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DP TIF 7 Report FY 2017CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT NO. 7 HIGGINS ROAD AND PRATT AVENUE TIF DISTRICT ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 City of Des Plaines Tax Increment Financing District No. 7 Higgins Road and Pratt Avenue TIF District Table of Contents SECTION TITLE PAGE 1.0 Name of Redevelopment Project Area and Contact Information 1 2.0 Redevelopment Project Information 3 Attachment A Amendments to the Redevelopment Plan, the Redevelopment Project and/or Area Boundary 4 Attachment B Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the TIF Statute (the "Act") during the reporting Fiscal Year. 5 Attachment C Opinion of legal counsel that the municipality is in compliance with the Act 6 Attachment D Statement setting forth all activities undertaken in furtherance of the objectives of the Redevelopment Plan 8 Attachment E Description of Agreements Regarding Property Disposition or Redevelopment 9 Attachment F Additional Information on Uses of Funds Related to Achieving Objectives of the Redevelopment Plan 10 Attachment G Information Regarding Contracts with TIF Consultants 11 Attachment H Reports Submitted by Joint Review Board 12 Attachment I Summary of any obligations issued by the municipality and official statements 13 Attachment J Financial Analysis: TIF Obligations 14 Attachments For special tax allocation funds that have experienced cumulative K and L deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with the Act . 15 CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 SECTION TITLE PAGE Attachment M Intergovernmental Agreements 16 3.1 Analysis of Special Tax Allocation Fund 17 3.2 Itemized List of Expenditures from Special Tax Allocation Fund 19 3.3 Special Tax Allocation Fund Balance (end of reporting period) 24 4.0 Property purchased by the municipality within the Redevelopment Project Area 26 5.0 Review of Public and Private Investment 28 6.0 Optional Sections 30 Exhibit A Exhibit B Exhibit c Land Closing Statement Joint Review Board Minutes TIF Audit Sections CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 Section 1. Name of Redevelopment Project Area and Contact Information Refer to chart attached. CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 1 FY 2017 ANNUAL TAX INCREMENT FINANCE REPORT Name of Municipality: Des Plaines County: Cook Unit Code: 016/140/30 STATE OF ILLINOIS COMPTROLLER SUSANA A, MENDOZA Reporting Fiscal Year: Fiscal Year End: 2017 12/ 31 /2017 TIF Administrator Contact Information First Name: Michael Address: 1420 Miner Street Telephone: 847/391-5488 E -mail - required mbarthoiomew©despialnes.org Last Name: Bartholomew Title: City Manager City: Des Plaines Zip: 60016 I attest to the best of my knowledge, that this FY 2017 report of the redevelopment project area(s) in the CityNlllage of: Des Plaines is complete and accurate pursuant to Tax Increment Allocation Redevelopment Act [65 ILLS 5/11-74,4-3 et. seq.) and Industrial Jobs Recovery Law 6 ILCS 5/11-74.6-10 et, seq.) Written signatu 1` of TIF Administrator 6-Z7-- le Date Section 1 (65 ILLS 5/11-74.4-5 (d) (1.5) and 65 ILCS 5/11-74.6-22 (d) (1.5)") FILL OUT ONE FOR EACH TIF DISTICT Name of Redevelopment Project Area Date Designated Date Terminated TIF No. 1 Downtown 7/15/1985 TIF No. 3 Willie Road Mt. Prospect Road 8/7/2000 TIF No. 4 Five Corners Rand Road 10/2006 11/19/2014 TIF No. 5 Lee Street Perry Street 4/2/2001 TIF No, 6 Mannheim - Hlgglns Road 10/15/2001 TIF No. 7 Higgins Road and Pratt Avenue 10/20/2014 *All statutory citations refer to one of two sections of the Illinois Municipal Code: The Tax increment Allocation Redevelopment Act [65 ILLS 5/11-74,4-3 et. seq.J or the Industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.J 2 SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2017 Name of Redevelopment Project Area (below): TIF 7 Higgins Pratt Primary Use of Redevelopment Project Area*: CBD * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. If "Combination/Mixed" List Component Types: Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): Tax Increment Allocation Redevelopment Act Industrial Jobs Recovery Law X . , No Yes Were there any amendments to the redevelopment plan, the redevelopment project area, or the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5 (d) (1) and 5/11-74.6-22 (d) (1)] If yes, please enclose the amendment labeled Attachment A X Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of then Act during the preceding fiscal year. [65 ILCS 5/11-74.4-5 (d) (3) and 5/11-74.6-22 (d) (3)]., Please enclose the CEO Certification labeled Attachment B X Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5 (d) (4) and 5/11-74.6-22 (d) (4)1 Please enclose the Legal Counsel Opinion labeled Attachment C Statement setting forth all activities undertaken in furtherance of the objectives of the redevelopment plan including any project implemented and a description of the redevelopment activities.? [65 ILCS 5/11-74.4-5 (d) (7) (A and B) and 5/11-74.6-22 (d) (7) (A and B)] If yes, please enclose the Activities Statement labeled Attachment D X Were any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5 (d) (7) (C) and 5/11-74.6-22 (d) (7) (C)] If yes, please enclose the Agreement(s) labeled Attachment E X Is there additional information on the use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan? [65 ILCS 5/11-74.4-5 (d) (7) (D) and 5/11-74.6-22 (d) (7) (D)] If yes, please enclose the Additional Information labeled Attachment F X Did the municipality's TIF advisors or consultants enter into contracts with entities or persons that have received or are receiving payments financed by tax increment revenues produced by the same TIF? [65 ILCS 5/11-74.4-5 (d) (7) (E) and 5/11-74.6-22 (d) (7) (E)] If yes, please enclose the contract(s) or description of the contract(s) labeled Attachment G X Were there any reports or meeting minutes submitted to the municipality by the joint review board? [65 ILCS 5/11-74.4-5 (d) (7) (F) and 5/11-74.6-22 (d) (7) (F)] If yes, please enclose the Joint Review Board Report labeled Attachment H X Were any obligations issued by the municipality? [65 ILCS 5/11-74.4-5 (d) (8) (A) and 5/11-74.6-22 (d) (8) (A)] If yes, please enclose any Official Statement labeled Attachment I and Attachment J MUST be Yes X An analysis prepared by a financial advisor or underwriter setting forth the nature and term of obligation and projected debt service including required reserves and debt coverage? [65 ILCS 5/11-74.4-5 (d) (8) (B) and 5/11-74.6-22 (d) (8) (B)] If attachment I is yes, Analysis MUST be attached and labeled Attachment J X Has a cumulative of $100,000 of TIF revenue been deposited into the special tax allocation fund? 65 ILCS 5/11-74.4-5 (d) (2) and 5/11-74.6-22 (d) (2) If yes, please enclose Audited financial statements of the special tax allocation fund labeled Attachment K X Cumulatively, have deposits of incremental taxes revenue equal to or greater than $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 labeled Attachment L X A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose list only, not actual agreements labeled Attachment M X 3 Attachment A Amendments to the Redevelopment Plan, the Redevelopment Project and/or the Area Boundary There were no amendments to the Redevelopment Plan or to the Redevelopment Project Area within the reporting Fiscal Year. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 4 Attachment B Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the reporting Fiscal Year. Re: City of Des Plaines Certificate of Compliance Tax Increment Financin;= District #7 -Hip?gins Road and Pratt Avenue Redevelopment Project Area For Fiscal Year Ending December 31, 2017 I, Matthew J. Bogusz, the duly elected Chief Executive Officer of the City of Des Plaines, County of Cook, State of Illinois, do hereby certify that to the best of my knowledge, the City of Des Plaines complied with the requirements pertaining to the Illinois Tax Increment Redevelopment Allocation Act during the fiscal year beginning January 1, 2017 and ending December 31,2017. MAYOR DA 1E CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 5 Attachment C Opinion of legal counsel that the municipality has complied with the Act. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 6 RE: Attorney Review City of Des Plaines Higgins Road and Pratt Avenue TIF District #7 To Whom It May Concern; This will confirm that I am the General Counsel for the City of Des Plaines, Illinois. I have reviewed all information provided to me by the City staff and consultants, and I find that the City of Des Plaines has conformed to all applicable requirements of the Illinois Tax Increment Redevelopment Allocation Act set forth thereunder for the fiscal year beginning January 1, 2017 and ending December 31, 2017, to the best of my knowledge and belief. Sincerely, General Counsel CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 7. Attachment D Statement setting forth all activities undertaken in furtherance of the objectives of the Redevelopment Plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken [65 ILCS 5/11-74.4- 5(d)(7)(A & B) and 5/11-74.6-22(d)(7)(A & B)] TIF #7 The City of Des Plaines' seventh TIF District was established in October, 2014. The creation of this TIF District was in response to the City's desire to respond to the problem conditions within an important commercial intersection within the City of Des Plaines and to revitalize the area. A portion of this area is owned by the City and other properties are owned by third parties, all of the properties were previously included in TIF #6. However, due to distressed economic conditions, and the recent economic downturn, the ability to implement new projects was curtailed. The creation of TIF #7 allows for the City to continue to redevelop the area with the benefit of a 23 year term in order to amortize redevelopment costs. The City and O'Hare Real Estate, LLC entered into a redevelopment and economic incentive agreement dated February 2, 2017 for the Orchards at O'Hare Development project. The same agreement was amended and restated on August 23, 2017. The project included the sale of 9.08 acres of City property on February 7, 2017 for $1,759,783 for the development of a 130 room hotel with one class A restaurant, a 16 pump gasoline service station, car wash, and a convenience store. City TIF assistance also includes up to $2,000,000 for eligible costs as set forth in the agreement. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 8 Attachment E Description of any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary [65 ILCS 5/11-74.4-5(d)(7)(C) and 5/11-74.6- 22(d)(7)(C)] TIF #7 The City and O'Hare Real Estate, LLC entered into a redevelopment and economic incentive agreement dated February 2, 2017 for the Orchards at O'Hare Development project. The same agreement was amended and restated on August 23, 2017. The project included the sale of 9.08 acres of City property on February 7, 2017 for $1,759,783 for the development of a 130 room hotel with one class A restaurant, a 16 pump gasoline service station, car wash, and a convenience store. City TIF assistance also includes up to $2,000,000 for eligible costs as set forth in closing statement and attached as Exhibit A. CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 9 Attachment F Additional Information on use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan [65 ILCS 5/11-74.4-5 (d)(7)(D) and 5/11-74.6-22 (d)(7)(D)] The City of Des Plaines continued to implement the primary objectives of the TIF #7 Redevelopment Plan and Project by assisting in "outlining a framework for future land use and development that will enhance economic activity and strengthen the economic well-being of the Area and the City by increasing the value of the property" and reviewing several proposals submitted to the City as part of an RFP process.. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 10 Attachment G Information regarding contracts that TIF advisors or consultants have entered into with entities or persons receiving payments financed by tax increment revenues produced by the same TIF [65 ILCS 5/11-74.4-5 (d)(7)(E) and 5/11-74.6-22 (d)(7)(E)] The City utilized the services of Kane, McKenna and Associates, Inc. and Holland & Knight during the previous fiscal year in order to assist in monitoring the TIF Districts regarding their financial condition, with respect to the annual JRB meeting and with respect to development project negotiations. No entities received payment from the TIF in the reporting Fiscal Year . CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 11 Attachment H Reports Submitted by Joint Review Board. No reports were submitted by the Joint Review Board. The Board met on August 14, 2017. Minutes of the meeting are attached as Exhibit B. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 12 Attachment I Summary of any obligations issued by the municipality and official statements No obligations were issued by the City. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 13 Attachment J Financial Analysis: TIF Obligations Not applicable. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 14 Attachments K and L For special tax allocation funds that have experienced cumulative deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with the Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3. Relevant audit sections and the compliance letter are attached as Exhibit C. CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 15 Attachment M Intergovernmental Agreements The City entered into an intergovernmental agreement with the two school districts and no payments were made in the reporting fiscal year.. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 16 Section 3.1 Analysis of Special Tax Allocation Fund Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 17 SECTION 3.1 - (65 ILCS 5/11-74.4-5 (d)(5)(a)(b)(d)) and (65 ILCS 5/11-74.6-22 (d) (5)(a)(b)(d)) Provide an analysis of the special tax allocation fund. FY 2017 TIF NAME: Special Tax Allocation Fund Balance at Beginning of Reporting Period TIF 7 Higgins Pratt $ (1,400,669) SOURCE of Revenue/Cash Receipts: Revenue/Cash Receipts for Current Reporting Year Cumulative Totals of Revenue/Cash Receipts for life of TIF % of Total Property Tax Increment $ 1,916 0% State Sales Tax Increment $ - 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ - 0% Land/Building Sale Proceeds $ 1,759,784 $ 1,759,784 100% Bond Proceeds $ - 0% Transfers from Municipal Sources 0% Private Sources 0% Other (identify source ; if multiple other sources, attach $ - 0% schedule) All Amount Deposited in Special Tax Allocation by source Cumulative Total Revenues/Cash Receipts Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) Distribution of Surplus Total Expenditures/Disbursements Net/Income/Cash Receipts Over/(Under) Cash Disbursements FUND BALANCE, END OF REPORTING PERIOD* $ 1,759,784 $ 1,761,700 100% $ 785,963 $ 785,963 $ 973,821 $ (426,848) * If there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 18 Section 3.2 Itemized List of Expenditures from Special Tax Allocation Fund Refer to tables attached. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 19 FY 2017 TIF NAME: TIF 7 Higgins Pratt SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) (c) and 65 ILCS 5/11-74.6-22 (d) (5)(c)) ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment project costs ) PAGE 1 Category of Permissible Redevelopment Cost [65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6-10 (o)) Amounts Reporting Fiscal Year 1. Cost of studies, surveys, development of plans, and specifications. Implementation and administration of the redevelopment plan, staff and professional service cost. TIF Administration 53,680 Contractual Services 129,338 183,018 2. Annual administrative cost. 3. Cost of marketing sites. 4. Property assembly cost and site preparation costs. 5. Costs of renovation, rehabilitation, reconstruction, relocation, repair or remodeling of existing public or private building, leasehold improvements, and fixtures within a redevelopment project area. 6. Costs of construction. 20 SECTION 3.2 A PAGE 2 7. Costs of eliminating or removing contaminants and other impediments. 8. Cost of job training and retraining projects. 9. Financing costs. 10. Capital costs. 602,945 602,945 11. Cost of reimbursing school districts for their increased costs caused by TIF assisted housing projects. 12. Cost of reimbursing library districts for their increased costs caused by TIF assisted housing projects. 21 SECTION 3.2 A PAGE 3 13. Relocation costs. 14. Payments in lieu of taxes. 15. Costs of job training, retraining, advanced vocational or career education. 16. Interest cost incurred by redeveloper or other nongovernmental persons in connection with a redevelopment project. 17. Cost of day care services. 18. Other. TOTAL ITEMIZED EXPENDITURES 785,963 22 Section 3.2 B FY 2017 TIF NAME: TIF 7 Higgins Pratt Optional: Information in the following sections is not required by law, but would be helpful in creating fiscal transparency. List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Name Service Amount 23 Section 3.3 Special Tax Allocation Fund Balance (end of reporting period). Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #7 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 24 SECTION 3.3 - (65 ILCS 5/11-74.4-5 (d) (5d) 65 ILCS 5/11-74.6-22 (d) (5d) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period by source FY 2017 TIF NAME: FUND BALANCE BY SOURCE 1. Description of Debt Obligations TIF 7 Higgins Pratt $ (426, 848) Amount of Original Issuance Amount Designated Total Amount Designated for Obligations 2. Description of Project Costs to be Paid $ $ Contractual Services $ 50,000 TIF Redevelopment Agreement Payments $ 2,000,000 Total Amount Designated for Project Costs TOTAL AMOUNT DESIGNATED SURPLUS/(DEFICIT) $ 2,050,000 $ 2,050,000 $ (2,476, 848) Section 4.0 A description of all property purchased by the municipality within the Redevelopment Project Area including: A. Street Address B. Approximate size or description of property C. Purchase Price D. Seller of property Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 26 SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] FY 2017 TIF NAME: TIF 7 Higgins Pratt Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. Check here if no property was acquired by the Municipality within the X Redevelopment Project Area. Property Acquired by the Municipality Within the Redevelopment Project Area. Property (1): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (2): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (3): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (4): Street address: Approximate size or description of property: Purchase price: Seller of property: 27 Section 5.0 Review of Public and Private Investment. Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #7ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2017 AND ENDING DECEMBER 31, 2017 28 SECTION 5 - 20 ILCS 620/4.7 (7)(F) PAGE 1 FY 2017 TIF Name: TIF 7 Higgins Pratt Page 1 is to be included with TIF report. Pages 2 and 3 are to be included ONLY if projects are listed. Select ONE of the following by indicating an' X': 1. NO projects were undertaken by the Municipality Within the Redevelopment Project Area. 2. The Municipality DID undertake projects within the Redevelopment Project Area. (If selecting this option, complete 2a.) X 2a. The number of projects undertaken by the municipality within the Redevelopment Project Area: 1 LIST the projects undertaken by the Municipality Within the Redevelopment Project Area: TOTAL: 11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions) $ - $ - $ 25,000,000 Public Investment Undertaken $ - $ - $ 2,000,000 Ratio of Private/Public Investment 0 12 1/2 *PROJECT NAME TO BE LISTED AFTER PROJECT NUMBER Project 1 Orchards at O'Hare Private Investment Undertaken (See Instructions) $ 25,000,000 Public Investment Undertaken $ 2,000,000 Ratio of Private/Public Investment 0 12 1/2 Project 2 Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 3 Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4 Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5 Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 6 Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 29 Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. *even though optional MUST be included as part of complete TIF report SECTION 6 FY 2017 TIF NAME: TIF 7 Higgins Pratt Provide the base EAV (at the time of designation) and the EAV for the year reported for the redevelopment project area Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 2014 $ 468,319 $ 216,425 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. X Check if the overlapping taxing districts did not receive a surplus. Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts Description and Type (Temporary or Permanent) of Jobs Total Salaries Paid $ - $ - $ - $ $ $ $ $ - $ - $ - $ $ SECTION 7 Provide information about job creation and retention: Number of Jobs Retained Number of Jobs Created Description and Type (Temporary or Permanent) of Jobs Total Salaries Paid $ - $ - $ - $ - $ - $ - $ - SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional Documents Enclosed Legal description of redevelopment project area Map of District EXHIBIT A CHICAGO TITLE AND TRUST COMPANY 10 S LASALLE STREET CHICAGO, IL 60603 ESCROW TRUST DISBURSEMENT STATEMENT DISBURSEMENT DATE: February 07, 2017 PARTIES: SELLER: CITY OF DESPLAINES BUYER: O'HARE REAL ESTATE, LLC REFER TO: ERIN K. CACCAMO PHONE: (312)223-2731 FAX: (312)223-2108 ESCROW TRUST NO. 02201700327-001 TITLE ORDER NO. 01401-008980165 RECEIPTS: 02/07/17 O'HARE REAL ESTATE, LLC --BUYER FUNDS 02/06/17 CHICAGO TITLE --SJO 201601022 -EARNEST MONEY 1,665,695.03 150,000.00 $ 1,815,695.03 DISBURSEMENTS: 01) PRORATIONS/CREDITS - Seller SURVEY & ENGINEERING TOTAL PRORATIONS PURCHASE PRICE ADJUSTED PURCHASE PRICE 02) CHICAGO TITLE AND TRUST COMPANY - Seller's Charges Re: Title Order No. 01401-008980165 ESCROW FEE TITLE INSURANCE COMMITMENT UPDATE FEE CLOSING PROTECTION LTR - SELLER WIRE TRANSFER FEE SEARCH AND EXAM FEE RECORDING AND SERVICE FEE 03) MGR FEES FOR TAX SEARCH 04) CITY OF DES PLAINES NET PROCEEDS TO SELLER 46,372.00- 46,372.00- 1,811,000.00 $1,764,628.00 51,764,628.00 600.00 1,358.25 125.00 50.00 40.00 1,500.00 1,000.00 $4,673.25 171.00 $4,673.25 $171.00 $1,759,783.75 EC2 02/07/17 15:44 NOTE: ° - Indicates items Paid Outside of Closing. ESCROW TRUST NO. D2201700327-001 PAGE NO. 2 05) PRORATIONS/CREDITS - Buyer SURVEY & ENGINEERING 46,372.00 TOTAL PRORATIONS 46,372.00 PURCHASE PRICE 1,811,000.00 ADJUSTED PURCHASE PRICE 06) CHICAGO TITLE AND TRUST COMPANY - Buyer's Charges Re: Title Order No. 01401-008980165 ESCROW FEE 600.00 ENDORSEMENTS 2,150.00 POLICY UPDATE FEE 125.00 CLOSING PROTECTION LTR - BUYER 25.00 GAP COVERAGE 200.00 WIRE TRANSFER FEE 40.00 RECORDING AND SERVICE FEE 600.00 $1,764,628.00 $1,764,628.00 07) BAELANCEEDUEN(IFIANY)- POC 08) LYON & CARON LLP LEGAL FEES 09) O'HARE REAL ESTATE, LLC TOTAL DISBURSEMENT AMOUNT TOTAL BUYER RECEIPTS AMOUNT DUE FROM BUYER DISBURSEMENTS APPROVED: DAT BATE $3,740.00 (TO BE DETERMINED) 47,727.03 DATE FOR CHICAGO TITLE AND TRUST $3,740.00 $0.00 $47,727.03 51,816,095.03 1,815,695,03 a_c $400.00 === FOR BUYER EC2 02/07/17 15:44 NOTE: • - Indicates items Paid Outside of Closing. CHICAGO TITLE AND TRUST COMPANY 10 S LASALLE STREET CHICAGO, IL 60603 ESCROW TRUST DISBURSEMENT STATEMENT DISBURSEMENT DATE: February 07, 2017 PARTIES: SELLER: CITY OF DESPLAINES BUYER: O'HARE REAL ESTATE, LLC REFER TO: ERIN K. CACCAMO PHONE: (312)223-2731 FAX: (312)223-2108 ESCROW TRUST NO. D2201700327-001 TITLE ORDER NO. 01401-008980165 RECEIPTS:02/07/17 O'HARE REAL ESTATE, LLC --BUYER FUNDS 02/06/17 CHICAGO TITLE --SJO 201601022 -EARNEST MONEY 1,665,695.03 150,000.00 $ 1,815,695.03 DISBURSEMENTS: 01) PRORATIONS/CREDITS - Seller SURVEY & ENGINEERING TOTAL PRORATIONS PURCHASE PRICE ADJUSTED PURCHASE PRICE 02) CHICAGO TITLE AND TRUST COMPANY - Seller's Charges Re: Title Order No. 01401-008980165 ESCROW FEE TITLE INSURANCE COMMITMENT UPDATE FEE CLOSING PROTECTION LTR - SELLER WIRE TRANSFER FEE SEARCH AND EXAM FEE RECORDING AND SERVICE FEE 03) MGR FEES FOR TAX SEARCH 04) CITY OF DES PLAINES NET PROCEEDS TO SELLER 46,372.00- 46,372,00- 1,811,000.00 $1,764,628.00 $1,764,628.00 600.00 1,358.25 125.00 50.00 40.00 1,500.00 1,000.00 $4,673.25 171.00 $4,673.25 $171.00 $1,759,783.75 == == EC2 02/07/17 15:44 NOTE: • - Indicates items Paid Outside of Closing. ESCROW TRUST NO. D2201700327-001 PAGE NO. 2 05) PRORATIONS/CREDITS - Buyer SURVEY & ENGINEERING 46,372.00 TOTAL PRORATIONS 46,372.00 PURCHASE PRICE 1,811,000.00 ADJUSTED PURCHASE PRICE 06) CHICAGO TITLE AND TRUST COMPANY - Buyer's Charges Re: Title Order No. 01401-008980165 ESCROW FEE 600.00 ENDORSEMENTS 2,150.00 POLICY UPDATE FEE 125.00 CLOSING PROTECTION LTR - BUYER 25.00 GAP COVERAGE 200.00 WIRE TRANSFER FEE 40.00 RECORDING AND SERVICE FEE 600.00 $1,764,628.00 $1,764,628.00 $3,740.00 07) BALANCEEDUEN(IFIANY)- POC (TO BE DETERMINED) 08) LYON & CARON LLP LEGAL FEES 09) O'HARE REAL ESTATE, LLC TOTAL DISBURSEMENT AMOUNT TOTAL BUYER RECEIPTS AMOUNT DUE FROM BUYER DISBURSEMENTS APPROVED: 2/7/17 �+ lCu.. DA I L FOR -BUYER 47,727.03 $3,740.00 $0.00 $47,727.03 $1,816,095.03 $1,815,695,03 DATE DATE $400.00 EC2 02/07/17 15:44 NOTE: ' - Indicates items Paid Outside of Closing. EXHIBIT B IDES PLAINES 11 1_. 1, 0 1 5 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 Mary Kalou Nelson Gray Michael Vilendrer Cathy Johnson George Giese Don Miletic Barb Barrera Walter Kazmierczak Ellen A. Yearwood Also Attended: Michael McMahon Dorothy Wisniewski Lauren Pruss Lauren Griffin Bob Rychlicki Gale Cerabona City Manager, City of Des Plaines Assistant Superintendent, School District 207 Assistant Superintendent, School District 62 Dir. of Maintenance, Oper., & Trans., School District 62 Associate Superintendent, School District 214 Manager of Administration, Mt. Prospect Park District Executive Director, Des Plaines Park District Superintendent of Business, Des Plaines Park District Highway Commissioner, Maine Township Public Member Director of Community & Econ. Dev., City of Des Plaines Assistant City Manager/Dir. of Finance, City of Des Plaines Coordinator, City of Des Plaines Administrative Assistant, City of Des Plaines Kane McKenna & Associates, Inc./TIF Consultant 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 EXHIBIT C CITY OF DES PLAINES, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2017 ASSETS Cash and Investments Receivables (Net) Property Taxes Accounts Receivable Accrued Interest Other Due from Other Governments TOTAL ASSETS Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) $ 837,113 $ $ 869,302 $ 534,219 $ 7,909,960 4,947,246 7,813 128,964 75,238 - $ 966,077 $ 75,238 $ 877,115 $ 534,219 $ 12,857,206 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 86,228 $ 58,382 $ 18,351 $ 2,218 $ 776,144 Deposits Payable - 3,998 - 18,737 Advances from Other Funds 16,880 - - Total Liabilities 86,228 75,262 22,349 2,218 794,881 Deferred Inflows of Resources Deferred Property Tax Revenue Unavailable Other Revenue Total Deferred Inflows of Resources 37,810 2,183 4,931,682 37,810 2,183 4,931,682 Fund Balances Restricted Economic Development - 7,130,643 Streets & Highways 879,849 - Public Safety - 852,583 532,001 Debt Service - Assigned Capital Acquisitions Unassigned (37,834) Total Fund Balances 879,849 (37,834) 852,583 532,001 7,130,643 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 966,077 $ 75,238 $ 877,115 $ 534,219 $ 12,857,206 110. Special Revenue Funds Debt Service Fund Capital Projects Funds Total TIF #7 Emergency Nonmajor TIF #3 TIF #5 (Mannheim/ Telephone Debt Equipment I.T. Governmental (Wille Road) (Perry/Lee) Higgins) System Service Replacement Replacement Funds $ $ 161,672 $ $ - $ 63,147 $ 4,071,349 $ 346,118 $ 14,792,880 1,224,676 142,439 94,676 655 - 6,409,692 - - - 83,210 83,210 23,350 23,350 - 7,813 204,202 $ 1,224,676 $ 304,111 $ 94,676 $ $ 63,802 $ 4,177,909 $ 346,118 $ 21,521,147 $ 308 $ 150 $ 108,324 $ 17,610 $ $ 121,902 $ 2,017 $ 1,191,634 - - 22,735 3,006,708 318,524 203,337 3,545,449 3,007,016 150 426,848 220,947 121,902 2,017 4,759,818 1,224,676 1,224,676 142,439 94,676 142,439 94,676 161,522 63,802 83,210 6,393,473 123,203 83,210 6,516,676 7,292,165 879,849 1,384,584 63,802 3,972,797 344,101 4,316,898 (3,007,016) (426,848) (220,947) - - (3,692,645) (3,007,016) 161,522 (426,848) (220,947) 63,802 3,972,797 344,101 10,244,653 $ 1,224,676 $ 304,111 $ 94,676 $ $ 63,802 $ 4,177,909 $ 346,118 $ 21,521,147 CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #1 (DOWNTOWN) FUND Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 Revenues Property Taxes Investment Income Total Revenues 2017 Original and Final Budget Actual $ 5,070,325 2,000 5,072,325 Variance from Final Budget Positive (Negative) $ 4,981,630 $ (88,695) 18,389 16,389 5,000,019 (72,306) Expenditures Economic Development Contractual Services 1,499,810 1,154,092 345,718 Commodities 292,150 57,576 234,574 Capital Outlay 4,505,000 1,323,356 3,181,644 Total Economic Development 6,296,960 2,535,024 3,761,936 Debt Service Principal 1,138,553 1,138,553 Interest and Fiscal Charges 118,585 118,547 38 Total Debt Service 1,257,138 1,257,100 38 Total Expenditures 7,554,098 3,792,124 3,761,974 Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfer Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year (2,481,773) (126, 000) (126, 000) $ (2,607,773) 1,207,895 3,689,668 (126,000) (126, 000) 1,081,895 $ 3,689,668 6,048,748 2016 Actual $ 5,076,742 7,815 5,084,557 805,735 711,589 560,580 2,077,904 1,353,133 154,597 1,507,730 3,585,634 1,498,923 (126,000) (126, 000) 1,372,923 4,675,825 $ 7,130,643 $ 6,048,748 116. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #3 (WILLE ROAD) FUND Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2016 Actual Revenues Taxes $ 1,085,935 $ 1,322,484 $ 236,549 $ 752,580 Investment Income 10 7 (3) 12 Miscellaneous - 48,900 48,900 - Total Revenues 1,085,945 1,371,391 285,446 752,592 Expenditures Economic Development Contractual Services 10,440 1,888 8,552 1,736 Total Economic Development 10,440 1,888 8,552 1,736 Debt Service Principal 1,095,000 1,095,000 202,000 Interest and Fiscal Charges 268,197 268,363 (166) 275,523 Total Debt Service 1,363,197 1,363,363 (166) 477,523 Total Expenditures 1,373,637 1,365,251 8,386 479,259 Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year (287,692) 6,140 293,832 273,333 (6,000) (6,000) $ (293,692) (6,000) (6,000) (6,000) (6,000) 140 $ 293,832 267,333 (3,007,156) (3,274,489) $ (3,007,016) $ (3,007,156) 117. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #5 (PERRY/LEE) FUND Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2016 Actual Revenues Taxes $ 114,852 $ 143,878 $ 29,026 $ 105,905 Investment Income - 7 7 2 Total Revenues 114,852 143,885 29,033 105,907 Expenditures Economic Development Contractual Services 400 1,848 (1,448) Total Economic Development 400 1,848 (1,448) Debt Service Principal 100,000 100,000 Interest and Fiscal Charges 12,239 12,233 6 Total Debt Service 112,239 112,233 6 Total Expenditures 112,639 114,081 (1,442) Net Change in Fund Balance $ 2,213 29,804 $ 27,591 Fund Balance at Beginning of Year 131,718 Fund Balance at End of Year $ 161,522 1,700 1,700 95,000 14,131 109,131 110,831 (4,924) 136,642 $ 131,718 118. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #7 (MANNHEIM/HIGGINS) FUND Year Ended December 31, 2017 With Comparative Actual Amounts for the Year Ended December 31, 2016 2017 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2016 Actual Revenues Taxes $ 1,000 $ $ (1,000) $ 292 Total Revenues 1,000 (1,000) 292 Expenditures' Economic Development Contractual Services 33,760 129,338 (95,578) 356,628 Commodities - 9,680 (9,680) Capital Outlay 602,945 (602,945) 831,382 Total Expenditures 33,760 741,963 (708,203) 1,188,010 Excess (Deficiency) of Revenues over (under) Expenditures (32,760) (741,963) (709,203) (1,187,718) Other Financing Sources (Uses) Proceeds from sale of capital assets 1,759,784 1,759,784 Transfers Out (44,000) (44,000) (41,000) Total Other Financing Sources (Uses) (44,000) 1,715,784 1,759,784 (41,000) Net Change in Fund Balance $ (76,760) 973,821 $ 1,050,581 (1,228,718) Fund Balance at Beginning of Year (1,400,669) (171,951) Fund Balance at End of Year $ (426,848) $ (1,400,669) 119. Crowe INDEPENDENT ACCOUNTANT'S REPORT To the Honorable Mayor and Members of the City Council City of Des Plaines, Illinois Crowe LLP Independent Member Crowe Global We have examined the City of Des Plaines, Illinois' ("City's") compliance with the requirements of subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act during the year ended December 31, 2017. Management of the City is responsible for the City's compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, the City complied with the aforementioned requirements for the year ended December 31, 2017, in all material respects. Crowe LLP Oak Brook, Illinois June 19, 2018 LL -P 214.