10/05/1992October 5, 1992
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, October 5, 1992 at 8:00 P.M. The
Clerk called the roll and announced that the following were -
Present: Bernard Forrest, Mayor
Marvin Ehlers
James Marovitz
Harriet Rosenthal
Edwin Seidman
Vernon Swanson
Michael Swartz
and that a quorum was present and in attendance. Also-present was
Village Manager Robert Franz and Village Attorney James Stucko.
Trustee Seidman moved, seconded by Trustee Swartz, that the
minutes of the previous meeting be approved. Motion carried
unanimously.
PRESENTATION Michael Witter, representing the National
Highway Traffic Safety Administration,
presented a plaque to the Village for
reaching 75% seat belt usage by its residents, a goal accomplished
by only 17 communities in Illinois. A similar plaque was
presented to Police Chief Brandt for the Deerfield Police
Department efforts in achieving this goal.
SUBDIVIDE PROPERTY Mayor Forrest read a brief statement
MAPLE OO D SCHOOL: (attached) in which he noted the Park
940 ALDEN CIRCLE District and School District 109 were
close to reaching an agreement on the
Maplewood School property. He recommended the Board approve the
petition of School District 109 to subdivide the Maplewood School
property for purposes of selling the northerly 4.6 acres.
Trustee Swanson moved, seconded by Trustee Rosenthal, that the
recommendation of the Plan Commission to approve the subdivision
of the Maplewood School property for purposes of selling the
northerly 4.6 acres be accepted. Motion carried unanimously.
PUBLIC HEARING
TIF DISTRICT /SARA LEE
PROPERTY
Mayor Forrest reopened the Public Hearing
of September 21 to consider amending the
Village TIF District to include the 52
acre Sara Lee property.
Kenneth Shepro, an attorney representing Sara Lee, read a
statement (summary attached) that called for creation of a
separate TIF District for the Sara Lee property. By creating a
separate district the Village would have 23 years of tax
increments versus 17 years if added to the Village TIF.
Mayor Forrest noted that 17 years was adequate time for the
Village to accomplish its objective of completing redevelopment as
soon as possible. The TIF District could be ended and the
increased assessment added to the tax rolls for the benefit of all
local taxing bodies.
Trustee Marovitz wished to clarify a statement by Mr. Shepro that
there would be a 25 million dollar loss of revenue over the last 6
years of the Village TIF. Trustee Marovitz pointed out that
revenue is not lost, there would be tax revenue generated from the
property. No matter how the property developed, the Village would
not throw array 25 million dollars.
Village Manager Robert Franz commented on the inference in Mr.
Shepro's statement that the Village Center TIF was having trouble.
He acknowledged it had not redeveloped to the extent that had been
hoped for, but it was not in any financial difficulty.
Trustee Seidman moved, seconded by Trustee Swartz, that the Public
Hearing be closed. Motion carried unanimously.
Mayor Forrest recommended the Board authorize bond counsel to
prepare the necessary ordinances to proceed on the TIF District.
Trustee Rosenthal moved, seconded by Trustee Swartz, that the
recommendation to approve an amendment to the 1986 Redevelopment
Plan be approved and the Attorney directed to prepare the
necessary ordinances. Motion carried unanimously.
SUBSTANTIAL CONFORMANCE Petitioners requested permission to sub -
DEERFIELD TECH CENTER stitute signage and are not requesting
additional signs or sign modifications.
The Plan Commission finds the proposed changes to be in
substantial conformance to the previously approved signage plan
and recommended approval.
Marie Greenberg, representing petitioner, was present to answer
inquiries. Board members were concerned with the color of the
proposed signage and agreed not to make a decision until a choice
was made.
Trustee Seidman moved, seconded by Trustee Ehlers, to table the
matter of substantial conformance of signage at the Deerfield Tech
Center until the Board is advised of the color selection. Notion
carried unanimously.
EXPANSION OF EXISTING Petitioner requested expansion of an
CLASS A SPECIAL USE - existing Class A Special Use for Dawn
DAWN MICHEL•E'S FAMILY Michele's Family Hair Shop /748 Waukegan
HAIR SHOP Road to change the hair salon to a
boutique concept of individual hair
studios under individual ownership, each with a retail component.
The Plan Commission and Village Center Development Commission
approved petitioner's request.
Dawn Famighetti, petitioner, answered inquiries from the Board.
Availability of adequate parking space was discussed. Jim Healy,
owner of the property where petitioner is located, advised that
there was enough parking available for the property. Petitioner
was advised to have salon employees park behind the Commons.
Trustee Seidman moved, seconded by Trustee Swartz, that the
recommendations of the Plan Commission and VCDC to expand the
existing Class A Special Use for Dawn Michele's Family Hair Shop
be accepted. Motion carried unanimously.
FINAL PLAT OF RESUB- The Plan Commission found the Final Plat
DIVISION - 727 -743 of Resubdivision to be in substantial
ELDER LANE conformance to the previously approved
Preliminary Plat and recommended approval.
Trustee Ehlers moved, seconded by Trustee Marovitz, that the
recommendation of the Plan Commission finding the Final Plat of
Resubdivision - 727 -743 Elder Lane to be in substantial
conformance to the previously approved Preliminary Plat be
accepted and the Attorney directed to prepare the necessary
Ordinance. Motion carried unanimously.
HALLOWEEN HOURS FOR The Deerfield Safety Council and Deerfield
TRICK OR TREATING Youth Council recommended limiting hours
for trick or treating on Halloween this
vear from 2 PM to 6 PM.
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SUMMARY OF
POSITION OF SARA LEE CORPORATION
ON PROPOSED ADDITION OF
THE SARA LEE DEERFIELD PROPERTY
TO THE DEERFIELD VILLAGE CENTER
TAX INCREMENT FINANCING DISTRICT
October 5, 1992
A. Sara Lee Corporation ( "Sara Lee ") welcomes Deerfield's
initiative to include the Sara Lee property in a tax increment
financing district; however, after a careful review by Sara Lee,
including the advice of counsel experienced in the creation and
operation of tax increment financing districts and input from
Trkla, Pettigrew, Allen & Payne, planning consultants specializing
in TIF projects, Sara Lee believes that the goals and objectives of
Deerfield will be better accomplished, and the redevelopment of the
Sara Lee property better encouraged, by the creation of a separate
TIF district for the Sara Lee property only, rather than including
Sara Lee within the Village Center TIF.
B. Sara Lee recognizes and appreciates the reason for Deerfield's
desire to obtain tax increment revenues from redevelopment of the
Sara Lee property in order to increase the ability of the Village
to fulfill the goals and projects contemplated by the Redevelopment
Plan for the Deerfield Center TIF adopted in 1986.
C. However, Sara Lee is concerned that the addition of the Sara
Lee site to the existing TIF reduces from 23 to 17 years the time
period during which tax increment can be earned. This reduction,
coupled with at least two additional years lost while site
planning, zoning, development and construction is in process, will
likely result in a loss to the Village of as much as 50% of the tax
increment revenues that could be realized from a separate, new TIF
District created for the Sara Lee site alone. Because the maximum
increment will likely be realized in the final six to eight years
of a TIF, this potential Village revenue loss may well be even
greater than 50 %. We believe a conscious decision by the Village
to substantially reduce the available TIF period jeopardizes the
successful implementation of the existing Redevelopment Plan for
the Village Center, the Village's proposed redevelopment plan for
the Sara Lee site, and private investment in, and redevelopment of
the Sara Lee site itself.
I.
D. Fortunately, a viable alternative exists. Recently enacted
amendments to the TIF statute provide that tax increment revenues
from one new stand -alone TIF district may be used to fund project
costs in an adjacent and contiguous TIF district in the same manner
as if the new TIF district were to be added to an exiting TIF
district as the Village has proposed. This amendment, crafted by
the nationally recognized bond farm of Chapman & Cutler, noted for
its conservative approach in such matters, would permit Deerfield
to establish a separate Sara Lee TIF district with a full 23 year
life and to still be able to utilize TIF revenues from that new
district to complete desired projects in the Village Center TIF
district.
E. Sara Lee Corporation has specific concerns about the proposed
Redevelopment Plan with respect to mixed or negative.signals sent
to private developers who may be interested in redeveloping the
Sara Lee site and with respect to specific projects and dollar
allocations made in the Redevelopment Plan. These concerns include
a project list containing projects of no direct benefit to the Sara
Lee site yet which could consume well over half of the tax
increment generated from the site, without even considering the
Village's need or desire to utilize a substantial portion of the
balance to the underfunded Village Center project. This result
would leave no significant increment available even for negotiation
purposes should the Village later decide inducements are required
for private development of the Sara Lee site.
our concerns also involve the proposal for construction of a
major public safety facility which introduces a substantial element
of uncertainty into any private redevelopment plan. The location,
size and timing for construction of this facility are all
unspecified. Should such a facility involve acquisition of current
Sara Lee property, particularly property with frontage on Waukegan
Road, this would affect the value of the Sara Lee property and
these uncertainties create a substantial impediment to future
planning for the site.
F. Moreover, the Village's disinclination to allocate sufficient
funds in the redevelopment plan for project costs essential to
eventual redevelopment of the Sara Lee site, or to consider an
actual commitment of any funds causes us concern that the Village
is convinced that the Sara Lee site will redevelop in accordance
with Village plans and desires without any inducements or
incentives from the Village.
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When the Tax Increment Allocation Redevelopment Act was
adopted by the Illinois General Assembly in 1977, it was based on
a legislative perception that undeveloped or underdeveloped
properties existed within many municipalities and that adverse
conditions prevented the conservation or redevelopment of these
properties and accordingly deprived not only municipalities but
other local taxing districts of much needed revenues and impaired
"the sound growth and the tax base of taxing districts in such
areas." The legislature also determined that "to remove and
alleviate adverse conditions it is necessary to encourage private
investment and restore and enhance the tax base of the taxing
districts in such areas by the development or redevelopment of
project areas." (emphasis added) This program of encouraging
private investment for development and redevelopment projects was
declared by the legislature to be, "essential to the public
interest." (All references are to Ill. Rev. Stat. (1991), Ch. 24,
par. 11- 74.4 -1 et seq.)
Municipalities throughout the state, including the Village of
Deerfield, have created tax increment financing districts and
undertaken redevelopment projects in the 15 years since enactment
of this statute. Some projects have been successful, others have
encountered difficulty. Even within a single municipality, as
evidenced by Deerfield's own experience, one project make succeed
quickly and another may fail or take longer to complete than
originally contemplated.
A TIF district is a powerful tool for municipalities to
address the conditions identified' by the General Assembly as
contributing to a decline or absence of growth in the municipal tax
base, and in times of economic austerity and where the need of
almost every taxing district for extra revenues is especially
strong, each new proposal requires careful study and analysis to
determine whether a plan or district will in fact encourage the
"private investment" deemed essential to enhancing the public
health and welfare of this state and of affected local governments.
The General Assembly recognized that
criteria specified in the statute
redevelopment costs, redevelopment will
ability of the Village to reimburse a privi
all of its redevelopment costs. This
recognized by bond counsel as a necessary
an approving opinion for bonds secured by
3
in areas which meet the
for reimbursement of
not occur but for the
ite developer for some or
"inducement" factor is
prerequisite to issuing
TIF revenues.
G. We emphasize that while Sara Lee is speaking as an advocate
for its own position, we believe. that our suggestions and our
proposal for a separate Sara Lee TIF is just as much in the
interest of the Village of Deerfield as it is in the interest of
Sara Lee, or any prospective developer. For Sara Lee and the
Village, the appropriate emphasis should be on preservation of
flexibility, accomplished by providing for a full 23 -year TIF
district and utilizing, as desired, the 1992 amendment to the TIF
statute to share funds between districts. We appreciate the recent
efforts of President Forrest and Village staff to meet with Sara
Lee to consider our input. Unfortunately, the speed with which
this amendment has proceeded has, in our view, prevented the
serious study and analysis merited by our proposals, and we would
welcome further opportunity to share our views with the Village.
ALTHEIMER & GRAY
10 South Wacker Drive
Chicago, Illinois 69696
on behalf of
SARA LEE CORPORATION
4
L�
n
Trustee Swartz moved, seconded by Trustee Ehlers, that the
recommendation of the Deerfield Safety and Youth Councils be
accepted. ?Motion carried unanimously.
MANPOWER COMMISSION Mayor Forrest announced the following
recommendations from the !Manpower
Commission: Energy Advisory Commission - Susan Krasnow Massey,
Glenn Schwartz; Human Relations Commission - Thelma LeVeaux;
Safety Council - Mary Ellen Murphy; Youth Council - Ken Shields.
Trustee Rosenthal moved, seconded by Trustee Marovitz, that the
recommendations of the Manpower Commission be approved. Motion
carried unanimously.
Consent Agenda
R- 92- lA,.RESOLUTION Resolution amending Annexation Agreement
AMENDING ANNEXATION to Thorngate Country Club Clubhouse.
AGREEMENT /THORNGATE
COUNTRY CLUB CLUBHOUSE
0 -92 -44 ORDINANCE Ordinance approving Special Uses for
SPECIAL USE FOR DAY Day Care Center and Health Club -
CARE CENTER & HEALTH Thorngate Country Club Clubhouse /Parkway
CLUB - TIiORNGATE North Center.
COUNTRY CLUB CLUBHOUSE
Trustee Swartz recused himself from voting on the Resolution and
Ordinance.
Trustee Seidman moved, seconded by Trustee Swanson, that the
Consent Agenda be approved and the Ordinances adopted. Motion
carried by the following vote:
AYES: Ehlers, Marovi
NAYS: None (0)
AMENDMENT TO CLASS B
SPECIAL USE /SHELL OIL
COMPANY, 655 WAUKEGAN
unanimously.
tz, Rosenthal, Seidman, Swanson (5)
Trustee Ehlers moved, seconded by Trustee
Rosenthal, that the amendment to Class B
Special Use - Shell Oil Company, 655
Waukegan Road be tabled. Motion carried
APPLEBEE'S REQUEST FOR Jerry Egner, representing Applebee's,
CLASS E LIQUOR LICENSE was present to discuss the proposed
restaurant. The projected opening is
scheduled for mid to late December. Petitioner is requesting a
Class E liquor license for their establishment.
Trustee Seidman moved, seconded by Trustee Marovitz, that an
additional Class E liquor license be authorized and the Attorney
directed to prepare the necessary Ordinance. Motion carried
unanimously.
ADJOURNMENT There being no further business, upon
motion of Trustee Seidman, seconded by
Trustee Rosenthal, the meeting adjourned at 9:20 P.M.
ATTEST:
6 �SZ
Village Clerk
AP OVED:
;Mayor
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