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Minutes - 04/02/2013 - Zoning Board of Appeals MINUTES OF THE APRIL 2, 2013 REGULAR MEETING OF THE ZONING BOARD OF APPEALS OF THE VILLAGE OF OAK BROOK APPROVED AS WRITTEN ON MAY 7,2013 1. CALL TO ORDER: CALL TO ORDER The Meeting of the Zoning Board of Appeals was called to order by Chairman Champ Davis in the Samuel E. Dean Board Room of the Butler Government Center at 7:01 p.m. 2. ROLL CALL: ROLL,CALL Gail Polanek called the roll with the following persons PRESENT: Chairman Champ Davis, Members Jeffrey Bulin, Baker Nimry, Alfred Savino, Steven Young and Wayne Ziemer ABSENT: Member Natalie Cappetta IN ATTENDANCE: Mark Moy, Trustee and Robert Kallien, Jr., Director of Coininunity Development 3. APPROVAL OF MINUTES: MINUTES Motion by Member Young, seconded by Member Nimy to approve the minutes of the December 4, 2012 Regular Zoning Board of Appeals meeting as written. VOICE VOTE: Motion carried. 4. UNFINISHED BUSINESS UNFINISHED BUSINESS The agenda was revised to hear the unfinished business after new business. 5. NEW BUSINESS NEW BUSINESS A. SFERS REAL ESTATE CORPORATION- OAK BROOK EXECUTIVE SEERS REAL ESTATE CARP - PLAZA - 1211 - 1301 - 1315 22ND STREET - VARIATION - 1211-1301-1315 22"' PARKING REGULATIONS ST.- NG RE GS. - PARKING REDSS.. Chairman Davis announced the public hearing and swore in all who testified. Jeff Rieiner, Vice President, Asset Management, RREEF Management, LLC said that they were the managing principal for SFERS which is the ownership entity of the subject property located at 1211, 1301, 1315 22nd Street. He reviewed the background of the property and the requested variation to allow an VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 1 of 12 April 2, 2013 additional 49 parking spaces along the front of the building, in the required front yard as well as a variation to the required distance from the proposed parking to the street line. He said that Oak Brook Executive had been particularly hard hit by the real estate recession and the economy, as well as the competition from many of the other buildings in Oak Brook and Oakbrook Terrace. They have struggled with occupancy over the last several years. Their occupancy rate had gone down from 97 percent occupancy in 1995 to around 90 percent in the 2000's. Around 2008, the occupancy began to drop and in 2010 was below 80 percent occupancy. They are currently at 82 percent, but that has been a real struggle. They compete with a lot of newer products, although it is a great building and location, it is becoming an older building and many of the competitors have more parking, more up-to-date features, and bigger floor plans, so they have been struggling to keep their tenants. They have lost many tenants over the last few years in the real estate business that just went out of business. They have been doing everything they could do internally to improve the building, including remodeling, upgrading the mechanical system, exterior landscaping and signage. However,one of the key issues they hear from prospective tenants is the lack of parking at the building. Their parking ratio is below 3 per 1,000 square feet of space. The newer buildings have over 4 and 90 percent of their competitors are in the mid 3.5 range, which they are below. When the building is at 80 percent it is a real struggle for the building to perform economically and the fund has been contributing in order to keep the building operating. The building has been operating over the last few years at about $1 million negative cash flow per year because of the capital and operating expense shortfall. They have been doing everything they could to increase occupancy and are now seeking the additional parking. They have been trying for about a year to attract a restaurant to the building. The challenge is that there really is nowhere to park and there are only 11 spaces in the front of the buildings. They believe that additional parking upfront would be a real benefit in attracting a restaurant or quasi-retail tenant. They have had 7,000 square feet of space on the first floor of the link building available for 4-5 years. The additional parking is critical They have had some interest, but it is important to them that the building can provide parking. When you come to the building the parking is around the back, through the dock and the marketing brokers and perspective tenants talk about it and having the visitor parking in the front would help them to attract new tenants. They are seeking an additional 49 parking spaces in the front yard and 33 of the spaces would be located 37 feet 9 inches away from the road. When the road was widened, there was a taking of the land and the distance was changed for a VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 2 of 12 April 2, 2013 portion of the area down from 62 feet. The actual distance to the curb line is 54 feet. Chairman Davis questioned the width in the front of the buildings and what currently exists there. Mr. Riemer responded that it was about 500 feet with a concrete wall that has the building address on it. There are overgrown bushes and landscaping and the existing parking spaces. They are proposing to take out the concrete wall and the overgrown evergreens, add a berm across the front of the building as shown on the conceptual plans submitted, which would have a four foot berm and plantings, so that from 22"d Street the only thing that might be visible is the top of a van. A preliminary concept plan was shown on page I along with a picture showing how it may look on page J. Director of Community Development Kallien said that during the permit review process they would make sure that the 4-foot high berm and landscaping would be part of the plans. Mr. Riemer noted that the conceptual plan does not indicate the type of species and number of plants, but would essentially be the plan presented; only at time of permit they would indicate the quantity and type of species of the flowers and shrubs. Member Young questioned if there would be an impact on stonnwater retention. Mr. Riemer said that the total additional pavement being added is below the minimum so no additional detention is required. When the civil engineering is designed they would incorporate the runoff and release. Director of Community Development Kallien noted that two perrnits would be issued by the Village, a building permit and an engineering permit that would ensure the water runoff. Member Savino sought different language than what was used for 600 Hunter. Director of Community Development Kallien responded that as part of the variance for the additional parking a berm was required. During the process there was a clash of the ordinances and the floodplain ordinance prohibited them from moving any more dirt than what has been moved to create the minimal berm. VILLAGE OF OAK BROOD Zoning Board of Appeals Minutes Page 3 of 12 April 2, 2013 Mr. Riemer said that this was the front of their building and they are looking at it as the ability to upgrade what they currently have. Member Young asked how their plan fits in with other village planning for the streetscapes. Director of Community Development Kallien responded that the plan was reviewed by the Village Engineer and there at-e 8 projects planned for different links of walkways by the Streetseape Committee, but none are in the location of these improvements. Variation Standards Mr. Riemer responded to the standards as follows: 1. a. The property in question cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations governing the district in which it is located. RESPONSE: The below-market parking ratio has negatively impacted the overall leasing at the building. Tenants have not been willing to lease space and the occupancy and net operating income of the building have decreased, The building is currently operating in a negative cash flow position requiring the owner to make annual capital infusions in excess of$1,000,000, which has been the case for the last couple of years and they really need to increase their occupancy in order to make the building self sustaining. The ability to lease the front floor spaces would go a long way to meeting that requirement. 1.b. The plight of the owner is due to unique circumstances. RESPONSE: The parking ratio currently in place is below the minimum requirement of the current Village Code and of the business requirement of most tenants in the market. We believe that increasing the parking ratio will expand the pool of prospective tenants and will allow for the long-standing first-floor vacancy to lease to potential retail/restaurant users. Charles Schwab used to be in their building in the first floor linked space. They moved to go to the new development (Clearwater) because of the visibility and parking and the access issues they could not address at the time. The design layout and physical shape of the site provides limited options for expanding the parking. The most feasible option is to expand the existing front yard parking. They looked at expanding in the back, and there is no way to add since it is landlocked and VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 4 of 12 April 2, 2013 they cannot add an additional floor on the deck. They would need to build a brand new deck which would cost over $1 million to add 50 spaces. They believe the approximate cost of the project proposed would be around $200,000, so it is more in line with what the building can absorb. 1. c. The variation, if'granted, will not alter the essential character of the locality. RESPONSE If granted, the variation will not alter the essential character of the locality. The proposed parking will be screened with updated landscaping. The new landscaping will replace the existing overgrown hedge of evergreens along 22'd Street with an undulating berm and plantings consisting of both evergreen shrubs and perennials. We believe the new landscaping will dramatically improve the appearance of the property from the street level view and for visitors coming to the property. William Lindeman, resident, commented that the Zoning Board does not have the foresight that every building in town is not operating at optimal capacity. The Streetscape Committee is trying to cope with problems created by the Zoning Board in allowing construction of a restaurant with far less parking than the applicant. Patrons are parking at Commerce Plaza and walking to the restaurant crossing mid-block creating a traffic hazard. Somebody missed the ball as to just avoid a parking deck. Not requiring parking decks is going to reduce the character of the village. IIe thought that needs are exaggerated without exploring reasonable alternatives. If all needs and future requests are approved what would the village look like and what problems as far as occupancy would that create. Chairman Davis commented that parking decks typically are not attractive. Member Nimry commented that there is an agreement with McDonald's for free valet parking provided by the restaurant and there is not problem parking. People cannot be forced to use valet and they make choices to park and run across the street. Chairman Davis noted that the applicant had addressed the standards in his testimony and in writing in the case file. Motion by Member Savino, seconded by Member Bulin that the applicant had met the standards required to recommend approval of the variation to allow an additional 49 parking spaces, resulting in a total of 60 parking spaces to be located in the required front yard. A total of 33 spaces would to be located VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 5 of 12 April 2, 2013 approximately 37 feet 9 inches from the street line of 22nd Street (Cermak Road) subject to the following conditions: 1. The proposed parking spaces and landscaping be in substantial conformance to the conceptual landscaping plan. At the time of installation the earthen bei7n and evergreen plant material shall meet the minimum height of 48" over the entire length of the proposed landscape screen. The landscape screen shall be maintained and replaced in accordance with the approved plans. 2. Notwithstanding the attached exhibits, the applicant shall meet all Village; Ordinance requirements at the time of building permit application except as specifically varied or waived. ROLL CALL VOTE Ayes: 6 — Members Bulin, Nim1y, Young, Savino, Ziemer and Chairman Davis Nays: 0— Absent: 1—Member Cappetta. Motion carried. 5. B. MTL INSURANCE COMPANY 1200 JORIE BLVD. — VARIATION — M'I'EINSURANCE- 1200 J01UE BLVD. PARKING REGULATIONS VARIATION- PARKING BEGS Chairman Davis announced the public hearing and swore in all who testified. Alfreda (Freddie) Jacob, Senior Vice President, Organization Development Mutual Trust Financial Group said that they were seeking a variation to eliminate the interior landscape islands in their parking lot in the rear of the building. The building was built by and for MTL in the 1970's. They have done a lot of research to try to understand why the parking ratios did not meet the minilnum standards, but have not been able. Four years ago she under took the task of developing a strategy to improve the aesthetics, functionality and efficiency of the building. Over the last four years they have invested quite a bit of time and capital in making improvements. In 2011, they spent over $250,000 in landscaping around the building. They removed a deteriorating brick wall and replaced it with shrubbery and partial brick and granite. In 2012, they invested another$80,000 in additional landscape screening between their building and the buildings on Kensington as well as the Ace building to the west. They spent an additional $50,000 to remove the stumps and clear the area because Nicor came in and devastated all the landscaping on the north side of the building. They intend to replant that area. The existing interior islands in the parking lot do not have any vegetation, they are filled with stone. It was her understanding that the greenery did not survive VILLAGE OF OAK BROOD Zoning Board of Appeals Minutes Page 6 of 12 April 2, 2013 in the islands due to the salt and lack of irrigation; and there was an approval to leave stone in the islands. The request to eliminate the islands is not a request to remove any existing greenery, but they are committed to plant additional greenery along their perimeter, which is more beneficial to passersby and the neighbors. By eliminating the islands it would allow the additional parking spaces,but they would not meet the minimum code requirements. They have 145 employees and lease the 2°d and 3rd floors. Ace Hardware was their largest tenant and occupied about 15,000 square feet of office space. Parking was not an issue because their employees parked in the Ace lot and used the walkway for access to the building. They vacated the building.. in 2010 and since that time parking has been an issue. A present 3-year tenant occupies 2600 square feet with 9 employees. They also have another facility in Downers Grove and about 6 months ago they approached management and wanted to combine the two offices. They also negotiated with the Downers Grove building. The biggest hurdle they had to overcome was the issue of parking. They signed the lease and went to 3500 square feet with 24 employees. Their footprint went from 300 square foot per person to about 125. They have heard from their space planners and potential tenants that this is the trend. Last summer they were in negotiations with a potential tenant to lease the vacant 15,000 square foot office space that had been vacated by Ace, but they had 118 people to occupy the space, which resulted again in about 125 square feet per employee. They were not comfortable that the building could accommodate their parking needs because they expected to grow 3-5 percent within the next 3 years, so they ended up in another building outside of Oak Brook. The market is tough and if they could get closer to meeting the minimum code requirements it makes them a good corporate citizen, which they have been trying to do with all the improvements that they have made. It would also allow them to compete for tenants, which is good for there and for Oak Brook and Oak Brook businesses, Chairinan Davis questioned how many additional spaces would be gained Eric Uebelhor, Project Engineer, Woolpert, 1815 South Meyers Road, Suite 120, Oakbrook Terrace, IL said that the stone islands would still exist, but would be reconfigured according to the proposed plan. The islands they are seeking to eliminate would be the new interior islands that would require a 6- foot strip by every third bay and every 15 parking spaces requires and interior tree. The trees in the past did not make it in the parking feld in part because there is not an irrigation system. VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 7 of 12 April 2, 2013 He reviewed the proposed landscape and site plans (pages L and M of the case file). They have reconfigured the parking lot and the sizes of the stalls have been reduced from 9 feet to 8.5 feet, which meets code. There would be very minimal disturbance of land. Today there are 361 spaces and under the proposed plan there would be 400 (39 additional spaces). The parking ration increases from 2.75 per 1,000 square feet to a little over 3 per 1,000 square feet with minimal work. One of the site constraints is that they cannot expand the parking going north into the Nicor easement, although the properties to the east and west of this property do have parking in the easement. On their property exists a 6-10 foot berm as well as a 30-inch Nicor transmission line and they are not sure how deep it is buried, but there is a Nicor facility located above ground and the pipe comes up to the grade. He had a similar circumstance in Lombard and although they were allowed to resurface the lot,they were not allowed to do any cut, due to the Iine. The possibility of protecting the line is not likely and if possible cutting into the berm to make it useful would be cost prohibitive. The owners also looked into constructing a parking deck, but cost was over $2 million and for a company of this size it is not feasible. They would like to plant the interior parking lot landscaping around the perimeter. In 2011, they spent about $200,000 on landscaping around the foundation of the building and in 2012 spent another $80,000 in evergreens along the south and west property lines. The proposed landscape plan does not call out the specific species, but all existing landscaping is called out. They calculated that 15 additional trees would be required if there were interior islands, two of which would be relocated from the front island. The trees would be located along the property line. They would also add the 5-foot screening, which meets code requirements. Currently between the building and Ace there is very little screening and the conceptual picture shows how a proposed shrub line would look and the car on the lot can barely be seen. The landscaper proposed more deciduous shrubs that are salt tolerant, which is where the snow would be piled. They are trying to provide landscaping that would last and create some variety since a number of evergreen trees already exist. The east end of the property is currently screened, which is all deciduous at the top of the berm. Some of the photos show the height of the existing Nicor berm and how difficult or impossible it would be to add parking. The property owner has taken an interest in the property and they are not seeking anything that would be detrimental. VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 8 of 12 April 2, 2013 Variation Standard Mr. Uebelhor responded to the standards as follows: 1. a. The property in question cannot yield a reasonable return if permitted to be used only under the conditions allowed by the regulations governing the district in which it is located. RESPONSE: The existing property is currently short of the code required minimum number of parking spaces. While the constraints of the existing property won't allow enough parking to be added to meet the code requirement, the variation requested will allow for a significant improvement to existing conditions. There are 361 parking spaces and the requested modifications would provide 400 parking spaces as proposed, an increase of 39 spaces. This would allow tenants the ability to locate their'business at this facility within the Village of Oak Brook without the fear of being unable to expand their business due to lack of parking, which has been an obstacle for the building. 1. b. The plight of the owner is due to unique circumstances. RESPONSE: The plight of the owner: is due to unique circumstances. The property was for reasons undetermined, developed with parking well below the minimum requirement by code. There is a unique hardship caused by the existing topography and infrastructure within the 82.5-foot dedicated Nicor easement at the north end of the site which limits the owner's ability to provide parking within the limits of their property. 1. c. The variation, if granted, will not alter the essential character of the locality. RESPONSE: The character of the facility will be unchanged by the requested variations. The additional parking gained by the proposed medications will bring the facility closer to complying with village code than under existing conditions. No one from the audience spoke in support of or in opposition to the request. Member Ziemer questioned that the plantings that would have been required in the islands be added to the perimeter. Mr.Uebelhor agreed and responded that is what they were proposing. VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 9 of 12 April 2, 2013 Chairman Davis questioned that there was a note on the plans to that effect. Mr. Uebelhor noted that the flan did call out the additional plantings.. Chairman Davis noted that testimony had been given in support of the request and that the standards had been addressed by the applicant. Motion by Member Bulin, seconded by Member Young that the applicant had met the standards required to recommend approval of the variation as requested subject to the following conditions: 1. The proposed parking and landscaping shall be constructed in substantial conformance with the approved plans. 2. Notwithstanding the attached exhibits, the applicant shall meet all Village Ordinance requirements at the time of building permit application except as specifically varied or waived. ROLL CALL VOTE Ayes: 6 — Members Bulin, Nimry, Young, Savino, Ziemer and Chairman Davis Nays: 0— Absent: I —Member Cappetta. Motion carried. 4. UNFINISHED BUSINESS UNFINISHED BUSINESS B. VILLAGE OF OAK BROOK — TEXT AMENDMENT — FENCE VILLAGE of OAK BROOK - TEXT REGULATIONS AMENDMENT - FENCE.BEGS Member Nimry brought up the differences between the Village and some of the homeowner associations regarding fences. He suggested there be a meeting arranged between all of the associations and the village to discuss fences. Chairman Davis questioned the variation issue that was before the Zoning Board with the conflict between the village's zoning and the homeowner association fence requirements. Director of Community Development Kallien responded that if there is a permit application is submitted that meets the village's requirements, the village attorney's (past and present) have determined that the permit must be issued. There is a contradiction between the village's fence requirements and those of some of the subdivisions. Member Ninny said that it was an issue of open space and what he believed VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page 10 of 12 April 2, 2013 �w� was Mr. Butler's vision. He believed that if a majority of the associations did not allow fences and the regulations should be in agreement. Member Young noted that the case with Harry Peters and the homeowner was that they went around the village and did not seek a permit or variation, they just put up the fence and it was an enforcement issue. Member Nimry suggested a special meeting with the homeowner associations and to give them three options, to revise the ordinance so that fences are eliminated, with the exception of safety fences and only permit a. fence around gated communities; The meeting should be a ;separate meeting with village staff, Bob Kallien, Dr. Moy and the homeowner associations, similarly to the meetings regarding the cemeteries. If the Zoning Board is going to make a proper recommendation this meeting should be held to gather information. Member Bulin questioned allowing fences around gated communities. Member Savino questioned that currently there are chain link fencing around subdivisions. Director of Community Development Kallien said that they would be permitted as exists and can be maintained. There was a discussion,regarding different options and steps that could be taken next. There was a poll of the members to continue the public hearing to allow time for meetings to be held to meet with the homeowner associations and homeowners regarding the fence issue. Motion by Chairman Davis, seconded by Member Young to continue the public hearing for the purpose to allow potential meetings with Mr. Kaltien and homeowners and whoever else might attend to have further discussions about the fence ordinance. VOICE VOTE: Motion carried 6. OTHER BUSINESS OTHER BUSMES'S William Lindeman commented that the Zoning Board of Appeals might want to have an appropriate professional available to guide them on various issues. He distributed some pictures regarding signage, fences, pillars at Hawks Soccer field, advertisement flags at McDonalds, parking along the Park Districts, free newspapers, and advertisement stands outside of businesses-along the streets. VILLAGE OF OAK BROOK Zoning Board of Appeals Minutes Page I I of 12 April 2, 2013 He offered comments regarding the code on fences, its interpretation and enforcement with the code and that thought should be given to uniformity. Member Savino asked that a letter be written to the owners of 600 22"" Street (folinerly Hunter) regarding the landscaping to accornmodate the lack of the earthen berin, Director of Community Development Kallien responded that he would need to discuss it with the Village Engineer due to flood plain issues and restrictions on the property. There was no other business to discuss 7. ADJOURNMENT: ADJOURNMENT Motion by Member Young, seconded by Member Ziemer to adjourn the meeting at 8:40 p.m. VOICE VOTE: Motion carried ATTEST: ls/Robert L. Kallien, Jr. Roberti Kallien, Director of Community Development Secretary VILLAGE OF OAKK BROOK Zoning Board of Appeals Minutes Page 12 of 12 April 2, 2013