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JRB Mins 8-14-17 CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT ANNUAL JOINT REVIEW BOARD MEETING MINUTES AUGUST 14, 2017 1. Welcome by City Representative Michael McMahon introduced himself & welcomed everyone to today’s meeting. 2. Call to Order Michael McMahon opened the meeting at 10:01 a.m. at City Hall, 1420 Miner Street, Room 101, Des Plaines, IL 3. Roll Call (in attendance) Michael Bartholomew City Manager, City of Des Plaines Mary Kalou Assistant Superintendent, School District 207 Nelson Gray Assistant Superintendent, School District 62 Michael Vilendrer Dir. of Maintenance, Oper., & Trans., School District 62 Cathy Johnson Associate Superintendent, School District 214 George Giese Manager of Administration, Mt. Prospect Park District Don Miletic Executive Director, Des Plaines Park District Barb Barrera Superintendent of Business, Des Plaines Park District Walter Kazmierczak Highway Commissioner, Maine Township Ellen A. Yearwood Public Member Also Attended: Michael McMahon Director of Community & Econ. Dev., City of Des Plaines Dorothy Wisniewski Assistant City Manager/Dir. of Finance, City of Des Plaines Lauren Pruss Coordinator, City of Des Plaines Lauren Griffin Administrative Assistant, City of Des Plaines Bob Rychlicki Kane McKenna & Associates, Inc./TIF Consultant Gale Cerabona Recording Secretary 4. Election/Confirmation of Chair A motion was made by Michael Bartholomew, seconded by Nelson Gray, to elect and confirm Director, Michael McMahon, as Chair for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES 5. Election/Confirmation of Public Member A motion was made by Michael Bartholomew, seconded by Cathy Johnson, to elect and confirm Ellen Yearwood as Public Member for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES 6. Approval of Minutes: August 15, 2016 A motion was made by Michael Bartholomew, seconded by Barb Barrera, to alter reviewed with renewed on last page and approve the August 15, 2016 minutes as amended. On a voice vote: AYES: All NAYS: None Motion: CARRIES 7. Public Comment: There were no comments. 8. Review of Activities in District & 9. Review of 2015 State Comptroller’s Report Michael McMahon introduced Bob Rychlicki who reminded that typically TIF District No. 3 is at the forefront of the agenda. There were no objections. A motion was made by Ellen Yearwood, seconded by Walter Kazmierczak, to move TIF District No. 3 to the beginning of the agenda. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 3 Overview Bob Rychlicki reminded that the format, sections, and pages are derived from the State of Illinois Comptroller’s Office. He noted exhibits, activity, and receipts. Bob Rychlicki advised certifications are in compliance, legal aspects are noted, and there is auditor compliance. He referred to Page 2 per new TIF agreements, fiscal information, etc. He noted there are no redevelopment agreements, no new financing; status quo. There are 2 industrial buildings in this TIF (12 years). Bob Rychlicki referred to Section 3.1 stating fiscal activity actualized a property tax increment of $752,580 with interest of $12 for a total amount deposited in special tax allocation of $752.592. Bob Rychlicki then referred to Section 3.3 noting remainder of bonds. Class B has not been removed. EAV is increasing. Michael Bartholomew concurred and stated 6Bs are not being removed or granted at all. Barb Barrera asked and Bob Rychlicki confirmed that the last payment is in 2036. A motion was made by Ellen Yearwood, seconded by Cathy Johnson, to accept the TIF No. 3 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 1 Overview Bob Rychlicki noted this is the City’s downtown District, the oldest and largest TIF. The expiration date is 2020 with final payment in 2021. Bob Rychlicki noted this has the same certifications as TIF No. 3; no amendments, new redevelopments, or financings, etc. He highlighted a property tax increment of $5,076,742, interest of $7,815, with a special tax allocation of $5,084,557. Bob Rychlicki referenced Section 3.2 A&B noting utilization (1/3 is outstanding debt, 1/3 is capital improvement professional and redevelopments agreements, etc.). There are 3 debt issues remaining. EAV is $20,262,187. This TIF is on par and returns will be passed onto the districts. Mary Kalou asked if the reimbursement is maintenance and parking garages. Dorothy Wisniewski noted ongoing projects (streetscape). Michael Bartolomew advised there are 7-8 Phases (pending PACE Bus Shelter, etc.). Ellen Yearwood asked if there could be a map noted in future presentations. Same was illustrated, and Bob Rychlicki advised it will be in the next report. Nelson Gray advised the veto is impacting schools. Lauren Pruss indicated TIF locations on map. A motion was made by Mary Kalou, seconded by Nelson Gray, to accept the TIF No. 1 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 5 Overview Bob Rychlicki noted this is a parking lot (Shop & Save). There were no new redevelopments, debt issues, etc. Bob Rychlicki advised this expires in 2025 and noted there are no amendments, new redevelopments, or financings, etc. He noted a property tax increment of $105,905 with $2 in interest totaling $105,907. There is a bond issue outstanding. Base EAV is 794,127. Michael Bartholomew advised it decreased 20% (and surmised taxes were appealed); Bob Rychlicki will review same. Michael McMahon noted there should be a redevelopment agreement which he will review. A motion was made by Ellen Yearwood, seconded by Mary Kalou, to accept the TIF No. 5 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES Nelson Gray asked if there are plans to extend. Michael McMahon stated there are not. TIF District No. 6 Overview Bob Rychlicki advised this is the same schedule as TIF No. 5 with final payment in 2025. He noted this was amended in 2014 and referred to the map (highlighting Starbucks, Potbelly). Bob Rychlicki advised there are no amendments, new redevelopments, or financings; status quo. He indicated a property tax increment of $42,942 with $26 in interest totaling $42,968. Bonds are identified in Section 3.3. Base EAV is $2,136,807. Barb Barrera asked if this is fully developed. Bob Rychlicki concurred and noted there are 3 uses. A motion was made by Nelson Gray, seconded by Mary Kalou, to accept the TIF 6 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 7 Overview Bob Rychlicki advised this is the City’s newest TIF (that came out of TIF No. 6); sharing of revenues (excludes McDonald’s redevelopment of Orchards at O’Hare). A redevelopment agreement is in the package (hotel, car wash, etc.). Property tax increment of $292 (with some capital expenditures). Nelson Gray asked if there is a connection to Rosemont Park District. Michael Bartholomew illustrated TIF 7 and noted the City acquired it (which was fully developed then demolished). He noted just recently ownership was transferred to the developer. Remaining piece is slated for removal from the floodplain. Construction is taking place (bridge), etc. and will begin this year. An area that MB Financial owns was referenced and noted that progress is being made. Mary Kalou asked if the land sale closed. Michael Bartholomew replied in the affirmative, in 2017. A motion was made by Mary Kalou, seconded by Ellen Yearwood, to accept the TIF No. 7 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES Bob Rychlicki thanked everyone for participating. 10. Questions from Board Members Nelson Gray inquired about a separate meeting on 6Bs. Lauren Griffin advised none were in a TIF distribution. Michael Bartholomew noted, with proforma, $4,000,000 will be generated in property tax. This impacts Districts 59 & 214. Lauren Pruss advised an analysis was run (these have applied for vacancy relief) and is a win-win. Nelson Gray noted occupying users are requesting same. Nelson Gray thanked Bob Rychlicki for this report. Michael McMahon advised Northwest Millwork is later in the year. Michael Bartholomew stated the City’s standpoint is not in favor of 7Bs or 6Bs. 11. Adjournment A motion was made by Ellen Yearwood, seconded by Nelson Gray, to adjourn the meeting at 10:43 a.m. On a voice vote: AYES: All NAYS: None Motion: CARRIES Respectfully submitted, Gale Cerabona Recording Secretary