2018.08.08 JRB Minutes CITY OF DES PLAINES
TAX INCREMENT FINANCING DISTRICT
ANNUAL JOINT REVIEW BOARD MEETING MINUTES
AUGUST 8, 2018
1. Welcome by City Representative
Michael McMahon welcomed everyone to today’s meeting, introduced himself, and
asked everyone to do the same.
2. Call to Order
Michael McMahon opened the meeting at 10 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
Mark Bertolozzi Assistant Superintendent, School District 62
Michael Vilendrer Dir. of Maintenance, Oper., & Trans., School District 62
Cathy Johnson Associate Superintendent, School District 214
Bill Dussling Board Member, School District 214
Vickie Nissen Asst. Superintendent of Business Services, District 59
Bret Bonnstetter Controller/Associate Professor, Harper College
George Giese Manager of Administration, Mt. Prospect Park District
Don Miletic Executive Director, Des Plaines Park District
Karen Stephens Director of Parks & Recreation, Rosemont Park District
Ellen A. Yearwood Public Member
Also Attended:
Michael McMahon Director of Community & Econ. Dev., City of Des Plaines
Karolina Kolodziej Assistant Finance Director, City of Des Plaines
Patrick Ainsworth Economic Development Coordinator, City of Des Plaines
Lauren Griffin Executive Secretary, 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 Cathy Johnson, 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 Mary Kalou, 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 14, 2017
A motion was made by Ellen Yearwood, seconded by Mary Kalou, to approve the
August 14, 2017 minutes as presented.
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 2017 State Comptroller’s Report
Michael McMahon 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 Cathy Johnson, 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
Michael McMahon turned the meeting over to Bob Rychlicki who advised item
numbers 8 and 9 on the agenda are combined. He 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 referred to Section 1, Page 2; Michael Bartholomew confirmed this is
accurate. He referred to pages 5 and 6 stating the Manager and Mayor have confirmed
same.
Bob Rychlicki referred to Activities on Page 3 stating there are no amendments, no
new redevelopment agreements, no new financing, nor new obligations; a status quo
year.
Bob Rychlicki referred to Page 18, Section 3.1 stating fiscal activity actualized a
property tax increment of $1,322.484 with interest of $7 for a total amount deposited
in special tax allocation of $1,371.391.
Bob Rychlicki then referred to Page 25, Section 3.3 noting remainder of bonds. This
TIF had a 12-year extension; it will be retired in 2035with a final payment in 2036.
The base EAV, on Page 30, is increasing. Bob Rychlicki thanked the Districts for
their cooperation.
It was asked if there is any possibility of development. Bob Rychlicki stated it is
nearly a 50% valuation. He gave credit to City Staff. Michael Bartholomew stated
6Bs would no longer be granted. He noted Prologis requested an extension, which
was denied. City Council is aligning with Staff’s position.
A motion was made by Cathy Johnson, seconded by Ellen Yearwood, to accept the
TIF No. 3 report.
On a voice vote:
AYES: All
NAYS: None
Motion: CARRIES
Cathy Johnson thanked the Chair for moving this item up on the agenda and departed
the meeting at 10:10 a.m.
TIF District No. 1 Overview
Bob Rychlicki noted this is the City’s downtown District, the oldest and largest TIF.
He advised the City has an obligation by November, 2021, to notify all the Districts.
This is payable in 2022.
Bob Rychlicki noted this has the same certifications as TIF No. 3; no amendments, no
new redevelopments, or new financing, etc. There was a transfer to the property –
noted on Exhibit A. On Page 18, he highlighted a property tax increment of
$4,981,630, interest of $18,389, with a special tax allocation of $5,000,019.
Bob Rychlicki referenced debt service noted in Section 3.2. Lauren Griffin
reproduced Section 3.3 for the group.
On Page 31, Section 6, the base EAV was $20,262,187 with a fiscal-year EAV of
72,336.968; there is significant recovered value.
Michael Bartholomew stated this is the most active District for redevelopment
(OPUS, Compass, Des Plaines Theater, two new restaurants, etc.). The EAV will go
higher in the near future. He noted the Economic Development staff has done an
awesome job.
It was asked if the land sold prior to the TIF. Michael Bartholomew advised it did.
Patrick Ainsworth stated there is over $90,000 in increment; extra revenue.
A motion was made by Don Miletic, seconded by Mary Kalou, to accept the TIF No.
1 report.
On a voice vote:
AYES: All
NAYS: None
Motion: CARRIES
TIF District No. 5 Overview
Bob Rychlicki stated this is an add-on, scheduled to terminate in 2024 with final
payment in 2025. He noted the same series of certifications. There are no
amendments, no new redevelopments or financings, etc.
Bob Rychlicki noted the summary is on Page 18. Property tax increment of $143,878
with $7 in interest totals $143,885. On Page 21, he noted $112,233 is applied to debt
service. There is $440,738 left in principal.
Base EAV is 794,127. Fiscal year EAV is $2,245,534 -- three times the ratio; this is
expected to increase.
A motion was made by Mary Kalou, seconded by Don Miletic, to accept the TIF No.
5 report.
On a voice vote:
AYES: All
NAYS: None
Motion: CARRIES
TIF District No. 6 Overview
Bob Rychlicki advised this is the same schedule as TIF No. 5 – expected to terminate
in 2024 with final payment in 2025. He noted there was an amendment (to TIF No.
7); certifications are similar.
Bob Rychlicki advised there are no amendments, no new redevelopments, or
acquisitions. He indicated a property tax increment of $79,473. Resources will be
placed to TIF No. 7.
Mary Kalou stated the EAV is low; dropped 16.2%. Bob Rychlicki will review (he
noted there are three taxpayers there).
A motion was made by Ellen Yearwood, 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. It terminates in 2037 with final
payment in 2038. There is redevelopment and land transfer (Orchards at O’Hare);
approved in a prior year; he referred to document attached.
The same series of certifications was noted, no receipts. The base EAV is 0. Michael
Bartholomew explained TIF No. 6 was cut in half with debt remaining. He provided
background and noted development included a car wash, hotel, convenience store,
etc. On the north side of the highway, a legitimate project appears probable. The plan
is to pay off TIF No. 6’s debt.
Bob Rychlicki advised there is a surplus on a staggered scale. Cash receipts were due
to the sale; there is construction activity. He noted this was an ambitious and well
thought-out plan.
A motion was made by Karen Stephens, 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: There were no questions.
11. Adjournment
A motion was made by Don Miletic, seconded by Ellen Yearwood, to adjourn the
meeting at 10:29 a.m.
On a voice vote:
AYES: All
NAYS: None
Motion: CARRIES
Respectfully submitted,
Gale Cerabona
Recording Secretary