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Minutes - 11/30/2011 - Board of TrusteesMINUTES OF THE NOVEMBER 30, 2011 SPECIAL BOARD MEETING OF THE ECONOMIC DEVELOPMENT SUMMIT: ENHANCING THE BUSINESS CLIMATE OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON JANUARY 10, 2011. 1. CALL TO ORDER The Special Meeting of the Village Board of Trustees was called to order by President Gopal Lalmalani in the Grand Oak Pavilion Room of the Hyatt Lodge at McDonald's Campus at 7:10 am. The Pledge of Allegiance was given. 2. ROLL CALL Village Clerk Charlotte Pruss called the roll with the following persons: PRESENT: President Gopal Lalmalani, Trustees Stelios Aktipis, Michael Manzo, Mark Moy, Gerald Wolin, Asif Yusuf and Elaine Zannis. ABSENT: None IN ATTENDANCE: David Niemeyer, Village Manager; Blaine Wing, Assistant Village Manager; Sharon Dangles, Finance Director; Thomas McEllin, Fire Chief, Sue Madorin, Library Director; James Kruger, Police Chief, Michael Hullihan, Public Works Director; Trey VanDyke, Sports Core Director; and Peter Friedman, Village Attorney. 3. ECONOMIC DEVELOPMENT SUMMIT A) Village's Commercial Revitalization Plan Presentation President Lamalani welcomed everyone to the Village's first Economic Development Summit. He stated that in the last six months the Village Board has completed the Resident Survey, the DuComm transaction has been completed, the Electric Aggregation project will allow residents to receive 30% of savings on their electric bills, and the Board has also hired the new Police Chief, Jim Kruger. President Lalmalani explained that the Village Staff is putting the finishing touches on the 2012 Budget, and the residents will see no new taxes along with reduced spending by the Village in the areas of insurance fees and legal costs. President Lalmalani stated that the objective of the Summit is to explore what the Village of Oak Brook can do to enhance the local business climate, and the first part of this meeting is to discuss the Village's commercial revitalization plan in terms of the past, present and future. He then thanked all of the participants in today's program, and especially thanked Assistant Village Manager Blaine Wing, for all of the hard work that he put into today's summit. Trustee Zannis introduced today's speakers; Village Manager David Niemeyer, Chamber CEO Tracy Mulqueen, Joe Endress with McDonalds, Chuck Fleming with Oakbrook Center, and Jeff Shay with Jones Lang LaSalle. VILLAGE OF OAK BROOK MINUTES Page 1 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 Trustee Zannis then presented a PowerPoint discussing the "Economic Development Successes and the Oak Brook Brand" - While much of the Chicago area has struggled in the last few years, Oak Brook has flourished. - Approximately 300,000 square feet of vacant office space was leased, adding over 1,000 new employees. - This space includes; Rasmussen College, Tree House Foods, AM Castle, ITT, Olivet Nazarene, Millennium Trust and McDonald's Corporation. - Oak Brook now has an estimated office vacancy rate of 14% compared to the rest of the east west corridor which is at 22 %. - On the retail side, Oak Brook Center is completing a $12 million maintenance project to improve the aesthetics in the Center's interior area. New retailers include Tesla Motors and Sports Authority Elite. - Thomasville Furniture, Helzberg Diamonds, and Sleep Number Beds were recently added to the Promenade. - Ravioli Oil is coming to the Clearwater Development. There have been initial discussions about potential tenants for Pad 2. - Oak Brook has a successful economic development program because of the great partnership between government and business. - Also important is Oak Brook's location, transportation network, business friendly government and excellent workforce. - But it is the "Oak Brook Brand" that sets us apart from the rest of DuPage County. - To maintain our brand and continue to be the leading community for Economic Development in DuPage County, we need a far reaching, action - orientated plan to guide us. Trustee Zannis then introduced Jeff Kennedy, a leader and strong supporter of Oak Brook's Commercial Revitalization Plan. Jeff Kennedy explained that his role this morning was to discuss the past of Oak Brook's Commercial Revitalization Plan. He stated that approximately seven years ago, the leaders in the Oak Brook Community realized they were in danger of losing Oak Brook's preeminence as the destination for retail and corporate headquarters. He stated that the Village was facing the problems of aging corporate real estate, the competition from other retail centers with a younger look, many of the Village codes were becoming outdated, and that the roadways were becoming too small for the amount of traffic that was going through them. Mr. Kennedy explained that in order to address these issues, in 2005 the Village Board made two committees, the Commercial Revitalization Task Force and the Beautification Committee. He stated that two consulting fines were hired comprised of civil engineers, and landscape architects, and these firms went through extensive interviews with key stake holder groups in the Village of Oak Brook. Mr. Kennedy explained that ultimately the objective of these committees was to provide a balance between the quality and quantity of commerce available in Oak Brook. VILLAGE OF OAK BROOK MINUTES Page 2 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 Mr. Kennedy stated that with that analysis "done, the Village decided to go forward with the Commercial Revitalization Plan and the Streetscape Plan dedicated to street beautification. He stated that under the Commercial Revitalization Plan, several goals have already been completed. - The drafting, in 2009, of the Planned Development Ordinance, which gives developers much more flexibility to be more creative, while at the same time it gave the Village more control of construction standards. - The creation of the Plan Development Commission, which streamlines the Village review and approval of major developments. - The drafting and adoption of a modernized signage ordinance. - The adoption of new building codes, which brings the Village up to date. - There have been administration changes in the Development department to expedite the process of aFTrovals and inspections. - The widening of East 22" St, eliminating a bottleneck. - The widening of West 22 "d St. - The installation of new traffic signals at Costco and Clearwater Development. - Actual and proposed sidewalk construction along 22 "d St. - The Village is continuing to work on a way to provide more bus transportation to nearby rail stations and major retail centers. Mr. Kennedy then presented the completed goals of the Oak Brook Streetscape Plan. - The Village improved the aesthetic look of the stone on the I -88 ramp. - The installation of new streetlights. - There will be median improvements from Spring Road to Salt Creek. - The design and IDOT approval are almost complete to continue the median and streetscape improvements from Salt Creek to I -294. Mr. Kennedy emphasized that the bottom line is that the Village is not starting from scrap with this Economic Development Summit, and that they have a good base started already for improvements. He then introduced Community Development Director Bob Kallien. B) Current Commercial Revitalization Program Bob Kallien presented a PowerPoint highlighting the current implementation of the Commercial Revitalization Plan. - The adoption of the new sign ordinance has led to new signage being installed atop four buildings. - There is a new Planned Development Ordinance and Committee now in place. - The first planned development application was received for Pinstripes, and the formal hearing process for Pinstripes begins in January 2012. - Over 20 properties were identified as "Opportunity Sites" for new development/redevelopment. - A detailed study and analysis of these sites is warranted, and consultant proposals were requested. The final selection will be in early 2012. Approximately $110,000 budgeted for this study. VILLAGE OF OAK BROOK MINUTES Page 3 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 Bob Kallien stated that there have also been many requests for improved directional signage throughout the Village. Because of this, Bob explained that the Village Board has approved a modest contract to improve certain directional signs throughout the area. He stated that the Staff is also working on an Economic Development Brochure in order to have an available document to hand to interested parties. He then introduced Village Manager, David Niemeyer. C) Future of the Commercial Revitalization Plan David Niemeyer explained that the Commercial Revitalization Plan is all encompassing and it's a document that is set up to accomplish goals. He then presented a PowerPoint dealing with the long term priority goals of the future. - New ramps to I -294 and I -88. - Finalize York Road improvements. - Grade separation from 22nd St. and Route 83. - Continuous streetscape design on 22nd St. from the tollway to Butterfield and Route 83 from 315` to 16d' St. - Improving local transit. - Eliminate redundancies in the Plan Commission and the Zoning Board. - Connect office, retail and hotels. President Lamalani stated that the purpose of today's meeting was to brainstorm ways in which the Village can move forward with meaningful commercial expansion by thinking outside of the box. He then asked the visitors to fill out the comment cards at their table, so that the panel can answer some of their questions. D) Economic Development Discussion - Do you foresee any new office building development in these tough economic times for the next couple of years? Jeff Shay, from Jones, Lang and LaSalle, replied that the short answer to this question was no, he did not foresee any new office building developments in the next couple of years and that the current office buildings in Oak Brook are starting to fill up. He stated that there are two ways to develop a building. The first way is for the developer to build the complex speculatively, which means that after the building is complete the developer will then try and find tenants. Jeff assured the audience that with 100% confidence that Oak Brook was not going to do this. The second course of action, according to Mr. Shay, is to have a tenant in the market for a space and to have a developer specifically build with this tenant in mind. There are significant challenges with this course of action of course, with Oak Brook existing at about 14% vacancy, there are landlords that are able to be extremely competitive, and as a possible tenant it may not make sense for them to pay significantly more for a new building, versus moving into an already existing structure for much less. However, Mr. Shay stated, there are circumstances where a developer would build VILLAGE OF OAK BROOK MINUTES Page 4 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 a new structure for a tenant. This would happen if the tenant had a large space to occupy that the existing buildings could not accommodate, or if the tenant had very specific needs and a structure plan in place in which the other buildings could not accommodate. - How is Oak Brook doing in terms of filling up the office spaces? Mr. Shay stated that the office buildings are filling up and that Oak Brook is chipping away at the office vacancies. The economy has to continue to rise, according to Mr. Shay, and employers need to continue hiring staff members in order for Oak Brook to continue filling the vacancies. He concluded the answer of the question by stating that as long as there is not a double dip recession, and companies continue to move forward then Oak Brook should not face any trouble in filling the office space. - What is the value of a successful office market? Tracy Mulqueen, the CEO of the Greater Oak Brook Chamber of Commerce, stated that the office tenants are what drive the retail sales in Oak Brook, so the more office space that is being filled the more that retail sales will occur in the Village. Mrs. Mulqueen explained that the employees and their business associations consistently use the Village's hotels and restaurants and this has a positive effect on the community. She then stated that several hundred companies of just 25 employees or less generate over $200,000 annually in sales tax for the Village. - What is the state of retail in Oak Brook today? Chuck Fleming, the General Manager of the Oakbrook Center, explained that the economic conditions of the last 24 months have put the retail world into a great flux and that unemployment rates have had a great impact on customer confidence and that has reflected itself in the total sales of the Village. Mr. Fleming stated that in the last 12 months, there was a slow but steady increase in sales, not only in the Village, but across the country as well. The holiday sales this year, according to Mr. Fleming, including Black Friday, went very well and equated itself to a very strong start for the holiday season. There is much cautious optimism taking place at the moment with the Oakbrook Shopping Center being such a dominant facility, and a destination for shoppers and retail owners alike. He stated that people want to be at the Oakbrook Shopping Center because of its location, and the amount and quality of stores available. What is the update on the Drake Hotel? Would the shopping center be able to turn it into a World Trade Center, or a Retirement Home, or possible luxury condos? Mr. Fleming stated that he cannot personally speak on the Drake Hotel, but he will VILLAGE OF OAK BROOK MINUTES Page 5 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 speak on the Renaissance Hotel. He stated that the hotel has been a key part of the shopping center since 1965 and that there has been significant research done on the different possibilities of what the hotel could be, and research has shown that the hotel would best serve the shopping center if it was returned to its original form and used again, as a hotel. Mr. Fleming explained that there would need to be renovations done, but that the hotel is the right use for that property and currently there are talks being conducted and a predication in place that there will be a renovated hotel in that location by the 4`s quarter of 2012. Bob Kallien, the Community Development Director, stated that the Drake was once the centerpiece to the Village of Oak Brook but currently after payment issues with the last owners, the bank now owns the property. Mr. Kallien stated that the Village is in correspondence with the bank to ensure that the property is maintained, and the Village currently has to work under the guidelines that the hotel, and the adjacent office building is currently zoned under Zoning Restriction B4 which means that it can only be used as a hotel, and as an office building. Mr. Kallien explained that there is also a deed restriction held by the adjacent office building which states that the hotel must be kept as a hotel. - What is it that McDonalds can do to help us attract more corporations in Oak Brook? Joe Endress, the Vice President of Facilities and Systems for the McDonald's Corporation, stated that McDonald's inevitably chose Oak Brook because it's a world class community, it has all of the amenities a major corporation could need and it has approximate locations to all major highways and airports. Mr. Endress explained that McDonalds is proof, as a major global company that Oak Brook is the destination to choose. What is it that Oak Brook needs to do to attract and retain qualified employees? Mr. Endress stated that everything is in place in terms of infrastructure and amenities and that in terms of hiring employees, a large perk for them is the quality of life available in Oak Brook, and the ease in which the employees can travel to their jobs because of the location of the Village. Mr. Endress stated that the Oak Brook brand is well -known and it is able to sell itself. - What are we doing to attract foreign companies to Oak Brook? Tracy Mulqueen explained that the Chamber of Commerce has been working with the Village and has established an Economic Development Organization. The Organization has made it a high priority as they move forward, to attract more foreign businesses, and Mrs. Mulqueen explained that in the coming year they will give more time and outreach to brokers who deal with international companies. - What is the Village doing to move into the 21st Century in terms of information VILLAGE OF OAK BROOK MINUTES Page 6 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 technology and communication? Mrs. Mulqueen explained that in terms of dealing with these cluster groups, the Village really needs to come together and work with the Chamber and the county and the State of Illinois as a whole, in order to achieve these goals. Greg Bedalov, the Director of Chose DuPage states that the key to success is in determining the kind of companies that the Village would like to attract and then catering specifically to these companies and this can only happen with partnerships with other organizations outside of Oak Brook. - Does the shopping center accept any strip type developments in their parking lots? Mr. Fleming stated that the Shopping Center is in the process of putting together a pathway that will allow them to look at new ways to generate sales. He explained that using different levels of the parking sections is an idea that the shopping center is looking over, but it will be done in the Oak Brook fashion, which means that there will be a careful selection process of any new store that enters into Oak Brook. - Cyber Monday saw 1.2 billion in online sales. That's 1.2 billion that local municipalities did not recognize the sales tax from. Are there any ideas on how to counter the online competition? Mr. Fleming explained that in terms of Cyber Monday, the total sales made on that day had very little impact on the retail sales taken away from the Oak Brook Shopping Center. He stated that the bottom line is that people love to shop and with the type of retail set up that Oak Brook has with the outdoor shopping and the floral arrangements; it becomes an experience for the shopper. - Can you expand and improve the golf course? Sports Core Manager Trey VanDyke stated that at this point the golf course is not at capacity and he would not recommend on expanding the course. As of right now, the golf course is looking more at adding more practice holes, or a short course. - Does the Village have any Disaster Plan in place? Blaine Wing, Assistant Village Manager, answered that the Village does have a current disaster plan in place, and they are looking at currently updating and revising this plan and presenting it to the Board in early January or February. President Lalmalani then allowed Bill Gotthard from the IBLP to speak about the Drake Hotel, Mr. Gotthard stated that there are thousands of leaders around the world that would VILLAGE OF OAK BROOK MINUTES Page 7 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011 like to come to the Village of Oak Brook, and that their plan is to turn the Drake Hotel in a four or five star hotel in order to accommodate these leaders, and businessmen from around the world. 4. RESIDENT/VISITOR COMMENT Richard Allison echoed Mr. Gotthard's comments that the Village of Oak Brook would be the right place for a World Trade Center. Karen Bushy stated that she believed that the Village of Oak Brook is successful because it is unique. She explained that the sales tax and the work that was put into the sales tax issue regarding all of the small details is what separates Oak Brook from the other communities. She also warned that if Oak Brook is not able to maintain its individuality and the core values that made it the way it is today then it will fall behind other municipalities. President Lalmalani then urged all visitors to interact with the Board Members or Department Directors sitting at each table and share any ideas that they may have. 5. ADJOURNMENT Motion by Trustee Aktipis, seconded by Trustee Yusuf to adjourn the Economic Development Summit at 9:00 am. VOICE VOTE: Motion carried. ATTEST: /s /Charlotte K. Pruss Charlotte K. Pruss Village Clerk VILLAGE OF OAK BROOK MINUTES Page 8 of 8 ECONOMIC DEVELOPMENT SUMMIT NOVEMBER 30, 2011