11-08-2004 Special Meeting305A
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, NOVEMBER
8, 2004
CALL TO ORDER: The Special meeting of the City Council of the City
of Des Plaines, Illinois, was called to order by
Mayor Anthony W. Arredia at 7:00 p.m. in the Eleanor
Rohrbach Memorial Council Chambers, Des Plaines Civic
Center on Monday, November 8, 2004.
ROLL CALL: Roll call indicated the following aldermen present:
Beauvais, Christiansen, Murphy, Sayad, Brookman,
Becker, Smith, Argus.
Also present were City Manager Niemeyer, Director of Finance Egeberg
and Director of Community Development Bleuher.
REQUEST FOR
INCENTIVES/
WILLE ROAD
LLC FOR
CATERPILLAR
TIF #3:
MAYOR ARREDIA DECLARED THAT THE CITY COUNCIL WAS NOW
RESOLVED INTO A COMMITTEE OF THE WHOLE
COMMUNITY DEVELOPMENT -Alderman Becker, Chair
City Manager Niemeyer stated that Wille Road LLC, is
requesting tax incentives for the Caterpillar portion
of the 411,436 sq. ft. building at the Wille Road
Phase I Project -TIF #3; Caterpillar will be using
238,192 sq. ft. of this building.
City Manager Niemeyer stated that Wille Road LLC is
requesting $600,000 in incentives up-front to
compensate for the extra costs that they claim they
have incurred because of the overall development of
this project as well as the specific Caterpillar
development; additionally, they project $295,718 in
excess costs due to the delay in trying to acquire
easements for the property.
City Manager Niemeyer stated that the $600,000
incentive would be partially paid for out of the Wille
Road -TIF #3 Funds when Caterpillar occupies the
building on or about May 1, 2005; the remainder would
be paid approximately 18 months later once the county
assessor certifies that the property is on the tax
rolls.
City Manager Niemeyer stated that there seems to be
some confusion with the dollar figures as presented by
Wille Road LLC; the Staff needs some direction from
the City Council, i.e. draft an amendment to the
development agreement.
Mr. Bill Fausone, BK Equities, LLC, % Colliers,
Bennett & Kahnweiler, Inc., 6250 N. River Road, Suite
11-100, Rosemont, IL 60018, construction manager for
this project, addressed the Committee of the Whole and
answered questions from the aldermen.
City Manager Niemeyer asked if the City Council would
want to grant a full incentive or part of it.
Alderman Brookman asked why did we hold a press
conference and now we begin to bargain over the
incentives; Caterpillar is in the drivers seat; we
placed ourselves in a very poor bargaining position.
Alderman Becker stated that this request is from the
developer, not from Caterpillar.
WILLE ROAD
(Cont'd. )
DEVELOPER/
841
GRACELAND:
PAGE TWO
305B
11/8/04
Alderman Beauvais asked who would get the incentive;
it is inappropriate to make a decision without all the
information.
Alderman Becker stated that this matter would be
reviewed again by Staff and report back to the City
Council.
Mr. Brian Burkross, 2133 Webster Lane, addressed the
Committee of the Whole asking if a traffic study had
been done for this property. Alderman Becker said not
as yet; once a plan is picked, then it would be done.
Mr. Burkross stated he is very concerned about the
traffic that will be thrown into the downtown area
what with the train and all; he would have liked to
have seen some alternatives for this property; he
would prefer a police headquarters there; we should
use this property for some other municipal purpose.
Mr. Ronald Moore, 1480 Jefferson Street, addressed the
Committee of the Whole stating that if people were
really concerned about what will happen to this
property, they would be here tonight; there is no one
here; he is concerned about the public parking lot
that is being proposed, which the City will have to
maintain; it will be used for the church and condos.
Mrs. Barbara Brannigan Hutson, 828 Graceland Avenue,
addressed the Committee of the Whole stating that she
is concerned about the parking; we want to make sure
that the residents have a place to park; you would
have to put up parking meters; it is not fair for
people to pay to park.
The following developers were introduced and made
presentations:
NORWOOD BUILDERS
7458 N. Harlem Avenue
Chicago, IL 60631
Mr. Bruce Adreani, President
Ms. Christine Kutt Zolt, Director of Sales & Marketing
Ms. Jennifer M. Tammen, Director of Planning
Mr. James Adamo, Chief Operating Officer
Ms. Caroline E. Vullmahn, Director of Finance
Mr. Michael Breclaw, Otis Koglin Wilson Architects
THE HSP GROUP TEAM
1603 Orrington Avenue, Suite 1000
Evanston, IL 60201
Mr. John Zander, Development Manager
Mr. Mike McJilton, Business Manager
Mr. Steven Yas, Yas/Fischel Partnership, Architects
Mr. Eric Larsen, Walsh Construction
Mr. Patrick Kinsella, Walsh Construction
Mr. Joseph Pilewski, Ernst & Young (Finance)
R. FRANCZAK & ASSOCIATES, INC.
751 Graceland Avenue
Des Plaines, IL 60016
Mr. Raymond Franczak, President
Mr. Jim Duerr, Financial Annalist
Mr. Mark Hopkins, HKM Architects-Planners, Inc.
A lengthy discussion followed with developers
answering questions from the aldermen.
GRACELAND
(Cont'd. )
REQUEST FOR
INCENTIVES/
WILLE ROAD
LLC FOR
CATERPILLAR
TIF #3:
DEVELOPER
841
GRACELAND:
ADJOURNMENT:
11/8/04
PAGE THREE
Moved by Argus, seconded by Sayad, to recommend to the
City Council to accept proposal from R. Franczak &
Associates, Inc., 751 Graceland Avenue, Des Plaines,
to develop Waterford Place of Des Plaines on property
located at 841 Graceland Avenue, consisting of 118
residential condos, in the amount of $5 million; City
not purchase 44-car parking lot at 1382 Prairie Avenue
from R. Franczak & Associates, Inc.; and Staff be
authorized to prepare redevelopment agreement.
Alderman Beauvais stated she is concerned about the
density of this project; she also does not want the
money to be used for the General Fund.
Alderman Smith stated that he prefers the HSP Group
Team project; it is an unique design.
Alderman Murphy stated that the HSP Group Team design
is unique, but there are too many risk factors.
Alderman Christiansen stated that he is opposed to
selling this property; we should hold on to it until
we know what we are going to do for a police and fire
facility; he will be voting against all the proposals
because the City should retain ownership.
Motion declared carried. Aldermen Christiansen,
Brookman and Smith voted no.
Moved by Beauvais, seconded by Becker, to recommend t o
the City Council that the redevelopment agreement with
R. Franczak & Associates, Inc. for the Waterford Place
project on property located at 841 Graceland Avenue ,
be fully executed no later than February 1, 2005.
Motion declared carried. Alderman Christiansen voted
no.
MAYOR ARREDIA ASSUMED THE CHAIR AND DECLARED THE CITY
COUNCIL BACK IN SESSION
Alderman Becker reported that the Committee of the
Whole authorized the Staff to review again the request
for incentives from Wille Road LLC for Caterpillar
Company in TIF #3, and report back to the City
Council.
Alderman Brookman left the meeting at 9:41 p.m.
Moved by Becker, seconded by Argus, to concur with
recommendation of Committee of the Whole that City
accept proposal from R. Franczak & Associates, Inc.,
751 Graceland Avenue, Des Plaines, to develop
Waterford Place of Des Plaines on property located at
841 Graceland Avenue, consisting of 118 residential
condos, in the amount of $5 million; City not purchase
44-car parking lot at 1382 Prairie Avenue from R.
Franczak & Associates, Inc.; and Staff be authorized
to prepare redevelopment agreement to be fully
executed no later than February 1, 2005. Motion
declared carried. Alderman Christiansen voted no.
Moved by Sayad, seconded by Murphy, that the Special
meeting of the City Council adjourn. Motion declared
carried. Meeting adjourned at 9:44 p.m.
APPROVE ~y ME THIS
DAY OF"~
Q
Anthony W. Arredia, MAYOR
' 2004
PAGE FOUR
305D
11/8/04
Donna McAllister, MMC CITY CLERK