Mayor Broda called to order a meeting of the TIF Joint Review Board at 2: 00 p. m.

Transcription

1 MINUTES TAX INCREMENT FINANCING JOINT REVIEW BOARD PROPOSED DOWNTOWN TIF LISLE VILLAGE HALL BOARD ROOM WEDNESDAY, DECEMBER 10, 2014 I. CALL TO ORDER Mayor Broda called to order a meeting of the TIF Joint Review Board at 2: 00 p. m. on Wednesday, December 10, 2014 in the Lisle Village Hall Board Room, 925 Burlington Avenue, Lisle, Illinois The following minutes constitute a summary of the events and discussions that transpired during the subject meeting, and do not purport to be a transcript of such. Where transcripts exist, they are available for inspection under the Illinois Freedom of Information Act. II. INTRODUCTION OF REPRESENTATIVES Present: Tom Althoff Lisle Woodridge Fire Protection District ( arrived 3: 13 Also PM); Stephen Anderson Public Member; Dennis Brennan DuPage County Health Dept. ( arrived 2: 03 PM); Mayor Joseph Broda, Chairperson Village of Lisle; Keith Filipiak Lisle Community Unit School District 202; Paul Lauricella DuPage County; Kathleen Seelig Lisle Library District; Scott Silver Lisle Park District Present: Village Manager Jerry Sprecher Village of Lisle; Dan Garvey Lisle Park District; David Silverman Village Attorney; Robert Rychlicki Kane, McKenna & Associates, Phil McKenna Kane, McKenna & Associates; Recording Secretary Arnold Village of Lisle, Finance Director Kim Schiller III. SELECTION OF PUBLIC MEMBER Mayor Broda asked that Stephen Anderson be appointed as the public member of Joint Review Board. Member Silver moved to approve the selection of Stephen Anderson as the public member of the Joint Review Board. Member Filipiak seconded the motion. Public member Anderson was present at the meeting as of 2: 02 PM. IV. SELECTION OF CHAIRPERSON Mayor Broda stated he would volunteer to be the chairperson of the board, if no one objected. Member Silver moved to appoint Member Broda as the Chairperson of the Joint Review Board. Member Seelig seconded the motion. V. REVIEW OF JOINT REVIEW BOARD PROCEDURES AND DUTIES Bob Rychlicki, Kane, McKenna & Associates, 150 N Wacker, passed out a handout that outlined the rules and responsibilities of the JRB. He then stated the purpose of the board is advisory and explained they have 30 days, from when they convene, to agree or disagree that the

2 TIF JOINT REVIEW BOARD MEETING December 10, 2014 Page 2 proposed TIF designation meets eligibility findings under TIF law. Mr. Rychlicki then discussed what the three outcomes of the meeting may be, one, agree with the proposal, a positive recommendation. Two, disagree with the proposal, or give a negative recommendation. He stated that if a negative recommendation is given then it must be specific and identify basis for the disagreement and be in writing. Mr. Rychlicki pointed out that if a negative recommendation is given then the Village will have an additional 30 days to try and convince the JRB to give a positive recommendation. The third possible outcome is no action taken by the JRB and in the event this occurs, it is considered a positive recommendation. VI. TIF PLAN AND TIF ELIGIBILITY CRITERIA - REVIEW Mr. Rychlicki first reviewed the proposed TIF area map and where the boundaries lie. He stated that the area is slightly over seven acres. Mr. Rychlicki pointed out that the TIF Act requires that an area be qualified as either blighted or conservation. After review it was determined that the area should designated as conservation. Mr. Rychlicki then stated that the municipality must demonstrate that 50 %, or more, of the buildings are at least 35 years old. He stated that in this case, 69% of the buildings meet this criteria. He also pointed out that there must be a minimum of three out of thirteen factors present within the area as set forth in the TIF Act. Mr. Rychlicki reviewed the seven qualification factors present; they are declining EAV ( Equalized Assessed Valuation), excessive vacancies, obsolescence, deleterious layout, deterioration, lack of community planning and inadequate utilities. Mr. Rychlicki reviewed the decline in proposed TIF EAV, he pointed out that there has been four years of decline and that it did lag behind in CPI ( Consumer Price Index) for the last four years. Mr. Rychlicki remarked that the shopping center consists of 40, 000 square feet and is approximately 70% vacant and this has been ongoing over the last five years. Mr. Rychlicki discussed obsolescence and how this factor was determined and noted that this factor and lack of community planning are common in older downtowns then discussed why. He commented on deleterious layout and how current parking configurations need to be balanced with pedestrian oriented designs that could serve multiple destinations and offer circulation throughout the downtown. Mr. Rychlicki noted that deterioration was found on the bulk of the properties in parking lots, alleys, driveways, garages and sheds. Mr. Rychlicki noted that lack of community planning mainly relates to when buildings were originally developed, prior to a comprehensive plan being in place. Mr. Rychlicki then reviewed the inadequate utilities. Mr. Rychlicki then spoke on the TIF plan and how it is a financing plan and how it identifies types of uses, and goals and objectives for redevelopment. Mr. Rychlicki reviewed the estimated TIF budget. Mr. Rychlicki then spoke on a new portion of the TIF act that affects the school and library district with regard to new students and patrons and accessing funds before the end of the TIF. Mr. Rychlicki reviewed the next steps in the process including the public hearing, scheduled for February 2, the waiting period of no less than 14 days and no more than 90 days to consider the TIF Ordinances.

3 TIF JOINT REVIEW BOARD MEETING December 10, 2014 Page 3 Mayor Broda indicated that the TIF is planned for 23 years, he questioned if it can be retired early. Mr. Rychlicki explained that there is a cap on the budget in place or if the area is built out sooner than expected the Village Board may terminate the TIF before the 23 years. Mr. Rychlicki then spoke on the yearly JRB meetings and how they are used to update the JRB on the progress of TIFs. Phil McKenna added that another alternative is to make a determination that all the funds are not needed and to declare a portion of it surplus. Member Silver asked if the TIF budget may be increased if necessary. Mr. Rychlicki indicated that if the budget were to be increased the process would need to start from the beginning again. Member Silver also asked for clarification on the student and patron portion that Mr. Rychlicki was referring to earlier. Mr. Rychlicki explained what the districts would be entitled to and how there is a limit and how it is calculated. Member Filipiak questioned if the estimated TIF budget of $ 17, 500,000 is a final number. Mr. Rychlicki explained that the is what could be spent on the area and how it is a combination of spending or contributions. Member Filipiak asked if the entire budget was not spent if it could be distributed as surplus. Mr. Rychlicki stated that yes it is possible; if all the work was completed and there are no further expenditures then it would have to be declared as surplus. Mr. Rychlicki pointed out that the section in the plan regarding the transferring of funds to a contiguous TIF, has been omitted, so it will not be possible. Member Filipiak thanked Mr. Rychlicki for the clarifications. Member Silver questioned if the 23 years begins once the ordinances are passed. Mr. Rychlicki stated yes, he then explained why the TIF will go one year longer, due to the way that taxes are collected. Member Silver also inquired when the money would start being used. Mr. Rychlicki explained that based on experience, it usually takes two to three years. Member Filipiak pointed out that most of the members will be reporting back to a larger group and asked if Mr. Rychlicki would the members and explain the non - transference in detail. Member Silver inquired about the assessed value and if it would be brought back up, like it was in the Navistar TIF. Mr. Rychlicki responded no, not in this case and then explained why. VII. REVIEW OF DRAFT TIF ORDINANCES Attorney Silverman explained that there is going to be a public hearing in front of the Village Board on February 2 "d and at that time the public will be able to address the specifics of the proposed TIF. He then stated that no less than fourteen days after the close of the public hearing is the earliest date the three ordinances establishing the TIF may be adopted. Mr. Silverman stated the first ordinance Attorney Silverman then reviewed the three ordinances. approves the redevelopment plan and project area as developed by Kane McKenna. He then spoke on the exhibits and findings included in the ordinance. The second ordinance designates the TIF area. The third and final ordinance adopts tax increment allocation financing for the downtown redevelopment project area, this ordinance authorizes the Village to start collecting property tax increment above the base valuation and putting it into a special fund to pay for redevelopment activities over the course of 23 years.

4 TIF JOINT REVIEW BOARD MEETING December 10, 2014 Page 4 Member Silver asked what happens if the TIF goes down in value. Mr. Rychlicki spoke on the property tax limitation and how it would affect the fund and how the majority of the value is in the land. Mr. Filipiak asked what would happen if the Village were not able to get the area developed, but value increased because someone moved into the bank or the strip mall. Mr. Rychlicki explained that if a redevelopment agreement is not entered into within seven years after the adoption of the TIF or if the Village does not undertake redevelopment improvements, then the TIF would have to be terminated. Mr. Rychlicki pointed out that anything that occurs has to be consistent with the redevelopment plan. Mr. McKenna spoke on the TIF that was proposed in 1999 and how the thought back then was that private investment will take care of it and now in the present, nothing has happened and if the Village continues to let things deteriorate and not provide any incentive, the less value the Village will have. Mr. Silverman commented on the downtown development district and how even with the improvements made, it was not able to spark the redevelopment they thought it would. Member Anderson inquired about the annual meetings and the purpose of them. Mr. Rychlicki spoke on the purpose of the annual meetings and how at those meeting they must give justification on why funds are not being spent. Mayor Broda questioned what would happen if someone came in at the very end of the seven year period, would they have to terminate the TIF or can it be extended. Mr. Silverman stated that they have not been faced with that situation, but if activity is being negotiated they would have to investigate what steps would need to occur. VIII. QUESTIONS / COMMENTS Carl Warren, Lisle, asked several questions related to the effect the TIF would have on his taxes and taxing district levies and terms of the TIF. Mr. Rychlicki, Mr. McKenna, Member Silver and Dan Garvey, Lisle Park District all contributed to the answers to Mr. Warren' s questions. IX. CONSIDERATION OF RECOMMENDATIONS TO VILLAGE BOARD Chairperson Broda stated that members of the JRB would like to speak to their respective Boards regarding the TIF and asked that the JRB continue this meeting until the beginning of Mayor Broda pointed out they have to meet prior to January 9th. All members were in agreement and those present discussed a date and time that they would be able to meet in early January. Village Manager Sprecher stated that the Navistar and UTI annual meetings will also happen that day as well. Member Silver motioned to continue the Joint Review Board meeting to Tuesday, January 6, 2015 at 2: 00 PM. Member Filipiak seconded the motion. X. REVIEW OF TIMETABLE AND NEXT STEPS Mr. Rychlicki stated that the timetable and next steps will be discussed at the January 6th meeting. XI. ADJOURNMENT

5 TIF JOINT REVIEW BOARD MEETING December 10, 2014 Page 5 Member Filipiak moved to adjourn. Member Silver seconded the motion. Member Althoff arrived at 3: 13 PM and stated that he was misinformed of the start time of the JRB and was told that it was going to start at 3: 15 PM. Manager Sprecher stated that the JRB meeting regarding the downtown TIF has always been scheduled for 2: 00 PM. The December 10, 2014 TIF Joint Review Board Meeting adjourned at 3: 16 p. m. Respectfully Submitted, 4/ vn V ataa-9-te9 Karen Arnold Recording Secretary

6 TIF JOINT REVIEW BOARD MEETING December 10, 2014 Page 6 The minutes of the December 10, 2014 TIF Joint Review Board Meeting were passed and approved this 644%- day of Ld GLA, `', O