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HomeMy WebLinkAbout05/21/20251 COMMITTEE OF THE WHOLE – Meeting Minutes May 21, 2025 The Village Board met as a Committee of the Whole in the Council Chambers of the Village Hall at 7:00 p.m. on Wednesday, May 21, 2025. In attendance were: PRESENT: Village Board Staff Dan Shapiro, Mayor Kent Street, Village Manager Bob Benton, Trustee Andrew Lichterman, Deputy Village Larry Berg, Trustee Manager/Director Community Development Jennifer Goldstone, Trustee John Sliozis, Chief of Police Jesse Greenberg, Trustee Chris Fry, Deputy Chief of Police Elaine Jacoby, Trustee Robert Phillips, Director of PW and Eng. Mary Oppenheim, Trustee Tyler Dickinson, Asst. Dir. of PW and Eng. Justin Keenan, Asst. to the Village Manager Hannah Saed, Village Attorney David Fitzgerald-Sullivan, Comm. Coord. Public Comment There were no public comments on non-agenda items. Business 1. Discussion of Regulations re: THC Products Village Manager Kent Street began the discussion with an overview of the proposed ordinance. He noted the Village Attorney’s office has included the changes from previous Committee of the Whole meetings regarding this topic. Mr. Street stated a prohibition on 7-Hydroxymitragynine (7-OH) products has been added to the section prohibiting the sale of kratom products. The proposed ordinance permits the sale and possession of Delta-9 THC products to individuals aged 21and over. Section four of the proposed ordinance also states that sales will be limited to packaged liquor stores possessing a Class A Liquor License and licensed cannabis dispensaries. Mr. Street noted that edible Delta-9 THC products would need to be stored behind the sales counter. He also pointed out there is a graduated fine schedule for first, second and third violations. Mayor Shapiro noted the definition of packaged liquor store specifically states that does not include convenience stores, grocery stores or pharmacies. Trustee Jacoby asked if sales of approved THC products would be permitted at restaurants. Mr. Street stated that the proposed ordinance would not permit sales at restaurants at this time, but that could be considered in the future if a restaurant made that request. The Board discussed the potential for these products to be used by people operating a motor vehicle. Mr. Street noted that driving while impaired is a criminal act. Chief Sliozis stated future state regulations could change the regulations regarding Delta-9 THC products. Mayor Shapiro pointed out a recent Wall Street Journal article which detailed the increasing prevalence of THC beverages on the market. 2 Trustee Berg asked if other municipalities are prohibiting the sale of these THC products. Mr. Street stated a handful of other municipalities are examining the issue and that most are waiting for the state to pass regulations. Village Attorney Hannah Saed stated Highland Park and Waukegan have passed ordinances regulating Delta-9 THC products and numerous other municipalities have prepared draft ordinances for future consideration. Chief Sliozis stated the Police Department is examining the possible effects these products will have on the drug free workplace policy. Trustee Greenberg asked if use of these products would show up on a drug test the same way a cannabis product would. Chief Sliozis stated that due to the recent innovation of synthetic THC products there are still many unanswered questions in regards to drug testing. Trustee Berg asked if there would be an exemption for someone with a medical marijuana card. Chief Sliozis replied that there would not be an exemption due to the policy’s restriction. Trustee Greenberg asked if management at the Curaleaf dispensary has been asked about their opinion on the sale of these products. Deputy Village Manager Lichterman noted the Village did reach out to the dispensary’s management, but did not receive a reply. Trustee Greenberg asked how the specific regulations requiring products containing THC to be clearly labeled would be enforced. Mr. Lichterman stated that any business in violation of the proposed regulations would be jeopardizing their liquor license and that the Police Department would be responsible for enforcement. Trustee Berg asked if the cannabis dispensary is included in the definition of businesses permitted to sell Delta-9 THC products. Mr. Street noted section 7-4 of the proposed ordinance states that the sale of Delta-9 THC products to packaged liquor stores and cannabis dispensaries. Mayor Shapiro asked if the Board would prefer to hold one or two readings of the proposed ordinance. The Board agreed to bring the ordinance to the June 2, 2025, Board of Trustees meeting for a single reading. Ms. Saed stated the effective date of the ordinance would be 10 days after passage due to fines being associated with violations. Trustee Jacoby asked how the regulations would be communicated to businesses within the village. Mr. Street noted staff will prepare a communication plan with targeted outreach to businesses detailing the regulations and fines for violations. 2. Discussion of Local Grocery Tax Director of Finance Eric Burk reported to the Board about the expiring state grocery tax. He stated that if the one percent grocery tax is allowed to lapse it could result in $500,000 shortfall. Several other neighboring communities have passed their own local grocery tax to fill the gap left by the state’s tax expiring. Mr. Burk noted that the Village will need to pass an ordinance and file it with the Illinois Department of Revenue before October 2025 for it took go into effect in 2026. Mr. Street noted the property tax levy provides 15 percent of the Village’s revenue and sales tax provides 20 percent and that land use decisions have been made with this in mind. The Village’s commercial tax base is about 25% of the property tax base which helps to support the schools. He stated the grocery tax is a revenue stream that the Village counts on. Ms. Saed provided a definition from the Municipal Grocery Occupation Tax Law stating which goods are considered groceries. Groceries are considered as food for human consumption that is to be consumed off the remises where it is sold, other than alcoholic beverages, food consisting of or infused with adult cannabis, soft drinks, candy, and food that has been prepared for immediate 3 consumption. Trustee Oppenheim noted that if the Village were to institute a one percent tax that would replace the state’s one percent tax, consumers would not be charged any more than they currently are. Trustee Greenberg pointed out the state has passed the issue on to local governments and he supports the Village collecting the grocery tax. Mr. Burk stated that he knows of two municipalities that are not instituting a local grocery tax and that they are instituting a home rule sale tax instead. Mr. Street noted that the Village of Bensenville held a referendum on a local grocery tax, which did not pass. The Board agreed to draft an ordinance to institute a local grocery tax. Mr. Street stated an ordinance will be brought to the Board in June or July in advance of budget considerations. 3. Discussion of Amusement Tax Mayor Shapiro summarized the previous discussion of this topic from a Committee of the Whole meeting last year. He noted the discussion considered possible uses in the C-4 Entertainment and Limited Retail District. The developer that was considering the property south of Lake Cook Road in the C-4 District is no longer attached to that property and it is likely that some new uses that qualify as amusements could move in. Mayor Shapiro noted the Board can defer on the issue until more is known. Mr. Lichterman spoke about the previous discussion and which uses would be considered amusements. He noted the proposed definition of an amusement excluded memberships and exempted religious, governmental, and not-for-profit organizations. Mr. Lichterman stated that existing business that would be impacted include Kid’s Empire Indoor Playground and Sky Zone Trampoline Park. He outlined customary businesses that the tax would apply to which include movie theaters, arcades, gaming lounges, indoor racing and bowling alleys, among others. Mayor Shapiro stated he does not think it is the right time to move forward with an amusement tax. Trustee Oppenheim asked if it worthwhile to have an amusement tax in place prior to development. Mayor Shapiro stated that a developer will likely ask if the Village has an amusement tax when considering development of the property. Mr. Lichterman stated there is a benefit to being forthright with developers about the consideration of an amusement tax. He noted that the tax could be impactful to the land plan. He further stated that any land plan will take a minimum of nine months to prepare and that a proposed amusement tax would be brought to the Board for approval prior to that plan being presented. Trustee Greenberg stated he believes flexibility is good for negotiations. He doesn’t believe an amusement tax will deter a developer, since it will be passed on to consumers. The Board agreed to defer bringing an amusement tax ordinance to a later date. Trustee Goldstone stated it may be beneficial to have the amusement tax in place prior to development. She noted it could be amended depending on the uses of the development. Mayor Shapiro mentioned the possibility of passing a red flag ordinance stating that the Board intends to pass an amusement tax at a later date. Saed stated that a red flag ordinance would put developers on notice that an amusement tax is being discussed. The Board reached a general consensus to defer and wait for a land plan which will provide a clearer picture of what businesses will be coming in. 4. Discussion of Development Project Updates 4 Mr. Lichterman reported to the Board about recent development projects. Mayor Shapiro noted Mr. Lichterman recently attended the International Council of Shopping Centers convention in Las Vegas. Mr. Lichterman noted multiple neighboring municipalities attended. He stated that Deerfield was well represented and garnered interest from attendees. He thanked the Board for sending him on behalf of the Village. Mr. Lichterman provided the following information on individual development projects in the Village: The six vacant Walgreens buildings that comprise the 37.5-acre property on the south side of Lake Cook Road are going to be demolished. Regular pre-demolition meetings are taking place to discuss access, dust control and neighbor considerations. The demolition work is expected to take 5-6 months to complete. Zion Woods expect to have their certificate of occupancy by the end of next week. There is a waitlist of over 300 people. Trustee Berg asked about the Lake Cook Road project, specifically the poor road condition leading to poor access to Tamarisk. Mr. Phillips stated the frontage roads are privately owned and controlled individually by the property owners which presents a challenge in improving access. Mr. Phillips noted he has been in contact with the property owners to fix potholes, but has received limited responses. Ms. Saed noted the Administrative Law Hearing process could be used to compel them if there is a road maintenance provision in the Municipal Code. Mr. Lichterman stated there is a prospective buyer for the 37.5-acre property south of Lake Cook Road and more details will be forthcoming. Foundation and underground utility work has commenced at the Deerfield Supportive Living Facility located south of Lake Cook Road, and framing is underway. Parkway Residences at 5 and 8 Park Way North Boulevard consisting of 144 townhomes has erected a construction fence. The daycare building at 5 Parkway North Boulevard is in the process of being demolished. Undergound sewer work is being installed in the northern portion of the property and the applicant is close to completing their building permit application. The developer of Lake Cook Crossing, the 254 unit development behind Deerbrook Shopping Center, has been running into some issues. Staff has been in contact with the developer and the third party oversight team. The construction of infrastructure and five building foundations are underway. The clubhouse and two residential buildings are being framed and there is visible progress. Staff has been holding weekly meetings with the developer to keep them on track. Trustee Jacoby asked about the stop work order that was issued for the Field House Restaurant on Deerfield Road. Mr. Lichterman noted a building permit application has now been received. Demolition of the former Walgreens building has been completed for LeClair Estates, the 42 single-family home development located off of Wilmot Road. The sorting and removing of 5 construction debris is taking place now. Crews have begun installing the sound wall along the expressway. Assistant Director of Public Works and Engineering Tyler Dickinson noted the large piles of concrete will be recycled and used for the base of the roadway. A developer is proposing converting the office building located at 155 Pfingsten Road into 1-2 bedroom residential living units. The developer is considering adding a 13,000 square foot daycare in an outlot of that property. They have had a prefiling meeting, but they will have to go back to the Plan Commission since their plans have changed. The Deerbrook Shopping Center is for sale and staff have spoken to brokers and potential bidders. The Dump and Hobby Lobby leases are set to expire in September. Those large footprint retail stores are constructed in such a way that it is difficult for other retailers to use or divide them. Chief Sliozis pointed out the Red Roof Inn is for sale due to delinquent taxes. Mr. Lichterman noted that numerous hotels are considering residential conversion. Mr. Street stated that hotel tax revenue has been increasing since COVID. Chief Sliozis stated the Police Department is seeing hotel occupancy at 50 percent on weekends. Mr. Lichterman stated that hotel tax revenue is $2.5 million per year. Chief Sliozis asked how many living units are estimated to be generated by the different development projects discussed. Mr. Lichterman stated roughly 700 units have been approved and that more could be generated from future projects. Chief Sliozis pointed out that the increase in living units could create increased calls for service. Mayor Shapiro asked about updating the impact fee structure. Mr. Lichterman stated that internal discussion have begun regarding updating the way impact fees are calculated. Trustee Oppenheim asked if the Village have the authority to change impact fees or if that power resides with the state. Mr. Street noted it can be done, but must be supported with studies. Vantive, a kidney care company that was spun off from Baxter International will establish their headquarters at 510 Lake Cook Road. They have applied for a $2.5 million building permit for interior renovations across four floors of the 11,000 square foot building. Fortune Brands and Amgen campus at 1 Horizon Way is expected to generate 400 new jobs by the end of the year. The companies are looking to invest $9 million in building renovations. Staff has been in discussion with their representatives about potential discounts on economic development fees. Amgen will occupy one building and Fortune Brands will occupy the other two. Ten luxury apartments being constructed in the former Barnes and Noble space at 728 Waukegan Road. They are doing drywall and trim work and are close to completion. The property at 833 Deerfield Road, which was previously approved for 40 apartments, is being considered for a pediatric service use. Mr. Lichterman noted no formal submittals have been received. 6 Site fencing has been erected at 755 Chestnut Street. The home on the property experienced fire damage and needs to be demolished. Mr. Lichterman noted MacAllister’s Deli, located at 663 Lake Cook Road, has closed. K9 Luxury Resorts is nearing completion of their interior remodel. Fleet Feet Deerfield and Aligned Modern Health have contacted staff and are interested in applying for the business façade rebate program. Mr. Lichterman noted that staff has received inquiries regarding the status of Northbrook Court. He stated that his understanding is that some stores will remain, but that the property will be redeveloped to include a variety of housing types totaling 1,900 homes. The Board thanked Mr. Lichterman for his report. Adjournment: There being no further business or discussion, Trustee Berg moved to adjourn the meeting. Trustee Benton seconded the motion. The motion passed by unanimous voice vote. The meeting was adjourned at 8:15 p.m. Respectfully submitted, Daniel Van Dusen