Loading...
S-1110 - 03/16/2005 - TAX - Ordinances Supporting DocumentsnT Item 6.L. AGENDA ITEM Regular Board of Trustees Meeting of March 8, 2005 SUBJECT: Oak Brook Promenade 5 C f FROM: Richard B. Boehm, Village Manager ' : ; BUDGET SOURCE /BUDGET IMPACT: N/A RECOMMENDED MOTION: I move to Approve Ordinance 2005 -TX- TIF -EX5 -S -1110 Entitled: An Ordinance Proposing Approval of a Redevelopment Plan and Project for and Designating the Oak Brook Promenade Redevelopment Project Area, Adopting Tax Increment Financing Therefore, Creating an Interested Parties Registry, Convening a Joint Review Board and Calling a Public Hearing in Connection Therewith Background /History: The Board at its last meeting of February 22, 2005 authorized that the Oak Brook Promenade Tax Increment Financing Redevelopment Plan and Project report on file prior to the Public Hearing. The documents now before the Board are describing the proposed redevelopment area via legal description; setting forth an interested parties registry; the required legal notice to establish the registry of interested parties; the notice of public hearing; and the estimated preliminary expenditures. Recommendation: That the Board approves the Ordinance and in so doing keep the public participation in the consideration of a potential Tax Increment Financing district intact. Last saved by Administrator V \AGENDA \TIF Public Hearing ordinance doc Last printed 3/4/2005 5 45 PM 9 J ensure Attorney Kubiesa's rights and for protecting the Village is actually short sighted of him Trustee Yusuf stated he did not agree and that all the Board is requesting that there is a possibility that merits investigating Trustee Zannis recommended that it is important to begin with the intent of this process. She stated first of all there was action taken by Attorney Kubiesa which involved a Village Trustee that she believes put him in a compromised position At the point that Trustee Zannis heard this, at that moment she wanted a second opinion She wanted to know if that was good or not good and she was denied that opportunity Then she came to this Board and asked for legislative counsel or a second legal opinion whereby she was subsequently denied. She remarked that she wants to know which position she should defend. Does she believe that Attorney Kubiesa's actions were ethically correct or that he compromised a Village Trustee The only way she believes she can receive the other opinion is to ask for an investigation She suggested this is not a disciplinary action or to cast aspersions on anyone's actions and she does not want to take Attorney Kubiesa to the ARDC She wants to know why standard operating procedures were not followed President Quinlan called the question as he previously made his intentions clear that he will return his veto at the appropriate time ROLL CALL VOTE Ayes 4 - Trustees Aktipis, Caleel, Korin and Zannis Nays 1 - Trustee Yusuf Pass 1 - Trustee Craig Absent 0 - None. Motion carried OK AN ORDINANCE PROPOSING APPROVAL OF A REDEVELOPMENT PLAN AND PROJECT FOR DESIGNATING THE OAK BROOK PROMENADE REDEVELOPMENT PROJECT AREA, ADOPTING TAX INCREMENT ALLOCATION FINANCING THEREFORE, CREATING AN INTERESTED PARTIES REGISTRY, CONVERTING A JOINT REVIEW BOARD_ AND CALLING A PUBLIC HEARING IN CONNECTION THEREWITH (MARKED AGENDA ITEM 6 L) The Board at its meeting of February 22, 2005 authorized that the Oak Brook Promenade Tax Increment Financing Redevelopment Plan and Project report on file prior to the Public Hearing The documents now before the Board are describing the proposed redevelopment area via legal description, setting for an interested parties registry, the required legal notice to establish the registry of interest parties, the notice of public hearing; and the estimated preliminary expenditures Ms Riordan, representing the petitioner, stated that the ordinance sets a date for a public hearing, there is a redevelopment plan, and under the Illinois TIF Statute the 1 Village Board may not take any action until it has followed certain legislative VILLAGE OF OAK BROOK Minutes Page 30 of 44 March 16, 2005 0 9 K requirements One of which is a public hearing To have a public hearing the Village Board has to set a date at least forty -five days in advance In addition to this, the Board has to make certain notices published, convene other meetings and as a result of that it culminates into a public hearing where the public has a right to come and comment on the document After the public hearing, the Village Board may not take any action for at least fourteen days If this ordinance is adopted now, it calls for a public hearing on May 10, 2005 which is the first night that the Board would be seated Due to State Statute it states that action cannot be taken until at least fourteen days after the public hearing, the earliest the Village Board could act on any TIF would be May 24, 2005 That way there isn't any way the new Board members would be excluded from this process There has been discussion of the concept of blight in Oak Brook. She explained that the TIF Statue has a very strict definition of the term "blight" In the redevelopment plan under Section C 3 there is an eligibility study which Cameros goes through all of the details of the findings of blight with a chart of what parcels they see blight, what they found blight on and why they believe, based in the Statutory definition, that this property could qualify with a finding of blight The Village is not being asked to adopt that finding or to adopt tax increment financing The problem they have with this parcel isn't unique to Oak Brook if they move the parcel to Lake Forest, Chicago or anywhere else The problem with this project is that it is a redevelopment project with existing structures that they need to pay for, tear down and then reuse Also there is a five acre pond that does not provide detention for this property and 100 ft high tension easement that runs along the back of the property, buildings obsolete, vacancy rate is 70% and the main entryway is back in the warehouse area. Over the last five years, the EAV in the Village of Oak Brook has risen 30% while the EAV on this property has declined. The motion to approving the project is contingent upon the TIF as it is difficult to persuade the investors as a $50,000,000 investment is needed to go forward with the project without some level of tax increment financing In the development plan there is discussion of eligible costs of $19,000,000 for TIF treatment which doesn't mean the Village is committing to it or that the developer is asking for it The petitioner is just asking the Board to setup the process that is necessary for the Board of Trustees so that they can consider the request Trustee Aktipis asked if the TIF is approved, which public bodies will find their taxes affected Ms Riordan explained that all of the taxing districts that have the power to levy on the property will be represented on the Joint Review Board. The ordinance sets a date for the Joint Review Board to hold a meeting within the next thirty days in which they will be presented all of the eligibility information whereby they will make a recommendation to the Board of Trustees prior to the public hearing If the taxing districts decide that they do not believe that this qualifies under Statute and they make a recommendation to the Village Board then it would take a super majority of the Village Board to approve the TIF They will be notified by certified mail in which the meeting will be held at the Village Hall VILLAGE OF OAK BROOK Minutes Page 31 of 44 March 16, 2005 9 K President Quinlan asked what school district's would be involved. It is the Lombard School Distric, DuPage County and the Oak Brook Park District. Attorney Spiroff indicated that all taxing districts listed on a tax bill Because of the pecularities of the site, he stated that it is a positive for the districts President Quinlan asked if the school district would affect any of our residents Community Development Director Kallien explained that it is the Lombard Elementary School District and the Downers Grove North High School District Trustee Craig suggested if the value of the property falls it will reflect badly on the taxing bodies and if it is approved, it will be advantageous to them Trustee Zannis remarked that this is a very strategic move for Oak Brook and she is a proponent that this be deferred forty -five (45) days until the new Board is seated because they need to understand the full impact of establishing this because it has never been done before She suggested they need to understand the economic impact immediately as well as long term to Oak Brook and surrounding communities Although the equalized assessed value immediately may drop, our objective is to have it increase They need to understand those numbers and the whole concept before granting the right to have a hearing and establishing the path taken to pursue this project Considering the magnitude of the project, the effect it will have on Oak Brook and the precedence it will set, she does not believe that forty -five days is asking too much to wait President Quinlan indicated, for the record, that the Village does not have a choice but to wait forty -five days Ms Riordan indicated that the developer plans to begin the project in June or July at the latest If the petitioner comes back in May for the Board to consider a date for a public meeting, by Statute they would have to go through the whole forty -five days which the soonest the Board could act sometime in September which would delay the whole construction season. Trustee Caleel stated that the Board could set the date and timing because all of the votes will be done by the newly seated Board of Trustees Trustee Zannis asked if the project would continue if the TIF was not granted Ms Riordan stated that no the project would not continue V___� Motion by Trustee Aktipis, seconded by Trustee Yusuf, for passage of Ordinance 2005 -TX- TIF -EX5 -S -1110, "An Ordinance Proposing Approval of a Redevelopment Plan and Project for and Designating the Oak Brook Promenade Redevelopment VILLAGE OF OAK BROOK Minutes Page 32 of 44 March 16, 2005 t 9 K Project Area, Adopting Tax Increment Financing Therefore, Creating an Interested Parties Registry, Convening a Joint Review Board and Calling a Public Hearing in Connection Therewith " ROLL CALL VOTE Ayes 5 - Trustees Aktipis, Caleel, Craig, Korin and Yusuf Nays 1 - Trustee Zannis Absent 0 - None Motion carried. 10 NEW BUSINESS A CONFIRMATION OF APPOINTMENTS 1) OAK BROOK HOTEL CONVENTION AND VISITORS COMMITTEE The Oak Brook Hotel, Convention and Visitors Committee consists of nine members, six members operate or manage a hotel or motel within the corporate limits of the Village, one representative is from the Oak Brook Area Association of Commerce and Industry; one represents Oakbrook Center; and one is a resident at -large President Quinlan recommended that the Village Board approve the appointments of Andrew Aldrich, the new General Manager of the Doubletree Hotel Chicago - Oak Brook; and Michael Yaneck, the new General Manager of the Wyndham Drake Hotel, to the Oak Brook Hotel, Convention & Visitors Committee Their terms will expire February 28, 2006 Motion by Trustee Caleel, seconded by Trustee Yusuf, to concur with President Quinlan's appointments to the Oak Brook Hotel, Convention and Visitors Committee- Andrew Aldrich, the new General Manager of the Doubletree Hotel Chicago -Oak Brook, and Michael Yaneck, the new General Manager of the Wyndham Drake Hotel, with their terms expiring February 28, 2006 VOICE VOTE Motion carried B ORDINANCES & RESOLUTIONS — None presented C AWARD OF CONTRACTS — None presented D AUTHORIZATION TO PURCHASE 1) GIS SUPPORT SERVICES In 2003, Earth Tech was hired by the Village to perform the initial GASB 34 documentation and, in relation to that, provide the Village with a very basic Geographic Information System (GIS) starting point These data items are within VILLAGE OF OAK BROOK Minutes Page 33 of 44 March 16, 2005 Lre:::� �E Q F 0QK P 6' o G O .a CF�a(INTy VILLAGE OF OAK BROOK Inter -office Memorandum DATE: March 21, 2005 TO- Rick Boehm Jeff Moline Margaret Rimbo Dale Durfey Meg Klinkow Ken Kubiesa Bob Kallien FROM: Rose Kane, Legal Secretary SUBJECT: Ordinance 2005-TX-TI F-EX5-S-1 110, AN ORDINANCE PROPOSING APPROVAL OF A REDEVELOPMENT PLAN AND PROJECT FOR AND DESIGNATING THE OAK BROOK PROMENADE REDEVELOPMENT PROJECT AREA, ADOPTING TAX INCREMENT ALLOCATION FINANCING THEREFORE, CREATING AN INTERESTED PARTIES REGISTRY, CONVENING A JOINT REVIEW BOARD AND CALLING A PUBLIC HEARING IN CONNECTION THEREWITH For your information, a scribner's error occurred in Exhibit D, "Form of Notice of Public Hearing" The date of the "26th day of April" in the first paragraph now reads, "10th day of May" Further, the date of the "4th day of April" at the end of the third to the last paragraph on the signature page now reads, "12th day of April " Attached please find the correct copy of the ordinance with all exhibits REVISED 319105 Exhibit C Item 61. NOTICE VILLAGE OF OAK BROOK TAX INCREMENT FINANCING REDEVELOPMENT PROJECT AREA REGISTRATION FOR INTERESTED PARTIES REGISTRY Pursuant to Section § 5/11 -74 4 -4 2 of the Tax Increment Allocation Redevelopment Act, 65 ILCS § 5/11- 74 4 -1 et seq (the "Act ") the Village of Oak Brook (the "Village ") is required to establish an interested parties registry ( "Registry" or "Registries ") for each Tax Increment Financing ( "TIF ") redevelopment project area created pursuant to the Act (a "Redevelopment Project Area ") whether existing as of the date of this notice or hereafter established On March 8th the Village adopted an ordinance authorizing the establishment of Registries by the Village of Oak Brook Clerk ( "Clerk ") and adopting registration rules for such Registries The purpose of this notice is to inform interested parties of the Registries and registration rules for the Registries and to invite Interested Parties (as defined below) to register in the Registry for any Redevelopment Project Area Any organization active within the Village and any resident of the Village (an "Interested Party ") is entitled to register in the Registry for any Redevelopment Project Area Organizations include, but are not limited to, businesses, business organizations, civic groups, not - for - profit corporations and community organizations An organization seeking to register as an Interested Party with respect to a Redevelopment Project Area must also complete and submit a registration form to the Clerk Such individual must also submit a copy of a current driver's license, lease, voter registration card, utility bill, financial statement or such other evidence as may be acceptable to the Clerk to establish the individual's current Village residency Interested Party Registries are being established for the following TIF Redevelopment Project Areas, which have either been adopted by the Village or which the Village has decided to consider establishing All individuals and organizations whose registration form and supporting documentation comply with the registration rules and who submit such documentation, either in person or by mail, to the Clerk, 1200 Oak Brook Road, Oak Brook, Illinois, 60523, will be registered in the applicable Registry within ten (10) business days of the Clerk's receipt of all such documents The Clerk will provide written notice to the registrant confirming such registration Upon registration, Interested Parties will be entitled to receive all notices and documents required to be delivered under the Act with respect to the applicable Redevelopment Project Area If the Clerk determines that a registrant's registration form and /or supporting documentation is incomplete or does not comply with the registration rules adopted by the Village, the Clerk will give written notice to the registrant specifying the defects The registrant will be entitled to correct any defects and resubmit a new registration form and supporting documentation An Interested Party's registration will remain effective for a period of three years Rules for the renewal or amendment of an Interested Party's registration are included with the registration form that may be obtained as described herein