Loading...
O-17-20VILLAGE OF DEERFIELD STATE OF ILLINOIS COUNTIES OF LAKE AND COOK VILLAGE OF DEERFIELD ) SS I IIIIIII IIIIII III IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII icce oded6101/070/2022Tate12:29:52 PM Ript!!: 2022-00001742 Pape 1 of 58 Fees: $50.00 Lake County IL Recorder Mary Ellen Vanderventer Recorder File7859787 The undersigned hereby certifies that he is the duly appointed Deputy Village Clerk of the Village of Deerfield, Lake and Cook Counties, Illinois, and that the attached is a true and accurate copy of Ordinance 0-17-20 Approving the Removal of the Restaurant Prohibition at Cadwell's Corners Shopping Center for the Area South of the Existing Pet Supply Plus Store to the End Units Facing Lake Cook Road and the Sign Plan for Pylon Signs Dated this December 1, 2021 fm J. la to DANIEL VAN DUSEN Deputy Village Clerk LAR Prepared by and after recording return to Daniel Van Dusen Village of Deerfield 850 Waukegan Road Deerfield, IL 60015 850 WAUKEGAN ROAD DEERFIELD, ILLINOIS 60015 TELEPHONE 847.945.5000 FAX 847.945.0214 VILLAGE OF DEERFIELD LAKE AND COOK COUNTIES, ILLINOIS ORDINANCE NO. 0-17-20 AN ORDINANCE APPROVING THE REMOVAL OF THE RESTAURANT PROHIBITION AT CALDWELL'S CORNERS SHOPPING CENTER FOR THE AREA SOUTH OF THE EXISTING PET SUPPLY PLUS STORE TO THE END UNITS FACING LAKE COOK ROAD AND THE SIGN PLAN FOR PYLON SIGNS PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, this 21 st day of August , 2017. Published in pamphlet form by authority of the President and Board of Trustees of the Village of Deerfield, Lake and Cook Counties, Illinois, this 21st day of Au sugt , 2017. VILLAGE OF DEERFIELD LAKE AND COOK COUNTIES, ILLINOIS ORDINANCE NO. 0-17-20 AN ORDINANCE APPROVING THE REMOVAL OF THE RESTAURANT PROHIBITION AT CALDWELL'S CORNERS SHOPPING CENTER FOR THE AREA SOUTH OF THE EXISTING PET SUPPLY PLUS STORE TO THE END UNITS FACING LAKE COOK ROAD AND THE SIGN PLAN FOR PYLON SIGNS WHEREAS, Norcor Cadwell Associates, LLC, an Illinois limited liability company, c/o Newcastle Properties LLC, the owner of the property commonly known as Cadwell's Corners Shopping Center (the "Owner") and legally described on Exhibit A attached hereto (the "Subject Property"), has petitioned the Plan Commission of the Village of Deerfield for approval of amendments to the Cadwell's Corners Commercial Planned Unit Development (the "PUD") authorizing: (1) the removal of the restaurant prohibition at Cadwell's Corners Shopping Center for the area of the shopping center south of the existing Pet Supply Plus store to the end units facing Lake Cook Road, as legally described on Exhibit B attached hereto and shown as the Subject Area" on the Site Plan drawing on Exhibit C attached hereto, incorporated herein, and made a part hereof by this reference; and (2) the sign plan for pylon signs for a larger sign face for the two (2) existing pylon signs as shown on the pylon sign plan drawing on Exhibit C; and WHEREAS, the Plan Commission of the Village of Deerfield held a public hearing on May 11, 2017 pursuant to public notice duly given and published as required by statute and conforming in all respects, in both manner and form, with the requirements of the statutes of the State of Illinois and the Zoning Ordinance of the Village of Deerfield; and 1- WHEREAS, the Plan Commission of the Village of Deerfield, after considering the evidence, testimony and supporting materials offered at said public hearings, submitted its written report to the President and Board of Trustees of the Village of Deerfield recommending approval of: (1) the removal of the restaurant prohibition at Cadwell's Comers Shopping Center for the area of the shopping center south of the existing Pet Supply Plus store to the end units facing Lake Cook Road, subject to certain conditions restricting the establishment, operation, maintenance, and use of a restaurant on the Subject Property; and (2) the sign plan for pylon signs; all subject to the conditions, regulations, and restrictions set forth herein; and WHEREAS, the President and Board of Trustees of the Village of Deerfield have also relied upon the representations made by Owner in response to questions, comments, and concerns raised at the June 5, 2017 Village of Deerfield Board of Trustees meeting considering the Petition as set forth in the Owner's correspondence dated July 12, 2017 attached hereto on Exhibit C, incorporated herein, and made a part hereof by this reference; and WHEREAS, the President and Board of Trustees of the Village of Deerfield concur in the recommendation of the Plan Commission, subject to the conditions, regulations, and restrictions set forth herein, and have determined that it is in the best interests of the Village of Deerfield that the Cadwell's Corners PUD be amended to approve the removal of the restaurant prohibition at Cadwell's Corners Shopping Center for the area of the shopping center south of the existing Pet Supply Plus store to the end units facing Lake Cook Road and the sign plan for pylon signs, in accordance with: (1) the documents listed on Exhibit C attached hereto, incorporated herein, and made a part hereof by this reference; and (2) the following additional conditions restricting and regulating the establishment, operation, maintenance, and use of a restaurant on the Subject Property (the "Restaurant Restrictions"): 2- a) No restaurant use shall be permitted on the Subject Property, except for the area south of the existing Pet Supply Plus store to the end units facing Lake Cook Road as legally described on Exhibit B attached hereto, incorporated herein, and made a part hereof by this reference. b) Any restaurant use permitted on the Subject Property shall be considered as a special use, subject to the procedures, standards, and requirements of Article 13.11 of the Zoning Ordinance of the Village of Deerfield. c) All deliveries to the rear of the building on the east side of the Cadwell's Comers Shopping Center (the "Rear Delivery Area") for any permitted restaurant use shall be made no earlier than 8:00 a.m. and no later than 5:00 p.m., Monday through Saturday ("Rear Delivery Hours"). Delivery vehicles to the Rear Delivery Area arriving at the Subject Property prior to 8:00 a.m. shall be required to stage on the front side of the shopping center building and shall not enter the rear of the building except during Rear Delivery Hours. Delivery vehicles to the Rear Delivery Area arriving at the Subject Property after 5:00 p.m. shall be required to exit the Subject Property and return during Rear Delivery Hours. Delivery vehicles shall not be permitted to be on the Rear Delivery Area after 5:00 p.m. Owner and Tenant shall educate delivery vendors on these regulations and shall provide signage directing early arriving delivery vehicles to the staging area. d) Overnight deliveries to the front of the building on the west or south side of the Cadwell's Corners Shopping Center (the "Front Delivery Area") for any permitted restaurant use are permitted provided that delivery vehicles to the Front Delivery Area shall enter and exit the Cadwell's Comers Shopping Center from the Lake Cook Road entrance and exit. Delivery vehicles to the Front Delivery Area shall not idle, cause excessive noise e.g., back-up beeper), or remain on the Subject Property for more than sixty (60) minutes. Owner and Tenant shall educate delivery vendors on these regulations. e) Owner shall construct, develop, maintain, and use a brick garbage enclosure on the Subject Property at a point furthest from the residential property line, along Lake Cook Road, in accordance with the Site Plan drawing and Dumpster Enclosure Drawing on Exhibit C attached hereto, incorporated herein, and made a part hereof by this reference, and subject to all applicable building codes, sanitary codes, and other applicable laws. Owner shall require that all dumpsters remain in the garbage enclosure with doors closed at all times when not in use. Owner shall provide interior and exterior pest control services, and regularly clean, power wash, and maintain the garbage enclosure area, dumpsters, and surrounding areas to reduce odors, prevent overflow, and abate potential nuisances relating to any permitted restaurant use. f) Owner and Tenant shall keep all exterior areas set aside for collection and deposit of waste in a clean and slightly condition, shall not suffer or permit the spilling, overflow, or scattering of waste from such areas, shall not suffer or permit offensive odors to emanate from such areas to the annoyance of neighboring properties and persons, and shall provide for the collection and removal of waste materials with such frequency as is necessary to avoid the creation of any such conditions. 3- g) Owner shall respond in good faith to homeowner complaints of any alleged or potential nuisance, noise, or odor condition relating to the operation of any permitted restaurant use. h) Owner shall provide and maintain additional landscaping and shrubbery to infill the clearing in the area bordering the Subject Property and the residential property located at 88 Evergreen Court. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, in the exercise of its home rule powers, as follows: SECTION 1: That the above and foregoing recitals, being material to this Ordinance, are hereby incorporated by this reference and made a part of this Ordinance as if fully set forth herein. SECTION 2: That the President and Board of Trustees do hereby authorize and approve an amendment to the Cadwell's Corners PUD Village of Deerfield Ordinance No. 0-81-28 (dated Apr. 20, 198 1) to remove the restaurant use prohibition on the Subject Property for the area of the shopping center south of the existing Pet Supply Plus store to the end units facing Lake Cook Road as legally described on Exhibit B attached hereto and as shown on the Site Plan drawings on Exhibit C attached hereto, incorporated herein, and made a part hereof by this reference, to the extent provided herein and subject to the conditions, regulations, and restrictions set forth in Section 4 of this Ordinance. SECTION 3: That the President and Board of Trustees do hereby authorize and approve an amendment to the Cadwell's Corners PUD for the sign plan for pylon signs as shown on the Pylon Sign drawings on Exhibit C attached hereto, incorporated herein, and made a part hereof by this reference, and subject to the conditions, regulations, and restrictions set forth in Section 4 of this Ordinance and the revised Cadwell's Corners Pylon Sign Criteria on Exhibit C providing that C2 the lower eight (8) signs (lower 8 half panels) have: (a) all white background; (b) all black text; c) no logos; and (d) one font style. SECTION 4: That the approval and authorization of said amendments to the PUD are granted subject to the following conditions, regulations, and restrictions: a) That the construction, development, maintenance, and use of the Subject Property for any permitted restaurant use shall be substantially in accordance with the documents, materials, and exhibits attached hereto and made a part hereof as Exhibit C, or in accordance with said documents as modified to comply with applicable building codes and other applicable laws and ordinances. b) Compliance with all representations submitted and made by Owner to the Plan Commission and to the President and Board of Trustees of the Village of Deerfield. c) Compliance with the recommendations and requirements of the Appearance Review Commission. d) Compliance with the Restaurant Restrictions set forth in the recital of this Ordinance adopted and incorporated herein by reference. e) Compliance by Owner with all applicable provisions of the PUD, as amended by Ordinance No. 0-96-26 or as hereafter amended, and with all applicable provisions of the Zoning Ordinance of the Village of Deerfield. SECTION 5: That the Village Clerk is hereby authorized and directed to publish this Ordinance in pamphlet form and to record this Ordinance in the office of the Recorder of Deeds of Lake County at Applicants' expense. SECTION 6: That this Ordinance, and each of its terms, shall be the effective legislative act of a home rule municipality without regard to whether such Ordinance should: (a) contain terms contrary to the provisions of current or subsequent non -preemptive state law; or, (b) legislate in a manner or regarding a matter not delegated to municipalities by state law. It is the intent of the corporate authorities of the Village of Deerfield that to the extent that the terms of this Ordinance should be inconsistent with any non -preemptive state law, this Ordinance shall supersede state law in that regard within its jurisdiction. 5- SECTION 7: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. PASSED this 21 st day of August , 2017. AYES: Benton, Jester, Oppenheim, Seiden, Shapiro, Struthers NAYS: None ABSENT: None ABSTAIN: None APPROVED this 21st day of August -22017. A Village President ATTEST: jg V llage Clerk Exhibit A The Subject Property is legally described as follows: PARCELI: LOT 3 IN JOHN A. MALLIN SUBDIVISION, BEING A SUBDIVISION OF PART OF THE SOUTHWEST V4 OF THE SOUTHEAST '/< OF SECTION 33, TOWNSHIP 43, NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED JULY 5, 1963, AS DOCUMENT 1191212 IN BOOK 39 OF PLATS PAGE 6, IN LAKE COUNTY, ILLINOIS. PARCEL 2: LOT 1 IN ACE HOSTS OF ILLINOIS SUBDIVISION OF LOT 2 IN JOHN A MALLIN SUBDIVISION OF PART OF THE SOUTHWEST V4 OF THE SOUTHEAST % OF SECTION 33, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID ACE HOSTS OF ILLINOIS SUBDIVISION RECORDED APRIL 10, 1970, AS DOCUMENT 1455607, IN BOOK 49 OF PLATS, PAGE 23, IN LAKE COUNTY, ILLINOIS. Address: 3-57 Waukegan Road and 250 Lake Cook Road, Deerfield, Illinois. PINS: 16-33-404-033, 16-33-404-034,16-33-404-035,16-33-404-036,16-33-404-037, 16-33- 404-038,16-33-404-039. Exhibit B The Subject Area of the Subject Property permitting restaurant use is legally described as follows: THAT PART OF LOT 1 IN ACE HOSTS OF ILLINOIS SUBDIVISION OF LOT 2 IN JOHN A. MALLIN SUBDIVISION OF PART OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 33, TOWNSHIP 43 NORTH, RANGE 12 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID ACE HOSTS OF ILLINOIS SUBDIVISION RECORDED APRIL 10, 1970 AS DOCUMENT 1455607, IN BOOK 49 OF PLATS, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT THAT IS 234.28 FEET SOUTH OF THE NORTHEAST CORNER OF SAID LOT (AS MEASURED ALONG THE EAST LINE THEREOF) AND 55 FEET WEST (AS MEASURED AT RIGHT ANGLE TO SAID EAST LINE); THENCE SOUTH 03 DEGREES 43 MINUTES 33 SECONDS EAST, 152.51 FEET TO A POINT THAT IS 54.91 FEET WEST OF SAID EAST LINE (AS MEASURED AT RIGHT ANGLES THERETO); THENCE WESTERLY, 1.10 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE; THENCE SOUTHERLY, 21.65 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE; THENCE WESTERLY, 72.90 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE; THENCE NORTHERLY, 21.65 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE; THENCE WESTERLY, 1.10 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE; THENCE NORTHERLY, 152.51 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE; THENCE EASTERLY, 75.10 FEET PERPENDICULAR TO THE LAST DESCRIBED COURSE TO THE POINT OF BEGINNING IN LAKE COUNTY, ILLINOIS. Exhibit C Exhibits to an Ordinance Approving the Removal of the Restaurant Prohibition at Caldwell's Corners Shopping Center for the Area South of the Existing Pet Supply Plus Store to the End Units Facing Lake Cook Road and the Sign Plan for Pylon Signs 1. Cadwell's Corners Revised Site Plan by Torch Architecture dated July 10, 2017. 2. Cadwell's Comers Site Plan by Torch Architecture dated April 13, 2017. 3. Cadwell's Corners Dumpster Enclosure Plan dated July 12, 2017. 4. Cadwell's Corners Revised Pylon Signage Criteria dated May 31, 2017. 5. Cadwell's Comer Pylon Sign Drawings by Doyle Sign Contractors dated May 11, 2017. 6. Newcastle Properties Correspondence to Village Board dated July 12, 2017. DUMPSTER ENCLOSURE PLAN FRONT ELEVATION REAR ELEVATION SIDE ELEVATION Cadwell’s Corners FACE BRICK TO MATCH BUILDING METAL COPING TO MATCH EXIST GREEN METAL CAP AT BLDG. EXHIBIT C PAINTED STEEL POSTS & FRAME TO MATCH RED TRIM AT BLDG. PAINTED WOOD BOARDS TO MATCH RED TRIM AT BLDG. Cadwell’s Corners – Pylon Signage Criteria last revision 5/31/2017 Materials All panels, and replacements thereof, will be solid white flat lexan material. This refers to the material of the panel. See other items below regarding restrictions on colors and graphics. Graphics Color With exception to the top anchor tenant panel and the half panels at the bottom of the sign, all tenant panel graphics, logo and letters, shall be restricted to one of the following colors: PMS 300 Blue, PMS 200 Red, PMS 356 Green, PMS 1235 Yellow, and Black. All graphics will be vinyl application on the face of the panel. The smaller panels at the bottom of the sign are restricted to black text on a white background using upper and lower case characters using the Friz Quadrata Std font. Background Color The color of all sign panel backgrounds shall be white, with exception to the top anchor panel. Content Logos and fonts will be permitted provided such characteristics are a part of the tenant’s corporate identity and are approved by Landlord and the Village of Deerfield. Panel Layout No more than two lines of text shall be permitted on any panel. A minimum of 1” must be allowed between the text and the horizontal and vertical space bars. Pylon Layout No panels may be further divided. In the area comprised of the four panels on the lower two rows, any blank panels shall be located at the bottom of the sign, in order to avoid a disorganized or checkerboard appearance. These Criteria establish a baseline for future tenant signage panels. Approval of tenant signage and modification of these criteria shall remain subject to municipal review and can be modified by approval of Landlord and the Village of Deerfield. Note: The existing Chicago Home Fitness and Calico tenant sign panels are “grandfathered.” Any new sign panels must meet with the criteria as stated above. NEWCASTLE PROPERTIES L.L.C 1030 West Higgins Road, Suite 360, Park Ridge, Illinois 60068 847.685.9800 1 July 12, 2017 Mayor & Board of Trustees Village of Deerfield 850 Waukegan Road Deerfield, Illinois 60015 Re: Cadwell’s Corners Shopping Center Deerfield, IL Project No. 916159 Dear Mayor & Board of Trustees, Ownership for Cadwell’s Corners would like to follow up on your additional questions and comments from the June 07, 2017 Village Board Meeting regarding the request for removal of the restaurant prohibition at a portion of the Cadwell’s Corners Shopping Center (the “Restaurant Area”). We would also like to inform the Board, if they are not already aware, that Ownership is in advanced negotiations with Panera Bread to lease 4,940 square feet of the vacant 12,900 square feet of Restaurant Area, subject to the Board’s granting of the request for removal of the restaurant prohibition. Please see Exhibit A which shows the location of the proposed Panera, facing Lake Cook Road. We have incorporated the Panera use into our responses to these additional questions below. We respectfully remind the Board as well that Panera will have to secure a special use permit to occupy this space but they cannot apply for this permit unless and until the restaurant prohibition is lifted for this area. Responses to Board questions and follow up to comments: 1) Garbage enclosures, Odors, Pest Control Response: A brick garbage enclosure closely matching as best as possible the exterior of the Center will be constructed for Panera at a point furthest from the residential boundary line, along Lake Cook Road. The location of this proposed enclosure is shown on Exhibit B attached hereto. Panera’s kitchen door will be located at the southeast corner of the Center facing Lake Cook Road and this enclosure location will provide the shortest and most direct access for garbage disposal which should minimize the potential for spillage and any resulting odors which was a neighbor concern. Additionally, should another restaurant user be included within the Restaurant Area, this enclosure would be expanded accordingly also as shown on Exhibit B attached hereto. If the remaining non-Panera square footage of the Restaurant Area is leased to a retail user or users, the current existing enclosure immediately north of the Restaurant Area will be expanded to accommodate these tenants and constructed in a wooden stockade fashion consistent with other enclosures currently in place at the Center. Additionally, language will be included within any new lease for space within the Restaurant Area that Tenants are responsible for making sure dumpsters are not left out of the enclosures and that enclosure doors are to remain closed at all times when not in use. The appearance and materials anticipated to be used for the brick “restaurant” enclosures are depicted on the attached Exhibit C. NEWCASTLE PROPERTIES L.L.C 1030 West Higgins Road, Suite 360, Park Ridge, Illinois 60068 847.685.9800 2 In order to address the potential for increased odors from these restaurant enclosures (similar to trash removal for the landscaped “buffer” area along the East side of the Center), Ownership will engage the existing sweeping contractor (Program One) to incorporate regular power washing of these areas. This should serve to reduce odors from any spilled material. Also, Ownership will require restaurant users to utilize Lakeshore’s dumpster cleaning services in order to reduce any additional odors from the garbage receptacles themselves. In order to address the potential for pests that may be drawn to the increase in organic materials, Ownership will incorporate a pest control contract (currently not in place at the Center) into daily property operations. Chem-Wise, a pest management company based in Rolling Meadows, has been consulted with regard to incorporating restaurant uses at the center and has provided Ownership with a proposal with a focus on rodent and insect control around the Restaurant Area, in particular the garbage area. Panera, as part of their normal operations, maintains their own pest control contract covering the interior of their premises. Similarly, any future restaurant users would be required to maintain an interior pest control contract covering the interior of their premises. This requirement would be incorporated into all lease agreements going forward. Summary: • New brick restaurant garbage enclosures will be constructed closer to Lake Cook Road (furthest from residential) which will improve garbage area appearance, better shield garbage areas from view and provide more protection from pest intrusion. Language requiring dumpsters to remain in enclosures with doors closed at all times when not in use will be included in all leases going forward with restaurant users within the Restaurant Area. • Regular cleaning and power washing of garbage enclosures and surrounding areas will be incorporated into normal property operations to reduce odors from increased organic materials. Restaurant tenants will be required to enroll in Lakeshore’s cleaning program to reduce odors emanating from trash containers themselves. • Interior and exterior pest control contracts will be put in place focusing on the Restaurant Area and enclosures to address any increased pest control issues resulting from the addition of restaurant uses. 2) What is the impact on adjacent property values from lifting the current prohibition on restaurant uses? Response: Ownership has engaged PF Appraisals, Inc. to analyze the impact of the addition of restaurant uses to the Restaurant Area on adjacent residential property values. The study was focused on Panera or a similar type of restaurant operator in order to provide the most meaningful and objective analysis. This report is attached as Exbibit D along with a copy of the appraisers curriculum vitae. The appraiser concluded that the addition of a Panera or similar type of restaurant operator to the Restaurant Area would have no discernable effect on the market value of surrounding residential properties. This report did not include an analysis on the impact of restaurant uses on the North Suburban Church parcel as, per the letter attached as Exbibit E, the Church is not concerned with this value impact and is supportive of lifting the restriction. NEWCASTLE PROPERTIES L.L.C 1030 West Higgins Road, Suite 360, Park Ridge, Illinois 60068 847.685.9800 3 3) Are vendors that violate the current “Fresh Thyme” delivery restrictions being penalized? Response: The Site Performance Agreement between Fresh Thyme, Ownership and the Village governs the Fresh Thyme delivery restrictions currently in place (commercial deliveries to be made between 8:00 am and 5:00 pm, Monday through Saturday only). Per the Agreement, Fresh Thyme is to be fined for each violation of these delivery restrictions. These fines escalate based on the frequency of violations within a twelve (12) month period. Although residents have reported violations to these restrictions during previous meetings, to our knowledge, neither Ownership or their management company has been contacted by residents to report any such incidents. The Village has been contacted by residents to report incidents through the Police Department and residents have also reported in recent meetings that they are calling the CEO of Fresh Thyme directly whenever such incidents occur. Ownership is willing to install additional signage along this area with contact information for their management company for residents to reach out to as well to report or discuss violations. 4) How does the current landscaping compare to the approved “Fresh Thyme” landscape plan? / Site lighting issues. Response: The Site Performance Agreement required Ownership to install new trees and fencing along the north property line adjacent to residential owners. Ownership is required to maintain both the trees and fence in good repair. Ownership engaged Landscape Concepts the week of July 3rd to inspect the landscape improvements made along the north side of the Center, along with all other landscaping in place at the Center. Landscape Concepts identified two dead evergreen trees at the Waukegan Road entrance. These trees are scheduled to be replaced the week of July 10th. Additionally, residents have noted that lights have been out at the center recently. Ownership maintains a vendor to periodically check on site lighting. All lights in need of bulb replacement have been addressed to date and the need for increased “light checks” at the center is being evaluated by property management and the vendor. Summary: • The Center is in compliance with the landscaping required per the Fresh Thyme Site Performance Agreement. • Lighting issues have been reviewed and addressed. The need for additional light monitoring is being evaluated by property management. 5) What has changed in restaurant operations over the past 36 years since the restaurant prohibition was put in place / what technological advances have been made in the restaurant industry to mitigate their impact on nearby properties. Response: The evolution of the restaurant industry itself has lessened potential negative impacts on nearby properties and made them much better neighbors today than thirty-six years ago. When the prohibition was put in place there was a much greater disparity in how restaurants were owned and operated. Most meals were prepared at home and, typically, restaurants from this era either trended toward the higher end for evenings out or entertainment (late, loud, high employee counts) or toward a lower end such as diners or grills with smaller operators serving basic food without as much emphasis on operations, cleanliness, cooking style, garbage/recycling, etc. NEWCASTLE PROPERTIES L.L.C 1030 West Higgins Road, Suite 360, Park Ridge, Illinois 60068 847.685.9800 4 There was also more fractured ownership which led to a greater disparity in the quality of restaurant operator. Sole-proprietors dominated the industry. The risk of having a poorly run operator or operation was greater at this time. All of these factors likely combined to pose much greater concerns from nearby property owners at the time. Hence the industry as a whole having a reputation as not being the best neighbor or retail occupant and something more deserving of an outright prohibition. Today, especially those restaurant users targeting the higher demographic Deerfield submarket and Cadwell’s Corners in particular, there are many more restaurant concepts in the “middle” ground which serve as an extension of the home kitchen. These restaurants tend to be dominated by “family style” and “fast casual” national or multiple location brands offering a higher quality, more standardized product with stricter operating controls. These brands are the types of restaurants (Panera, Firehouse, Brunch Cafe) that are either corporately owned or have strict franchise agreements and screening processes to ensure high quality, sophisticated operators are held by the market to a high standard in a very competitive environment. Customers demand cleanliness, fresher and more high-quality food options which lead to less grease and odors emanating from kitchen areas. Also, pickup from internet orders or taking meals to go has become much more prevalent which leads to less on-site consumptions and less garbage as well as employee counts in dining and kitchen areas. The primary technological advances that have been made in the restaurant industry to mitigate odor impacts to nearby properties involve what are known as pollution control systems or “scrubbers.” Captive Aire, a main supplier of this technology to the industry, reports that while these scrubbers are effective in reducing odors from hooded restaurant grills, they are primarily used in urban areas or condo buildings where residential units are immediately on top of restaurants. They also reported advancements in hood filters over this time period have resulted in greatly reducing the amount of grease being vented from grills which reduces the release of odor molecules. Panera, similar to an increasing number of restaurant operators, does not use hooded grills or generate grease thus a pollution control or scrubber system is not applicable. Ovens are used for bakery items and other menu items are prepared fresh and then heated without a grill. Summary: • Restaurants focused on Cadwell’s Corners / the Deerfield submarket today vs. thirty-six years ago include higher quality, national or multiple location operators with greater focus on operations and cleaner, lower impact food offerings. Much better neighbors today than when the restriction was originally put in place. • Many operators today such as Panera do not use grills and therefore have a much lower odor footprint than in years past. 6) What specific delivery hour restrictions would restaurants adhere to? Response: Should the prohibition be lifted, restaurants would be required to adhere to the Fresh Thyme delivery restrictions which limit commercial deliveries to the North and East sides of the Center to between the times of 8:00 am and 5:00 pm, Monday through Saturday only. Ownership agrees that this restriction would be included in any lease agreement with a restaurant user occupying space in the Restaurant Area. Panera is planning on locating their kitchen door (delivery door) on the south of the Center facing Lake Cook Road. Although they anticipate a majority of their deliveries occurring within the Fresh NEWCASTLE PROPERTIES L.L.C 1030 West Higgins Road, Suite 360, Park Ridge, Illinois 60068 847.685.9800 5 Thyme delivery hours, they do expect to have two overnight shipments per week that would not be able to be made during these hours. Although the issue of limiting West side deliveries was raised at the last meeting, Ownership would like to leave open the option of commercial deliveries being made outside of the Fresh Thyme Delivery Hours to the West and South facing entrances of the Restaurant Area. Ownership believes that noise from these deliveries is blocked by the shopping center itself and separated by sufficient distance from the residential boundaries so as to make any additional noise negligible. Ownership would be open to requiring that all vehicles delivering to the West and South facing entrances of the Restaurant Area, outside of the Fresh Thyme delivery hours, to enter and exit the Center from the Lake Cook entrance. This would reduce cross parking lot traffic during these times and keep any vehicles furthest from the residential areas and closest to the Lake Cook and Waukegan intersection. Summary: • Restaurant tenants will be required to comply with the Fresh Thyme delivery restrictions for deliveries to the East side of the Restaurant Area. • Ownership asks that delivery times are not restricted to the West or South sides of the center due to the fact that some potential tenants like Panera or previously Firehouse need to make limited deliveries outside of the Fresh Thyme hours. • Should deliveries be allowed unrestricted to the South and East storefronts of the Restaurant Area, Ownership will require that delivery vehicles enter and exit from the Lake Cook Road entrance to the Center. We hope these responses serve to address the Boards questions and or concerns, or at the very least, provide a solid framework whereby any additional details can be efficiently and succinctly supplied at the public meeting on July 17th. We are, of course, available any time should you have any questions regarding this or any other matter prior to the meeting. Very Truly Yours, Newcastle Properties, on behalf of the Owner Norcor Cadwell Associates, LLC BY: PRINT: Sean Devine ITS: Asset Manager Exhibit A Exhibit B Exhibit C DUMPSTER ENCLOSURE PLAN FRONT ELEVATION REAR ELEVATION SIDE ELEVATION Cadwell’s Corners FACE BRICK TO MATCH BUILDING METAL COPING TO MATCH EXIST GREEN METAL CAP AT BLDG. EXHIBIT C PAINTED STEEL POSTS & FRAME TO MATCH RED TRIM AT BLDG. PAINTED WOOD BOARDS TO MATCH RED TRIM AT BLDG. Exhibit D www.pfappraisals.com CONSULTING REPORT FOR Cadwell’s Corner LOCATED AT 3-57 N. Waukegan Road Deerfield, Illinois AS OF July 8, 2017 PREPARED FOR Sean Devine Newcastle Properties 1030 W Higgins Road #360 Park Ridge, IL 60068 PREPARED BY PF Appraisals, Inc. 3847 N. Lincoln Avenue, Suite 2 Chicago, Illinois 60613 File No.: 302 www.pfappraisals.com 3847 N Lincoln Ave, Ste. 2 Chicago Illinois, 60613 www.pfappraisals.com Info@pfappraisal.com 773-665-8361 Fax: 773-665-8342 July 12, 2017 Sean Devine Newcastle Properties 1030 W. Higgins Road #360 Park Ridge, IL 60068 Re: Village of Deerfield Board Impact of proposed restaurant use on market value of surrounding property Cadwell’s Corners 3-57 N. Waukegan Road Deerfield, Illinois Dear Mr. Devine: At your request, we have examined the subject property in relation to the issue you have indicated that the Village Board of Deerfield wishes to have addressed, namely, whether there would be a discernable effect (positive, negative or neutral) on the market value of surrounding properties based on a Panera restaurant (or similar type of operator) occupying a portion or portions of the southern 12,900 square feet of the subject property, pursuant to the release of the current zoning prohibition against such restaurant use at the subject property. In our opinion, the occupancy and use of a portion or portions of the southern 12,900 square feet of the subject shopping center by a Panera restaurant or similar type of operator would have no discernable effect on the market value of surrounding properties. The scope of work in this assignment includes: • Review of a “Request for Board Action” on item 17-56, originated by the Deerfield Plan Commission • Review of site plans and exhibits for the subject property • Inspection of the subject property and surrounding area on June 28, 2017 and July 8, 2017 • Interview with a representative of the applicant • Research, inspection, and analysis of relevant market data • Preparation of a consulting report addressing the market value impact of the proposed use Page 2 Subject property The subject property is a one-story neighborhood shopping center located on an essentially rectangular shaped parcel of land located at 3-57 N. Waukegan Road, Deerfield, Illinois. This is in the northeast quadrant of Lake-Cook Road and Waukegan Road, but the hard corner is occupied by a BP gas station and a Just Tires store that are not part of the subject shopping center. The following tax plat map depicts the subject (with north at the top). The area shaded in yellow is the vacant space within which a restaurant use is proposed. The subject site is level, at grade with the adjacent streets, and contains a total land area of approximately 340,291 square feet according to the Lake County Assessor. The total leasable building area of the strip shopping center where the subject unit is located is approximately 79,774 square feet, of which approximately 12,900 square feet or 16.2% is physically and economically vacant. It is a brick and EIFS building with standing seam mansards, flat roof and storefront windows. There is an asphalt paved area for parking and drives. The south and west sides of the building are storefronts; the north and east sides face the rear service drive. There is one curb cut on Lake-Cook Road and one on Waukegan Road. The subject property is zoned C-2: Outlying Commercial District by the Village of Deerfield Zoning Ordinance. This zoning classification does not allow restaurants over 3,000 square feet in area as a matter of right, but only as a special use. The subject was established as a PUD in 1981 with a restriction on restaurant uses. Page 3 The subject shopping center contains a typical range of neighborhood retail businesses including among others a market, a salon, a pet care store, a mattress store, a fitness facility, a furniture store, and a painting studio/social occasion venue. Unlike most shopping centers in Lake County, the subject has no restaurant or similar retail service that sells prepared food or drink. The following is the subject’s site plan (north is at the left). Page 4 Subject area Commercial uses All four corners of the intersection of Lake-Cook Road and Waukegan Road are zoned C-2, Outlying Commercial District, making this a commercial gateway into Deerfield. In addition to the BP gas station (with c-store) and Just Tires store on the subject’s northeast corner, other uses at this intersection include a Subway, a Starbucks, and a pizza restaurant near the southwest corner (part of the much larger Deerbrook shopping center that is now under renovation); a Shell gas station at the northwest corner; a medical office building occupied by North Shore University Health System on the southeast corner. There are other commercial uses west along Lake-Cook Road, including a Luna flooring store, and along the west side of Waukegan Road, including a McDonald’s restaurant and a Bridgestone/Firestone tire-battery-accessory store. Institutional uses Immediately east of the subject’s southern portion is the campus of the North Suburban Evangelical Free Church, with a main chapel, offices, and meeting space. The office and meeting space portion is closest to the subject; the chapel is on the other side of the office and meeting space building from the subject. There is no connection between the church’s parking lot and the subject’s, and the church’s parking lot is elevated about five or six feet from the level of the subject’s with a grassy berm providing a slope between them. Residential uses North of the subject shopping center is the Deer Run subdivision with detached single-family homes built mostly in the 1980s. These homes are well removed from the vacant portion of the subject property where restaurant use is proposed. East of the subject center as a whole, and northeast of the vacant portion where restaurant use is proposed, is the Briarwood Vista subdivision with detached single-family homes built mostly in the 1960s. Most of these homes are well removed from the vacant portion of the subject property, but there are several homes on the west side of Evergreen Court, a cul de sac, that back up to the north-south service drive that runs along the east elevation of the subject property. The closest home to the vacant portion of the subject property where restaurant use is proposed is at 88 Evergreen Court. The distance from the point of this home’s lot closest to the northeastern most portion of the subject’s vacant space is about 85 feet. The distance from the home itself closest to the northeastern most portion of the subject’s vacant space is about 190 feet. Page 5 Market analysis Subject’s position in the market There are approximately 117 neighborhood and community shopping centers in Lake County, Illinois, including the subject. The subject and only four other centers lack restaurant or similar prepared food or beverage service tenancy; 112 of the 117 centers (95.7%) do have restaurants and similar tenants. We have appraised many shopping centers and find that restaurants and other retail food service stores are standard parts of a rational unit mix that has evolved in response to market demand. The subject’s lack of a restaurant places it apart from the mainstream for its property type. According to CoStar, the total direct vacancy rate for neighborhood and community shopping centers in Lake County, Illinois (including the subject) in the second quarter of 2017 is 9.6%. Within a three-mile radius of the subject, the total direct vacancy rate (excluding the subject) is 7.7%. Within the Village of Deerfield (excluding the subject), the total direct vacancy rate is 6.3%. The subject’s current vacancy rate is 16.2%, comprising the south portion of the property where a restaurant use is proposed. This is well above the rates for Deerfield, a 3-mile radius, and all of Lake County. A 5,000 square foot restaurant use would reduce vacancy at the subject to about 8.8%, increase retail sales taxes for the Village from the subject center, and potentially increase property taxes from the subject center (to the extent that vacancy is a factor in the assessor’s valuation). Methodology of Impact Study The following methodology was used as a framework to answer the question below. Will there be a discernable effect (positive, negative or neutral) on the market value of surrounding properties based on a Panera restaurant (or similar type of operator) occupying a portion or portions of the southern 12,900 square feet of the subject property? The appraisers identified and researched three strip centers in Lake County that had both restaurant and other retail components and were located adjacent to established housing subdivisions. The appraisers then researched property sales within the subdivisions and split the sales into a control group and a target group. The control group was located within the subdivision, but did not back up to the retail centers. The target group was located within the subdivisions and did back up to the retail centers. Once the two groups were established the average selling prices of the two groups were analyzed on the following three units of measure. 1) Average aggregate sale price 2) Average price PSF of gross living area 3) Average price PSF of countable rooms area The three subdivisions that were analyzed follow. Page 6 Poet’s Corner/SEQ Deerfield Road/Waukegan Road In the late 1990s the intersection of Deerfield Road and Waukegan Road at the city center was significantly improved with new buildings and roadway facilities. The southeast quadrant of this intersection has commercial property along the east side of Waukegan Road and the south side of Deerfield Road. There is a Starbucks and a Chipotle on Deerfield Road and a Baskin Robbins on Waukegan Road. The detached single-family residential subdivision long known as Poet’s Corner lies south and east of these commercial improvements. The homes were built mostly in the 1940s, 1950s, and 1960s. Some of these homes back up directly to the rear parking and service drive areas of the commercial uses on Waukegan and Deerfield Roads. We considered these as the “target” area, and the homes further away in the subdivision as the “control” area. In order to find sufficient sales in the control area sales were considered back to September 2010. A total of 30 arm’s-length home sales from September 2010 through June 2017. The control area had 22 home sales; the target area 8 home sales. The group of target area sales sold relatively further back in time than the group of control area sales. Therefore, the target area sales were adjusted moderately for time based on the rate of appreciation in Deerfield. The sales are compared below on three units of measure: average aggregate price, average price per square foot of gross living area, and average price per square foot of countable rooms area (the sum of the areas of the rooms that are “countable” under MLS rules, such as living, dining, and bedrooms, kitchens, office areas, dens, and family rooms, but not bathrooms, laundry rooms, or foyers). The following table summarizes this information. Average aggregate sale price Average price PSF of gross living area Average price PSF of countable rooms area Control area $298,932 $213.59 $311.76 Target area $324,671 $209.70 $315.52 The aggregate price analysis indicates that the average target area price is higher than the average control area price. The square foot analyses account for differences in size, and shows that the market is indifferent to the close proximity of the 8 target area homes to the service areas of Baskin Robbins, Chipotle, and Starbucks. We conclude that this proximity caused no discernable negative impact on the market value of the target area homes as illustrated by their sale prices. Page 7 Inverrary/NWQ Milwaukee Avenue/Inverrary Lane This subdivision of townhomes built in the 1970s is in unincorporated Deerfield west of the subject near Buffalo Grove. The eastern extent of the subdivision backs up to the rear of the River Run Plaza shopping center. This center includes the following restaurant and food service tenants: 7-Eleven, Rosati’s Pizza, Café Mistiko, Sushi Wakaba, Bobo’s Gyros, and Indian Flavor, along with a Foremost Liquors store. Some of the attached single-family homes in this subdivision homes back up directly to the River Run center. We considered these as the “target” area, and the homes further away in the subdivision as the “control” area. There were a total of 11 arm’s-length home sales from January 2016 through July 2017. The control area had 7 home sales; the target area 4 home sales. The group of target area sales sold in a time period overlapping that of the group of control area sales, so no time adjustment was necessary. The sales are compared below on three units of measure: average aggregate price, average price per square foot of gross living area, and average price per square foot of countable rooms area (the sum of the areas of the rooms that are “countable” under MLS rules, such as living, dining, and bedrooms, kitchens, office areas, dens, and family rooms, but not bathrooms, laundry rooms, or foyers). The following table summarizes this information. Average aggregate sale price Average price PSF of gross living area Average price PSF of countable rooms area Control area $226,171 $157.91 $267.33 Target area $244,750 $161.04 $273.95 The aggregate price analysis indicates that the average target area price is higher than the average control area price. The square foot analyses account for differences in size, and shows that the market is indifferent to the close proximity of the 4 target area homes to the service areas of five restaurants, a liquor store, and a convenience store. We conclude that this proximity caused no discernable negative impact on the market value of the target area homes as illustrated by their sale prices. Page 8 Cambridge Plaza/NEQ Milwaukee Avenue/Valley Park Drive This subdivision of single-family homes built in the 1940s, Copeland Manor, is in Libertyville north of the subject. The western extent of the subdivision backs up to the rear of the Cambridge Plaza shopping center. This center includes the following restaurant and food service tenants: Panera Bread, Ginos’ East Pizzeria, Bagels by the Book, Hong Kong Chop Suey, and Tacos El Rey de Oro. Some of the detached single-family homes in this subdivision homes back up directly to the Cambridge Plaza center. We considered these as the “target” area, and the homes further away in the subdivision as the “control” area. A total of 11 arm’s-length home sales were found from August 2015 through June 2017. The control area had 8 home sales; the target area 3 home sales. The group of target area sales sold in a time period overlapping that of the group of control area sales, so no time adjustment was necessary. The sales are compared below on three units of measure: average aggregate price, average price per square foot of gross living area, and average price per square foot of countable rooms area (the sum of the areas of the rooms that are “countable” under MLS rules, such as living, dining, and bedrooms, kitchens, office areas, dens, and family rooms, but not bathrooms, laundry rooms, or foyers). The following table summarizes this information. Average aggregate sale price Average price PSF of gross living area Average price PSF of countable rooms area Control area $325,313 $260.38 $392.50 Target area $312,333 $263.54 $400.21 The aggregate price analysis indicates that the average control area price is higher than the average target area price. The square foot analyses account for differences in size, and shows that the market is indifferent to the close proximity of the 3 target area homes to the service areas of five restaurants. We conclude that this proximity caused no discernable negative impact on the market value of the target area homes as illustrated by their sale prices. Page 9 Final Conclusion The analysis of three different sets of target and control area sales of homes near existing restaurants in commercial retail areas indicates that such proximity caused no discernable negative impact on the market value of the target area homes. We have also considered broker’s comments in their listing of homes in Poet’s Corner wherein 11 of the 30 sales explicitly referenced proximity to restaurants as a positive feature for the home; this included four homes in the target area. For the reasons stated above, it our opinion that the occupancy and use of a portion or portions of the southern 12,900 square feet of the subject shopping center by a Panera restaurant or similar type of operator would have no discernable effect on the market value of surrounding properties. Page 10 CERTIFICATION The undersigned do hereby certify that to the best of our knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions in this report are limited only by the assumptions and limiting conditions, stated in this report and represent the personal, impartial and unbiased professional analyses, opinions, and conclusions of the undersigned. We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to any of the parties involved. We have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. We have not previously appraised this property or provide any other services in connection with this property in the three years prior to this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Our reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute which include the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized agents. As of the date of this report, Kevin A. Byrnes, MAI and Clinton Wallace, MAI, have completed the continuing education program for Designated Members of the Appraisal Institute. The following persons from among the undersigned have made a personal inspection of the property that is the subject of this report on the date(s) indicated: Kevin A. Byrnes on June 28, 2017 and July 8, 2017 No one other than the undersigned provided significant professional assistance in the preparation of this appraisal report. The undersigned has caused these statements to be signed and attested to on July 12, 2017. Kevin A. Byrnes, MAI Certified General Real Estate Appraiser Illinois License No. 553.000886 Expires 9/30/17 Clinton J. Wallace, MAI Certified General Real Estate Appraiser Illinois License No. 553.001590 Expires 9/30/17 Page 11 Addenda Page 12 Supplemental Market Analysis The following analysis was conducted on the subdivision immediately east of the subject property. The analysis was completed in order to determine if the homes immediately adjacent to the subject property were currently negatively impacted by the subject’s existing improvements. This research was done to establish a baseline for the value of homes adjacent to the subject’s existing improvements. Briarwood Vista subdivision We researched sales of single-family homes in Briarwood Vista going back 12 months from the date of this report. We found 12 sales that closed from July 22, 2016 through May 12, 2017. 88 Evergreen Court, a 2,202 square foot two-story home built in 1962, and located closest to the subject shopping center and the portion proposed for restaurant use, sold in September 2016 for $555,000 or $252.04 per square foot. The other 11 homes, which reflected a range of age, size, condition, and amenities commensurate with 88 Evergreen Court, sold in a range from $380,000 to $590,000; the subject’s aggregate price was the third highest in this subdivision in the last year. The 12 homes (including the subject) also sold on a unit price basis from $163.51 per square foot to $252.04 per square foot, with the high end represented by the sale of 88 Evergreen Court. This data and analysis indicates that the proximity of 88 Evergreen Court to the subject shopping center as currently tenanted caused no discernable negative impact on its market value as illustrated by its sale price. By extension, this indicates that such proximity has no discernible impact of the market values of the other homes on Evergreen Court that back up to the subject shopping center. Page 13 Subject Photos Page 14 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS This consulting report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is considered free and clear of any or all liens or encumbrances unless otherwise stated in the body of the report. 3. Responsible ownership and competent property management are assumed. 4. Any information provided by others is believed to be reliable, but no warranty is given as to its accuracy. 5. All engineering studies, to the extent they have been provided, are assumed to be correct. Any plot plans or illustrative material in this report are included only to help the reader visualize the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the consulting report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a nonconformity has been identified, described, and considered in the consulting report. 9. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 10. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation and other potentially hazardous materials may affect the value of the subject property. The consulting opinion is predicated on the assumption that there is no such material on or in the property. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The intended user of this report is urged to retain an expert in this field, if desired. Page 15 The consulting report has been made with the following general limiting conditions: 1. Possession of this report does not carry with it the right of commercial publication. 2. The appraiser, by reason of this consulting report, is not required to give further consultation or testimony or to be attendance in court with reference to the subject property unless arrangements have been made previously. 3. Any consulting opinion provided in this report applies to the entire property, and any proration or division of the total into fractional interests by other experts does not imply any agreement or responsibility for such prorations or divisions by the appraiser. 4. The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey or analysis of the property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property and a detailed analysis of the requirements of the ADA might reveal a lack of compliance with one or more requirements of the act. Since the appraiser has no direct evidence relating to this issue, compliance with the requirements of the ADA was not considered. Page 16 PROFESSIONAL BIOGRAPHY CLINTON ‘JOE’ WALLACE, MAI EDUCATION J.L. Kellogg Graduate School of Management, Northwestern University Master of Business Administration with concentrations in Finance and Management Strategy • Dean’s List • Graduated with Distinction University of Illinois – Champaign Campus • Bachelor of Science in General Engineering • Dean’s List North Central College • Bachelor of Science in Business Administration and Science • Dean’s List • Varsity Soccer PROFESSIONAL AFFILIATIONS • Member of the Appraisal Institute (2002 to Present) o Instructor for the Appraisal Institute, Income Capitalization (2017 to Present) o Instructor for Chicago Chapter Appraisal Institute Seminars (2010 to Present) o Designated Member, MAI, Appraisal Institute (2007 to Present) o Volunteer of Distinction Award Winner for Appraisal Institute Chicago Chapter (2016) o Board of Director: Chicago Chapter Appraisal Institute (2006-2008) o Member, LDAC – Leadership Development and Advisory Council (2006- 2008) o Distinguished Service Award Winner for Appraisal Institute Chicago Chapter (2008) • Member, Illinois Coalition of Appraisal Professionals (2002 to Present) • Member, Realtor Association of Northwest Chicagoland (2002 to Present) PROFESSIONAL QUALIFICATIONS • MAI designation with Appraisal Institute • Illinois Certified Real Estate Appraiser – 553.001590 – Expiration 9/30/2017 • FHA-Certified • Qualified as expert witness in Chicago Zoning Board of Appeals • Qualified as expert witness in Cook County Circuit Court Page 17 PROFESSIONAL EXPERIENCE PF Appraisals, Incorporated, Chicago, IL (2001-present) Responsible for the overall company strategy and corporate results. PF Appraisals has had fourteen continuous years of volume and revenue growth. This growth is due to PF Appraisals’ ability to continually deliver superior customer service and superior market insight. Founder, CEO • Demonstrated firm wide competency in appraising many types of residential and commercial properties including: apartment buildings, proposed residential developments, office buildings, neighborhood retail centers, mixed-use (retail/office), mixed-use (retail/apartments). • Led PF Appraisals’ executive officers into real estate development as a diversification strategy. PF Appraisals’ Executive Officers now own several commercial properties including mixed-use and apartment buildings. • Defined target market consisting of best-in-class law firms, banks and mortgage companies. • Certified general appraiser with the States of Illinois. Kraft Foods, Glenview, IL (1998-2000) The Marketing Director for the Kraft Singles Category ($1 billion plus in revenue) reorganized the department so that every brand was given direct marketing support. My role in the category was to aggressively grow the Better for You Singles Brands via building brand equity, securing new distribution channels and launching new better for you products. Assistant Brand Manager, KRAFT Better for You Singles • Set the strategic direction and defined the target market for KRAFT 2% Singles and FAT FREE Singles. • Delivered over $150 million in revenue for 1999, which exceeded expectations by 10%. • Led a cross functional team in the successful development and launch of Kraft 2% Singles Flavors (Cheddar and Swiss). The two new products exceeded expectations on taste versus competition, time to market, total distribution points and volume projections. The entire team won ABCD awards from the division along with a cash bonus. • Developed brand plans in support of a $15 million advertising and promotional budget. Analyzed market research data to optimize the previous marketing mix which resulted in greater reach and frequency for the brands. • Led sales, finance and market research team members in the development of new sales material for the mass merchandise channel. Able to get KRAFT 2% Singles distribution into Sam’s Club and Costco. Page 18 APPRAISAL EXPERIENCE Certified General Appraiser with experience valuing real property along with providing litigation support and expert testimony. PROPERTY TYPES ANALYZED Apartment Buildings Distribution Centers Multi-Family Commercial Buildings Income Properties Office Buildings Community Shopping Centers Industrial Buildings Special Use Properties Condominiums LIHTC properties (proposed/built) Subdivision Analysis Condominium Conversions Manufacturing Buildings Town homes Cooperatives Manufactured Housing Communities Vacant Land- Residential Day Care Facilities Mixed-Use (retail and apartments) Vacant Land- Commercial Detached Single Family Mixed-Use (retail and office) Warehouse Buildings APPRAISAL COURSEWORK Course No. Description Provider 110 Appraisal Principals Appraisal Institute 120 Appraisal Procedures Appraisal Institute 210 Residential Case Study Appraisal Institute 310 Basic Income Capitalization Appraisal Institute 410 Standards of Professional Practice A & B Appraisal Institute 510 Advanced Income Capitalization Appraisal Institute 520 Highest & Best Use and Market Analysis Appraisal Institute 530 Advanced Sales and Cost Approaches Appraisal Institute 540 Advanced Income Capitalization Appraisal Institute 550 Advanced Applications Appraisal Institute IL VI Residential Report Writing Appraisal Institute IL VII Non- Residential Report Writing NAIFA On-Line Business Practices and Ethics Appraisal Institute Conf. Instructor Leadership and Development Appraisal Institute Conf. Leadership Development Council Appraisal Institute 700 Appraiser as an Expert Witness Appraisal Institute 705 Litigation Appraising: Specialized Topics Appraisal Institute Various Numerous Seminars Appraisal Institute Page 19 PROFESSIONAL BIOGRAPHY Kevin A. Byrnes, MAI Founding member of Byrnes & Walsh, LLC, a real estate appraisal and consulting firm in Oak Brook, Illinois. EXPERIENCE • Active commercial real estate appraiser since 1990. • Appraisal, review, and consulting services for a wide array of properties including development sites, large distribution warehouses, factories, landfills, apartment complexes, cooperative apartments, condominium residences, single family homes, regional malls, retail shopping centers, department stores, restaurants, hotels, corporate headquarters, office complexes, golf courses, nuclear power stations, petroleum refineries, automobile racetracks, airport terminals, hangars, and related structures, landmark buildings, churches, schools, theaters, and other special use properties. Consulting assignments include the formerly proposed Lake Calumet Airport, which had a land area of over 11,000 acres. • Appraisals, appraisal reviews, and evaluations of commercial, industrial, residential, and special purpose properties for mortgage, acquisition, leasing, insurance, subrogation, ad valorem assessment, arbitration, condemnation, right of way, bankruptcy, estate, divorce, zoning, conservation easement, mortgage fraud, construction defects, and other litigation purposes. • Assignments performed in Illinois, Colorado, Florida, Georgia, Indiana, Iowa, Kansas, Michigan, Missouri, Nebraska, New York, Ohio, South Carolina, Tennessee, Texas, and Wisconsin. • Assignments include most of the major office, retail, and hotel properties in the central business district of Chicago. • Before 1990, active as a residential sales agent in the southwest suburbs of Chicago. LICENSES • Illinois Certified General Real Estate Appraiser, expiration September 30, 2017 • Indiana Certified General Appraiser, expiration June 30, 2018 • Iowa Certified General Real Property Appraiser, expiration June 30, 2018 • Michigan Certified General Real Estate Appraiser, expiration July 31, 2018 Page 20 EXPERT QUALIFICATIONS Qualified and testified as an expert witness in the following forums: • U.S. Bankruptcy Court for the Northern District of Illinois • Circuit Court of Cook County • Circuit Court of Lake County • Circuit Court of Will County • Zoning Board of Appeals of the City of Chicago • Zoning Board of Appeals of Cook County • Zoning Board of Appeals of DuPage County • Illinois Property Tax Appeal Board • Illinois Pollution Control Board • Cook County Board of Review • DuPage County Board of Review • Madison County (IL) Board of Review • Arbitration PROFESSIONAL DESIGNATIONS AND AFFILIATIONS • MAI, Appraisal Institute • Appraisal Institute, Experience Screener and Demonstration Report Grader • Chicago Chapter of the Appraisal Institute, Board of Directors, 2013-2015; Chapter Secretary, 2015; Chapter Treasurer, 2016; Chapter Vice-President, 2017 • National Association of Review Appraisers and Mortgage Underwriters, Certified Review Appraiser (CRA) • CCIM Institute, Associate Member • International Association of Assessing Officials, Associate Member • Illinois Coalition of Appraisal Professionals, Member • National Association of Realtors, Member • Chicago Association of Realtors, Member • Greater Northwest Indiana Association of Realtors, Member • International Council of Shopping Centers, Member AWARDS • Chicago Chapter of the Appraisal Institute, Distinguished Service Award, 2012 • Chicago Chapter of the Appraisal Institute, Herman O. Walther Award, 2013 • Appraisal Institute, Volunteer of Distinction, Region III, June 2015 • Chicago Chapter of the Appraisal Institute, President’s Award, 2017 Page 21 EDUCATION • Bachelor of Arts, University of Notre Dame, 1976 • Master of Arts, University of Chicago, 1988 • Appraisal Institute: Courses (passed all examinations)  7-Hour National USPAP Update (every two years)  Real Estate Appraisal Principles  Basic Valuation Procedures  Standards of Professional Practice, Part A (USPAP)  Standards of Professional Practice, Part B  Capitalization Theory & Techniques, Part A  Capitalization Theory & Techniques, Part B  Highest & Best Use and Market Analysis  Advanced Sales Comparison & Cost Approaches  Advanced Applications  Report Writing and Valuation Analysis  Business Practices and Ethics  Comprehensive examination, all 4 modules Seminars (representative selection)  Analyzing Operating Expenses  Anticipating the Cross Examination of your Appraisal in the Tax Appeal Process  Appraisal Review - Income Properties  Appraising From Blueprints and Specifications  Capital Market Conditions and the Impact on Real Estate  Conditions of the Chicago Real Estate Market  Fair Lending and the Appraiser  General Demonstration Appraisal Report Writing  Indiana Statutes & Rules  Lease Abstracting and Analysis  Michigan Law Update  New Housing in a Declining Market  Internet Search Strategies for R.E. Appraisers  Small Hotel/Motel Valuation  USPAP Update 2003 - Standards and Ethics for Professionals  Valuation & Litigation Services SIG Kick-Off  When Good Houses Go Bad Page 22 PUBLICATIONS AND PRESENTATIONS • “The Valuation of Landfills for Ad Valorem Assessment,” Journal of Property Tax Management, Summer 1995 (with Michael J. Kelly). • “Reviewing Appraisals for Tax Appeal Purposes,” presented at November 2000 Real Estate Expo in Las Vegas. • “The Basics of Understanding and Analyzing Commercial and Residential Real Estate Valuation Reports,” presented at Chicago Bar Association, Young Lawyers Section, April 2002. • “The Appraiser’s Role as an Expert,” presented at Eminent Domain in Illinois, Hoffman Estates, Illinois, March 10, 2006 and May 15, 2007. • “Use of Experts,” presented at Eminent Domain Update 2006, Springfield, Illinois, November 9, 2006. • “Conditions of the Chicago Real Estate Market,” moderator; Chicago Chapter of the Appraisal Institute, Chicago, Illinois, August 29, 2012; May 1, 2013; May 28, 2014; March 12, 2015; March 10, 2016; May 23, 2017 • “Nuts and Bolts of a Property Tax Hearing,” moderator and participant; Chicago Chapter of the Appraisal Institute, Chicago, Illinois, April 3, 2009; October 24, 2016 • “Loop Historic and Modern Architecture & Geography Walking Tour,” Instructor, May 10, 2017 Page 23 Representative list of properties appraised Office Sears/Willis Tower (multi-tenant office), Chicago, Illinois Aon Center (multi-tenant office), Chicago, Illinois John Hancock Building (multi-tenant office, retail, parking), Chicago, Illinois One First National Plaza/Chase Tower (multi-tenant office), Chicago, Illinois One and Two Prudential Plaza (multi-tenant office), Chicago, Illinois Citadel Center, 131 S. Dearborn St. (multi-tenant office), Chicago, Illinois One Financial Place, 440 S. LaSalle St. (multi-tenant office), Chicago, Illinois 111 North Canal St. (multi-tenant office), Chicago, Illinois 120 S. LaSalle St. (multi-tenant office), Chicago, Illinois 181 W. Madison St. (multi-tenant office), Chicago, Illinois 222 S. Riverside Plaza (multi-tenant office), Chicago, Illinois 221 N. LaSalle St. (multi-tenant office), Chicago, Illinois 310 South Michigan Avenue (multi-tenant office), Chicago, Illinois 311 S. Wacker Drive (multi-tenant office), Chicago, Illinois Elmhurst Metro Court (multi-tenant office), 747 Church Street, Elmhurst, Illinois 2500 Ridge (multi-tenant office), Evanston, Illinois Sears Merchandise Group (single-tenant headquarters), Hoffman Estates, Illinois Eisenhower Tower (multi-tenant office), Maywood, Illinois Combined 400 Center (multi-tenant office), Northbrook, Illinois Allstate Corporate Headquarters (single-tenant headquarters), Northbrook, Illinois Kraft General Foods Corporate Headquarters (single-tenant headquarters), Northfield, Illinois Butterfield Office Plaza (multi-tenant office), Oak Brook, Illinois First Bank of Oak Park (bank/office building), Oak Park, Illinois 1901 Meyers Road (multi-tenant office), Oakbrook Terrace, Illinois Caterpillar Headquarters (single-tenant headquarters), Peoria, Illinois Harmswood Office Center (multi-tenant office), Skokie, Illinois Atlanta Financial Center (multi-tenant office), Atlanta, Georgia 101 Marietta (multi-tenant office), Atlanta, Georgia City Center Square (multi-tenant office), Kansas City, Missouri Hotel Avenue Motel, Chicago, Illinois Days Inn Midway Airport, Chicago, Illinois Doubletree North Shore, Skokie, Illinois Drake Hotel, Chicago, Illinois Fairmont Hotel, Chicago, Illinois Four Seasons Hotel, Chicago, Illinois Hilton O’Hare Hotel, Chicago, Illinois Holiday Inn, Muscatine, Iowa Hotel Inter-Continental, Chicago, Illinois Hyatt Regency Hotel, Chicago, Illinois Knickerbocker Hotel, Chicago, Illinois McCormick Inn, Chicago, Illinois Park Hyatt Hotel, Chicago, Illinois Ramada/O’Hare, Rosemont, Illinois Raphael Hotel, Chicago, Illinois Rodeway Inn, Chicago, Illinois Trump International Hotel & Tower, Chicago, Illinois Westin Hotel North Michigan Avenue, Chicago, Illinois Page 24 Representative list of properties appraised (cont’d.) Industrial 4500 Kishwaukee (600,000 SF), Rockford, Illinois ADM Corn Plant (2,330,000 SF), Clinton, Iowa Americold Cold Storage (420,000 SF), Bettendorf, Iowa Boeing Precision Gear (200,000 SF), Bedford Park, Illinois Calumet Business Center (12 building park), Chicago, Illinois Cargill Grain Elevator, Chicago, Illinois Clorox (160,000 SF), Chicago, Illinois Continental Envelope (284,000 SF), Chicago, Illinois Fulton/Carroll Center (353,000 SF), Chicago, Illinois General Motors Electro-Motive Division (3.5 million SF), McCook, Illinois Milk Marketing, Inc. (100,000 SF), New Bremen, Ohio Montgomery Ward Warehouse (160,000 SF), Berkeley, Illinois Nabisco (1,500,000 SF), Chicago, Illinois Northwestern Steel (4,000,000 SF), Sterling, Illinois Osco Warehouse (260,000 SF), Alsip, Illinois Plymouth Industrial Center (500,000 SF), Wayne County, Michigan Rohm & Haas Plant (340,000 SF), Chicago Heights, Illinois Solo Cup (185,000 SF), Urbana, Illinois Vienna Beef, 2501 N. Damen, Chicago, Illinois Retail 900 N. Michigan Avenue (including 1,700 space parking facility), Chicago, Illinois Water Tower Place, Chicago, Illinois Lincolnwood Town Center, Lincolnwood, Illinois Old Orchard Shopping Center, Skokie, Illinois SouthPark Mall, Moline, Illinois Merle Hay Mall, Des Moines, Iowa West Ridge Mall, Topeka, Kansas Promenade Shops at Centerra, Loveland, Colorado Brickyard Mall, Chicago, Illinois Washington Square Mall, Homewood, Illinois Chatham Ridge Shopping Center, Chicago, Illinois Lighthouse Place, Michigan City, Indiana Carson Pirie Scott State Street Store, Chicago, Illinois Marshall Field State Street Store, Chicago, Illinois Neiman Marcus North Michigan Avenue Store, Chicago, Illinois Saks North Michigan Avenue Store, Chicago, Illinois Burberry Store (air rights), North Michigan Avenue, Chicago, Illinois Venture Store, Countryside, Illinois J.C. Penney Store, Calumet City, Illinois Sears Store, Moline, Illinois Younkers Store, Des Moines, Iowa Montgomery Ward Store, Matteson, Illinois Walgreen stores, Chicago, Illinois Walgreen store, Middleton, Wisconsin CVS stores, Chicago, Illinois Jewel Food Store, Springfield, Illinois Eagle store, Montgomery, Illinois Hard Rock Café, Chicago, Illinois Michael Jordan’s Restaurant, Chicago, Illinois 111 W. 2nd, Elmhurst, Illinois Page 25 Representative list of properties appraised (cont’d.) Dragon Light restaurant, Crest Hill, Illinois Hacienda restaurant, Michigan City, Indiana Wendy’s restaurant, Downers Grove, Illinois Buona Beef, Lombard, Illinois Residential 6 Raintree (single-family home), Barrington Hills, Illinois 523 Grant Place (single-family home), Chicago, Illinois 1258 North Lake Shore Drive (single-family home), Chicago, Illinois 23310 Shorelane (single-family home), Elkhart, Indiana 2237 Sherman Avenue (single-family home), Evanston, Illinois 845 Stratford Avenue (single-family home), Elmhurst, Illinois 455 Fairview, Elmhurst, Illinois 77 Wentworth (single-family home), Glencoe, Illinois 88 Linden (single-family home), Glencoe, Illinois 380 Lakeside Terrace (single-family home), Glencoe, Illinois 10 S 020 Lakewood (single-family home), Hinsdale, Illinois 300 E. 8th Street (single-family home), Hinsdale, Illinois 640 Mayflower (single-family home), Lake Forest, Illinois 1255 Green Bay Road (single-family home), Lake Forest, Illinois 1451 Green Bay Road (single-family home), Lake Forest, Illinois 3360 West Albion (single-family home), Lincolnwood, Illinois 106 Arndt (single-family home), Michigan City, Indiana 11696 Marquette (single-family home), New Buffalo, Michigan 11321 Norwich Lane (single-family home), Orland Park, Illinois Wychwood (single-family estate), Lake Geneva, Wisconsin 114 Park (single-family home), Twin Lakes, Wisconsin 715 Sheridan Road (single-family home), Winnetka, Illinois 1130 North Lake Shore Drive (cooperative apartment unit), Chicago, Illinois 199 East Lake Shore Drive (cooperative apartment unit), Chicago, Illinois 209 East Lake Shore Drive (cooperative apartment unit), Chicago, Illinois Drake Tower (cooperative apartments), Chicago, Illinois 600 N. Lake Shore Drive (condominium unit), Chicago, Illinois 2400 N. Lakeview (condominium unit), Chicago, Illinois 1867 N. Winnebago (condominiums – air rights), Chicago, Illinois Wynstone (single-family subdivision), North Barrington, Illinois Katy Crossing (single-family subdivision), Georgetown, Texas Blackwood Apartments (elevator building), Chicago, Illinois Turnberry Village Apartments (garden apartment complex), Lakewood, Illinois Sunset Lake Apartments (garden apartment complex), Justice, Illinois Fairhaven Christian Retirement Center (congregate care facility), Rockford, Illinois Arden Court of South Holland (senior housing), South Holland, Illinois The Mather (senior housing), Evanston, Illinois Wagner Nursing Home, Evanston, Illinois Vacant Land 580 acres near Round Lake Beach, Illinois 200 acres near 218th & Governor’s Highway, Matteson, Illinois 75 acres near I-57, 175th & Cicero, Country Club Hills, Illinois 70 acres in Three Oaks, Michigan 60 acres in Northbrook, Illinois 25 acres south of Congress Street, downtown Chicago, Illinois Page 26 Representative list of properties appraised (cont’d.) 11 acres next to the Chicago River at Wells & Harrison (Franklin Point), Chicago, Illinois 5-acre single-family residential site, 1201 W. 35th Street, Oak Brook, Illinois Hub site for Federal Express with runway access, Alliance, Texas 64,000 SF underneath the Drake Hotel (ground rental value), Chicago, Illinois 63,000 SF site for One North Wacker (proposed office building), Chicago, Illinois 42,000 SF site at 7 S. Dearborn (proposed world’s tallest building), Chicago, Illinois Franklin Point, Chicago, Illinois 10 E. Lake Street (air rights), Chicago, Illinois Single residential lots across the City of Chicago for the City’s Department of Economic Development Other property types Clark Hartford Oil Refinery, Hartford, Illinois Shell Wood River Oil Refinery, Wood River, Illinois Apex Oil Tank Farm, Stickney, Illinois Sunset Ridge Golf Club, Northfield, Illinois Klein Creek Golf Course, Winfield, Illinois Evergreen Golf Course, Evergreen Park, Illinois Spring Creek Golf Club, east Shelby County, Tennessee Union Station parking deck, Chicago, Illinois Commonwealth Edison Byron Nuclear Station, Byron, Illinois Commonwealth Edison Dixon Hydroelectric Dam, Dixon, Illinois Canadian Pacific Bensenville Yard, Bensenville, Illinois Union Pacific Railroad rights of way, Chicago, Illinois GE Nuclear Reprocessing Plant, Grundy County, Illinois United Airlines Terminals, O’Hare Airport (exclusive use area), Chicago, Illinois Terminal Five, O’Hare Airport (exclusive use concessions areas), Chicago, Illinois Midway Airport (all hangars and FBOs), Chicago, Illinois 360 Chicago (John Hancock Building Observatory), Chicago, Illinois Biograph Theater, Chicago, Illinois Chicago Theater, Chicago, Illinois Pritzker Pavilion/Harris Theater, Chicago, Illinois Wrigley Field, Chicago, Illinois Marillac High School, Northfield, Illinois Archbishop’s Residence, 1555 N. State Parkway, Chicago, Illinois Mt. Sinai Baptist Church, Chicago, Illinois St. Boniface Church, Chicago, Illinois St. Gelasius Church, Chicago, Illinois Greater New Jerusalem Temple of Truth Church, Indianapolis, Indiana Waste Management Wheatland Landfill, Will County, Illinois Chemical Waste Management CID Landfill, Calumet City, Illinois Hartgrove Hospital (psychiatric hospital), Chicago, Illinois Garfield Park Hospital (psychiatric hospital), Chicago, Illinois Exhibit E