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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. -2- 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. 2 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 -3-