Planning and Economic Development

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Annabel Parks
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1 Planning and Economic Development SUBJECT: Public Hearing Regarding Proposed Waukegan Road/Golf Road Redevelopment Plan and Project Area AGENDA ITEM: 8.c. MEETING DATE: March 19, 2013 VILLAGE BOARD REPORT TO: Village President and Board of Trustees FROM: Mary Bak, Planning and Economic Development Director ( ) THROUGH: Todd Hileman, Village Manager PURPOSE AND ACTION REQUESTED: To hold a public hearing on the proposed Waukegan Road/Golf Road Redevelopment Plan and Project Area. BACKGROUND: On December 11, 2012, the Village of Glenview approved a Memorandum of Understanding ( MOU ) with Regency Centers ( Regency ) regarding redevelopment of the Avon/Baker Development property at 1601 Overlook Drive and 3 Waukegan Road. Regency, a national shopping center developer, is proposing a 75,245 sf Mariano s Fresh Market grocery store, 15,400 sf of inline retail, a 11,786 sf retail outlot building and a 238 unit apartment building on a acre parcel. Regency requested assistance from the Village as extraordinary off-site infrastructure improvements are needed, most of which are roadway improvements to address current and projected traffic. As part of the MOU, the Village agreed to support up to $3,500,000 of the offsite infrastructure costs by taking the appropriate steps to establish a redevelopment project area, a redevelopment plan, and to adopt tax increment financing, provided that all legal requirements and findings are satisfied, pursuant to the Illinois Tax Increment Financing Act (65 ILCS 5/ ) (the Act ). 1

2 DISCUSSION: Establish a Redevelopment Project Area To establish a TIF District, a Redevelopment Project Area must be identified and the area must be qualified as a blighted area pursuant to the Act to be eligible for tax increment financing. The Waukegan Road/Golf Road Redevelopment Project Area ( RPA ) is generally bounded on the south by Golf Road, on the east by Metra right-of-way, on the north by Overlook Drive, and on the west by Waukegan Road. To determine if the RPA qualified as a blighted area, the Village commissioned Camiros, Ltd. ( Camiros ) to study the existing conditions. Please refer to Exhibit 3 of Appendix A. Based on conditions such as excessive vacancies, obsolescence, deterioration, lag in equalized assessed valuation ( EAV ), growth, deleterious land use and layout, lack of community planning, inadequate utilities, and excessive land coverage, Camiros concluded the RPA qualifies for designation as a blighted area under the Act. Redevelopment Plan A Redevelopment Plan (refer to Appendix A) was developed and made available to the public. The Redevelopment Plan (the Plan ) states project goals and objectives, identifies the RPA, evidences lack of development and growth in the RPA, outlines key elements and a schedule of the project, assesses fiscal and housing impacts of the project, and includes a budget for redevelopment activities. Total TIF Budget The Redevelopment Plan includes a budget for redevelopment costs with $3,500,000 for infrastructure improvements and $500,000 allocated for the remaining miscellaneous categories as shown in Table 1 below. The $4,000,000 of redevelopment costs would be funded through a $4,340,000 municipal bond issue, which includes the cost of the bond issuance and underwriter s discount ($103,300) and debt service interest ($236,600). Table 1. Total TIF Budget Funded by: Redevelopment Cost Items (Funded through Bond Issue) Estimated Costs Municipal Bond Infrastructure Improvements $3,500,000 Municipal Bond Site Preparation and Demolition, including Environmental $10,000 Remediation Municipal Bond Land Acquisition and Assembly Costs $10,000 Municipal Bond Residential Tax Increment Planning, Legal, Engineering, Administrative and Other $480,000 Professional Service Costs Statutory School District Payments $2,500,000 TOTAL TIF PLAN BUDGET: $6,500,000 2

3 Since the redevelopment contains residential housing, school districts must receive a portion of funding from the annual residential tax increment to help provide for the increased costs of service to educate additional children in addition to the property taxes from the frozen EAV amount they are currently receiving. Based upon projections, approximately $1,282,476 would be paid out for school district residential increment payments over the life of the ten (10) year projected TIF. The budget figure for this line item in the Redevelopment Plan of $2,500,000 is meant to be a maximum, or enabling, figure and could provide authority to pay these costs if the current projections or residential equalized assessed valuation (EAV) are too low. The Joint Review Board agreed to this budget figure for statutory school district payments. Joint Review Board The Joint Review Board (JRB) is an advisory body comprised of a subset of the affected taxing jurisdictions. The primary function of the JRB is to review the Redevelopment Plan and provide a recommendation to the Village Board on the merits of the proposed TIF district. The JRB held two sessions in February and passed a resolution to recommend to the Village Board that the proposed Waukegan Road/Golf Road Redevelopment Plan and Redevelopment Project be approved. Please find attached the executed resolution and letters of support (Appendix B). Next Steps in the Process The Plan Commission approved the development on February 12, Next steps for the Waukegan Rd/Golf Rd TIF District are noted in Table 2 below. Table 2. Next Steps in the Process Tues, April 2, 2013 Tues, April 16, 2013 Wed, April 17, 2013 Consideration of TIF Ordinances (First Reading) and approval of Development Agreement Adoption and Filing of TIF Ordinances (Second Reading) Transmit documents to Cook County The following three TIF ordinances to establish Waukegan Road/Golf Road Tax Increment Financing ( TIF ) District are planned to be brought forth for consideration on Tuesday, April 2: 1) Approving a Tax Increment Redevelopment Plan and Redevelopment Project for the Waukegan Road/Golf Road Redevelopment Project Area; 2) Designating the Waukegan Road/Golf Road Redevelopment Project Area a Redevelopment Project Area Pursuant to the Tax Increment Allocation Redevelopment Act; 3) Adopting Tax Increment Allocation Financing for the Waukegan Road/Golf Road Redevelopment Project Area. APPENDICES: Appendix A: Waukegan Road/Golf Road Redevelopment Plan as of March 1, 2013 Appendix B: Signed Joint Review Board Resolution and Letters of Support 3

4 Appendix A: Waukegan Road/Golf Road Redevelopment Plan as of March 1, 2013

57 Appendix B: Signed Joint Review Board Resolution and Letters of Support