12/17/198493
December 17,. 1984
The regular meeting of the Board of Trustees of the Village of Deerfield was called
to order by the Mayor in the Council Chamber of the Village Hall on Monday, Decem-
ber 17, 1984 at 7 :45 P.M. The Clerk called the roll and announced the following
were
Present: Bernard Forrest, Mayor
Cynthia J. Marty
Edwin B. Seidman
Vernon.E. Swanson
J. Robert York
Absent: Stephen 0. Jackson
James L. Marovitz
and that a quorum was present and in attendance. Also present were Village Manager
Robert D. Franz and Village Attorney James K. Stucko.
PROCLAMATION ' Mayor Forrest read "a proclamation stating
WILMOT JR. HIGH SCHOOL that in 1983 the U.S. Department of Educa-
RECOGNITION Al%'A RD tion had established a Secondary .School
Recognition Program to focus attention on
successful schools and to demonstrate that excellence in education can be achieved
by communities which do strive to attain it. Although 480 schools from 48 states,
were nominated for the award, 'Wilmot Jr. High School was chosen as only one of 203
schools nationwide and only 8 in •Illinois. The award. recognizes Wilmot School's
strong leadership, excellent instructional environment, high expectations for stu-
dent achievement and performance, and a heavy emphasis on academics. Mayor Forrest
acknowledged the pride of all Deerfield residents in Wilmot Jr. High School, the
entire School District,.the Staff, the students and parents.
Trustee Marty moved, seconded by Trustee Swanson, to approve the proclamation.
i Motion carried unanimously. Mayor Forrest presented the Proclamation to Mr. Al
Cohen, Principal of Wilmot Jr. High School, and both he and Mayor Forrest presented
plaques to Wilmot Jr. High School teachers.
KEY PERSON AWARD PRESENTED Mayor Forrest announced that the first Key
TO RICHARD LORENZ. Person Award had been established as a token
of appreciation to Richard Lorenz, who is
retiring as Chairman of the Board of Zoning Appeals after sixteen years of communi-
ty service on that Board. Ile expressed appreciation to Mr. Lorenz for the many eve-
nings spent in voluntary community service and to his wife, Jane, for her willingness
to have him devote so much time to his BZA responsibilities.
Mayor Forrest presented Mr. Lorenz with a plaque as all applauded their approval.
BEAUTIFICATION AWARD PRESENTED Mayor Forrest announced that the 1984 -35
DEERFIELD FEDERAL SAVINGS & LOAN Beautification Award was presented to the
Deerfield Federal Savings and Loan, whose
new drive -in facility has so greatly approved the appearance of the Village Center.
Mr. Wayne Ecklund, President of the Loan company,accepted the plaque from Mayor
Forrest with all expressing their approval.
PROCLAMATION Mayor Forrest read the proclamation wherein
UNITED NEGRO COLLEGE FUND WEEK he designated December 23 -29, 1984 as United
DECEMBER 23 -29, 1984 Negro College Fund Week and urged every
citizen to support the Fund's annual cam-
paign to'raise operation money. Trustee Swanson moved, seconded by Trustee Marty,
to accept the Mayor's proclamation. Motion carried unanimously. Ass. Eve Sherman
accepted the proclamation. All present expressed their approval.
MINUTES APPROVED Trustee Seidman moved, seconded by Trustee
Marty, to approve the minutes of the pre-
vious meeting with the following correction: Under $4..2 MILLION FINANCING, sec-
ond paragraph, delete the second sentence. Motion carried unanimously.
APPROVE WARRANT
NO. W -84 -12
Motion carried on the following vote:
Trustee Marty moved, seconded by Trustee
Seidman, to approve the bills and payroll,
including transfers and reimbursements.
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
TREASURER'S REPORT Finance Director George Valentine reported
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that Sales Tax for the last calendar year exceeded the prior year by eleven percent.
On a fiscal year basis', the Sales Tax is ahead of projections by about three and
one -half percent. Other major revenue sources are substantially as budgeted. Sales
Income Tax is about ten percent over budget and Water Tax sales are about seven per-
cent over budget.
Expenditures are at or below the projected departmental budgets except the Sewer
Department's which is about $20,000 over projections, due primarily to heavier than
anticipated electrical bills at the sewage treatment plant. Mr. Valentine stated
that though electrical rates are up about 13 %, he felt the overage was due to under-
budgeting. He added that there's a likelihood that Commonwealth Edison had mis-
charged certain bills to the treatment plant.
Considerable discussion followed with Village Engineer James Soyka explaining the
types of meters, the variable demands for energy at the plant, variable electric
rates, etc. He, stated that recently the plant had had to handle double strength
loads from Sara Lee,necessitating greater blower activity. Sara Lee paid surcharges
for this service. Mayor Forrest suggested the possiblity of reducing the load on
the demand meters by starting motors on a periodic basis and programming them into
a small computer controller to even out the demand. lie asked Mr. Valentine to
work with Mr. Soyka to prepare a report for the next Board meeting showing some of
the reasons for the $20,000 overage and the amount of surcharges paid by Sara Lee.
DEPARTMENTAL OBJECTIVES Finance Director George Valentine reported
FINANCE DIRECTOR GEO. VALENTINE that: 1) the Finance Department had issued a
Comprehensive Financial Report in conjunc-
tion with the Auditors, 2) the Controller's report had been completed and forwarded
to the State Controller, 3) the Property Tax Levy had been completed and filed, 4)
the Annual Treasurer's Report was published and filed with the Cook and Lake County
Clerks, 5) Vehicle Sticker applications went out on time, 6) Investment criteria
were met with investments ranging between 100.3% and 1.06.9 %, 7) Tax Levy Abatements
have been prepared and will bepresented that meeting for passage, 8) Considerable
research had been undertaken before the Finance Department.made a recommendation on
+ Variable Rate Demand Bonds to finance upcoming capital projects, 9) Preparation
of the budget will commence in January for passage in April, 1985. Mr. Valentine
reported that the Building Department has been working quite effectively with
existing personnel on an IBM PC XT microcomputer. He therefore recommended con-
tinuation with the microcomputerization program and purchase of two IBM PC's,
already in the 1984 -85 budget ... one for the Finance Department and one for the
.Public Works Department.
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Trustee Marty asked whether the Library Board was given a copy of the Auditor's
report. Mr. Valentine replied that he had furnished the library with a number of
reports. Mayor Forrest requested, that Mr. Valentine send a letter to Thomas
Parfitt, Chairman of the Library Board, outlining recommendations by the Auditors,
along with a copy of the report.
PUBLIC HEARING
INDUSTRAPLEX - INDUSTRIAL REVENUE BONDS
Finance Director George Valentine explained that the Village had found the Indus -
traplex project worthy and signed a Memorandum of Intent on September 19, 1984.
The purpose of the hearing was to provide an opportunity for comments from the
public, pro or con, written or oral. A notice was published December 3, 1984 in
the Chicago Tribune that a hearing would be held December 17, 1984 to issue bonds
in the amount of $5,000,000. The amount stated in the Memorandum of Intent and
actually requested is $4,500,000. Mr. Valentine reported that no written commentary
had been received.
Trustee Swanson asked whether approval of the amount requested would jeopardize
future years or future projects. Mr..Valentine replied that he had been advised by
Bond Counsel and Mr. Ron Noreen, Village Fiscal Advisor, that "this does not.come'
under our caps."
As no one in the audience wished to be heard, Mayor Forrest adjourned the hearing.
INDUSTRAPLEX DEVELOPMENT Village Attorney Stucko explained that the
$4.5 MILLION IRBs, SERIES A & B bond ordinance itself, prepared for the
ORDINANCE NO. 0 -84 -52 evening's meeting, was the official authori-
zation by the Village to go forward with the
Industrial Revenue Bond issues and authorizes the execution of all the various docu-
ments described in the bond ordinance which relate to the borrower's obligation,
under those documents, to repay the bond issue in a timely manner, and the means
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of financing.. All the documents had been looked at by Mr. Stucko and Mr. Ron Noreen
and various other lawyers involved. For a year -end closing, passage of the ordinance
that evening was necessary. He commented that the Village incurs no liability in
this bond issue.
Thereafter, Trustee Seidman moved, seconded by Trustee Swanson, to waive the rules
to permit passage of the ordinance on first reading. Motion carried unanimously.
Trustee Marty moved, seconded by Trustee Seidman, to pass the ordinance authorizing
Industrial Revenue Bonds, Series A & B. for Industraplex Development, in the ag-
gregate amount of $4.5 million. Motion carried on the following vote:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
INDUSTRAPLEX DEVELOPMENT First.reading of the ordinance.
SPEC. USE, RETAIL /ACCESSORY USES
ORDINANCE
LASALLE /BAXTER'JOINT VENTURE Manager Franz reported that following a
ANNEXATION, REZONING, SPEC. USE, joint hearing with the Village Board and
PUD, VARIATIONS the Board of Zoning Appeals on September
PLAN COMM. REP. /RECOMMENDATION 12, 1984, the Plan Commission held a separ-
AND ate hearing on November 8, 1984. The hear -
BZA REPORT AND RECOMMENDATION ing was to consider a petition by LaSalle/
Baxter Joint Venture for rezoning and
Special Use for a Planned Unit Development for property west of the Tollway and
south of Deerfield Road.
The Plan Commission, on a vote of 5 -0, made the following recommendations:
1. The subject property be annexed.
2. The subject property be zoned I -1 PUD, Office, Research, Restricted Industrial
3. The overall concept plan for the I -1 PUD be approved subject.to the following:
+ a. The inclusion of a hotel in the PUD is understood to require the petitioners
to seek approval for a hotel under a Special Use at such time as they have
decided to request a Special Use for the hotel and they have definite plans
for the hotel. Furthermore, the hotel must be of highest quality, have less
than 350 rooms and meet the other criteria of the Zoning Ordinance.
b. The petitioners seek a Special Use for the inclusion of a health club facility in the development when they'have definitive plans for the facility.
c. The petitioners seek a Special Use for a sundry shop and barber shop at the
time when those-uses are listed as Special Uses in the Zoning Ordinance.
d. A Special Use for an employee cafeteria /food service facility be granted.
e. Tlie petitioners must return at a .Later time with a definite si.gnage plan
which reflects the sense of low profile demonstrated in the concept sketches
and which locates the development project signs in the general areas indicat-
ed by the petitioners.
f. The petitioners be granted a variation of the Zoning Ordinance requirement
of 1 parking space per 250 gross sq. ft. of building area. The petitioners'
request to provide parking at 3.3 spaces per 1000 sq. ft. of gross leasable
floor area and to "landbank" the difference betweaithe 4 /1000 GLFA and the
3.3/1000 GLFA should be approved if the petitioners can show that they could
provide all of the parking spaces at grade rather than utilizing parking
structures.
g. The petitioners be granted a variation to reduce the size of the parking
stalls to 8V x 18', to utilize a grass overhang area where appropriate,
to waive the provision of roping, wheel stops, and interior curbing.
h. The variations be granted to permit parking within the required perimeter
setbacks on the south, west, and north sides of the development.
i. The petitioners be required to provide three loading berths per office
building.
j. The petitioners be granted a variation from the strict requirements of the
Zoning Ordinance as it pertains to the landscaped screening of the parking
area so as to screen those areas in the manner indicated on the petitioners'
landscaping exhibits.
k. The petitioners'. be required to provide attheir own expense the road and inter-
section improvements, including signalization and road widening, as indicated
in the petitioners' traffic study as being required for their development
entrances.
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1. The height of the buildings in the development be restricted to 75 feet. All
HVAC equipment and other appurtenances.(except 4 ft. for elevator overrides)
must be within the 75 feet.
m. The frontage road accessing the residential properties along the south side
of Deerfield Road should not be tied into the petitioners' access drive at
this time.
Additionally, the Plan Commission made, on a vote of 3 -2, the following recommen-
dations:
a. A sidewalk should be provided the entire length of Deerfield Road and
Saunders Road.
b. The Board of Trustees should request an analysis of the complete cost of the
infrastructure improvements necessary in the area and identify those items
which are necessary to accommodate the petitioners' development and then seek
funds from the developer to pay for those items.
Manager Franz further reported that the Board of Zoning Appeals, after the joint
hearing in September, held a separate hearing on October 16, 1984 to consider a
petition for a variation to permit construction of office buildings and a hotel
to a height of 75 feet in lieu of the 45 feet permitted.
On a vote of 4 -0, the BZA recommended that a variation for 75 foot buildings be
granted with the stipulation that all utility equipment be included within the
75 -foot limit, except that an additional four feet for elevator overrides and an
additional ten feet for atriums be allowed.
Trustee Swanson stated that it appeared that the Board was being asked to approve
annexation of the property, rezoning to I -1, and a preliminary PUD for Phase I.
Attorney Stucko agreed with Trustee Swanson, but added that there is movement toward
preparation of an annexation agreement which will embody all the Plan Commission's
and BZA's recommendations, perhaps modified at the evening's discussion. He went
on to explain that there have been a number of drafts,.back and forth, with the
petitioners, and most of those issues are included in the Plan Commission's report.
Mr. Stucko added, however, that there-are a number of open points yet to be resolved,
the most major of which is Deerf ield's and the County's concern as to points of
access and road configurations. Manager Franz stated he was awaiting a letter from
the County Superintendent of Highways indicating what improvements they feel are
needed, thereby giving some guidance to the Village Board. Mr. Stucko further ex-
plained that there are other main conditions that need to be resolved in the final
annexation agreement: water agreements among all interested parties, boundary agree-
ments between Riverwoods and Deerfield, both in various stages of draft. There are
other interrelated issues which must be tied up. The Illinois Tollway Commission
has yet to consent to their property being included in the annexation. Though they
have given informal approval, all the legal steps necessary to accomplish this have
not been taken.
Mr. Stucko stated that the petitioners were looking to the Board to accept, that
evening, the Plan Commission's recommendations, thereby authorizing him to complete
the negotiations of the annexation agreement. The annexation agreement will state
that the Board approves the concept for the overall site, but that specifically
from a preliminary plan standpoint,Phase I is approved. When a final plan is
approved for Phase I, a Special Use Ordinance will be approved for Phase I. He
stated that any further developments in terms of ancillary uses must be the subject
of specific.petitions, subsequent Plan Commission hearings, and reports to the
Board.
Trustee Seidman asked who would maintain Saunders and Deerfield Roads and Hawthorne
Place. Manager Franz replied that Deerfield would have legal jurisdiction for those
areas abutting the annexed land. This jurisdiction would be for the full width of
Saunders Road, hopefully on a police and public works maintenance basis, in coopera-
tion with the County, so as to avoid a "patchwork" system of services. Mayor Forrest
stated that as a condition for annexation of the Tollway itself, the Tollway Commis-
sion has asked that the maintenance of Hawthorne Place be taken over, and the devel-
oper has agreed. Deerfield Road_ from Saunders to Castlewood is maintained by the
State under contract to Lake County.
Asked what Phase I would include, the Petitioners' representative displayed a site
plan for the development. Phase I will consist of roadway network between Deerfied,
and Saunders Roads, one office building having a 20,000 square foot atrium facing
the Tollway, and a retention pond.
Thereafter, the Board considered each Plan Commission recommendation individually.
Questioned. about 3(f), Mr. Lonchar, attorney for the developer, replied that though
they were requesting parking of 3.3/1000 at grade, they had provided a landbank plan
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(to be attached to the annexation_ agreement) which would pick up the additional
.7GLFA space to meet the required 4/1000 sq. ft. GLFA. However, they would like
the flexibility to use garage parking.
3(h). The petitioner stated that a 4 -foot berm would protect residences from the
parking within the perimeter set back.
3(k). Mr. Lonchar stated that they listed in the annexation agreement certain road
improvements associated with the Project. The developer will be contributing an
estimated $400,000 for those improvements.
3(1). The petitioner stated it was their intention to develop 6 -story buildings,
right at 75 feet. To do so, a 4 -foot elevator override is needed for safety
reasons. The atrium has peaked roofs to permit water run -off. Whereas they had
petitioned for an additional 10 feet, they are now requesting 6 feet which they
feel will be sufficient.
3(m). Mr. Lonchar stated that the petitioner concurred with the Plan Commission's
recommendation not to tie their access drive to the frontage road accessing resi-
dential properties on the south side of Deerfield road. He stated that they had
presented considerable traffic testimony in this regard, and that no residents
(though notified of the hearing) had entered an objection. i.
Reyrirding the Plan Commission's recommendation on sidewalks, Mr. Lonchar stated
they saw no need for them as there was a path on the north side of Deerfield
Road and there were no sidewalks south of Hawthorne Lane. Trustee Seidman noted
that no sidewalk - exists along the Thorngate Clubhouse property and northward to
Deerfield Road. However, flan Commissioner Slavis felt that the time to acquire
sidewalks is at the time of property development.
Trustee Seidman moved, seconded by Trustee Swanson, to approve the Plan Commission's
recommendation to require sidewalks. Motion failed, 0 -4.
As to the Plan Commission's recommendation for an analysis of costs of infrastruc-
ture improvements, Mayor Forrest stated that the matter will be-addressed in the
future.
Regarding the BZA's recommendation, it was the consensus of the Board that a
request for a 4 -foot elevator overide and an extra 6 feet for atriums was reason-
able.
Mayor Forrest stated, "It is my strong feeling that there ought to be a donation
of land from Baxter for the Tollway exit a Lake -Cook Road, and I. would like to
see it done as part of this whole package. Deerfield needs a.4 -way interchange,
and many surrounding communities have supported that issue. Whatever is neces-
sary to request Baxter to do that, I would like to have done as part of this
whole package. If it requires, at some time, granting credit for that land so
that it doesn't reduce any development, and whatever conditions such as that need
to he part of the granting of the easement, that's fine. I really think we need to
provide a southbound exit at Lake -Cook Road."
Mr. Lonchar pointed out that:he represented the Deerfield /Saunders Joint Venture,
but lie, as well as Mr. Robert Pease from Baxter who was present, would note Mayor
Forr.est's views.
Tru. -:tee Marty moved, seconded by Trustee Seidman, to accept the Plan Commission's
and Board of Zoning Appeals' recommendations with the changes as noted,and to direct
the attorney to prepare .the Resolution authorizing execution of the annexation
agreement, the ordinance annexing the property, the ordinance zoning the property
in the I -1 District,, and further to direct the attorney to continue negotiations.
for completion of the annexation agreement. Motion carried unanimously.
The Board recessed at 9:25 and reconvened at 9:40 with all members present and in
attendance.
MANPOWER COMMISSION RECOMMENDATIONS Deferred until later meeting.
FENCE MODIFICATION Trustee Seidman moved, seconded by Trustee
633 WAUKEGAN ROAD (LEVY) Swanson, to waive the rules to permit pass -
ORI)INANCE NO. 0 -84 -53 age of the ordinance on first reading.
Motion carried unanimously. Trustee Seidman
moved, seconded by Trustee Marty,, to pass the ordinance granting a variation permit -
tin,, the erection of a 6 -foot fence, two feet in from the sidewalk with fence frame
faci-ng the interior of the lot, at 633 Waukegan Road. Motion carried as follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
HOTELS /ZONING ORDINANCE AMENDMENT Mr. Richard Wendy, Attorney for the Stein/
ORDINANCE NO. 0 -84 -54 Volkswagen development, submitted a floor.
plan for the hotel and pointed out the loca-
tion of the atrium area for the service of complimentary liquor.
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Thereafter, Trustee Marty moved, seconded by Trustee York, to pass the ordinance
amending the Zoning Ordinance regarding Hotels. Motion carried on the following vote:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
HOTEL SIGNS Trustee York York moved, seconded by Trustee
ZONING ORDINANCE AMENDMENT Seidman, to pass the ordinance amending.the
ORDINANCE NO. 0 -84 -55 Zoning Ordinance regarding hotel signs.
Motion carried on following vote:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
ALCOHOLIC BEVERAGES Trustee Marty moved, seconded by Trustee.Seid-
MUNICIPAL CODE AMENDMENT man, to pass the ordinance amending the Muni -
ORDINANCE NO. 0- 84 -56- cipal Code for Alcoholic Beverages to create
a Class G license permitting sale for use and
consumption of liquor in hotels with a license fee of $3,000. Motion carried as
follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS:. None (0)
STEIN /VOLKSWAGEN PROPERTY Trustee Seidman moved, seconded by Trustee
SPECIAL USE /INDUSTRIAL PUD Marty,to pass the ordinance granting a
ORDINANCE NO. 0 -84 -57 Special Use /Industrial PUD for the Stein/
Volkswagen property. Motion carried as
follows:
AYES: Marty,,Seidman, Swanson, York (4) NAYS: None (0)
STEIN /VOLKSWAGEN PROPERTY Trustee York moved, seconded by Trustee Marty,
HEIGHT VARIATION to pass the ordinance granting a variation
ORDINANCE NO. 0 -84 -58 to permit a building height of 75 feet, in-
cluding mechanicals, for the Stein /Volks-
wagen property. Motion carried on following vote:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
GALVANI - 768 OSTERMAN Trustee Seidman moved, seconded by Trustee
TAKE -OUT RESTAURANT York, to pass the ordinance amending a
ORDINANCE NO. 0 -84 -59 Special Use /Commercial PUD to permit a take-
out restaurant at 768 Osterman Avenue.
Motion carried as follows:
AYES: Marty, Seidman, Swanson, York
SIGN MODIFICATION (IFERCAN)
360 -380 LAKE..000K ROAD
ORDINANCE NO. 0 -84 -60
Road. Motion passed as follows:
AYES: Marty, Seidman, Swanson, York
MATAS CORPORATION
ZONING MAP AMENDMENT
'ORDINANCE NO. 0 -84 -61
Motion carried on following vote:
AYES: Marty, Seidman, Swanson, York
MEDICAL- DENTAL CLINICS
ZONING TEXT AMENDMENT
SPECIAL USE /I 71 PUDs
ORDINANCE NO. 0 -84 -62
follows:
(4) NAYS: None (0)
Trustee Seidman moved, seconded by Trustee
Marty, to pass the ordinance granting a
sign modification to permit two ground signs
on a single zoning lot at'360 -380 Lake -Cook
(4) NAYS: None (0)
Trustee Seidman moved, seconded by Trustee
Marty, to pass the ordinance rezoning the
Matas property from I -2 to I -1, Office,
Research and Restricted Industrial District.
(4) NAYS: None (0)
Trustee Seidman moved, seconded by Trustee
Marty, to pass the ordinance amending the
Zoning Ordinance to identify and provide
medical- dental offices as Special Uses in
the I -1, PUD District. Motion carried as
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
MATAS CORPORATION Trustee Swanson pointed out that the Board
SPEC.USE /INDUSTRIAL PUD _ had before it the final development plan
ORDINANCE NO. '0-84-63 for Phase I of the Matas development. He
went on to state that the Matas request
for 46;000 sq. ft. of non-office space (restaurant, 8,000 sq. ft.; medical, 20,000
sq. ft.; health club; 3,000 sq. ft., retail, 15,000 sq. ft.) was rather high for
Phase I. He added that he hoped the petitioner would limit such ancillary uses
to Phase I and not request them for Phases II and III.
Mr. Joseph Ash stated that they had originally proposed a rehab of the Fiat -Allis
buildings and had gone into detailed hearings regarding ancillary uses, and it
was agreed that they would have 15,000 sq. ft. of retail space,in addition to the
,others just mentioned, in a 300,000 sq. ft. building. When the rehab plan was
abandoned for the Corporate Plan with two 150,000 sq. ft. buildings in Phase I,
he had advised the Plan Commission that they would limit the retail uses to
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7,500 sq. ft. per building, or 15,000 sq. feet in Phase I. At this point misunder-
standing occurred. He stated that they had always wanted 5% retail uses in order
fto service tenants in the building and eliminate the necessity of.their leaving
the development for'sundry needs. He added that if the full 7,500 sq. ft. is not
used in'any one building, the unused portion can not be used to increase the amount
of retail in any other building. He had thought the Plan Commission had understood
their intentions, and therefore had proceeded on that basis in their financing and
marketing.
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Mayor Forrest stated that the Board should take into account that approval of 5%
percent for retail uses, plus restaurant, medical, and health club, could result
in a 9% of non - office uses in the overall development. Trustee Swanson and Trustee
Marty painted out to Mr. Ash that what the Board would approve for Phase I, they
might not approve for Phase II and III. Mr. Ash stated that he understood that
Trustee Marty moved, seconded by Trustee Seidman, to pass the Ordinance authorizing
®. a Special Use /Industrial PUD, amended to provide that 7,500 sq. ft. of retail
space is permitted in each building in Phase I of the Matas Corporation development.
Motion carried as follows:
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AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
MATAS CORPORATION Trustee Seidman moved, seconded by Trustee
'HEIGHT VARIATION Marty, to pass the ordinance granting a
ORDINANCE NO. 0 -84 -64 variation to permit the con of
buildings having a height, includ�evation, mechan-
ical.s, not to exceed 52 feet as measured from the finished first floor.e
in .Lieu of the required 45 feet. Motion carried as follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
$4.1 MILLION BOND ISSUE Finance Director George Valentine stated
CAPITAL IMPROVEMENTS PROGRAM that a public hearing had been.held on
ORDINANCE NO. 0 -84 -65 October 29,.1984 to consider the purpose
j and issuance of the $4.1. million bond
issue for capital improvements: Recommended funding mechanism was briefly dis-
cussed. The Finance Committee met, attended by Mr. Ron Noreen, Financial Advisor,
and representatives of John Nuveen & Co., Bond Counsel. The method chosen was the
issuance of General Obligation Variable Rate Demand Bonds... somewhat different
from past methods using fixed interest rates.. A variable rate note will float
according to the market and will be approximately 65% of the 91 -day treasury bill
rates set weekly. The bond is callable by the Village on a 30 -day basis and
can be put (tendered for payment) by the owner on a 30 -day basis 'thereby providing
the Village with the advantage of paying a short-term rate,which is generally
cheaper than long term rates,because bond holders have a much reduced risk.
A long term bond today would cost about 9k% interest, and the short term bond
about 6.8% (including indexing, remarketing agent's, trustee's and guarantee
insurance fees). An 8% tax levy has been chosen to provide a sinking fund for
S the payment of principal and interest. If funds accumulate in the fund, the
Vil.l.age can start calling bonds.
The cost advantage to the Village would be between $750,000'and $800,000, the
difference between bonds at 914% and 8% interest rates. If the bond rate should
stay around 6.8% for the full maturity period, another potential $800,000 exists.
The homeowner with a house valuation of $125,000 would pay an additional $70
per year in taxes on an 8% tax levy.
Mr. Valentine stated that only the Bond Ordinance and the Bond Purchase Contract
with John Nuveen & Co. were in final form and ready for execution. The agreement
between the Village and the Bank for Revolving Credit and the Remarketing Agree-
ment between the Village and John Nuveen & Co. were not yet in final form that
evening, but must be completed prior to closing. If they are substantially in
a form already reviewed, the Bond Ordinance provides for the Mayor to execute
them.
Mr. Valentine then introduced John H. Peterson and Lorrie DuPont-Peterson of
Joiin Nuveen & Co, Inc. who were present to explain more fully the details of the
bond issue. Mr. Peterson stated that John Nuveen & Co. hoped to be able to buy
the the variable rate bonds from Deerfield. He stated he wished to describe some
of the background of.the variable rate demand bonds concept, some of,the charact-
eristics of the Deerfield issue, a summary of the costs as they stand today,
variable interest rates for the past two years, and a projection on the annual
costs and Debt Service levy. He stated that if the Bond Ordinance is passed,
John Nuveen & Co. will tender a Purchase Contract for the bonds.
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Ms. Lorrie Peterson stated that an issue such as Deerf ield's can offer an investor
opportunity to .tender their bonds back on a specific date, and if the Village will
buy them back at 100 %, thereby reducing the investor's risk, the investor is will-
ing to take a.lower interest rate. If the investor likes his interest rate, he
will keep the bonds and not put-them back. Therefore, part of the goals of this
type of transaction is to try to keep those bonds out of the market. That is why
interest rate is adjusted weekly. A combination of the federal tax exemption,
the short -term maturity, and safety of the investment makes this about the lowest
cost general obligation bond.
Describing some.of the characteristics of Deerf ield's bond issue, Mr. Peterson
stated that only better credit can access the market down in this range in the
manner being proposed. Many issuers in this range are required to provide a
letter of credit from a bank, in substitution of the Municipal credit, in order
to make the issue work. Deerfield has a strong enough: credit rating to cause
expectation that the issue can be marketed on Deer.field's credit. However, in-
vestors looking for a 7 -day put want to be assured that if they put back $471
million, Deerfield has-the money to buy them; therefore, a bank is in the picture.
Nonetheless, it is the credit of the Village that makes this financing work,al-
though standby liquidity is provided by National Westminster Bank for five years
and is renewable.
Mr. .Peterson exhibited a graphic diagram showing how the financing will work: 1)
Deerfield issues $4.1 million in bonds, 2) John Nuveen & Co, underwrites those
bonds subject to the Purchase Contract, 3) John Nuveen & Co. distributes those
bonds to bondholders, 4) Acting as remarketing agent, Nuveen & Co. will post an
interest rate each week. If a bondholder feels he can get a better rate elsewhere,
he will put back the bonds, but if he thinks the rate is suitable he will re-
tain them. Bonds put back make it necessary to find another bondholder and the
rate could rise in order to remarket the bonds. If the remarketing is not suc-
successful and., assuming all of the bonds have come back, the Village needs to
provide $4.1 million, on 7 days notice, with principal and interest. It is at
this point, through an arrangement with National Westminster Bank and Deerfield,
a that the bank will loan the Village whatever money is needed to pay off the
bondholders..(all of which occurs through the LaSalle National Bank as Trustee).
The Village would have 24 months to repay the bank. Certain options would be
open: continued attempts to remarket the bonds to repay Westminster; a switch .
to fix rate general obligation bonds, etc. Mr. Peterson.pointed .out that the in-
terest rate can go up to 13% and with an 8% tax levy, a gap in funds is created.
He did not think it very likely such would happen, but it is'a possibility.
Asked who would be a likely purchaser. Mr. Peterson replied that Money Market
Funds were more'loyal and were more desirable than Corporations. Also, the bonds
will be probably bought.by one buyer. Asked about calling bonds in the later
years, rather than early, Mr. Peterson advised that the rating services and bond
market prefers to see bonds called on a regular basis. Mr. Peterson stated that
at today's interest rate of 6.370% plus remarketing, indexing, liquidity and
trustee fees, variable rate bonds would have an interest rate of 6.837 %. Asked
about the liquidy fee, he stated that Westminster Bank will charge an eighth of
a point per year for their facility with the hope that the Village won't use it.
But it will charge an eighth of a point for half of a year on the amount used.
If at the end of six months all bonds were put and went back to the bank, the total
cost would be Z point, one eighth each for the facility and for the use. To avoid
this and remarketing, Nuveen will agree.to hold the bonds for a while if unable to
remarket them on a 7 -day cycle. Nuveen's rate for holding would be 5% of their
after tax cost of funds in addition to the interest rate on the bond issue.
The bonds call for a long -term amortization over 19 years, with the provision of
calling bonds as rapidly as the Village likes.on a 30 -day notice,.and of course
a 7 -day put. Finally a Remarketing /Warehousing Agreement with John Nuveen & Co.
provides for their putting an interest rate on the bonds every week and the offer
of a secondary market for those bonds in the event they are put back so that Deer-
field will not have to use National Westminster's liquidity. Ms. Peterson stated.
that considerable research had been done before choosing a Trustee with a .098% fee.
Referring to a chart. showing fixed rate bonds, Ms. Peterson pointed out that a
somewhat comparable issue in Nebraska had an interest rate of 9.50% and in Rhode
Island a rate of 9.60 %. Referring.to a chart, Ms. Peterson discussed fluctuations
of interest rates over the past two or three years. Mr. Peterson discussed the
Sinking Fund schedule showing debt service levy and servicing fees. He'stated
that a rating on the bonds has not been received as the rating services are moving
slowly. He hopes a rating will be received within a week or so. The rating service
is currently reviewing the credit of the Village as well as the particular structure
of this bond issue, and an AA rating is likely.
/off
e
Disciission followed with Mr. Peterson answering questions about National.Westminster
Bank, bond rate fluctuations during the past few years, the present bond market, etc.
Thereafter, Trustee Marty moved, seconded by Trustee York, to waive the rules to
permit passage of the ordinance on first reading. Motion carried unanimously.
Trustee Marty moved, seconded by Trustee Seidman, to.pass the ordinance for the
issuance of $4.1 million General Obligation Short Term Demand Bonds to finance the
Capital Improvement Program. Motion carried as follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
BOND PURCHASE CONTRACT Trustee Marty moved, seconded by Trustee
AUTHORIZE EXECUTION Swanson, to authorize the Mayor to sign the
Bond Purchase Contract between Deerfield and
John Nuveen & Co. Motion carried on following vote:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
FLODSTROM SUBDIVISION (BRICKYARDS) Village Engineer James Soyka reported that
LETTER OF CREDIT REDUCTION the developer had completed improvements in
the Flodstrom subdivision and is requesting
a reduction in their letter of credit in the amount of $88,317.50 with $32,682.50
remaining in the account.
Trustee Seidman moved, seconded by Trustee Marty, to reduce the letter of credit
for the Flodstrom subdivision in the amount of $88,317.50. Motion carried as
follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
ENTRANCE SIGNS
AUTHORIZE PURCHASE OF
2 ADDITIONAL SIGNS
Mayor Forrest stated that the signs have
been so well received that there were requests
for two more for Lake -Cook Road.
Trustee Marty moved, seconded by Trustee Seidman, to authorize purchase of two
additional entrance signs for $1,400. Motion ..carried as follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0)
PARK DISTRICT EASEMENT REQUEST Consideration deferred until next meeting.
COLONY POINT /DEER RUN SUBS.
ABATE,�IENT OF 1984 TAX LEVY Trustee Seidman moved, seconded by Trustee
ORDINANCE NO. 0 -84 -66 Marty, to waive the rules to piss the ordi-
nance on first reading. Motion carried
unanimously.
Trustee Marty moved, seconded by Trustee Seidman, to pass the ordinance abating
the 1984 tax levy. Motion carried as follows:
AYES: Marty, Seidman, Swanson, York (4) NAYS: None (0).
Mana,. .,,er Franz reported that the traffic signal at the Commons was in operation.
However, due to an accident to the controller at Waukegan and Deerfield Roads, Vill.
Eng. James Soyka stated that it will not be tied into that'signal until a new
controller has been installed, probably within 30 days.
Thera being no further business to come before the Board, the meeting was adjourned
at 11:00 P.M.
TEST:
Village Clerk
APPROVED:
PA_A�
1
Mayor
a