09/24/2013DES PLAINES
ILLINOIS
Minutes of Meeting
Economic Development Commission
September 24, 2013
City of Des Plaines
Planning and Zoning
1420 Miner Street
Des Plaines, IL 60016
Tel: 847-391-5306
Fax: 847-391-5371
Call to Order: Chairman Ulett called the meeting to order at 7:34 A.M. on Tuesday for a special
meeting, September 24, 2013, in Des Plaines City Hall 1420 Miner Street, Room 101.
Approval of Minutes: Motion to approve the May 13, 2013 meeting minutes was made by Mr.
Rapp and seconded by Ms. Osowski. Motion passed by unanimous voice vote. Motion to approve
the September 4, 2013 meeting minutes was made by Ms. Osowski and seconded by Mr. Rapp.
Motion passed by unanimous voice vote.
Members Present: Jim Ulett, Jin Lee, Cortney Anderson-Wascher, Christen Osowski, Mohammad
Khokhar, Richard Grosse, Randall Rapp, Barbara Ryan, Malcolm Chester, Anthony Bottalla,
Patrick McGeean, Louis Psihogios.
Members Absent: Patrick Devereaux
Also Present: Mike Strawn (City Electric Supply), Zach Kafitz (Sarnoff & Baccash), Ken Sarnoff
(Sarnoff & Baccash), Laura Rizzo (HLR Bradrock, Inc., Total Comfort Systems & Evergreen
Models, Inc.).
New Business:
a. Class 6b Resolution Request — HLR Bradrock, Inc. — 65 Bradrock Drive
Presentation by HLR Bradrock, Inc.
Zach Kafitz, representing HLR Bradrock, Inc., introduces the project and makes the following
points for the current condition of the property:
1) This property consists of approximately 51,000 square feet of land and with an
approximately 20,000 square foot building that has been vacant and unused since
February, 2009.
2) The subject property is in need of significant improvements, and therefore, the Applicant
has allotted approximately $200,000 for improvements.
3) The improvements will include, but not limited to improving the landscaping, cosmetic
improvements and replacing the roof as well as other general maintenance.
4) These improvements should create approximately 10 to 15 construction jobs.
Zach Kafitz, representing HLR Bradrock, Inc., explains the specifics for the businesses that will
relocate to 65 Bradrock Drive:
1) HLR Bradrock, Inc., plans on leasing the subject property to two related entities: Total
Comfort Systems Inc., and Evergreen Models, Inc.
2) Total Comfort Systems Inc., will initially be occupying approximately 4,000-5,000
square feet of the subject property for its own operations consisting of HVAC and plumbing
contracting and the remanufacturing, warehousing and distribution of products in association
therewith.
3) Evergreen Models, Inc., will initially be occupying approximately 8,000-9,000 square
feet of the subject property for its own operations consisting of the remanufacturing, warehousing
and distribution of plastics for the hobby industry.
4) Total Comfort Systems Inc., is currently located in Skokie, IL and plans to move its entire
operation to the subject property. They plan to hire 2-3 employees as soon as possible.
5) Evergreen Models, Inc., is currently located in Seattle, Washington and plans to move its
entire operation to the subject property. They plan to hire 7 employees immediately and another 6
employees within the next few years.
Mr. Zach Kafitz explained that the Applicant's operations are family run and the Applicant's plan is
to consolidate and expand all of its operations in the City of Des Plaines for many years to come. In
addition, the Applicant plans to bring another of its related entities to the City of Des Plaines in the
next few years. The Applicant requests that the City of Des Plaines' Economic Development
Commission support a Resolution for a Class 6b Incentive on the subject property based on
occupation of abandoned property for greater than 24 months of continuous vacancy with a
purchase for value and substantial rehabilitation.
Chairman Ulett questioned Ms. Laura Rizzo about the type of business Evergreen Models, Inc., is.
Ms. Laura Rizzo explained that they cut and create plastic figurines such as trees for hobby
enthusiasts, architects and for school projects. The machines cut from large sheets of plastic and
mold into trees. Some of the buyers are car companies, architects, hobby stores and the majority are
online sales.
Chairman Ulett asked what the tax base is now, and what will HLR Bradrock Inc., be looking to
save over the next few years.
Mr. Zach Kafitz explained that the property taxes based on the 2012 tax rate were $69,000 a year.
The property is now 100% vacant, and if filed for vacancy relief, would drop down to $25,000 a
year. If approved with a 6b and proposed property rehabilitation, the new tax rate would be
$32,000; and while lower, is more than the potentially $25,000 a year as a vacant building.
Chairman Ulett stated that over the lifetime the total savings will be around $800,000.
Chairman Ulett asked Mr. Zach Kafitz and Ms. Laura Rizzo where they are in terms of moving, and
building purchase or if they are waiting for the City's decision for 6b support.
Ms. Laura Rizzo explained that she wanted to wait. However, their lease was up in Seattle at the end
of August. Moreover, they have been pursuing a different property but that deal fell through; which
pushed them to search aggressively for other sites. 65 Bradrock was brought to their attention and a
6b has always been a part of the discussion.
Mr. Zach Kafitz explained that the seller was extremely motivated to move this property and was
dealt a "move it or lose it" situation.
Ms. Ryan asked if HLR Bradrock Inc., could get the 6b approval after the purchase.
Chairman Ulett responded that all the necessary paperwork must be in to Cook County before.
Mr. Zach Kafitz responded that they have filed to Cook County prior to the purchase that they will
provide the 6b documents as soon as possible.
Mr. Batalla asked how long they have owned the property, and does the $200,000 improvement cost
include any exterior work?
Ms. Laura Rizzo responded that they have owned the property for 6 days. The exterior work will
include re -paving the parking lot, driveways and loading docks. The back end of the building is also
in shambles and that needs attention. The immediate work will include plumbing for the bathrooms.
A Motion was made by Malcolm Chester to approve to support for the City Council. The Motion
was seconded by Jin Lee. Motion passed by unanimous voice vote.
MOTION CARRIED
Old Business:
Chairman Ulett asked Mr. Chan Yu for the Cook County Living Wage Ordinance to review further.
Chairman Ulett stated that the Retention Committee is making great strides and will have more
information prepared for the next meeting to review.
Chairman Ulett asked if there were any other comments. There were none.
Meeting was adjourned by Chairman Ulett at 8:21 A.M.
Respectfully submitted,
VvioitoR
Lauren Griffin, Administrative Assistant
Approved on A>t c . 11 I41 , 2013, by:
James Ulett, Chairman