04/27/1998 Special Meeting84
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, APRIL 27, 1998
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, April 27,
1998.
ROLL CALL:
Roll call indicated the following aldermen present:
Beauvais, Christiansen, Elstner, Higgason, Brookman,
Sarlo, Smith, Arredia.
Also present were:
City Staff: City Manager Douthwaite, Director of Economic Development
Klaus, and Director of Community Development D'Onofrio
LR Development: Bruce Abrams, David Dresdner
Schwartz, Cooper, Greenberger & Krause: Ron Grais
S. B. Friedman & Company: Steve Friedman
Mayor Jung declared that the City Council was now
resolved into a Committee of the Whole
COMMUNITY DEVELOPMENT - Alderman Sarlo, Chair
REVIEW/ Alderman Sarlo introduced the City's financial
AMENDED consultant, Steve Friedman, who gave a summary of the
DOWNTOWN proposed amended redevelopment agreement; outlining the
REDEVELOP. key benefits. Mr. Friedman stated that it achieves the
AGREEMENT: goals of the comprehensive plan; mixed use of retail,
public space, residential and a library; this is the best
project for the site.
Mr. Friedman reviewed the "at risk" role that LR will
play in this project, i.e. conversion of the Des Plaines
Mall into a parking structure. LR Development agrees to
complete this portion of the project for a fixed price
and is therefore at risk for the satisfactory completion
of this project element. Also, LR is responsible for all
aspects of the commercial project including design,
financing, leasing, construction, and ongoing management.
Mr. Friedman stated that LR has already spend $750,000.
They will receive a development management fee for the
public portions of the project of 5% of total development
costs, which Mr. Friedman believes is very reasonable.
Alderman Higgason requested that the words "or apartment
building" be deleted from Section 1.2.44. on Page 10 of
the proposed amended redevelopment agreement.
Alderman Arredia asked what the risk total would be for
the City. City Manager Douthwaite stated the City is
obligated under this agreement to a net cost of
approximately $6,447,966, excluding the construction of
the library building, which is $13,500,000.
Alderman Brookman questioned why competitive bidding was
not going to be done on this project. ,City Manager
Douthwaite stated that there would be competitive bidding
on all aspects of the project.
Alderman Brookman questioned why the City is not selling
the residential land. City Manager Douthwaite stated
that this is where the developer makes his profit; there
would be no deal if the City did that. Mr. Friedman
stated that the residential project makes up the loss on
the retail.
po/t
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PAGE TWO
DISCUSSION: Mr. Jack Flynn, 1271 Fargo Avenue, addressed the
Committee of the Whole stating that he is here to speak
for many of the residents who do not want the library
moved downtown; many of them still want a referendum; we
do not want this flawed agreement; this is nothing but
a bail-out for the developer who couldn't complete his
project; he is hoping to change the City from home rule
to non -home rule next year.
Mr. Wayne Serbin, 835 Pearson Street, addressed the
Committee of the Whole stating that Des Plaines has an
uphill battle because of its image; we are not Arlington
Heights.
Mr. Harry Iverson, 1254 Everett Avenue, addressed the
Committee of the Whole stating that he has lived in I)es
Plaines for 12 years; he has seen store after store close
up; what retail space is going to come into the City;
where are the customers going to park; where are trucks
going to park to deliver their goods; the library is
beautiful; it can be expanded.
Ms. Chrissy Minerva, 535 Webford Avenue, addressed the
Committee of the Whole stating that she is a student at
Maine West High School and uses the library for her
assignments; she doesn't have the resources she needs
there so she has to go to other libraries in the area;
adding onto the present library would cost a lot of
money; a good library reflects the values of our
community.
Mr. Gene Fregetto, 800 Laurel Avenue, addressed the
Committee of the Whole about the packet of information
he delivered to Mayor Jung earlier in the day (in file);
he reviewed each of his concerns which were answered by
either City Manager Douthwaite, Steve Friedman, Bruce
Abrams or Ron Grais.
Alderman Sarlo asked Mr. Fregetto if all of his questions
had been answered. Mr. Fregetto said yes.
Alderman Beauvais asked, on behalf of a resident, if the
City considered or attempted to offer a financial
incentive of some kind to a retail anchor in place of
having the library downtown. Mr. Jack Klaus said no they
had not done that.
Rev. Lynne Lohr, 1312 Prairie Avenue, addressed the
Committee of the Whole questioning whether there is
hazardous material in the ground on this site. City
Manager Douthwaite stated that the City has conducted a
Phase I Environmental Review and has found the site
clean; the City's Fire Prevention Bureau also states that
there are no underground tanks on the site.
Rev. Lohr stated this project should be delayed; there
should be a referendum; we should ask the voters if they
want to sacrifice their library for this development.
Mr. Mike O'Malley, 320 Wolf Road, addressed the Committee
of the Whole asking if there are a lot of potential
retailers that would come into this development. Mr.
Grais said yes. Mr. O'Malley asked what the cost would
be to the homeowner for this project. Mr. Friedman
stated that it would cost each household approximately
$20 per year on their property tax.
Mr. O'Malley asked what is the cost to issue the bonds.
City Manager Douthwaite stated that there is no upfront
cost; the bonds are repaid over a 20 year period.
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DISCUSSION Mr. John Yaccino, 1779 Cora Street, addressed the
(Cont'd.) Committee of the Whole stating that everyone he talks to
is happy with the present library; they don't want it
torn down; if the library doesn't have enough computers,
why can't we keep the schools open at night and on the
weekends so the students can use the computers; he is
also concerned about the safety of the children; too many
potential problems.
Mr. Raymond Huntzicker, 81 W. Bradley Street, addressed
the Committee of the Whole asking how the City can send
the children into all that traffic; find a better way to
do it.
Mr. James Ulett, 445 Rose Avenue, addressed the Committee
of the Whole stating that there was a lot of
misinformation given by the residents this evening; our
taxes are the lowest in the area; the value of their home
is going to increase; this project is good for Des
Plaines.
Alderman Higgason requested that the Staff respond to a
letter received from a resident, Bob Hinde, regarding the
questions he has about the Parking Operation Plan for
this project (in file).
Mayor Jung assumed the chair and declared the City
Council back in session.
AMENDED Moved by Elstner, seconded by Smith, to approve the
DOWNTOWN proposed amended Downtown Redevelopment Agreement with
REDEVELOP. Plaines Town Center, L.L.C., 350 W. Hubbard, Suite 301,
AGREEMENT: Chicago, IL 60610, for the project area consisting of 6.2
acres bounded by Ellinwood Street (on the north), Lee
Street (on the west), Prairie Avenue (on the south) and
Pearson Street (on the east).
Mayor Jung ruled the motion made by Alderman Brookman
that the City place a referendum on the November, 1998,
election ballot asking whether the library should be
moved to the redevelopment area, out of order.
Upon roll call on the original motion, the vote was:
AYES: 5 -Beauvais, Elstner, Higgason,
Sarlo, Smith
NAYS: 3 -Christiansen, Brookman, Arredia
ABSENT: 0 -None
Motion declared carried.
RESOLUTION Moved by Elstner, seconded by Higgason, that the Mayor
R-31-98 and City Clerk be authorized to execute the Amended and
AUTHORIZING Restated Redevelopment Agreement with Plaines Town
EXECUTION Center, L.L.C., 350 W. Hubbard, Suite 301, Chicago, IL
OF 60610, and any further agreements necessary to implement
AGREEMENTS: the Redevelopment Agreement, in accordance with the
approved Project Budget of $20,600,000; and further
recommend to adopt Resolution R-31-98, A RESOLUTION
AUTHORIZING THE CITY OF DES PLAINES TO ENTER INTO THE
AMENDED AND RESTATED REDEVELOPMENT AGREEMENT WITH PLAINES
TOWN CENTER, L.L.C., IN ACCORDANCE WITH THE APPROVED
PROJECT BUDGET OF $20,600,000.00. Upon roll call, the
vote was:
AYES: 5 -Beauvais, Elstner, Higgason,
Sarlo, Smith
NAYS: 3 -Christiansen, Brookman, Arredia
ABSENT: 0 -None
Motion declared carried.
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REFERENDUM: Moved by Arredia, seconded by Brookman, that the City
place a referendum on the November, 1998, election ballot
asking whether the library should be moved to the
redevelopment area. Upon roll call, the vote was:
AYES: 3 -Christiansen, Brookman, Arredia
NAYS: 5 -Beauvais, Elstner, Higgason,
Sarlo, Smith
ABSENT: 0 -None
Motion declared failed.
ADJOURNMENT: Moved by Beauvais, seconded by Sarlo, that the Special
Meeting of the City Council adjourn. Motion declared
carried. Meeting adjourned at 10:00 p.m.
APPROVED BY M THIS S
DAY 0 MA
, 1998
Paul W
ung, MAYOR
Donna McAllister, CMCJ - CITY CLERK