City of DeKalb City Council met Aug. 26.
Here is the agenda provided by the council:
A. CALL TO ORDER AND ROLL CALL
The National Anthem as sung by Grace Verbic at the August 1, 2019 Chicago White Sox Baseball Game.
B. PLEDGE OF ALLEGIANCE
C. APPROVAL OF THE AGENDA
D. PUBLIC PARTICIPATION
E. PRESENTATIONS
1. Proclamation: Landlord, Tenant and Property Owners Housing.
2. #Proudly DeKalb: Introducing Judy Schneider, a DeKalb Treasure.
City Manager Summary: As an unpaid volunteer, Judy Schneider has quietly worked with our City departments and local agencies to brighten the streetscapes around our community. Thanks in large part to her initiative, she has also enlisted the help of many partners, such as the University of Illinois Cooperative Extension Service Master Gardeners, DeKalb High School FFA, Kishwaukee College horticulture students, Yaegers Farm market, and DeKalb County Community Gardens. For more than a dozen years, the involvement of these agencies has increased, due in large part to Judy’s efforts.
One of Judy’s first efforts was to organize local high school students to plant flowers around the flagpole at City Hall. Over time, Judy has involved high school students in other areas of the city. In more recent years their work has included cleaning out the flower beds at Van Buer Plaza in early Spring, emptying the permanent containers of last year's flower growth, and churning the soil for new plants. In addition, there are particular areas around Van Buer Plaza where they install plants they have grown in the high school greenhouse. It is a point of pride for the students and of course they welcome the departure from their regular day-to-day schoolwork.
The master gardeners show up on a Saturday morning in May to plant dozens of containers around town. In late fall and over the winter, Judy determines what will go in the containers in a spreadsheet. A headmaster gardener divides up the work for small groups of two to three Northern Illinois University (NIU) master gardeners. In addition, this valued group helps Judy lead NIU students on NIU Cares Day in May. They share their knowledge with students – some who have never done this kind of work.
Yaegers Farm Market plants all of our Downtown hanging baskets from plants started in their greenhouses until it's time for them to hit the streets. Judy works with Mark Yaeger each Spring regarding what to plant in these baskets. The City pays a discounted rate for each basket considering the weeks that Mr. Yaeger cares for the plants until they are ready to place in the Downtown.
Judy also works with Kishwaukee College to plant 30 of the larger containers around town. Each fall, Andy Raih and the Public Works department delivers the containers to Kish for them to store and then plant in the Spring. Horticulture students at Kishwaukee College grow the flowers from seeds and tend them during the winter and early Spring until they are ready to be placed in the large containers. This opportunity offers Kishwaukee College students an opportunity to share in our efforts to build community pride.
Finally, The City purchases plants from local vendor Derby Line Greenhouse in Genoa and Walnut Grove Vocational Farm in Kingston. Walnut Grove is a subsidiary of DeKalb County Community Gardens and provides work opportunities for young people with disabilities. We purchase plants they grow and for which they care, to be planted in our permanent downtown planters. In addition, there are 3 pots around city hall that we designate for Walnut Grove to plant.
Judy is a remarkable, informal ambassador for the City of DeKalb. We applaud her quiet and successful efforts to promote our community.
F. APPOINTMENTS None.
G. CONSENT AGENDA
1. Accounts Payable and Payroll through August 26, 2019 in the Amount of $2,909,232.38.
2. Investment and Bank Balance Summary through June 2019.
3. Year-to-Date Revenues and Expenditures through June 2019.
4. Freedom of Information Act (FOIA) Report – July 2019.
5. Resolution 2019-123 Authorizing the Approval of a Bid and a Professional Services (Advisor) Agreement with Bourne Transit Consulting, LLC for On-Call Transit Consultant Services.
City Manager Summary: On March 25, the City Council authorized the Transit department of the Public Works division to proceed with an RFP for occasional “on-call” consultant services associated with the new consolidated transit system in DeKalb, at a cost not-to-exceed $20,000 per year. These services were to be paid from the Downstate Operating Fund grant monies which are annually available to the City through state and federal sources. In the twelve months leading up to the transit system consolidation in 2017-2018, a consultant was on staff as a temporary, part-time employee. With the system up and running, only limited consultant hours are needed to help with grant documents, capital planning, and state and federal reporting.
The RFP closed in late April and our staff received five proposals. A prolonged federally prescribed process then began with the appointment of a selection team and interviews with each respondent. The Selection Committee recently completed the process and has recommended Bourne Transit Consulting, LLC. Bourne Transit has worked with the City since the beginning of the consolidation process and is very familiar with the system, its routes, its capital and operating requirements, and the state and federal contacts most involved with the DeKalb system. The $20,000 not-to-exceed amount will be paid from the State of Illinois Downstate Operating Assistance Program (DOAP) grant and Federal Transit Administration’s 5307 Operating Assistance grant as follows:
| State of Illinois DOAP (65%) | $13,000 |
| FTA 5307 Operating Assistance (35%) | $ 7,000 |
| TOTAL | $20,000 |
H. PUBLIC HEARINGS
None.
I. CONSIDERATIONS
1. Consideration of Funding for the June 22, 2019 Balloons, Brews & Blues Event in the Amount of $2,692.
City Manager Summary: On January 28, the City Manager recommended a reduction in the City’s annual funding of community marketing and promotions by the DeKalb Chamber of Commerce and the DeKalb County Convention and Visitors Bureau. At the same meeting, the Council also reduced the annual allocation to the DeKalb County Economic Development Corporation. The total reductions approved by the City Council amounted to $30,000.
In the January Council discussion, there was a Council consensus that some monies should be reserved for new initiatives from other community businesses who might encourage visitors to our City. It was suggested that $10,000 from the $30,000 savings might be set aside for that purpose, with the Council in the vetting role.
Mike Embrey of the FUN Companies organized and produced the inaugural “Balloons, Brews & Blues” event at the DeKalb Taylor Municipal Airport on June 22, 2019. The event reportedly attracted 1,500 visitors and was held on Runway 9/27 (east-west) and its connecting taxiways. Although the high winds that day discouraged the planned launch of the balloons, the event featured a number of bands and was well-received. Mr. Embrey’s cost breakdown is attached.
Mr. Embrey has requested a City grant of $2,692 to cover the cost of the City of DeKalb fees. As this was a first-time event, no firm estimates of cost or impact were available beforehand. In the preparation of the FY2020 City Budget (Line Item 100-40-41-63700), the Council will have an opportunity to determine whether this event or others should be supported through City grants going forward.
City Council approval is recommended. (Click here for further information)
J. RESOLUTIONS
City Manager Summary: Resolutions 2019-124 through 2019-128 authorize the execution of agreements with a number of agencies for CDBG Public Service funding for Program Year 2019 (CDBG Year 26). The total program amount, up to 15% of the City’s annual CDBG allocation, was approved by the City Council at their Regular meeting on June 10, 2019 and made part of the CDBG Annual Action Plan for Program Year 2019. The specific agencies and respective grants are shown in the following table:
| Agency | Program Description | Funding Requested | Recommended Funding |
| Children’s Learning Center (CLC) | Subsidies to low-income families for transportation of children between their homes and/or school and day care. | $20,000 | $12,000 |
| DeKalb County Community Gardens | Funding for the Community Food Needs and Community Growers programs which increase access to healthy food for low-income residents and provide employment and horticulture training. | $5,000 | $0.00 |
| Elder Care Services (ECS) | Operating funds for the Choices for Care program for elderly individuals to assess their needs and link them with appropriate agencies, benefits and services. | $10,000 | $ 8,000 |
| Hope Haven | Operating funds for emergency shelter services for homeless individuals and families. | $25,000 | $17,000 |
| Safe Passage | Operating funds to support emergency shelter services for victims of domestic violence and their children. | $20,000 | $15,000 |
| Voluntary Action Center (VAC) | Local match to USDA funds to provide a Summer Meals Program for the children of University Village to ensure access to healthy food during the summer months when the free or reduced school lunch program is not available. | $20,000 | $13,860 |
| TOTAL | $100,000 | $65,86 |
City Council approval of the following Resolutions 2019-124 through 2019-128 is recommended: (Click here for further information)
1. Resolution 2019-124 Authorizing a 2019 Subrecipient Agreement with the Children's Learning Center for Community Development Block Grant Funds in the Amount of $12,000 for Funding the Transportation Program.
2. Resolution 2019-125 Authorizing a 2019 Subrecipient Agreement with Elder Care Services for Community Development Block Grant Funds in the Amount of $8,000 for Funding the Choices for Care Program.
3. Resolution 2019-126 Authorizing a 2019 Subrecipient Agreement with Hope Haven for Community Development Block Grant Funds in the Amount of $17,000 for Funding the Emergency Shelter Program.
4. Resolution 2019-127 Authorizing a 2019 Subrecipient Agreement with Safe Passage for Community Development Block Grant Funds in the Amount of $15,000 for Funding for Emergency Shelter and Services Programs.
5. Resolution 2019-128 Authorizing a 2019 Subrecipient Agreement with the Voluntary Action Center for Community Development Block Grant Funds in the Amount of $13,860 for Funding for the Summer Meals Program at University Village.
6. Resolution 2019-129 Authorizing an Agreement with DeKalb County as it Pertains to the Jurisdictional Transfer of Portions of Rich Road and Coltonville Road from DeKalb County to the City of DeKalb as Identified by the Illinois Department of Transportation (IDOT) Form BLR 05212.
City Manager Summary: This is a “clean-up” item. As the City annexes ground for new development, some of the new corporate limits may be adjacent to existing County or Township rights of way. According to State code and the Illinois Department of Transportation, when this occurs the City has technically annexed across the entire right of way (ROW), even if the land area across from the newly-annexed subdivision remains un-annexed. The portions of the road sections defined in this Resolution have practically been within the City ROW for many years. This Resolution takes deferred action to transfer the jurisdiction over these road segments from DeKalb County to the City of DeKalb. The attached Resolution applies to the ROW beginning at the intersection of North First Street and Rich/Coltonville Roads then westward along Rich Road to the limits of the adjacent River Mist subdivision.
City Council approval is recommended. (Click here for further information)
7. Resolution 2019-130 Authorizing a Tax Increment Financing Grant in the Amount of $12,200 to the Hillside Restaurant, Located at 121 N. Second Street, for the Replacement of a Building Sewer.
City Manager Summary: Mary and Gavin Wilson have applied for a TIF grant to offset their cost for the replacement of a building sewer lateral from the Hillside Restaurant to the new sewer main being installed in Palmer Court to accommodate the Egyptian Theatre project. Private property owners are responsible for the maintenance of the “building sewer lateral” from their basements to the nearest sanitary sewer main, which is owned and maintained by the Kishwaukee Water Reclamation District (KWRD).
The bathrooms in the new Egyptian Theatre will be served by a new sanitary sewer main extending from North Second Street into Palmer Court past the west end of the new Egyptian addition. This main extension is being constructed at the expense of the KWRD. In addition, the KWRD will generously provide adjacent property owners stubs from the new sanitary sewer main so they can more easily make connections with their building sewer laterals, if desired.
The owners of the Egyptian Theatre have been adversely affected by Palmer Court construction, forcing them to pursue the expense of a new sewer lateral. In the course of excavation for old underground power lines, a private contractor working for Com Ed snagged the Hillside sewer lateral, requiring an emergency repair at the contractor’s expense. However, the unintended excavation of the Hillside sewer revealed that their existing sewer cannot be connected to the new sewer main without considerable plumbing work in their basement and between their building and the new main. The underground elevation of the new sewer and the elevation of the sewer discharge piping in the Hillside basement will require field adjustments that will have to be made when the new building sewer lateral is connected.
At the request of the City Manager, the Wilsons requested two estimates from licensed and experienced plumbers for the connection of their building sewer to the new Palmer Court main. The estimates are displayed in the table below:
| Contractor | Bid |
| C&H Plumbing | $14,000 |
| Joe Bero & Son Plumbing | $12,200 |
The Wilsons have suffered a significant loss of business since the onset of the substantial work on N. Second Street and within Palmer Court this summer. The noise, dust, and vibration from the continuing excavation in Palmer Court and the Plaza DeKalb construction have had their effect on the restaurant’s walk-in business. Additionally, the Hillside’s catering business has been substantially impacted by the inability to use Palmer Court to load or unload food, drink, and table settings between their kitchen area and their delivery truck. The impending sewer lateral costs are a further blow to their business.
City Council approval of a TIF grant to cover the sewer repair bid from Joe Bero & Son Plumbing is recommended. (Click here for further information)
8. Resolution 2019-131 Authorizing the Sale of Real Property Located at 850 N. 1st Street (P.I.N.: 08-14-329-021) in the in the Amount of $800.00.
City Manager Summary: At the last City Council meeting on August 12, the Council authorized the City Manager to list a number of City-owned parcels for sale (Resolution 2019-122). The Manager was authorized to enter into an agreement with a properly licensed real estate broker based on a contingency fee agreement for the marketing and listing of these city-owned properties. All
listings were to be advertised through the MLS system to afford access to any interested broker. The Council further restricted any contingency fee agreement to a fee not exceeding five percent (5%) if any city property is sold through the broker without another real estate broker involved, or not exceeding six percent (6%) if sold with the involvement of a second brokerage firm.
The listing agreements were signed with Miller Real Estate on August 15 and an offer in the amount of $800 was received from Robert Carlson on August 16 for Parcel Number 08-14-329-021. The parcel is an unbuildable fragment that is partially in the floodway of the Kishwaukee River on the north side of the First Street bridge. It only has some value to the adjacent property owner—Mr. Carlson—to expand the required side yard of his adjacent property.
The City staff do not anticipate any other interest in this property and would be relieved if the mowing and maintenance responsibilities were transferred.
City Council approval is recommended. A supermajority (3/4) vote is required to sell the property. (Click here for further information)
K. ORDINANCES – SECOND READING
1. Ordinance 2019-054 Amending Chapter 3 “City Administration”, Section 3.14 “City Clerk”.
City Manager Summary: The Council’s interest in the professionalism and responsibilities expected of the City Clerk’s office has informed community discussion for several weeks. Some of this discussion has not been constructive and has fallen into character assault and derision. Many observers have been intrigued by new information about who performs the ministerial duties at City Hall. Nearly everyone is tired of the distraction from more important City priorities such as economic development, street improvements, downtown revitalization, and safe streets.
Ordinance 2019-054 was approved on First Reading on August 12. After consultation with many interested parties, Ordinance 2019-054 has been revised for further Council review and these revisions are posted in a red-lined version for public viewing. The City Manager recommends that the Council amend Ordinance 2019-054 according to the red-lined version presented in this Agenda packet, then approve the amended ordinance on second reading.
What are the principal points in the amended draft? They are as follows:
a) The Clerk remains an elected office;
b) The Deputy Clerk performs all duties listed under the City Clerk range of duties in the Clerk’s absence, as if done by the Clerk personally. This is currently what the City Code states in Section 3.14, paragraph (i).
c) Both the City Clerk and the Deputy Clerk will each have a City Seal;
d) The City Manager continues to designate the City employees who have the time and expertise to perform Clerk functions as Deputy Clerk.
e) The Deputy Clerk will not receive extra compensation or any special benefits for serving in the Clerk’s office. This is currently the rule under Section 3.14, paragraph (l).
f) Any employee who serves as Deputy Clerk shall remain a Chapter 3 City employee under the supervision of the City Manager, who is accountable for the performance of their principal duties. This is currently the rule under Section 3.14, paragraph (i).
g) The every day duties of the Clerk and Deputy Clerk are enumerated.
2. Ordinance 2019-055 Providing that the City Clerk Shall be an Appointed Officer of the City of DeKalb.
City Manager Summary: The City Manager recommends disapproval of this ordinance. (Click here for further information)
L. ORDINANCES – FIRST READING
1. Ordinance 2019-057 Authorizing a Zoning Map Amendment from the “LI” Light Industrial District to the “PD-C” Planned Development – Commercial District, and the Planned Development Preliminary and Final Plan Agreement (204 N. Fourth Street and 420 Oak Street – Agora Tower – Mooney Property) (PNG Development, LLC).
City Manager Summary: The City has received a zoning petition and plan applications from PNG Development, LLC, represented by John Pappas, to allow for the construction of a new 113,000 sq. ft. mixed-use four-story building to be called Agora Tower. The subject site is approximately 3 acres and located along the east side of North Fourth Street between Oak Street and Locust Street, commonly known as the Mooney property.
Principal Planner Dan Olson has provided a very detailed background report to the Council that outlines all facets of the proposed development at length. Mr. Olson’s report is also posted on the City’s website with this Agenda for the public’s review. An extended summary of that report is provided below.
Background
The site currently contains a building that was the home to the former Mooney Chevrolet car dealership, which has been vacant since 2012. The dealership still operates their collision center in a building along Oak Street. The applicant proposes to raze the former dealership building, the existing collision center along Oak Street, mitigate known environmental problems, and construct a four-story building that will include up to 94 apartment units and approximately 12,000 square feet of commercial space on the ground floor. There will be 11 apartment units on the ground floor with the remaining on the upper floors. Rezoning the site from the “LI” Light Industrial District to the “PD-C” Planned Development - Commercial District is requested in order to accommodate the proposed uses. Waivers to the Unified Development Ordinance have been requested for maximum site coverage, off-street parking and other approvals as required for the subject property to allow for the construction as proposed and indicated on the development plans. Finally, approval of a Planned Development Preliminary and Final Plan is requested.
Development Agreement
On June 10, 2019, the City Council approved Resolution 2019-095, committing to a preliminary TIF agreement with the developer. The estimated total project cost was $13,875,000 with a preliminary TIF request of $3,000,000 or 21.6% of the project cost.
The Resolution had two parts. First, it identified a dedication of $2,075,000 from TIF #1 funds for the purpose of funding the following costs:
Environmental remediation: $300,000
Demolition: $400,000
Footing removal: $100,000
Gas and Electrical Infrastructure: $250,000
Storm and Sanitary Sewer Infrastructure: $300,000
Engineering & Surveying: $75,000
Structural & Architectural Design: $250,000
City Sidewalks: $150,000
Land Acquisition: $250,000
Second, the Resolution identified a commitment of an additional $462,500 when the L-shaped facility was 50% completed, and a further disbursement of $462,500 when the entire facility received a final occupancy certificate from the City. This additional $925,000 could be paid from FY2020 and FY2021 TIF #3 funds or ported from TIF #1 in FY2020 and FY2021.
A key consideration in the Council’s support for this preliminary development agreement was the projected return for all local taxing bodies. The 2018 EAV – land and buildings – of the combined Mooney buildings was $299,857. Based on that EAV, a total of $35,563 in property taxes were generated in 2018 for all taxing bodies combined (@$11.86/$100 EAV).
All of the proposed $13,875,000 project costs will not fall onto the tax rolls. Some of those expenses are obviously attributable to “soft costs” such as architectural and engineering expenses. Some are for environmental remediation and public infrastructure. In addition, not all of the land acquisition costs will fall into the land EAV if the proposed redevelopment occurs. Conservatively, the new EAV (one-third market value of $10,140,000) upon full buildout is estimated to be about $3,380,000. The projected EAV will conservatively generate a total property tax of about $400,000 upon full assessment.
The attached Final Development Agreement conforms to the Preliminary Agreement and has been updated in the following manner:
The overall taxable square footage has been increased from 112,101 to 113,000 to reflect minor changes in floor plans;
The Final Agreement defines the TIF incentive as a forgivable loan with a mortgage carrying a term of 20 years. If at the end of that term the incentive has not been “repaid” by the combination of property tax and sales tax generated from the site, the developer, successors or assigns agrees that the remaining balance will be a debt due and owing to the City. The City may enforce its right of repayment by virtue of a contract action seeking damages for violation of the Agreement and may initiate an action to foreclose on the City’s mortgage.
May 22, 2019 Concept Plan Review
On May 22, 2019, a Concept Plan for the site was reviewed by the Planning and Zoning Commission, when the plan included two four-story buildings located near the middle of the site with 40 apartment units in each building comprising of 22 two-bedroom units and 18 one-bedroom units. There was also approximately 12,000 square feet of total ground level commercial space proposed between the two buildings. The Commission was generally in favor of the proposal and thought it would be a positive for the downtown. The Commission did provide direction to the developer to improve the appearance of the buildings and to provide supporting information for the deficiency in parking.
Based upon feedback from the Planning and Zoning Commission and staff the applicant revised the plan by reducing the number of buildings from two to one and moved it near the corner of North Fourth Street and Locust Street to provide a better streetscape and more consistency with other downtown buildings. Access was removed from North Fourth Street and an additional access point was placed along Oak Street, and an access point provided on Locust Street. The architectural renderings were also revised to provide additional masonry, larger windows, roof features, and an increased mix of stone, brick and enhanced materials.
Apartment Amenities
The proposed building will include 47 one-bedroom units and 47 two-bedroom units. There will be approximately 12,000 sq. ft. of total ground level commercial space. The apartment units will include high-end finishes similar to Cornerstone and will contain in-unit washers and dryers and there will be a choice of furnished or unfurnished units. Building amenities will include a fitness center, business center, meeting room, theatre room, hospitality room with guest/resident restrooms and on-site professional management. In addition, 10% percent of the apartment units will be handicap accessible. At this time the proposed commercial tenants are unknown; however, they will likely consist of retail, restaurants, professional service and office uses. The commercial space will be marketed by a national retail broker targeting regional and national tenants.
Comprehensive Plan
The site is currently zoned “LI” Light Industrial and the 2005 Comprehensive Plan indicates Commercial for the site. The proposed project is in conformance with many of the recommendations outlined in the 2007 Downtown Revitalization Plan, the 2011 Design Guidelines, and the 2013 DeKalb City Center Plan including:
Mixed use retail and residential buildings are recommended and encouraged to create a livable urban atmosphere.
Waivers to the UDO are encouraged to facilitate attractive development.
Expanded living options and high-end living options are recommended. The plans recognize that housing is an essential contributor to the “critical mass” that strong downtowns exhibit. One- and two-bedroom units in buildings up to six stories tall are supported and are critical to creating a day and nighttime population.
The proposed project will meet many of the design guidelines in the planning documents including scale, building facades, materials and architectural detail.
Parking
There are 206 standard parking spaces (including 11 diagonal spaces along the north side of Locust St.) and 7 handicap spaces proposed for a total of 213 parking spaces. The number of required parking spaces is 229, based upon the proposed uses and the UDO requirements as follows:
47 one-bedroom units (47 x 1.5 spaces per unit) = 70.5 spaces
47 two-bedroom units (47 x 2.5 spaces per unit) = 117.5 spaces
10,000 square feet of commercial space x.15 (15% reduction from gross floor area)/ 250 square feet per space = 41 spaces
Total of 229 spaces required.
The applicant has indicated that at the 51-unit Cornerstone project (all one- bedroom units) only 40 parking permits have been issued to the residents. The resulting parking ratio is about.78 parking spaces required per apartment unit. Applying that ratio to the Agora Tower project would result in 37 required parking spaces for the one-bedroom units instead of the 70.5 spaces. Therefore, the total number of required parking spaces for the project is 196 instead of 229.
Environmental Reports
Copies of the Phase II Environmental Report and the Asbestos Material Inspection Report are provided in the Agenda background. The Phase II Environmental report concluded the property contains one or possibly two remaining underground storage tanks related to a former gas station at the northwest corner of the property. The report also notes numerous areas that appear to be impacted by petroleum chemicals in the soil effecting the soil and groundwater. The report recommends the existing underground tanks be removed and the site entered into the IEPA Site Remediation Program. The Asbestos report indicates asbestos was found in the building and must be removed per IEPA and IDPH standards prior to demolition. As noted above, the TIF request contemplated $300,000 for environmental remediation.
Recommendation
The Planning and Zoning Commission held a public hearing regarding the petition at their meeting on August 7, 2019. By a vote of 4 to 0 (Commissioner Wright and Maxwell were absent and Commissioner Klein abstained) the Commission recommended to the City Council approval of the request per the plans, development standards and conditions listed in the July 31, 2019 staff report.
City Council approval is recommended. (Click here for further information)
M. REPORTS AND COMMUNICATIONS
1. Council Member Reports
2. City Clerk Report
3. City Manager Report
N. EXECUTIVE SESSION
1. Approval to Hold an Executive Session to Discuss Pending or Imminent Litigation as Provided for in 5 ILCS 120/2(c)(11).
O. ADJOURNMENT
https://www.cityofdekalb.com/AgendaCenter/ViewFile/Agenda/_08262019-1678
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