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12/08/1997 Special Meeting292. MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF DES PLAINES, ILLINOIS, HELD IN THE ELEANOR ROHRBACH MEMORIAL COUNCIL CHAMBERS, DES PLAINES CIVIC CENTER, MONDAY, DECEMBER 8, 1997 CALL TO ORDER: The Special Meeting of the City Council of the City of Des Plaines was called to order by Mayor Paul Jung at 7:00 p.m. in the Eleanor Rohrbach Memorial Council Chambers, Des Plaines Civic Center on Monday, December 8, 1997. ROLL CALL: Roll call indicated the following aldermen present: Beauvais, Christiansen, Elstner, Higgason, Sarlo, Smith, Arredia. Alderman Brookman was absent. Alderman Brookman arrived at 7:10 p.m. Also present were City Manager Douthwaite, Director of Economic Development Klaus, Director of Finance & Administrative Services Egeberg, Police Chief Sturlini, Director of Community Development D'Onofrio, and Director of Human Resources & Services Merriman. UPDATE/ City Manager Douthwaite stated that six (6) weeks ago the DOWNTOWN City Council unanimously voted to endorse the concept of REDEVELOP.: including the Library in the downtown redevelopment area, and instructed the Staff to "fine tune" some of the details of that concept. Four (4) specific questions were addressed in this process: 1. Is the concept of a Library a feasible one with respect to architectural mass and layout? Answer: YES 2. Is the concept of a retrofit of the Des Plaines Mall to a parking structure a feasible one; will it work structurally and will it work from a layout perspective? Answer: YES 3. Are the cost estimates that were investigated six (6) weeks ago toward the cost of the Library feasible? Answer: YES, in fact they could come down by a $1 million. 4. Are the potential financing costs in the "ballpark ?" Answer: YES, in fact, at least $100,000 can be saved over the financial costs estimated in late October. City Manager Douthwaite introduced Mr. Stephen B. Friedman, President - S. B. Friedman & Company, City's consultant on this project; and Ronald B. Grais, an attorney with Schwartz, Cooper, Greenberger & Krauss Chartered, City's outside legal counsel who helped negotiate the first redevelopment agreement with LR Development. Mr. Friedman reviewed his letter of December 3, 1997 and accompanying documents in which he outlined the steps taken in conducting a preliminary review of the concept of incorporating a new 80,000 sq. ft. library in the Plaines Town Center development on the six (6) acre site. Mr. Friedman stated that the first thing they were asked to do is look at the Library budget for this project. Overall, the cost estimates which led to a working budget number of $15 million appear to be within a reasonable range for building an 80,000 sq. ft. Library. PAGE TWO 293. LIBRARY Secondly, they were asked to look at the annual cost of (Cont'd.) financing or installment purchase. The City will own this Library. There is a number of different ways to finance it, one being like a home mortgage. The City's financial advisor, Speer Financial, Inc., reviewed the financial options and through both potentially lower costs and public financing techniques, the estimated annual debt service of $1,271,000 is likely to be reduced by $100,000 a year or more. This will depend on the final costs and financial market conditions at the time of financing. Thirdly, the re -use of the Des Plaines Mall for a parking structure was reviewed; Desman Associates, one of the leading designers of parking garages, performed a preliminary review of the layout issues related to re -use of the Des Plaines Mall as a parking structure and generally confirmed this feasibility with an estimated 466 parking spaces. The developer's estimate of $5,350,000 or $25 to $26 per sq. ft. appears to be a comfortable budget for the type of renovation required. Desman Associates recommends that a sinking fund be funded at $55 per space per year for a renovated deck. For 466 spaces, this is approximately $26,000 per year; based on a 10% capitalization rate, $260,000 would be required to fund this reserve. Mr. Friedman stated that if the City Council approves the project as presented, the City would become the major anchor tenant and construction could begin next June or July. Mr. Friedman stated for the project to proceed, the City Council must take several steps that have associated costs: Prepare Library Concept Plan and Adjustments to Site Plan - $ 85,000 Prepare Financial Analysis, Development Consulting & Coordination- $ 50,000 Retain Legal Counsel -- Redevelopment Agreements - $ 40,000 Reimbursable Expense Allowance - $ 5,000 TOTAL $180,000 12/8/97 Mr. Friedman stated that during this process his firm and that of Mr. Grais would act as representatives of the City, including the Library, in coordinating and directing the work of a team that will carry out the necessary reviews and analysis. Lohan Associates, Architects and Planners, would be responsible for the site plan. Desman Associates, Parking Consultants and Designers, would be responsible for the more detailed evaluation of issues related to the parking re -use of the Des Plaines Mall as it relates to the development as a whole. Mr. Friedman suggested that a 60 -day period be undertaken to do this analysis, the next level of design, and renegotiate the redevelopment agreement and bring that back for final approval by the City Council. The cost of $180,000 is not in addition to the cost of the project, but part of the total cost. DISCUSSION: A general discussion followed regarding soft costs; the difference between LR's Library costs and that of Construction Cost Systems, Inc.'s estimated Library costs; along with the sinking fund for the renovated deck maintenance in the future. SUSPEND THE RULES: PAGE THREE 294. 12/8/97 DISCUSSION Alderman Beauvais asked if the City could go out for (Cont'd.) bonds without increases in any taxes. City Manager Douthwaite said no, there would be a yearly property tax increase of approximately $15 to $20 for the average homeowner. Alderman Higgason asked if a traffic study had been done. Mr. Friedman stated that LR Development did a traffic study and there is no problem with the traffic load on the surrounding streets; the traffic flow on the site itself needs to be looked at. Alderman Smith asked if any of the construction costs could be paid out of TIF funds. Mr. Friedman and Mr. Douthwaite both said no, these costs would not be eligible for TIF funds. Alderman Brookman asked what the status was of the SPARKS Program. Mr. Douthwaite stated that things are no further along than when the concept approval was given six (6) weeks ago; nothing has been signed; the City will fund them for two (2) years and then School District #62 will assume the cost. Alderman Brookman asked if the City knows whether the School Board will go along with this; she is concerned about what would happen after two (2) years. Alderman Christiansen also expressed his concern about the SPARKS Program; he would rather help the School District build something somewhere else. Mr. Bruce Abrams, President of LR Development, gave a brief history of their involvement with this project over the past two (2) years. Moved by Beauvais, seconded by Higgason, to suspend the rules to permit public input on this matter. Motion declared carried. RECESS: Moved by Arredia, seconded by Higgason, to call for a five (5) minutes recess. Motion declared carried. The City Council recessed at 9:09 p.m. The City Council reconvened at 9:25 p.m. DISCUSSION: Mr. Don Franks, 2497 Parkwood Lane, addressed the City Council congratulating them on paying attention; listening to the pros and cons, but there are more cons than pros in this project; we can have a bigger and better library where it is at now if we build over the Library parking lot; there will be a parking problem if we move the Library downtown. Mr. Bill Walter, 820 Graceland Avenue, addressed the City Council stating that the Library belongs to all the people of Des Plaines; do not build or move the Library without the permission of the people. Ms. Lynne Lohr, 1312 Prairie Avenue, addressed the City Council stating that the voters have voted twice on the Library and they are very upset that they were not heard; it is not moral to change what citizens have voted for; the City should ask our permission before they move a Library downtown. Mr. Robert Smith, 540 S. Fifth Avenue, addressed the City Council in opposition to the proposed move of the Library; we have a very nice Library where it is now. PAGE FOUR 295. 12/8/97 DISCUSSION Mr. Wayne Serbin, 835 Pearson Street, addressed the City (Cont'd.) Council stating that the City should have an alternate plan for this site; hold off with this decision; go slow; do not rush into this. Mr. John Yaccino, 1779 Cora Street, addressed the City Council stating his opposition to this plan; the Library does not maintain the building they have now; bring a hotel downtown. Mr. Harry Eisfeldt, 641 S. Sixth Avenue, addressed the City Council stating that the City gives incentives to big firms, they should also give them to small retail businesses; City should buy the Dodge - Plymouth property, build a parking lot for the bank employees and shuttle them back and forth; if you put a big building downtown, you're going to have problems, i.e. flooding. Ms. Tammy Gasper, 1619 Hills Avenue, addressed the City Council stating that she thinks we need a better Library but the present site is just fine; downtown is congested enough, we don't need more traffic; a day care center should be away from downtown. Ms. Sue Strand, 1375 Wicke Avenue, addressed the City Council stating her concern about the safety of children; having a day care center downtown is not a safe idea; we should build onto the present Library. Ms. Sherry Melze, 2101 Westview Drive, addressed the City Council stating that the City should go after a hotel - conference center for this site; she would be happy to contact various hotels and asked some aldermen to go with her. Alderman Brookman stated that she would. Mr. Bruce Abrams stated that his firm has worked very hard to find a hotel but none have been interested; he would be willing to work with her and even pay her a "finder's fee" if she is successful. Mr. Gunther Gorth, 154 Cornell Avenue, addressed the City Council stating that if the City can't find an anchor, put in residential and then the retailers will come. Mr. John Ciborowski, 1026 Alfini Drive, addressed the City Council stating that this is a good plan for Des Plaines; it will make the downtown beautiful; he hopes the City Council will approve this plan; if it is rejected, Des Plaines will be "dead in the water." Mr. Vince Powers, 862 Webster Lane, addressed the City Council stating the Des Plaines is at the crossroads of its future; we must move forward; now is the time for compromise; move the Library downtown. Mr. Dick Reddington, 546 S. Fifth Avenue, addressed the City Council stating that we have a perfectly good Library now; he is not for spending $15 to $20 a year to put a Library downtown. Mr. Gene Fregetto, 800 Laurel Avenue, addressed the City Council stating that he is a heavy user of the Library; he loves the Library and thinks it is in a great location now, but we could have better Library services and be more efficient; do not give them more space until they can improve their services. Mr. Jim Ulett, 445 Rose Avenue, addressed the City Council stating that the Council has a chance to move this City ahead; this plan should be approved. cf(A PAGE FIVE 296. 12/8/97 DISCUSSION Mr. Jim Blue, 1771 Sherwood Road, addressed the City (Cont'd.) Council asking that if the aldermen believed this proposal has merit and is worthy of further study with respect to issues like noise, parking, and traffic, then he thinks they should move it forward; people would be grateful. Mrs. Elisabeth Trembath, 283 Good Court, addressed the City Council asking them to listen to the experts who say the Library should be downtown; please make the right decision and vote for this downtown redevelopment plan. Mr. Dick Sayad, 290 Shannon Court, addressed the City Council stating that he has voted twice against any changes to the Library and he still feels the same way; it is not reasonable to move downtown; nothing that has been said tonight has changed his mind; we have a fine Library right where it is. Mrs. Cathy Juell, 292 N. Wolf Road, addressed the City Council stating that she has been waiting a long time for something great to happen to Des Plaines; moving the Library downtown will give us a great sense of community; please vote for the downtown redevelopment plan. Mr. Ralph Johnson, 190 Cornell Avenue, addressed the City Council stating that there is no better resource for students once they leave school than to have a good Library; please move forward and make the tough decision. Mrs. Sue D'Hondt, 359 Alles Street, addressed the City Council stating that we need to look into the future for our community; if we are going to maintain the value of our property, we have to maintain a good community; I hope you move the Library downtown and redevelop the area; I hope you make the right decision. Mr. Dennis Ulm, 835 E. Grant Drive, addressed the City Council stating his concerns about noise, smells, and fire hazards from the first floor; we should have a separate building for the Library; parking could be problem at that site. Mr. Paul Saletnik, 320 Oxford Road, addressed the City Council urging the aldermen to live up to their responsibilities, listen to the professionals and do the right thing; make the right decision and move the Library. Mr. Barry Collins, a member of the Des Plaines Economic Commission, addressed the City Council stating that the City should investigate all the possibilities presented by the people tonight and then move forward. Mr. John Burke, President of the Des Plaines Library Board, addressed the City Council to answer some questions that were raised during the evening: what percentage of the patrons are children (14 and under)? Mr. Burke said this is determined two ways: the number of all reference questions asked - 37% are by children; and the amount of circulation of all materials use - 28% by children. Mr. Burke stated that of the 1,000 or so who use the Library every day, between 280 and 370 are children. Mr. Burke stated that another question asked was that of inclusion of videos in the Library. He said that videos account for 3.7% of our collection of materials and books account for 83% of the collection; the remaining materials are periodicals, art work and things like that. Videos take up only 5% of the floor space but account for 22% of their circulation. 1 1 1 PAGE SIX 297. DISCUSSION Mr. Burke stated that the Library is committed to (Cont'd.) literacy and education. APPROVED BY ME THIS DAY ' GWl , 1998 Paul W. f ng MAYOR Mr. Ronald Moore, 1480 Jefferson Street, addressed the City Council stating that he moved to Des Plaines in August because of the redevelopment plan that was presented at a meeting he attended in March; he goes by the Library several times every day and the lot is never full; if they need more space, build a branch somewhere else; the City should get another developer; the Library is good where it is. Alderman Sarlo asked if the money requested for further study was not forthcoming what would be the result. Mr. Abrams said it was his personal opinion that if the Library did not more forward, the downtown redevelopment would not happen. Mr. Abrams stated that if the Library is not the anchor, most retailers who have already been contacted will be unlikely to change their minds. Mr. Sarlo said that in that case if the Council votes for the funds, it is voting for the Library, "no ifs and /or buts." Moved by Elstner, seconded by Higgason, to authorize Steven Friedman of S.B. Friedman & Company, 221 N. LaSalle Street, Suite 1007, Chicago, IL 60601, and Ron Grais with Schwartz, Cooper, Greenberger & Krauss Chartered, to act as the City's agents to enter into appropriate sub - consultant agreements for the following services with associated costs not -to- exceed $180,000 /TIF Funds: Library Concept Plan and Adjustments to Site Plan - $ 85,000 Financial Analysis, Development Consulting & Coordination- $ 50,000 Legal Counsel - Redevelopment Agreements - $ 40,000 Reimbursable Expense Allowance - $ 5,000 Upon roll call, the vote was: AYES: 5- Beauvais, Elstner, Higgason, Smith, Jung NAYS: 4- Christiansen, Brookman, Sarlo, Arredia ABSENT: 0 -None Motion declared carried. 12/8/97 ADJOURNMENT: Moved by Smith, seconded by Christiansen, that the Special Meeting of the City Council adjourn. Motion declared carried. Meeting adjourned at 11.51 p.m. Donna McAllister, CMC /AAE - CITY CLERK