investment and address other identified public improvement needs, and may include all or a portion of a taxing district's eligible costs, including increased costs attributable to assisted housing . 17 February 2005 units within the Project Area in accordance with the requirements of the Act. (Estimated cost:.$1,250,000) The estimated gross eligible project cost over the life of the Project Area is approximately $19 million. All project cost estimates are in 2005 dollars. Any bonds issued to finance portions of the redevelopment project may.include an amount of proceeds sufficient to pay customary and reasonable charges associated with issuance of such obligations, as well as to provide for capitalized interest and reasonably required reserves. The total project cost figure excludes any costs for the issuance of bonds. Adjustments to estimated.line items, which are upper estimates for these costs, are expected and may be made without amendment to the Plan. Additional funding from other sources such as federal, state, county, or local grant funds may be utilized to supplement the Village's ability to finance Redevelopment Project Costs identified above. Table 1: ESTIMATED REDEVELOPMENT PROJECT COSTS Eligible Expense Estimated Cost Analysis,Administration, Studies, Surveys,Legal,Marketing, etc. $750,000 Property Assembly including Acquisition, Site Prep and Demolition and $17,000,000 Environmental Remediation Public Works &Improvements, including streets,utilities,public open space $1,250,000 and other public amenities TOTAL REDEVELOPMENT COSTS [Z�t3� $19,000,0004 'This category may also include paying for or reimbursing (i) an elementary, secondary or unit school district's increased costs attributed to assisted housing units, and(ii)capital costs of taxing districts impacted by the redevelopment of the Project Area. As permitted by the Act,to the extent the Village by written agreement accepts and approves the same, the Village may pay, or reimburse all, or a portion of a taxing district's capital costs resulting from a redevelopment project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the Plan. 'Total Redevelopment Project Costs exclude any additional financing costs,including any interest expense, capitalized interest and costs associated with optional redemptions. These costs are subject to prevailing market conditions and are in addition to Total Redevelopment Project Costs. 'The amount of the Total Redevelopment Project Costs that can be incurred in the Project Area will be reduced by the amount of redevelopment project costs incurred in contiguous redevelopment project areas, or those separated from the Project Area only by a public right-of-way,that are permitted under the Act to be paid, and are paid, from incremental property taxes generated in the Project Area, but will not be reduced by the amount of redevelopment project costs incurred in the Project Area which are paid from incremental property taxes generated in contiguous redevelopment project areas or those separated from the Project Area only by a public right-of-way. 4Increases in estimated Total Redevelopment Project Costs of more than five percent, after adjustment for inflation from the date of the Plan adoption, are subject to the Plan amendment procedures as provided under the Act. Additional funding from other sources such as federal, state, county, or local grant funds may be utilized to supplement the Village's ability to finance Redevelopment project Costs identified above. 18 February 2005 Sources of Funds The funds necessary to pay for Redevelopment Project Costs and secure municipal obligations issued for such costs are to be derived primarily from Incremental Property Taxes. Other sources of funds which may be used to pay for Redevelopment Project Costs or secure municipal obligations are land disposition proceeds, state and federal grants, investment income, private financing, and other legally permissible funds as the Village may deem appropriate. The Village may incur redevelopment project costs (costs for line items listed on Table 1: Estimated Redevelopment Project Costs) which are paid for from funds of the Village other than incremental taxes, and the Village may then be reimbursed for such costs from incremental taxes. Also, the Village may permit the utilization of guarantees, deposits and other,forms of security made available by private sector developers. Additionally, the Village may utilize revenues, other than State sales tax increment revenues, received under the Act from one redevelopment project area for eligible costs in another redevelopment project area that is either contiguous to, or is separated only by a public right-of- way from, the redevelopment project area from which the revenues are received. The Project Area may be contiguous to or separated by only a public right-of-way from other. redevelopment project areas created.Linder the Act. The Village may utilize net incremental property taxes received from the Project Area to pay eligible redevelopment project costs, or obligations issued to pay such costs, in other contiguous redevelopment project areas, or project areas separated only by a public right-of-way, and vice versa. The amount of revenue from the Project Area, made available to support such contiguous redevelopment project areas, or those separated only by a public right-of-way, when added to all amounts used to pay eligible redevelopment project costs within the Project Area, shall not at any time exceed the total redevelopment project costs described in this Plan. The Project Area may become contiguous to, or be separated only by a public right-of-way from, redevelopment project areas created under the Industrial Jobs Recovery Law (65 ILCS 5111- 74.61-1 et seq.). If the Village finds that the goals, objectives and financial success of such contiguous redevelopment project areas, or those separated only by a public right-of-way, are interdependent with those of the Project Area, the Village may determine that it is in the best interests of the Village and the furtherance of the purposes of the Plan that net revenues from the Project Area be made available to support any such redevelopment project areas and vice versa. The Village therefore proposes to utilize net incremental revenues received from the Project Area to pay'eligible redevelopment project costs (which are eligible under the Industrial Jobs Recovery Law referred to above) in any such areas, and vice versa. Such revenues may be transferred or loaned between the Project Area and such areas. The amount of revenue from the Project Area so made available, when added to all amounts used to pay eligible redevelopment project.costs within the Project Area, or other areas described in the preceding paragraph, shall not at any time exceed the total redevelopment project costs described in Table 1, Estimated Redevelopment Project Costs. Development of the Project Area would not be reasonably expected to occur without the use of the incremental revenues provided by the Act. Redevelopment project costs include those eligible project costs set forth in the Act. Tax increment financing or other public sources will be used only to the extent-needed to secure commitments for private redevelopment activity. 19 February 2005 Nature and Term of Obligations to be Issued The Village may issue obligations secured by Incremental Property Taxes pursuant to Section 11-74.4-7 of the Act. To enhance the security of a municipal obligation, the Village may pledge its full faith and credit through the issuance of general obligation bonds. Additionally, the Village may provide other legally permissible credit enhancements to any obligations issued pursuant to the Act. The Village will not pledge its full faith and credit nor any other source of revenue other than the incremental revenues generated by the project to secure any obligation issued pursuant to this Redevelopment Plan. The redevelopment project shall be completed, and all obligations issued to finance redevelopment costs shall be retired, no later than December 31 of the year in which the payment to the Village treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the twenty-third calendar year following the year in which the ordinance approving the Project Area is adopted (i.e., assuming Village Board approval of the Project Area and Plan in 2005, by 2029). Also, the final maturity date of any such obligations which are issued may not be later than 20 years from their respective dates of issue. One or more series of obligations may be sold at one or more times in order to implement this Plan. Obligations may be issued on a parity or subordinated basis. In addition to paying Redevelopment Project Costs, Incremental Property Taxes may be used for . the scheduled retirement of obligations,_mandatory or optional redemptions, establishment of debt service reserves and bond sinking fiinds. To the extent that Incremental Property Taxes are not needed for these purposes, and are not otherwise required, pledged, earmarked or otherwise designated for the payment of Redevelopment Project Costs, any excess Incremental Properly Taxes shall then become available for distribution annually to taxing districts having jurisdiction over the Project Area in the manner provided by the Act. Most Recent Equalized Assessed Valuation The purpose of identifying the most recent equalized assessed valuation ("EAV") of the Project Area is to provide an estimate of the initial EAV, which the DuPage County Clerk will certify for the purpose of annually calculating the incremental EAV and incremental property taxes of the Project Area. The 2003 EAV of all taxable parcels within the Project Area is $6,907,510. This total EAV amount by Parcel Identification Number(PIN) is summarized in Appendix D and is subject to verification by the DuPage County Clerk. After verification, the final figure shall be certified by the DuPage County Clerk, and after the Village files its ordinance creating a tax increment financing district in accordance with the Act shall become the Certified Initial EAV from which all incremental property taxes in the Project Area will be calculated by DuPage County. Anticipated Equalized Assessed Valuation By the tax year 2028 (collection year 2029) and following the substantial completion of the Oak Brook Promenade Redevelopment Project, the EAV of the Project Area is estimated to at 20 February 2005 approximately $11.8 million. The estimated range is based on several key assumptions, including: 1) redevelopment of the Project Area will occur in a timely manner; 2) an estimated annual inflation rate in EAV of 2.0 percent through 2028); and 3) the 2003 DuPage County state equalization factor of 1.00 is used in all years to calculate estimated EAV. Financial Impact on Taxing Districts The Act requires an assessment of any financial impact of the Project Area on, or any increased demand for services from, any taxing district affected by the Plan and a description of any program to address such financial impacts or increased demand. The Village intends to monitor development in the Project Area and with the cooperation of the other affected taxing districts will attempt to ensure that any increased needs are addressed in connection with any particular development. The following taxing districts presently have the authority to levy taxes on some or all of the properties located within the Project Area: Village of Oak Brook: The Village is responsible for the provision of a wide range of municipal services, including police and fire protection, capital improvements and maintenance, public works and library services. The Village does not levy property taxes against real property within the Village. Oak Brook Park District: The Oak Brook Park District was created in 1962 and currently owns and maintains Six parks in Oak Brook, DuPage Water Commission: The DuPage Water Commission is responsible for purchase and redistribution of Lake Michigan water from the City of Chicago. The Commission has the authority to levy taxes,but does not have a current levy. DuPage Airport Authority: The DuPage Airport Authority is responsible for managing the DuPage Airport which is the third busiest airport in the state, following Chicago O'Hare and Midway Airports. Facilities on the 2,800 airport site include a championship-style public golf course. Hinsdale Sanitary District: The Hinsdale Sanitary District does not currently levy taxes within its jurisdiction. Grade School District 58: Grade School District 58 is responsible for the provision, maintenance and operations of educational facilities and services for approximately 4,900 kindergarten through eight grade students Living in Downers Grove and portions of Oak Brook, Westmont and Woodridge. High School District 99: High School District 99 operates educational facilities and educates students from .9a' through 12"' grade. Current enrollment totals approximately 5,300. The District was established in 1923 and serves a 32 square mile area that includes portions of seven separate municipalities and unincorporated DuPage County. 21 February 2005 College of DuPage District 502: The Community College District is a unit of the State of Illinois system of public community colleges, whose objective is to meet the educational needs of residents of the Village and other students seeking higher education programs and services. DuPage County: The County has principal responsibility for the protection of persons and property and the maintenance of Comity highways. DuPage County Health Department: DuPage County has a separate tax levy for the provision of public health services. DuPage County Forest Preserve District: The Forest Preserve District is responsible for acquisition, restoration and management of lands for the purpose of protecting and preserving open space in the Village and County for the education,pleasure and recreation of the public. York Township: York Township is responsible for a variety of services including general assistance and the assessor's office. York Township Road: The York Township Highway Department has jurisdiction over all township tights-of-way within York Township and maintains 75 lane miles of paved roadways and approximately 80 miles of stormwater drainage pipes, ditches and laterals. York Township Special Police: This tax district levy only applies to the two tax parcels that are not presently within the Village of Oak Brook. Upon annexation, this levy will no longer apply. The proposed revitalization of the Project Area is expected to create moderate demands on public services. Because there will be no residential development within the Project Area there will not be an increased the demand for school,parks and other residential services. Demands on police and fire services may increase slightly due to the increase in retail activity. The demand for water and sewer services may increase as well. When completed, developments in the Project Area will generate property tax revenues for all taxing districts. Other revenues may also accrue to the Village in the form of sales tax, business fees and licenses, and utility user fees. The costs of some services such as water and sewer service,building inspections, etc. are typically covered by user charges. For most taxing districts levying taxes on property within the Project Area, increased service demands are expected to be negligible because they are already serving the Project Area. Upon completion of the Plan, all taxing districts are expected to share the benefits of a substantially improved tax base. However, prior to the completion of the Plan, certain taxing districts may experience an increased demand for services. It is expected that any increases in demand for the services and programs of the aforementioned taxing districts, associated with the Project Area, can be adequately handled by the existing services and programs maintained by these taxing districts. However, the Project Budget line 22 February 2005 item for public improvements, includes "taxing district capital costs" to address potential demands associated with implementing the Plan. Real estate tax revenues resulting from increases in the EAV, over and above the Certified Initial EAV established with the adoption of the Plan, will be used to pay eligible redevelopment costs in the Project Area. Following termination of the Project Area, the real estate tax revenues, attributable to the increase in the EAV over the Certified Initial EAV, will be distributed to all taxing districts levying taxes against property located in the Project Area. Successful implementation of the Plan is expected to result in new development and private investment on a scale sufficient to overcome blighted conditions and substantially improve the long-term economic value of the Project Area. Completion of the Redevelopment Project and Retirement of Obligations to Finance Redevelopment Project Costs- The Plan will be completed, and all obligations issued to finance redevelopment costs shall be retired, no later than December 31st of the year in which the payment to the Village Treasurer as provided in the Act is to be made with respect to ad valorem taxes levied in the twenty-third calendar year following the year in which the ordinance approving the Plan is adopted (assuming adoption in 2005, by December 31, 2029). 23 February 2005 9. HOUSING IMPACT AND RELATED MATTERS Amendments to the Act that became effective November 1, 1999, require the preparation of a housing impact study if the Project Area contains 75 or more inhabited residential units unless the Village certifies in the Plan that displacement will not result from the Plan or the Plan would not result in the displacement of ten or more inhabited residential units. There are no inhabited residential units in the Project Area. Therefore, a housing impact study is not a required element of this Plan. 24 February 2005 10. ANNEXATION AGREEMENT PROVISIONS The Act requires that the Redevelopment Plan include the terms of the annexation agreement if property is to be annexed to the municipality. The Project Area includes two small vacant parcels that will be annexed to the Village of Oak Brook prior to the adoption of the Oak, Brook Promenade Tax Increment Redevelopment Plan and Project. The annexation agreement will incorporate the Redevelopment Agreement for the Redevelopment Project, which will include the following terms: 1. Developer will covenant to finance and construct. the Redevelopment Project in accordance with the terms of this Redevelopment Plan and the ordinances adopted by the Village approving the specific project that will constitute the Redevelopment Project. 2. The Village will issue TIF obligations to assist the developer with eligible costs. 3. The developer will complete the Project in accordance with a schedule to be agreed upon by the parties. 25 February 2005 11. PROVISIONS FOR AMENDING THE PLAN The Plan may be amended pursuant to the provisions of the Act. 26 February 2005 12. VILLAGE OF OAK BROOK COMMITMENT TO FAIR EMPLOYMENT PRACTICES AND AFFIRMATIVE ACTION As part of any Redevelopment Agreement entered into by the Village and any private developer, both will agree to establish and implement an affirmative action program that serves appropriate sectors of the Village of Oak Brook. Developers or redevelopers will meet Village of Oak Brook standards for participation of Minority Business Enterprises and Woman Business Enterprises as required in Redevelopment Agreements. With respect to the public/private development's internal operations, both entities will pursue employment practices which provide equal opportunity to all people regardless of sex, color,. race, religion or creed. Neither party will countenance discrimination against any employee or applicant because of sex, marital status, national origin, age, or the presence of physical handicaps. These nondiscriminatory practices will apply to all areas of employment, including hiring, upgrading and promotions, terminations, compensation, benefit programs and educational opportunities. Anyone involved with employment or contracting for this Plan will be responsible for conformance with this policy and the compliance requirements of applicable state and federal regulations. The Village and the private developers involved in the implementation of this Plan will adopt a policy of equal employment opportunity and will include or require the inclusion of this statement in all contracts at any level for redevelopment projects being undertaken in the Project Area. Any public/private partnership established with respect to implementation of the Plan will seek to ensure and maintain a working environment free of harassment, intimidation and coercion at all sites, and in all facilities at which employees are assigned to work. It shall be specifically ensured that all on-site supervisory personnel are aware of and carry out the obligation to maintain such a working environment, with specific attention to minority and/or female individuals. The partnership will utilize affirmative action to ensure that business opportunities are provided and that job applicants are employed and treated in a nondiscriminatory manner. Underlying this policy is the recognition that successful affirmative action programs are important to the continued growth and vitality of the Village of Oak Brook. 27 February 2005 APPENDIX A OAK BROOK PROMENADE REDEVELOPMENT PROJECT AREA FIGURES 1-3 A-1 February 2005 S b N.Sl�9tma �4��k° A 'q, � 'tit 5 �VF•i QG d tlT-t �C2tl}p]01 Pill, Mme r t,s- r sy. i i i,➢_ gyp' '!yy ts:'Nr i'.�'......'�'f�*H;.a+„,y#�!�«" k+i4'P"%P;.iv'w'i"wR?A:::I.«.:i3r?'-�Y^! cRkRa u .e;.o'kliEkm..m •`? gy riy 8aa i N FIGURE 1: REDEVELOPMENT PROJECT AREA BOUNDARY MAP VILLAGE OF OAK BROOK TIF# 'I PLAN DATE: FEBRUAY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING M 1 kOS REDEVELOPMENT PLAN AND PROJECT LEGEND OFFICE VACANT LAND �Ll.Cf 7 - Ofq 5 a° .W� 3 i yh�C 7 5-018 +y t)AfG F a •. ��x�E vim&_ } di, N FIGURE 2: EXISTING LAND USE VILLAGE OF OAK BROOK TIF# 1 PLAN DATE: FEBRUARY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING REDEVELOPMENT PLAN AND PROJECT CAM I kOS ILEGEND RETAIL/ COMMERCIAL _ C k�,aS 4 � tlb31N 1 SbiF" lit Ago per- €3 Fs l; a ,y y S3' A", >Ir b 3�'p� p ,�+'.<$"IDS S3 i_ M • Y� 'E^ ; �hr � >ma N FIGURE 3: LAND USE PLAN VILLAGE OF OAK BROOK TIF# 'I PLAN DATE: FEBRUARY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING REDEVELOPMENT PLAN AND PROJECT CAM I kOS APPENDIX B VILLAGE OF OAK BROOK TIF #1 OAK BROOK PROMENADE REDEVELOPMENT AND PROJECT AREA LEGAL DESCRIPTION PARCEL 1: LOT.2 OF BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2 EXCEPT THE WESTERLY 265 FEET THEREOF AS MEASURED ALONG THE NORTHERLY LINE THEREOF,AND EXCEPT THAT PART THEREOF DESCRIBED AS FOLLOWS: THAT PART OF LOT 2, AFORESAID, IN THE NORTH HALF OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JULY 8, 1964 AS DOCUMENT R64-24069 IN DUPAGE COUNTY, ILLINOIS,MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 2, BEING THE POINT OF INTERSECTION OF THE SOUTH RIGHT OF WAY LINE,OF F.A. ROUTE 131 WITH THE EXISTING CENTER LINE OF MEYERS ROAD; THENCE WESTERLY ALONG SAID SOUTH RIGHT OF WAY LINE, A DISTANCE OF 55.4 FEET TO A POINT ON THE EXISTING WEST RIGHT OF WAY LINE OF MEYERS ROAD FOR A POINT OF BEGINNING; THENCE SOUTHWESTERLY ALONG SAID WEST RIGHT OF WAY LINE WHICH FORMS AN ANGLE OF 58 DEGREES 25 MINUTES 31 SECONDS TO THE LEFT WITH A PROLONGATION OF THE LAST DESCRIBED COURSE, A DISTANCE OF 361.1 FEET TO A POINT, SAID WEST RIGHT OF WAY LINE BEING THE EAST LINE OF THE CHICAGO TITLE AND TRUST COMPANY,AS TRUSTEE UNDER TRUST NUMBER 46940 PROPERTY; THENCE NORTHEASTERLY ALONG A,LINE WHICH FORMS AN ANGLE OF 176 DEGREES 08 MINUTES 00 SECONDS TO THE RIGHT WITH A PROLONGATION OF THE LAST DESCRIBED COURSE, A DISTANCE OF 347.5 FEET TO A POINT ON THE SOUTH RIGHT OF WAY LINE OF F.A. ROUTE 131; THENCE EASTERLY, ALONG SAID SOUTH RIGHT OF WAY LINE, A DISTANCE OF 27.5 FEET TO THE POINT OF BEGINNING, BEING THE LAND CONVEYED TO THE PEOPLE OF THE STATE OF ILLINOIS, DEPARTMENT OF TRANSPORTATION BY DEED RECORDED JULY 29, 1974 AS DOCUMENT R74-3 8411. PARCEL 2: THAT PART OF NORTHERN ILLINOIS GAS COMPANY'S 82.5 FOOT RIGHT OF WAY KNOWN AS NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1 (PLAT DOCUMENT 950269) LYING SOUTH OF AND ABUTTING LOT 2 (EXCEPT THE WESTERLY 265, FEET AS MEASURED ALONG THE NORTHERLY LINE THEREOF), IN BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2, OF PART OF THE NORTHWEST QUARTER OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD B-1 February 2005 PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JULY 8, 1964 AS DOCUMENT R64-24069, IN DUPAGE COUNTY,ILLINOIS; ALSO DESCRIBED AS FOLLOWS: THAT PART OF NORTHERN ILLINOIS GAS COMPANY PARCEL NO.NIG 2-63,AS SHOWN ON NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF LOT 1 IN GLIDDEN SUBDIVISION, AS RECORDED OCTOBER 3, 1969 AS DOCUMENT R69-43878 FOR A POINT OF BEGINNING; THENCE NORTH 65 DEGREES 27 MINUTES 37 SECONDS EAST ALONG THE NORTH LINE OF SAID PARCEL NIG 2-63 (BEING ALSO THE SOUTHERLY LINE OF LOT 2.IN BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2, AS RECORDED JULY 8, 1964 AS DOCUMENT R64-24069), 517.90 FEET, MORE OR LESS, TO A POINT ON THE NORTHWESTERLY LINE OF NORTHERN ILLINOIS TOLL HIGHWAY PARCEL NO. E-2-63.5; THENCE SOUTH 04 DEGREES 30 MINUTES 01 SECOND WEST ALONG SAID NORTHWESTERLY LINE OF PARCEL NO. E-2- 63.5, 94.36 FEET, MORE OR LESS, TO AN ANGLE POINT IN SAID NORTHWESTERLY LINE; THENCE SOUTH 65 DEGREES 27 MINUTES 37 SECONDS WEST ALONG SAID NORTHWESTERLY LINE OF PARCEL NO. E-2-63.5, 465.95 FEET, MORE OR LESS, TO THE INTERSECTION OF THE SOUTHERLY EXTENSION OF THE AFOREMENTIONED EASTERLY LINE OF LOT 1 IN GLIDDEN SUBDIVISION WITH SAID NORTHWESTERLY LINE OF PARCEL NO. E-2-63.5; THENCE NORTH 28 DEGREES 48 MINUTES WEST ALONG THE SOUTHERLY EXTENSION OF THE EASTERLY LINE OF SAID LOT 1 IN GLIDDEN SUBDIVISION 82.73 FEET, MORE OR LESS, TO THE POINT OF BEGINNING, ALL IN SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN DUPAGE COUNTY,ILLINOIS. PARCEL 3: LOT 1 IN GLIDDEN SUBDIVISION NO. 1, BEING A SUBDIVISION OF THE WESTERLY 265 FEET AS MEASURED ALONG THE NORTHERLY LINE THEREOF, OF LOT 2 IN BUTLER COMPANY M-1 INCORPORATED ASSESSMENT PLAT NO. 2 OF PART OF THE NORTHWEST QUARTER OF SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID GLIDDEN SUBDIVISION NO. 1 RECORDED OCTOBER 3, 1969 AS DOCUMENT R69-43878,IN DUPAGE COUNTY,ILLINOIS. PARCEL 4: THAT PART OF NORTHERN ILLINOIS GAS COMPANY PARCEL NO. NIG 2-63 AS SHOWN ON NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 11 DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 1 IN GLIDDEN SUBDIVISION AS RECORDED OCTOBER 3, 1969 AS DOCUMENT R69-43878 AND PROCEEDING SOUTH 28 DEGREES 48 MINUTES EAST ALONG A SOUTHERLY EXTENSION OF THE EAST LINE OF SAID LOT 1, A DISTANCE OF 82.73 FEET,MORE OR LESS,TO A POINT ON THE NORTHERLY LINE OF NORTHERN ILLINOIS TOLL HIGHWAY PARCEL E-2-63.5; THENCE SOUTH 65 DEGREES 27 MINUTES 37 SECONDS WEST ALONG SAID NORTHERLY LINE 265.61 FEET, MORE OR LESS, TO THE INTERSECTION OF THE SOUTHERLY EXTENSION OF THE WESTERLY LINE OF LOT 2 IN BUTLER COMPANY M-1, INC. ASSESSMENT PLAT NO. 2 RECORDED JULY 8, 1964 AS DOCUMENT R64-24069 AND THE AFOREMENTIONED NORTHERLY LINE; THENCE NORTH 28 DEGREES 48 MINUTES WEST ALONG SAID SOUTHERLY EXTENSION, 82.73 FEET, MORE OR LESS, TO THE SOUTHWEST CORNER OF LOT 2 IN THE AFOREMENTIONED BUTLER COMPANY ASSESSMENT PLAT (SAID CORNER BEING ON THE NORTH LINE OF NORTHERN ILLINOIS GAS COMPANY PROPERTY PARCEL NO. NIG 2-63); THENCE NORTH 65 DEGREES 27 MINUTES 37 SECONDS EAST ALONG SAID B-2 February 2005 NORTH LINE (SAID LINE BEING COINCIDENT WITH THE SOUTH LINE OF AFOREMENTIONED LOT 2); 265.61 FEET, MORE OR LESS, TO.THE POINT OF BEGINNING, ALL IN SECTION 28, TOWNSHIP 39 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN,IN DUPAGE COUNTY,ILLINOIS. PARCEL 5: THAT PART OF THE NORTHWEST QUARTER OF SECTION 28, TOWNSHIP 39 NORTH,RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN,IN DUPAGE COUNTY, ILLINOIS,DESCRIBED AS FOLLOWS: BEGINNING AT THE EASTERLY MOST NORTHEAST CORNER OF LOT 5 IN HOMESTEAD VILLAGE, BEING A SUBDIVISION OF PART OF THE NORTHWEST QUARTER OF SAID SECTION 28 AND SECTION 29, ACCORDING TO THE PLAT THEREOF RECORDED SEPTEMBER 1, 1998 AS DOCUMENT R98-179522, SAID POINT OF BEGINNING BEING ON THE SOUTHERLY LINE OF NORTHERN ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO. NIG2-63N ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT 950269; THENCE NORTH 65 DEGREES 32 MINUTES 08 SECONDS EAST (NORTH 65 DEGREES 37 MINUTES EAST,RECORD) ALONG SAID SOUTHERLY LINE OF NORTHERN ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO. NIG2-63N, A DISTANCE OF 451.02 FEET (450.89 FEET RECORD) TO THE EASTERLY LINE OF SAID NORTHERLY ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO NIG2-63N; THENCE NORTH 04 DEGREES 34 MINUTES 53 SECONDS EAST (NORTH 04 DEGREES 47 MINUTES EAST, RECORD)ALONG SAID EAST LINE OF THE NORTHERN ILLINOIS GAS COMPANY ASSESSMENT PLAT NO. 1 PARCEL NO. NIG2-63N, AND ALONG AN EASTERLY LINE OF LOT 2 IN BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2 ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT NO. R64-24069, A DISTANCE OF 191.20 FEET (191.21. FEET RECORD) TO A SOUTHEASTERLY CORNER OF SAID LOT 2 IN BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2; THENCE SOUTH 85 DEGREES 23 MINUTES 50 SECONDS EAST (SOUTH 85 DEGREES 13 MINUTES EAST RECORD), ALONG A SOUTHERLY LINE OF SAID LOT, 2 IN BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2, A DISTANCE OF 100.00 FEET TO A SOUTHEASTERLY CORNER OF SAID LOT 2 IN BUTLER COMPANY M-1 INC. ASSESSMENT PLAT NO. 2, SAID POINT BEING ON THE WESTERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY PERMANENT EASEMENT PARCEL NO. E-2-63.1 ACCORDING TO DOCUMENT NO. 846924; THENCE SOUTH 04 DEGREES 35 MINUTES 51 SECONDS WEST (SOUTH 04 DEGREES 47 MINUTES WEST, RECORD) ALONG THE WESTERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY PERMANENT EASEMENT PARCEL NO. E-2-63.1,AND ALONG THE WESTERLY LINE OF THE NORTHERN ILLINOIS GAS COMPANY YORK TOWNSHIP ASSESSMENT PLAT NO. 1 LOT 8-2 ACCORDING TO THE PLAT THEREOF RECORDED AS DOCUMENT NO. R64-28042, A DISTANCE OF 250.00 FEET TO THE NORTHERLY LINE OF THE NORTHERN ILLINOIS TOLL HIGHWAY; THENCE SOUTH 65 DEGREES 32 MINUTES 08 SECONDS WEST (SOUTH 65 DEGREES 37. MINUTES WEST, RECORD) ALONG SAID NORTHERLY LINE OF THE NORTHERN ILLINOIS_TOLL HIGHWAY,A DISTANCE OF 349.98 FEET TO THE SOUTHEASTERLY CORNER OF TECHNOLOGY DRIVE AS DEDICATED BY THE PLAT OF SAID HOMESTEAD VILLAGE; THENCE THE FOLLOWING SIX (6) COURSES AND DISTANCES ALONG THE EASTERLY AND NORTHERLY LINE OF SAID TECHNOLOGY DRIVE: 1) THENCE NORTH 24 DEGREES 22 MINUTES 20 SECONDS WEST (NORTH 25 DEGREES.41 MINUTES 17 SECONDS WEST,RECORD)A DISTANCE OF 97.36 FEET TO THE NORTHEAST CORNER OF SAID TECHNOLOGY DRIVE; 2) THENCE SOUTH 65 DEGREES 37 MINUTES 40 SECONDS WEST (SOUTH 64 DEGREES 18 MINUTES 43 SECONDS WEST, RECORD) A DISTANCE OF 80.00 FEET; 3) THENCE SOUTH 24 DEGREES 22 MINUTES 20 SECONDS EAST (SOUTH 25 DEGREES 41 MINUTES 17 SECONDS EAST, RECORD) A DISTANCE OF 15.00 FEET; 4) THENCE SOUTH 65 DEGREES 37 MINUTES 40 SECONDS WEST B-3 February 2005 (SOUTH 64 DEGREES 18 MINUTES 43 SECONDS WEST,RECORD)A DISTANCE OF 4.75 FEET; 5) THENCE SOUTH 13 DEGREES 41 MINUTES 39 SECONDS WEST, (SOUTH 12 DEGREES 00 MINUTES 14 SECONDS WEST, RECORD) A DISTANCE OF 20.78 FEET; 6) THENCE SOUTH 65 DEGREES 32 MINUTES 08 SECONDS WEST, (SOUTH 64 DEGREES 13 MINUTES 11 SECONDS WEST, RECORD) A DISTANCE OF 62.44 FEET TO THE SOUTHEAST CORNER OF SAID LOT 5 IN HOMESTEAD VILLAGE; THENCE NORTH 24 DEGREES 22 MINUTES 20 SECONDS WEST (NORTH 25 DEGREES 41 MINUTES 17 SECONDS WEST, RECORD) ALONG THE EASTERLY MOST LINE OF SAID LOT 5, A DISTANCE OF 33.80 FEET TO SAID POINT OF BEGINNING, IN DUPAGE COUNTY,ILLINOIS. B-4 February 2005 APPENDIX C VILLAGE OF OAK BROOK TIF#1 OAK BROOK PROMENADE REDEVELOPMENT AND PROJECT AREA ELIGIBILITY STUDY The purpose of this study is to determine whether a portion of the Village of Oak Brook identified as the Oak Brook Promenade Redevelopment Project Area qualifies for designation as a tax increment financing district within the definitions set. forth under 65 ILCS 5/11-74.4 contained in the "Tax Increment Allocation Redevelopment At" (65 ILCS 5/11-74.4-1 et m.), as amended. This legislation focuses on the elimination of blighted or rapidly deteriorating areas through the implementation of a redevelopment plan. The Act authorizes the use of tax increment revenues derived in a project area for the payment or reimbursement of eligible redevelopment project costs. The area proposed for designation as the Oak Brook Promenade Redevelopment Project Area, hereinafter referred to as the "Study Area," is shown in Figure A: Study Area Boundary Map. The Study Area is generally bounded by Butterfield Road on the north,Meyers Road on the east, I-88 East-West Tollway on the south and the Commonwealth Edison substation on the west. The Study Area is approximately 19.7 acres in size and includes five tax parcels. and undedicated Meyers Road right-of-way. I This study summarizes the analyses and findings of the consultant's work, which, unless otherwise noted, is solely the responsibility of Camiros, Ltd. and does not necessarily reflect the views and opinions of potential developers or the Village of Oak Brook. Camiros, Ltd. has prepared this report with the understanding that the Village would rely 1) on the findings and conclusions of this report in proceeding with the designation of the Study Area as a redevelopment project area under the Act, and 2) on the fact that Camiros, Ltd. has obtained the necessary information to conclude that the Study Area meets the requirements for designation as a redevelopment project area in compliance with the Act. C-1 February 2005 x•032 -� s.pt9 � asp��.:f �^ x!' t!4 � p� Y � Pte" w't �q, '`�,✓ 'x d_ ax 'R �� >sis`� f •'�;do- S i \\ xamnacaa 'r',� s �a , ' naxa7wm' 0 al g t�q s 'b a-rn a rr , P N FIGURE A: STUDY AREA BOUNDARY MAP VILLAGE OF OAK BROOK TIF# 1 PLAN DATE: FEBRUARY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING REDEVELOPMENT PLAN AND PROJECT CAM I kOS 1. INTRODUCTION The Tax Increment Allocation Redevelopment Act (the "Act") permits municipalities to induce redevelopment of eligible "blighted," "conservation" or "industrial park conservation areas" in accordance with an adopted redevelopment plan. The Act stipulates specific procedures, which must be adhered to, in designating a redevelopment project area. One of those procedures is the determination that the area meets the statutory eligibility requirements. Under 65 ILCS 5/11- 74.4-3(p), the Act defines a"redevelopment project area" as: "... an area designated by the municipality, which is not less in the aggregate than 1-1/2 acres, and in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area, conservation area or industrial park conservation area, or combination of both blighted and conservation areas." In adopting the Act, the Illinois State Legislature found that: 1. ...there exists in many municipalities within this State blighted, conservation and industrial park conversation areas...(at 65 ILCS 5/11-74.4-2(a)); and 2. ...the eradication of blighted areas and treatment and improvement of conservation areas by redevelopment projects is hereby declared to be essential to the public interest (at 65 ILCS 5/11-74.4-2(b)). The legislative findings were made on the basis that the presence of blight, or conditions that lead to blight, is detrimental to the safety; health, welfare and morals of the public. The Act specifies certain requirements, which must be met, before a municipality may proceed with implementing a redevelopment project in order to ensure that the exercise of these powers is proper and in the public interest. Before the tax increment financing ("TIF") technique can be used, the municipality must first determine that the proposed redevelopment area qualifies for designation as a "blighted area," "conservation area," or "industrial park conservation area." Based on the conditions present, this Eligibility Study (the "Study") finds that the Study Area qualifies for designation as a blighted area,both with respect to its improved area and with respect to its vacant area. Blighted Areas If the property under consideration is improved, a combination of five or more of the following factors must be present for designation as a blighted area, as more fully discussed in Section 74.4-3(a)(1) of the Act: 1. Dilapidation 2. Obsolescence 3. Deterioration 4. Presence of structures below minimum code standards 5. Illegal use of individual structures C-3 February 2005 6. Excessive vacancies 7. Lack of ventilation, light or sanitary facilities 8. Inadequate utilities 9. Excessive land coverage and overcrowding of structures and community facilities 10. Deleterious land use or layout 11. Environmental clean-up requirements 12. Lack of community planning 13. Lagging or declining equalized assessed value If the property consists of vacant land, a combination of two or more of the following factors qualifies the area as blighted, all as more frilly discussed in Section 74.4-3(a)(2) of the Act (the "Vacant Blighted Area Option A Factors"): 1. Obsolete platting of vacant land 2. Diversity of ownership of vacant land 3. Tax or special assessment delinquencies on such land 4. Deterioration of structures or site improvements in neighboring areas adjacent to the vacant land 5. Environmental clean-up requirements 6. Lagging or declining equalized assessed value Vacant land may also qualify as blighted if any one of the following factors is present, all as more fully described in Section 74.4-3(a)(3) of the Act (the "Vacant Blighted Area Option B Factors"): 1. The area consists of one or more unused quarries,mines or strip mine ponds 2. The area consists of unused rail yards, tracks or rights-of-way 3. The area is subject to flooding as certified by a registered professional engineer or appropriate regulatory agency 4. The area consists of an unused or illegal disposal site containing earth, stone, building debris, or similar materials that were removed from construction, demolition, excavation or dredge sites 5. The area is between 50 to 100 acres, 75 percent vacant, shows deleterious qualities and was designated as a town center before 1.982, but not developed for that purpose 6. The area qualified as blighted immediately before it became vacant The Act defines blighted areas and amendments to the Act also provide guidance as to when the factors present qualify an area for such designation. Where any of the factors defined in the Act are found to be present in the Study Area, they must be: 1) documented to be present to a meaningful extent so that the municipality may reasonably find that the factor is clearly present within the intent of the Act; and 2) reasonably distributed throughout the vacant or improved part of the Study Area, as applicable,to which such factor pertains. The test of eligibility of the Study Area is based on the conditions of the area as a whole. The Act does not require that eligibility be established for each and every property in the Study Area. C-4 February 2005 2 ELIGIBILITY STUDIES AND ANALYSIS An analysis was undertaken to determine whether any or all of the blighting factors listed in the Act are present in the Study Area, and if so, to what extent and in which locations. In order to accomplish this evaluation the following tasks were undertaken: 1. Exterior survey of the condition and use of each building. 2. Field survey of environmental conditions involving parking facilities, public M nfrastructure, site access, fences and general property maintenance. 3. Analysis of existing land uses and their relationships. 4. Comparison of surveyed buildings to zoning regulations. 5. Analysis of the current platting,building size and layout. 6. Analysis of building floor area and site coverage. 7. Review of previously prepared plans, studies, inspection reports and other data. 8. Analysis of real estate assessment data. 9. Review of available building permit records to determine the level of . development activity in the area. 10. Review of building code violations Exterior building condition and site conditions surveys of the Study Area were undertaken in November and December 2004. The analysis of site conditions was organized by tax parcel and type of property (improved or vacant) as shown in Figure B: Property Type Map. Existing land use shown in Figure C: Existing Land Use Map. Where a factor is described as being present to a meaningful extent, the factor is present with respect to a majority of the improved or vacant tax parcels in the Study Area, as applicable. The presence of such conditions has a major adverse impact or influence on adjacent and nearby property. A factor described as being present to a minor extent indicates that the factor is f the condition is more limited affecting fewer than but that the distribution of impact o g present, b p 50% of the improved or vacant tax parcels, as applicable. A statement that the factor is not present indicates that either no information was available or that no evidence was documented as a result of the various surveys and analyses. Factors whose presence could not be determined with certainty were not considered in establishing eligibility. Each factor identified in the Act for determining whether an area qualifies as a blighted area is discussed below and a conclusion is presented as to whether or not the factor is present in the Study Area to a degree sufficient to warrant its inclusion as a blighting factor in establishing the eligibility of the area as a blighted area under the Act. These findings describe the conditions that exist and the extent to which each factor is present. C-5 February 2005 LEGEND fi IMPROVED PROPERTY VACANT LAND w ,O 9 anae t a =� 4 e3 NA °f f a {^ d F 4k Q= > y qt. b a,dt' � ssr jwimi gi 7A a s�� s r>uGCr Y' 7m'F N FIGURE B: PROPERTY TYPE VILLAGE OF OAK BROOK TIF# 1 PLAN DATE: FEBRUARY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING A I R, 0 S REDEVELOPMENT PLAN AND PROJECT CA LEGEND OFFICE VACANT LAND s rG 1 +jj[f ;4 INr r s b S � 9 Y P. .6�•A 9 �t Va` .iyiaM1 �w 1 �4 9G','Y19?9. xC� s o x aq, r s,a7 M1+>M1 � h k 5 ;�> 98fRt YA aJ,�. �i,.,.-�.�:.xh:t�.w�'.Riii^� ':k �N".�i3's.'s�•..�ks�,.AJ N f FIGURE C: EXISTING LAND USE VILLAGE OF OAK BROOK TIF # 'I PLAN DATE: FEBRUARY 2005 OAK BROOK PROMENADE TAX INCREMENT FINANCING ' `,�, m 1 R s REDEVELOPMENT PLAN AND PROJECT 1 3. PRESENCE AND DISTRIBUTION OF ELIGIBILITY FACTORS The Act establishes different eligibility factors for improved property and vacant land. Property within the Study Area consists of a combination of improved property and vacant land. Improved property includes parcels that contain buildings, structures, parking or other physical improvements. Improved property may include single parcels or multiple parcels under single or common ownership. Landscaped yards, open space or other ancillary functions may also be classified as improved property for the purposes of the eligibility analysis if they are obviously, accessory to an adjacent building(primary use). In order to establish the eligibility of a redevelopment project area under the improved "blighted area" criteria established in the Act, at least five of 13 eligibility factors must be meaningfully present and reasonably distributed throughout the Study Area with respect to improved property. For vacant land, either two Vacant Blighted Area Option A Factors (described below) or one Vacant Blighted Area Option B Factor (also described below) must be meaningfully present and reasonably distributed with respect to the vacant land. This eligibility study finds that the Study Area qualifies for designation as a combination of an improved blighted area and vacant blighted area under the criteria contained in the Act. The following qualifying factors for an improved blighted area are meaningfully and reasonably distributed within the improved port ions of the Study Area: I 1. Obsolescence 2. Deterioration 3. Presence of structures below minimum code standards 4. Excessive vacancies 5. Inadequate utilities 6. Excessive land coverage or overcrowding of community facilities 7. Deleterious land use or layout 8. Lack of community planning 9. Lagging or declining EAV The following Vacant Blighted Area Option A Factors apply to the vacant land in the Study Area: 1. Obsolete platting 2. Deterioration of structures or site improvements in neighboring areas adjacent to the vacantland 3. Lagging or declining EAV These Option A Factors are meaningfully present and reasonably distributed, affecting both vacant tax parcels. Thus, the vacant portion of the Study Area qualifies as blighted under the Act. C_g February 2005 The presence and distribution of eligibility factors related to the qualification of the Study Area for designation as a combination of an improved blighted area and a vacant blighted area are discussed below. Following this discussion, the Vacant Blighted Area Option A eligibility factors related to vacant land are discussed. None of the Vacant Blighted Area Option B Factors are applicable to property in the Study Area. All of applicable factors are well distributed throughout the Study Area, as indicated in Table C, Distribution of Blighting Factors. Improved Property The Study Area contains three tax parcels that are classified as improved property which comprise 93.3% of the Study Area. The two largest parcels contain a total of three office buildings. Also classified as improved is an 82.73 foot wide parcel at the southern end of the Study Area that is subject to-several utility easements including a 15-foot Oak Brook Utility Company easement, a Northern Illinois Gas Company easement and a Commonwealth Edison Company easement. This parcel is paved and contains a Commonwealth Edison high-voltage utility pole. The evaluation of the Study Area with respect to each of the 13 factors used to establish eligibility of improved property as blighted is described below. 1. Dilapidation As defined in the Act, "dilapidation" refers to an advanced state of disrepair or neglect of necessary repairs to the primary structural components of buildings or improvement in such a combination that a documented building condition analysis determines that major repair is required or the defects are so serious and so extensive that the buildings must be removed. This section summarizes the process used for assessing building conditions in the Study Area, the standards and criteria used for evaluation, and the findings as to the existence of dilapidation or deterioration of structures. The building condition analysis is based on a thorough exterior inspection and limited interior inspection of the buildings and sites conducted by Camiros, Ltd. in November 2004. Structural deficiencies in building components and related environmental deficiencies in the Study Area were noted during the survey. Building Components Evaluated During the field survey, each component of the buildings in the Study Area was examined to determine whether it was in sound condition or had minor, major, or critical defects. Building components examined were of two types: Primary Structural Components These include the basic elements of any building: foundation walls, load-bearing walls and columns,roof,roof structures and facades. C-9 February 2005 Secondary Comp These are components generally added to the primary structural components and are necessary parts of the building, including exterior and interior stairs, windows and window units, doors and door units,interior walls, chimney, and gutters and downspouts. Each primary and secondary component was evaluated separately as a basis for determining the overall condition of individual buildings. This evaluation considered the relative importance of specific components within a building and the effect that deficiencies in components will have on the remainder of the building. Building Component Classification The four categories used in classifying building components and systems and the criteria used in evaluating structural deficiencies are described below: Sound Building components that contain no defects, are adequately maintained, and require no treatment outside of normal ongoing maintenance. Deficient—Requiring Minor Repair Building components containing defects (loose or missing material or holes and cracks over a limited area), which often may be corrected through the course of normal maintenance. Minor defects have no real effect on ether the rim r by or secondary or components and the correction of such defects y accomplished occupants, such as tuckpointing masonry joints over.a limited area or replacement of less complicated components. Minor defects are not considered in rating a building as structurally substandard. Deficient—Requiring Major Repair Building components that contain major defects over a widespread area that would be difficult to correct through normal maintenance.Buildings in the major deficient category would require replacement or rebuilding of components by people skilled in the building trades. Critical Building components that contain major defects (bowing, sagging, or settling to any or all exterior components causing the stricture to be out-of-plumb, or broken, loose or missing material and deterioration over a widespread area) so extensive that the cost of repair would be excessive. Final Building Rating After completion of the exterior building condition survey, each structure was placed in one of three categories based on the combination of defects found in various primary and secondary building components. Each final rating is described below: C-10 February 2005 Sound Sound buildings can be kept in a standard condition with normal maintenance. Buildings so classified have no minor defects. Deficient Deficient buildings contain defects that collectively are not easily correctable and cannot be accomplished in the course of normal maintenance. The classification of major or minor reflects the degree or extent of defects found during the survey of the building. • Deficient-Minor Buildings classified as "deficient — requiring minor repairs" have more than one minor defect,but no major defects. • Deficient-Mator Buildings classified as "deficient — requiring major repairs" have at least one major defect in one of the primary components or in the combined secondary components, but less that one critical defect. Substandard Structurally substandard buildings contain defects that are so serious and so extensive that the building must be removed. Buildings classified as structurally substandard have two or more major defects. Minor deficient and major deficient buildings are considered to be the same as deteriorating buildings as referenced in the Act. Substandard buildings are the same as dilapidated buildings. Conclusion: Dilapidation was not found to be present within the Study Area. While all of the structures in the Study Area contained identifiable deficiencies none was significant enough for the building to be classified as substandard or dilapidated. 2. Obsolescence As defined in the Act, "obsolescence"refers to the condition or process of falling into disuse. Structures have become ill suited for the original use. In making findings with respect to buildings, it is important to distinguish between functional obsolescence which relates to the physical utility of a structure, and economic obsolescence which relates to a property's ability to compete in the marketplace. Functional Obsolescence Historically, structures have been built for specific uses or purposes. The design, location, height, and space arrangement are intended for a specific occupant at a given time. Buildings become obsolete when they contain characteristics or deficiencies which limit their use and marketability after the original use ceases. The characteristics may include loss in value to a property resulting from an inherent deficiency existing from C-11 February 2005 poor design or layout, the improper orientation of the building on its site, etc., which detracts from the overall usefulness or desirability of a property. Economic Obsolescence Economic obsolescence is normally a result of adverse conditions which cause some degree of market rejection and depreciation in market values. If functionally obsolete properties are not periodically improved or rehabilitated, or economically obsolete properties are not converted to higher and better uses, the income and value of the property erodes over time. This value erosion leads to deferred maintenance, deterioration, and excessive vacancies. These manifestations of obsolescence then begin to have an overall blighting influence on surrounding properties and detract from the economic vitality of the overall area. Obsolescence as a factor should be based upon the documented presence and reasonable distribution of buildings evidencing such obsolescence. Obsolete buildings contain characteristics or deficiencies that limit their long-term sound use or reuse. Obsolescence in such buildings is typically difficult and expensive to correct. Obsolete building types have an adverse affect on nearby and surrounding development and detract from the physical, functional and economic vitality of the area. Buildings within the Study Area are both functionally and economically obsolete. Functional obsolescence is demonstrated by the difficulty is leasing office space and the high vacancy rate. The two three-story office buildings are largely vacant with approximately 140,000 square feet of available space. These buildings lack the amenities needed to be competitive in the current office market. Garage parking is limited, there is no atrium or formal entry and ceilings are low. Even more problematic is column spacing which makes interior space layout inefficient and the lack of electric or telecommunications infrastructure in the floor, requirements for open office floor plans. The concrete floors and ceiling heights make retrofitting uneconomical. These office buildings were connected as an addition, with a variation in floor heights that required ramping. Among other building deficiencies are the lack of loading docks and freight elevators, amenities required by today's potential office tenants. The single-story building Within the Study Area was built originally as a warehouse with office space fronting on Butterfield Road. The original main entrances are no longer used, having been replaced with signs directing visitors to the reception desk which has been relocated to the rear of the building near the original loading dock locations. Warehouse use has been discontinued and the original warehouse space has been converted to offices, with j enclosed offices with drop ceilings along the perimeter and office areas open to the roof framing in the interior. The high ceilings that were needed for the former use are not required for current use. Economic obsolescence is demonstrated by a lack of growth in equalized assessed value. The equalized assessed value of the tax parcel that contains the two three-story buildings has decreased by 3.2% over its 1998 value. While the equalized assessed value of the single- C-12 February 2005 story office/warehouse building registered a 4% increase between the 1998 and 2003 tax years, this falls far short of the 32% increase in equalized assessed value experienced by Oak Brook as a community for the same period. Conclusion: Obsolescence is present to a meaningful extent and reasonably distributed within the Study Area, affecting each of the three office buildings within the Study Area. 3. Deterioration As defined in the Act, "deterioration" refers to, with respect to buildings, defects including, but not limited to, major defects in the secondary building components such as doors, windows, porches, gutters and downspouts, and fascia. With respect to surface improvements, the condition of roadways, alleys, curbs, gutters, sidewalks, off-street parking, and surface storage areas evidence deterioration, including, but not limited to, surface cracking, crumbling, potholes, depressions, loose paving material, and weeds protruding through paved surfaces. Based on the definition given by the Act; deterioration refers to any physical deficiencies or disrepair in buildings or site improvements requiring treatment or repair. All of the improved tax parcels within the Study Area exhibit deterioration to varying degrees, with respect to site improvements, structures and buildings. Evidence of deterioration with respect to the single-story office building includes rusting sofits along the warehouse section of the building and stained brick that is indicative of water damage and a broken exterior light fixture at the side entrance on the west fagade of the building. Pavement cracking and deterioration was observed throughout the paved areas of this parcel. An interior inspection of the two three-story office buildings was conducted as part of the eligibility analysis. Water damage is evident from air conditioning system leaks throughout the building. Window seals have also deteriorated. Limestone cracks are present in exterior building walls. Cracking is also evident in building entryways and maintenance efforts have not successfully � corrected the damage, indicating more serious structural failure. Parking lot pavement is also deteriorated, and rusted storm sewer grates were observed. Paved walkways around the building are heaving in places, especially near the detention pond. Peeling paint and rust spots were observed with respect to the Commonwealth Edison utility pole. The concrete base also contained minor cracks. Conclusion: Deterioration is present to a meaningful extent and reasonably distributed throughout the Study Area, affecting all improved parcels. 4. Presence of Structures Below Minim 11m Code Standards As defined in the Act, the "presence of structures below minimum code standards"refers to all structures that do not meet the standards of zoning, subdivision, building, fire; and other C-13 February 2005 governmental codes applicable to property, but not including housing and property maintenance codes. As referenced in the definition above, the principal purposes of governmental codes applicable to properties are to require buildings to be constructed in such a way as to sustain safety of loads expected from the type of occupancy; to be safe for occupancy against fire and similar hazards; and/or to establish minimum standards essential for safe and sanitary habitation. Structures below minimum code standards are characterized by defects or deficiencies that threaten health and safety. None of the office buildings have office street loading docks as required by current Oak Brook development regulations. Buildings must be brought up to code during tenant build- out. The owners and leasing agents for the two three-story office buildings have studied a number of options for providing freight elevators and loading dock facilities, but the design of the buildings has precluded the provision of such facilities. Additionally, the single-story office building at 3121 Butterfield Road has no provision for stormwater detention which would be required today. This building was built in 1969, before such facilities were required. Conclusion: This factor is meaningfully present and reasonably distributed within the Study Area affecting the two largest improved parcels. 5. Illegal Use of Structures There is an illegal use of a structure when strictures are used in violation of federal, state or local laws. Based on the surveys conducted, no structures in the Study Area are used illegally. Conclusion: This factor was found not to be present within the Study Area. 6. Excessive Vacancies As defined in the Act, "excessive vacancies" refers to the presence of buildings that are unoccupied or under-utilized and that represent an adverse influence on the area because of the frequency, extent,or duration of the vacancies. The buildings in the Study Area are more than 70% vacant, a condition that has been present for several years, despite sustained efforts to lease the property. Approximately 140,000 square feet of space is currently available. Since the vacancy rate in the surrounding office market is approximately 30% and includes space in buildings with the type of amenities demanded by prospective office tenants, it is unlikely that the property owner will be able to successfully re-lease these buildings. As noted in the discussion of obsolescence, these buildings lack amenities such as impressive lobbies, dining facilities, loading docks, and freight elevators that are requirements in today's competitive office market. Conclusion: Excessive vacancy as a factor is meaningfully present and reasonably distributed within the Study Area. C-14 February 2005 7. Lack of Ventilation, Light, or Sanitary Facilities As defined in the Act, "lack of ventilation, light, or sanitary facilities" refers to the absence of adequate ventilation for light or air circulation in spaces or rooms without windows, or that require the removal of dust, odor, gas, smoke, or other noxious airborne materials. Inadequate natural light and ventilation means the absence or inadequacy of skylights or windows for interior spaces or rooms and improper window sizes and amounts by room area to window area ratios. Inadequate sanitary facilities refers to the absence or inadequacy of garbage storage and enclosure, bathroom facilities, hot water and kitchens, and structural inadequacies preventing ingress and egress to and from all rooms and units within a building. Conclusion: This condition is not present within the Study Area. The buildings are all less than 40 years old and were build in accordance with applicable building codes that required provision of ventilation, light and sanitary facilities. 8. Inadequate Utilities As defined in the Act, "inadequate utilities"refers to underground and overhead utilities such as storm sewers and storm drainage, sanitary sewers, water lines, and gas, telephone, and electrical services that are shown to be inadequate. Inadequate utilities are those that are: (i) of insufficient capacity to serve the uses in the redevelopment project area, (ii) deteriorated, antiquated, obsolete,.or in disrepair, or(iii) lacking within the redevelopment project area. Despite having a five-acre detention pond on the property, additional stormwater capacity must be secured to allow redevelopment of the Study Area. This pond serves as an on-line detention pond for the properties up stream, but cannot be used to provide storage for additional development or redevelopment within the Study Area. The 3121 Butterfield Road lacks stormwater detention entirely. The Study Area contains easements for several major gas and electric lines that impede redevelopment of this property. Conclusion: This factor is meaningfully present and reasonably distributed within the Study Area affecting the entire Study Area. 9. Excessive Land Coverage or Overcrowding of Community Facilities As defined in the Act, "excessive land coverage or overcrowding of community facilities" refers to the over-intensive use of property and the crowding of buildings and accessory facilities onto a site. Examples of problem conditions warranting the designation of an area as one exhibiting excessive land coverage are: (1) the presence of buildings either improperly situated on parcels or located on parcels of inadequate size and shape in relation to present- day standards of development for health and safety and(ii)the presence of multiple buildings on a single parcel. For there to be a finding of excessive land coverage, these parcels must exhibit one or more of the following conditions: insufficient provision for light and air within or around buildings, increased threat of spread of fire due to the close proximity of buildings, lack of adequate or proper access to a public right-of-way, lack of reasonably required off- street parking, or inadequate provision for loading and service. C-15 February 2005 All of the buildings within the Study Area have inadequate provision for loading and service. The two three-story buildings lack freight elevators and loading docks. The single-story building, while built as a warehouse, has been reconfigured with offices and no longer contains any space specifically designated for loading and service. This building also has issues related to proper access to a public right-of-way since access to Butterfield Road is limited to right-in,right-out turns. Conclusion: This factor is meaningfully present and reasonably distributed throughout the Study Area. 10. Deleterious Land Use or Layout As defined in the Act,"deleterious land-use or layout"refers to the existence of incompatible land-use relationships,buildings occupied by inappropriate mixed-uses, or uses considered to be noxious, offensive, or unsuitable for the surrounding area. This factor is present due to the presence of the Commonwealth Edison utility lines that distribute power to from the substation immediately west of the Study Area to the regional power grid. Additionally, the right in, right out access limitations for 3121 Butterfield Road that require informal cross access across adjacent parcels for west bound traffic movement on either Butterfield Road or Technology Drive create potential impediments to the individual redevelopment of these parcels. Conclusion: This factor affects two of the three improved tax parcels and creates impediments to the redevelopment potential of the entire Study Area. 11. Environmental Clean-Up Requirements As defined in the Act, "environmental clean-up" means that the area has incurred Illinois, Environmental Protection Agency or United States Environmental Protection Agency remediation costs for, or a study conducted by an independent consultant recognized as having expertise in enviromnental remediation has determined a need for, the clean-up of hazardous waste, hazardous substances, or underground storage tanks required by State or federal law, provided that the remediation costs constitute a material impediment to the development or redevelopment of the redevelopment project area. Conclusion: No evidence of environmental contamination of clean up requirements was identified as part of this eligibility analysis. Consequently, this factor was not found to be present in the Study Area and was not used to establish eligibility as a blighted area under the Act. C-16 February 2005 12.Lack of Community Planning As defined in the Act, "lack of community planning"means that the proposed redevelopment project area was developed prior to or without the benefit or guidance of a community plan. This means that the development occurred prior to the adoption by the municipality of a comprehensive or other community plan or that the plan was not followed at the time of the area's development. This factor must be documented by evidence of adverse or incompatible land-use relationships, inadequate street layout, improper subdivision,parcels of inadequate shape and size to meet contemporary development standards, or other evidence demonstrating an absence of effective community planning. Evidence of this factor includes the fact that the Study Area includes land that forms part of the Meyers Road right-of-way, but which was never formally .dedicated. Although the County's tax maps do not show this deficiency, discussions with the County Clerk's office confirmed that this is the situation. Oak Brook has developed as a community largely without the benefit of a formally adopted comprehensive plan. Before Oak Brook was established as a municipality, Paul Butler, a prominent land owner established a polo club and assembled approximately 3,600 acres of contiguous land to establish a"new town." His vision was a large development that included residences; retail, office and hotels that served and reinforced each other. In the initial development of the Village, the approach to density was based on the development of a standard two to three story building with surface parking. The amount of land not covered by building or parking was largely determined by what"looked right." The community grew on a largely ad hoc basis responding to market-driven development proposals that included the approval of Oakbrook Center, which has become the primary economic engine of the Village. The Village's first comprehensive plan was adopted in June 1969, with subsequent comprehensive plan updates approved in February '973, May 1978 and November 1988. In 1995 an update to the Oak Brook Comprehensive Plan was prepared, but has not been adopted by the Village. At present land use policy is established by the Village's Zoning Ordinance and Zoning Map. While the 1995 Comprehensive Plan Update has not been adopted by the Village it provides useful insights and information concerning conditions that have impacted opportunities for redevelopment of increasingly obsolete office and other commercial uses along the Butterfield Road corridor. I Oak Brook is challenged by its own maturation and competition from other suburbs. Former bedroom communities have become major office centers in their own right, redeveloping obsolete facilities to accomimodate mixed-use office developments at higher densities, with structured parking as well as retail, restaurant and recreational uses that are integral parts of the development. Many of the office buildings found in Oak Brook were built more than 25 years ago and have not been renovated to accommodate new communications technologies. At the time these buildings were built,business was conducted in substantially different ways. Today, many of these buildings are largely vacant, including those found in the Study Area. C-17 February 2005 The Village has been able to rely largely on the sales tax revenues produced by Oakbrook Center and does not currently have a property tax levy to support Village services. However, this reliance on sales tax revenues means that new retail facilities must be developed to help augment those that currently exist. No sales tax revemies are generated by the current uses that can be used to offset public service costs. The planning principles that created Oak Brook were focused on the automobile rather than creating retail and other activity centers to serve residents. As a result, Oak Brook lacks an area that can be viewed as a "town center" an amenity that many similarly situated suburbs have worked to create over the past few decades. Conclusion: Lack of community planning affects the entire Study Area to a meaningful extent. The improved portions of the Study Area were developed nearly ten years apart and are linked by informal, ad hoc access points rather than a coordinated internal circulation system. 13. Lagging or Declining Equalized Assessed Value , As defined in the Act, this factor is present when the Study Area can be described by one of the following three conditions: 1) the total equalized assessed value ("EAV")has declined in three of the last five years; 2) the total EAV is increasing at an annual rate that is less than the balance of the municipality for three of the last five years; or 3) the total EAV is increasing at an annual rate that is less than the Consumer Price Index for all Urban Consumers for three of the last five years. Table A, Comparative Increase in Equalized Assessed Value—Improved Property compares the annual change in EAV for improved property within the Study Area with the balance of the Village. Table A COMPARATIVE INCREASE IN EQUALIZED ASSESSED VALUE — IMPROVED PROPERTY 2003 2002 2001 2000 1999 Improved Property $6,705,490 $6,711,110 $7,009,238 $6,662,760 $6,664,940 within the Study Area— EAV and % Change over Prior -0.08% -4.25% 5.20% -0.03% -1.98% Year Balance of Oak Brook-% Change 2.59% 9.59% 7.38% 5.24% 4.09% over Prior Year Source:York Township, DuPage County Clerk,Cook County Clerk As shown in Table A, the equalized assessed value of improved property within the Study Area has declined for four of the last five tax years and lagged that of the Village for the fifth year. C-18 February 2005 Conclusion: Lagging or declining EA T1 is meaningfully present and reasonably distributed within the Study Area. VACANT LAND Two tax parcels are classified as vacant land for purposes of this eligibility analysis and comprise 6.7% of the land in the Study Area. Vacant land qualifies as a blighted area if any of two of the six Vacant Blighted Area Option A Factors exist or if any one of the Vacant Blighted Area Option B factors exist. Both vacant tax parcels within the Study Area meet the criteria required for designation as a "vacant blighted area" as set forth in the Act. The vacant part of the Study Area satisfies three of the Vacant Blighted Area Option A Factors, as described below. None of the Vacant Blighted Area Option B factors are applicable to land in the Study Area. Vacant Blighted Area Option A Factors Vacant areas within the Study Area may qualify for designation as part of a redevelopment project area, if the sound growth of the redevelopment project area is impaired by a combination of two of six factors listed in section 11-74.4-3(a)(2) of the Act, each of which is (i)present,with that presence documented, to a meaningfiil extent so that a municipality may reasonably find that the factor is clearly present within the intent of the Act and(ii) reasonably distributed throughout the vacant part of the redevelopment project area to which it pertains. These factors include: a. Obsolete Platting This factor is present when the platting of vacant land results in parcels of limited or narrow size or configuration of parcels in irregular size or shape that would be difficult to develop on a planned basis, in a manner compatible with contemporary standards and requirements. Obsolete platting is also evident where there is a failure to create rights-of-way for streets or alleys or where public rights-of-way are of inadequate widths, or easements for public utilities have not been provided. One of the two vacant parcels is only 2,704 square feet in size and appears to have been platted as an access point to Technology Drive. However, neither of the two parcels that are improved with buildings are immediately adjacent to this parcel. The second vacant parcel is 100 feet in width and appears to have been platted to allow Technology Drive to be extended to connect with Meyers Road. The size and shape of these parcels makes them unsuitable for development of commercial uses. Consolidation with larger adjacent parcels is required to create a site that developed in accordance with contemporary development standards i Conclusion: Obsolete platting is meaningfully present and reasonably distributed within the Study Area, since it applies to all vacant land within the Study Area. i b. Diversity of Ownership E This factor is present when the number of owners of the vacant land is sufficient in number to retard or impede the assembly of land for development. C-19 February 2005 Conclusion: This factor is not present within the Study Area since all of the property is under common ownership. c. Tax and Special Assessment Delinquencies This factor exists when tax or special assessment delinquencies exist or the vacant land has been the subject of tax sales under the property tax code within the last five years. No tax delinquencies were identified during the analysis of equalized assessed value changes. Conclusion: This factor is not present within the Study Area. d. Deterioration of Structures or Site Improvements in Neighboring Areas Adjacent to the Vacant Land Deterioration of structures or site improvements in neighboring areas adjacent to the vacant land includes the improved areas as described in the previous sections. The criteria used for evaluating the deterioration of structures and site improvements in neighboring areas is presented in greater detail elsewhere in the Eligibility Study. The improved part of the Study Area is adjacent to the vacant portion of the Study Area. As described previously in this report, deterioration is present to a meaningful degree in the improved portion of the Study Area, which makes up 93.3% of the total land area. Conclusion: This factor is present to a meaningful extent and impacts both vacant tax parcels. e. Lagging or Declining EAV As defined in the Act, a "declining or lagging equalized assessed valuation" means that the total equalized assessed value of the proposed redevelopment project area has declined for 3 of the last 5 calendar years prior to the year in which the redevelopment project is designated or is increasing at an annual rate that is less than the balance of the municipality for 3 of the last 5 calendar years for which information is available or is increasing at an annual rate that is less than the Consumer Price Index for All Urban Consumers published by the United , States Department of Labor or successor agency for 3 of the last 5 calendar years prior to the year in which the redevelopment project area is designated. Table B COMPARATIVE INCREASE IN EQUALIZED ASSESSED VALUE VACANT LAND 2003 2002 2001 2000 1999 Vacant Land $202,020 $202,020 $185,770 $176,590 $170,290 within the Study Area— EAV and % Change over Prior 0.00% 8.75% 5.20% 3.70% N/A Year Balance of Oak Brook- % Change 2.59% 9.59% 7.38% 5.24% 4.09% over Prior Year Source:York Township, DuPage County Clerlc,Cook County Clerk C-20 February 2005 r The two vacant tax parcels in the Study Area were exempt prior to 1999. Consequently the prior year comparison only applies to a four year period. However, the EAV of the Study Area lagged that of the balance of the Village in each of the four years. Conclusion: The vacant portion of the Study Area satisfies the definition contained in the Act with respect to stagnant or declining EAV for four of the past five years. Therefore, this factor is meaningfully present and reasonably distributed throughout the Study Area. f. Environmental Clean-Up As defined in the Act, "environmental clean-up" means that the area has incurred Illinois Environmental Protection Agency or United States Environmental Protection Agency remediation costs for, or a study conducted by an independent consultant recognized as having expertise in environmental remediation has determined a need for, the clean-up of hazardous waste, hazardous substances, or undergromid storage tanks required by State or federal law, provided that the remediation costs constitute a material impediment to the development or redevelopment of the redevelopment project area. Conclusion: No existing environmental surveys were found that identify other sites within the Study Area as environmentally contaminated, nor were any such surveys conducted as part of this Study. Therefore, this factor was not found to be present within the Study Area. ELIGIBILITY ANALYSIS SUMMARY On the basis of the above review of current conditions, the improved portion of the Study Area meets the criteria for qualification as a blighted area. The Project Area exhibits the presence of nine of the 13 improved blighted area factors. All of these factors are meaningfully present and reasonably distributed throughout the Study area. Only five factors are required to qualify as a blighted .area under the Act. The vacant land within the Study Area also meets the applicable eligibility test. The presence of the factors applicable to the determination of blight with respect to improved property and vacant land are summarized in Table C: Distribution of Blighting Factors. This summary demonstrates that the degree to.which these conditions are meaningfully present and reasonably present within the Study Area. 1 C-21 February 2005 Table C: DISTRIBUTION OF BLIGHTING FACTORS Improved Prope Eligibilit Factors("X":factor resent Improved Tax Parcels 1 2 3 4 5 6 7 8 9 10 11 12 13 06-28-103-005 X X X X X X X X X 06-28-103-009 X X X X X X X X 06-28-103-014 X X X X X X X Number of Parcels Where Factor is 2 3 3 2 3 3 Present 3 3 2 %of Improved Parcels 100% 100% 67% 67% 100% 100% 1 67% 100% 100% *-These tax parcels are comprised solely of railroad right-of-way not subject to private investment and were,therefore,not analyzed as part of the Eligibility Study. Legend of Eligibility Factors-Improved Property 1 Dilapidation 2 Obsolescence 3 Deterioration 4 Presence of structures below minimum code standards 5 Illegal use of structures 6 Excessive vacancies 7 Lack of ventilation,light or sanitary facilities 8 Inadequate utilities 9 Excessive land coverage or overcrowding of community facilities 10 Deleterious land use or layout 11 Environmental contamination 12 Lack of community planning 13 La Bing or declining EAV I C-22 February 2005 Table C: (Continued) DISTRIBUTION OF BLIGHTING FACTORS Vacant Land Eligibilit Factors "X"=factor present) Vacant Tax Parcels Option A Factors(2 required) Option B Factors 1 required) A B C D E q G H I J K 06-28-103-018 X X 06-28-103-019 X X X Number of Parcels Where Factor Is Present 2 2 2 %of Total 100% 100% 100% Legend of Eligibility Factors-Vacant Land A Obsolete platting B —Diversity of ownership C Tax andspecial assessment delinquencies D Deterioration of structure or site improvements in areas adjacent to vacant land E Environmental contamination F Lagging or declining equalized assessed valuation G Unused quarries, mines or strip ponds H Unused rail yards, rail tracks or railroad right-of-ways Subject to chronic flooding as certified by registered engineer or regulatory agency J Unused or illegal disposal site K Blighted before becoming vacant i I i C-23 February 2005 APPENDIX D VILLAGE OF OAK BROOK TIF #1 OAK BROOK PROMENADE REDEVELOPMENT AND PROJECT AREA INITIAL EQUALIZED ASSESSED VALUE ## PIN NO. 2003 EAV 1 06-28-103-005 $1,051,830 2 06-28-103-009 $5,394,080 3 06-28-103-014 $259,580 4 06-28-103-018 $10,370 5 06-28-103-019 $191,650 Total Initial EAV $6,907,510 D-1 February 2005 STATE OF ILLINOIS ) SS. COUNTIES OF COOK AND DUPAGE ) I, Linda K. Gonnella, do hereby certify that I am the duly elected and acting Village Clerk of the Village of Oak Brook,DuPage and Cook Counties,Illinois. I DO FURTHER CERTIFY that on June a 2005 and the approved authorities of the above municipality passed Ordinance 2005-TX-TIF-EX4 -S. -1120 AN ORDINANCE APPROVING THE VILLAGE OF OAK BROOK TIF#1 BUTTERFIELD-MEYERS ROAD REDEVELOPMENT PLAN AND PROJECT I DO FURTHER CERTIFY that the original e for safekeepin,goand which the the annexed copy is a true copy, is entrusted to my ca keeper of the same. I DO FURTHER CERTIFY that I am the keep said the rcof Oak Brook, entries, resolutions, ordinances and documents of DuPage and Cook Counties,Illinois. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the Village of Oak Brook this 15th day of December , 2005. �V owsi,I'� ai#Sri`+ Linda K. Gonnella,CMC �•��, .^ � Village Clerk Village of Oak Brook �~� DuPage and Cook Counties,IL I +{k