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08-05-1999 Reconvened066 MINUTES OF THE RECONVENED MEETING OF THE REGULAR MEETING OF AUGUST 2, 1999, OF THE CITY COUNCIL OF THE CITY OF DES PLAINES, ILLINOIS HELD IN THE ELEANOR ROHRBACH MEMORIAL COUNCIL CHAMBERS, DES PLAINES CIVIC CENTER, THURSDAY, AUGUST 5, 1999 CALL TO ORDER: The reconvened meeting of the regular meeting of August 2, 1999, of the City Council of the City of Des Plaines, Illinois, was called to order by Mayor Paul w. Jung at 7:07 p.m. in the Eleanor Rohrbach Memorial Council Chambers, Des Plaines Civic Center on Thursday, August 5, 1999. ROLL CALL: Roll call Beauvais, Arredia. indicated the following aldermen present: Elstner, Sayad, Brookman, Becker, Smith, Alderman Christiansen was absent. Also present were: City Manager Douthwaite, Director of Economic Development Klaus, Sr. Civil Engineer Kaszuba, Director of Community Development D'Onofrio, Assistant City Attorney Bartel, and City Attorney Wiltse. AMENDMENT/ PARK. LEASE 701 LEE: Tabled on 6/7/99 MAYOR JUNG DECLARED THAT THE CITY COUNCIL WAS NOW RESOLVED INTO A COMMITTEE OF THE WHOLE LEGAL & LICENSING Alderman Beauvais, Chair (This is a continuation of discussion from Monday, August 2, 1999.) Aldermen Brookman and Sayad stated that they were withdrawing their motion that the City renegotiate the parking lease agreement with the owners of the 701 Lee Street building, with two (2) aldermen part of the process; and come back to the Committee of the Whole with reports and direction. Moved by Brookman, seconded by Sayad, to recommend to the City Council to continue with the present 1975 parking lease agreement, as amended in 1995, with the owners of the 701 Lee Street building. Alderman Smith questioned whether it would be more onerous to go back to the 1995 lease agreement. City Attorney Wiltse pointed out why it would be difficult to go back to 1995 because of unresolved issues, i.e. security cameras, easements. Alderman Brookman reviewed the contacts she has made with various people who are presently using the parking garage even without an official lease agreement. Mr. Ron Gais, the City's legal counsel in this matter , stated that there is a lease in effect now; whether or not the lease is in effect for the flat lot or the parking garage, would be a matter of law; he does not have an opinion on this; he believes the tenants have a right to use the flat lot; there are many issues that will be a problem if the City continues with the 1995 lease agreement; with the 1995 amendment, the City is still in the parking garage management business; there is no provision for a management fee; the 1995 lease agreement requires security cameras; the new parking garage was built without them, so they would have to be installed; the insurance requirements are not consistent with the new parking garage requirements; which parking spaces can be used by the public is not clear in the 1995 lease agreement; it makes no provisions for solving the problem of the easements. PARK. AGREE. (Cont'd.) 067 8/5/99 PAGE TWO Alderman Arredia stated that he thought the City Council voted that the City did not want to be in the parking lot business; LR Development would be the manager until they found a manager. A general discussion followed regarding the comparison of the 1995 lease agreement to the proposed 1999 lease agreement, i.e. security cameras, insurance, snow plowing, management. Alderman Sayad asked if there was a designated area for the tenants to park and an area for the public. Director of Economic Development Klaus stated that there are signs posted showing the designated areas; there are more than 304 parking spaces. Alderman Sayad asked how it would be monitored. Director Klaus stated that the tenants would be issued permits that they must display; CSO officers would enforce. Mr. Wayne Serbin, 835 Pearson Street, addressed the Committee of the Whole stating that all the aldermen are doing is going around and around; a committee should be appointed to go back and meet with the attorney for the bank building and negotiate a new lease; nothing is being accomplished. Mr. Bob Leipzig, 2080 Webster Lane, addressed the Committee of the Whole questioning who gave the authority to negotiate the proposed lease agreement; this sounds like a policy matter between the City Council and Staff; you are nitpicking; what you need to do is work with what the Staff is presenting to you now; approve this and get on with this project. Alderman Brookman stated that the City Council was not aware that City Manager Douthwaite had authorized Mr. Grais to negotiate this parking lease. Alderman Sayad stated that he has a problem in that the information is not consistent; he is trying to get the best deal for the City; he thinks $25 a parking space is not sufficient for the next 47 years. Mayor Jung asked if the City could use the 1975 lease agreement as amended. Mr. Grais stated that it would leave several issues unresolved; it would be a flawed lease agreement. Mayor Jung asked that, yes, the City could do it, but Mr. Grais' and City Attorney Wiltse's advice would be not to do it, right? Both Mr. Grais and City Attorney Wiltse said yes. Alderman Becker asked what are the unresolved issues. Mr. Grais reviewed: insurance is not sufficient for the new parking garage; use and maintenance, and time of use of the parking garage is not clear; existing easements (9-1-1 equipment on top of building). Upon roll call on the original motion, the vote was: AYES: 2-Sayad, Brookman NAYS: 5-Beauvais, Elstner, Becker, Smith, Arredia ABSENT: 1-Christiansen Motion declared failed. Moved by Arredia, seconded by Becker, to recommend to the City Council that a committee be formed, as soon as possible, consisting of two (2) Aldermen, City Staff, and representatives of the 701 Lee Street building, to meet, discuss the issues and report back to the Committee of the Whole. PARK. AGREE. (Cont'd.) COMMITTEE OF THE WHOLE RECESSED TO 8/9/99: RECESS: 068 8/5/99 PAGE THREE Mr. Jim Brookman, 1847 Ash Street, addressed the Committee of the Whole stating that he would suggest that the wiser thing to do would be to meet in Executive Session and discuss the terms that the City would like to have put in the agreement and then meet with representatives of the 701 Lee Street building; he doesn't think the two (2) parties are too far apart. Mr. Bob Leipzig, 2080 Webster Lane, addressed the Committee of the Whole stating that representatives of the 701 Lee Street building are not going to budge. Upon roll call, on Alderman Arredia's motion, the vote was: AYES: 3-Brookman, Becker, Arredia NAYS: 4-Beauvais, Elstner, Sayad, Smith ABSENT: 1-Christiansen Motion declared failed. Moved by Elstner, seconded by Smith, to recommend to the City Council to approve amendment to the existing parking lease agreement with 7O1 Lee L. L. C. , to provide 3 04 parking spaces for the 10-story office building at 701 Lee Street and adopt Resolution R-35-99. Upon roll call, the vote was: AYES: 2-Elstner, Smith NAYS: 5-Beauvais, Sayad, Brookman, Becker, Arredia ABSENT: 1-Christiansen Motion declared failed. Moved by Elstner, seconded by Brookman, that the Committee of the Whole of the City Council meeting of August 2, 199, recess and reconvene on Monday, August 9, 1999 at 7:00 p.m. Upon roll call, the vote was: AYES: 5-Beauvais, Elstner, Sayad, Brookman, Arredia NAYS: 2-Becker, Smith ABSENT: 1-Christiansen Motion declared carried. Moved by Brookman, seconded by Sayad, that the reconvened meeting of the City Council of August 2, 1999, be recessed until 7: 00 p. m. on Monday, August 9, 1999. Motion declared carried. Aldermen Becker, Smith and Arredia voted no. The Committee of the Whole recessed at 10:05 p.m. (These minutes were taken by City Clerk McAllister)