01-29-2007 Special MeetingMINUTES 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, JANUARY
29, 2007
172
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 6:30 p.m. in the Eleanor
Rohrbach Memorial Council Chambers, Des Plaines Civic
Center on Monday, January 29, 2007.
ROLL CALL: Roll call indicated the following aldermen present:
Sayad, Becker, Smith, Argus. Aldermen Beauvais,
Christiansen, Murphy and Brookman were absent.
Alderman Murphy arrived at 6: 33 p .m. Alderman
Brookman arrived at 6:35 p.m.
Also present were City Manager Niemeyer, Director of Engineering
Oakley, Director of Public Works Dusckett, Deputy Director of
Community & Economic Development Angell and City Attorney Wiltse.
CONSENT
SESSION:
HAZARD
MITIGATION
PLAN:
Resolution
R-15-07
Moved by Sayad, seconded by Argus, to establish a Consent
Agenda. Motion declared carried.
Approve final Hazard Mitigation Plan, as presented at a
public meeting held Wednesday, January 17, 2007; which
will be used to apply for a Pre-Disaster Mitigation (PDM)
Grant and Flood Mitigation Assistance (FMA) Grant from
the Federal Emergency Management Agency; and further
recommend to adopt Resolution R-15-07, A RESOLUTION
ADOPTING THE HAZARD MITIGATION PLAN AS AN OFFICIAL PLAN
OF THE CITY OF DES PLAINES.
Moved by Becker, seconded by Argus, to approve the
Consent Agenda. Upon roll call, the vote was:
AYES: 3-Becker, Smith, Argus
NAYS: 1-Sayad
ABSENT: 4-Beauvais, Christiansen, Murphy, Brookman
MOTION DECLARED FAILED (a majority of elected members are
required to pass any ordinance or proposition).
Alderman Murphy entered the meeting at 6:33 p.m.
Moved by Becker, seconded by Smith, to reconsider the
Consent Agenda. Upon roll call, the vote was:
AYES: 5-Murphy, Sayad, Becker, Smith, Argus
NAYS: 0-None
ABSENT: 3-Beauvais, Christiansen, Brookman
Motion declared carried.
Alderman Brookman entered the meeting at 6:35 p.m.
Upon roll call on the reconsidered motion to approve the
Consent Agenda and Resolution R-15-07, the vote was:
AYES: 6-Murphy, Sayad, Brookman,
Becker, Smith, Argus
NAYS: 0-None
ABSENT: 2-Beauvais, Christiansen
Motion declared carried.
MAYOR ARREDIA DECLARED THAT THE CITY COUNCIL WAS NOW
RESOLVED INTO A COMMITTEE OF THE WHOLE
RIVIERA
RESIDENTIAL
PROJECT/
1050
OAKTON ST.:
1/29/07 173
PAGE TWO
Alderman Becker stated that Kane, McKenna & Associates,
150 N. Wacker Drive, Suite 1600, Chicago, IL 60606, were
retained to prepare a Phase I Feasibility Study for the
creation of a TIF district for property located at 1050
Oakton Street; the Phase I report has been received; the
City Council needs to approve Resolution R-16-05, on the
agenda this evening, technically authorizing the Phase
I Feasibility Study; and then the City Council must
decide if it wants to move ahead with the Phase I I
Eligibility Study and Redevelopment Plan and Project for
the creation of this TIF district.
Petitioner Nick Mitchell and his Staff were introduced;
Mr. Mitchell made a PowerPoint presentation regarding the
proposed project and its benefits; this is developer-
driven; this project is viable but it does have some
financial obligations that is in need of a TIF; we are
just asking for the creation of a TIF -nothing else so
we can move forwards; no up-front money is requested.
Alderman Brookman stated that she cannot support giving
$15 -$20 million for financial assistance to a single
developer for a religious-based project; now the
developer is telling us that he can't move forward
without a TIF; this is different from what he told us
initially; the City has been misled by the developer; we
were told the project could stand on its own.
Alderman Sayad stated that it is a shame that this
project has taken so long with all the delays Mr.
Mi tche 11 has had to go through; even if we give Mr.
Mitchell the OK, it will take 18 months to two (2)-years
to complete; what will the units cost and will each
person pay their own taxes? Mr. Mitchell said no, the
unit owners do not pay their own taxes; it is pro-rated
and added to their monthly assessment; the units start
at $215,000 to $220,000, with approximately $2,000
monthly cost that includes everything but their telephone
bill.
Alderman Smith stated that he thinks he understands the
situation, but it is a tough issue; he has not made up
his mind yet.
Alderman Argus stated that she was OK with the project
until we got to a TIF; she is concerned about creating
a TIF.
Mr. Brian Burkross, 2133 Webster Lane, addressed the
Committee of the Whole stating that what Mr. Mitchell is
saying now is not what he said at the beginning; the
public opinion is greater against it now than it was
before; this is not a viable plan; it would be setting
a bad precedent; this will be a burden on our City
services.
Mr. Nick Chiropolos, 156 N. Third Avenue, addressed the
Committee of the Whole stating that he has been opposed
to this project from the beginning; Mr. Mitchell said he
would do it all with his own money and now after two (2)
extensions, he wants the City to bail him out and pick
up the tab; the project never should have gotten off the
ground -even with his own money; the City Council should
deny this request.
Mr. Carmen Sarlo, 3051 Scott Street, addressed the
Committee of the Whole stating that the City has given
this project all kinds of variations and now Mr. Mitchell
is asking you to give him money; do you have anything in
writing that the bank will give him money?; don't borrow
any money for this project.
Mr. Wayne Serbin, 8 35 Pearson Street, addressed the
Committee of the Whole asking if St. Mary Church would
qualify for money like this. Alderman Becker said
they are not-for-profit and tax-exempt. n~
RIVIERA
(Cont'd.)
174 1/29/07
PAGE THREE
Mr. Dion Kendrick, 943 Webster Lane, addressed the
Committee of the Whole stating that why should a
developer commit all his funds when he can shift that to
the public sector; the people have spoken that they do
not want a TIF; do not do this TIF.
Ms. Kathryn Macaluso, 815 E. Oakton Street, addressed the
Committee of the Whole stating that she would be living
in the shadow of this development; she would like to
restate her opposition to this project; perhaps this is
not the best place for a 14-story building; we didn't
want it in the first place and now we are being asked to
pay for it; if Mr. Mitchell is having problems with
financing, perhaps he should cut back on the project.
Mrs. Barbara Van Slambrouck, 286 Stratford Road,
addressed the Committee of the Whole asking how many
acres are in this project. Deputy Director of Community
& Economic Development Angell said 10.331 acres. Mrs.
Van Slambrouck asked if people would be given an
opportunity to look at Phase II. Alderman Becker said
yes, everything would be open for review. Mrs. Van
Slambrouck stated that this matter should be put on the
April ballot.
Mr. Robert Reda, 1855 Plainfield Drive, addressed the
Committee of the Whole asking if all the tax benefits
come back to the residents. City Manager Niemeyer said
yes. Mr. Reda stated that he is in favor of this
project; it is good for the area.
Mr. Dennis Sotos, 165 Marina Drive, addressed the
Committee of the Whole stating that he has been for this
project from the beginning because of the finances
committed to our City; Mr. Mitchell has done everything
the City has asked him to do; Mr. Mitchell has put in $13
million out of his own pocket; it will create jobs and
provide tax money for the City; it will be a beautiful
building; we will all benefit from this project.
Mr. Scott Olson, 285 Harding Avenue, addressed the
Committee of the Whole asking what the "but for"
provisions meant. City Manager Niemeyer explained that
"but for" certain circumstances, the project will not go
forward. Alderman Becker read the language from the
Illinois State Statutes.
Mrs. Dolores Vels, 1019 Wicke Avenue, addressed the
Committee of the Whole stating that she has been against
this project from the beginning; Mr. Mitchell told us he
was going to use his own money; how many units has he
sold so far?; he has let the property go so he can say
it is blighted; please do not grant this TIF; listen to
the people.
Mr. Bill Seitz, 1029 E. Villa Drive, addressed the
Committee of the Whole stating that he has lived here
many years and have seen how people have fought all new
development; the TIF is not going to take any money out
of our pockets; this project should be approved.
Moved by Becker, seconded by Murphy, to recommend to the
City Council to approve deferment of payment for Street
Vacation Fee and other obligations under Ordinance Z-13-
04 and Ordinance M-17-04. Motion declared carried.
Alderman Brookman voted no.
Moved by Becker, seconded by Smith, to recommend to the
City Council to approve the Phase I Feasibility Study for
the creation of a TIF district for the Riviera
Residential Project on property located at 1050 Oakton
Street; and Resolution R-16-07 be adopted at appropriate
time this evening.
RIVIERA
(Cont'd.)
PHASE I TIF
FEASIBILITY
STUDY/1050
OAKTON ST.:
Resolution
R-16-07
PHASE II TIF
ELIGIBILITY
STUDY/1050
OAKTON ST.:
Resolution
R-17-07
AGREEMENT/
COSTS FOR
PHASE II
ELIGIBILITY
STUDY:
DEFERRAL OF
PAYMENT/
STREET VACA.
FEE I 1050
OAKTON ST.:
PAGE FOUR
Alderman Murphy stated that she has been for this project
in the past but she doesn't think this is the time to
vote tax money; this is not in the best interest of the
City.
Alderman Sayad stated that he agrees with Alderman
Murphy; he has received calls against this project; times
have changed.
City Attorney Wiltse stated that if the City Council does
not adopt Resolution R-16-07 accepting the Phase I
Feasibility Study, Mr. Mitchell may be reluctant to pay
the cost of the Study.
Alderman Smith stated that the City Council would not be
voting for the TIF, just the Phase I Feasibility Study,
which is going to be paid for by Mr. Mitchell.
MOTION DECLARED FAILED (Aldermen Becker, Smith and Argus
voted yes; Aldermen Murphy, Sayad and Brookman voted no -
a tie vote is a failed vote) .
Moved by Becker, seconded by Murphy, to recommend to the
City Council that Staff be authorized to work with the
developer and the affected taxing bodies to go over the
financial options and develop a financial-incentive
package, prepare a redevelopment/inter-governmental
agreement, for Riviera Redevelopment Project on property
located at 1050 Oakton Street, and report back to the
City Council as soon as possible. Upon roll call, the
vote was:
AYES: 1-Becker
NAYS: 5-Murphy, Sayad, Brookman, Smith, Argus
ABSENT: 2-Beauvais, Christiansen
MOTION DECLARED FAILED.
MAYOR ARREDIA ASSUMED THE CHAIR AND DECLARED THE CITY
COUNCIL BACK IN SESSION
Moved by Brookman, seconded by Murphy, to DENY request
from Faithful Works, LLC to approve the authorization of
the Phase I Feasibility Study for the creation of a TIF
district for the Riviera Residential Project on property
located at 1050 Oakton Street; and void Resolution R-16-
07. Motion declared failed (Aldermen Murphy, Sayad and
Brookman voted yes; Alderman Becker, Smith and Argus
voted no - a tie vote is a failed vote) .
Moved by Brookman, seconded by Sayad, to DENY request
from Faithful Works, LLC to approve Phase II Eligibility
Study for a Redevelopment Plan and Project, required by
the Tax Increment Allocation Redevelopment Act, for the
Riviera Residential Project on property located at 1050
Oakton Street; and void Resolution R-17-07. Motion
declared carried. Alderman Becker voted no.
Moved by Brookman, seconded by Murphy, to DENY request
for authorization to develop agreement with Faithful
Works, LLC, to pay for cost of the Phase II Eligibility
Study for a Redevelopment Plan and Project, for the
Riviera Residential Project on property located at 1050
Oakton Street. Motion declared carried.
Moved by Becker, seconded by Murphy, to concur with
recommendation of Cammi ttee of the Whole to approve
deferment of payment by Faithful Works, LLC for Street
Vacation Fee for Times Drive, and other obligations under
Ordinance Z-13-04 and Ordinance -17-04 pertaining to the
Riviera Redevelopment Project on property located at 1050
Oak ton Street. Motion declared carried. Alderman
Brookman voted no.
ADJOURNMENT :
PAGE FIVE
176 1/29/07
Moved by Murphy, seconded by Argus, that the Special
meeting of the City Council adjourn. Motion declared
carried. Meeting adjourned at 9:45 p.m.
Donna McAllister, MMC CITY CLERK