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Saturday, September 21, 2024

City of Dekalb City Council met Aug. 26

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City of DeKalb Mayor Cohen Barnes | City of DeKalb, Illinois/Facebook

City of DeKalb Mayor Cohen Barnes | City of DeKalb, Illinois/Facebook

City of Dekalb City Council met Aug. 26.

Here is the agenda provided by the council:

A. CALL TO ORDER AND ROLL CALL

B. PLEDGE OF ALLEGIANCE

C. APPROVAL OF THE AGENDA

D. PRESENTATIONS

1. Proclamation: Celebrating the 150th Anniversary of Joseph F. Glidden’s “The Winner” Barbed Wire Patent.

2. Proclamation: Honoring Senior Citizens.

3. Proclamation: National Ovarian Cancer Awareness Month – September 2024.

E. PUBLIC PARTICIPATION

F. APPOINTMENTS

1. Appointing Linda Srygler to the Citizens’ Environmental Commission for the Completion of a Two-Year Term through December 31, 2025.

G. CONSENT AGENDA

1. Minutes of the Regular City Council Meeting of July 22, 2024.

2. Minutes of the Regular City Council Meeting of August 12, 2024.

3. Accounts Payable and Payroll through August 26, 2024, in the Amount of $3,270,862.20.

H. PUBLIC HEARINGS

1. The “Distant Early Warning Public Meeting” and Consideration of the Proposed South Fourth Street Corridor TIF Redevelopment Project Plan and Area.

City Manager’s Summary: Pursuant to 65 ILCS 5/11-74.4-6, if the City desires to propose a TIF redevelopment plan for a redevelopment project area that contains 75 or more inhabited residential units, the City must hold a “distant early warning public meeting” before it gives notice of the public hearing required by the TIF Act. At the public meeting, any interested person or representative of an affected taxing district may be heard orally and file written statements that pertain to the subject matter of the meeting. Because the City’s proposed redevelopment plan would not result in the displacement of any residents from the inhabited residential units within the proposed redevelopment project area, the City does not have to prepare a housing impact study.

On February 12, 2024, the City Council engaged the consulting firm of PGAV Planners, LLC of St. Louis to explore the feasibility of a new TIF redevelopment area along the South Fourth Street corridor from Taylor Street south to the Illinois Toll Highway 88. Specifically, the consultant was hired to explore the following:

▪ Reasonable redevelopment objectives with concrete private projects and any related public actions needed for their success.

▪ Land uses that would best apply to a rejuvenated project area.

▪ An implementation timeline.

▪ Estimated redevelopment costs as well as estimated EAV gains as a result of those invested dollars.

▪ Confirmation of the eligibility of the redevelopment objectives under statutory TIF guidelines.

▪ Taxing district impacts during the life of the TIF.

The contract covered professional services in the amount of $44,500, plus reimbursable expenses for travel, as well as lodging during field surveying. A copy of the draft redevelopment plan and a map of the proposed redevelopment area are attached. On July 26, the TIF Joint Review Board was given a preview of both at their quarterly meeting, as promised at the JRB quarterly meeting of April 26. The Council will notice that the proposed TIF area has been reduced from the roughly 342 acres (including street rights-of-way) and 626 lots discussed at the Council meeting of February 12, to 205 acres and 213 parcels of real property. The principal reason for the reduction was to limit the proposed TIF area to those parcels that would clearly qualify within TIF guidelines for a “conservation area.” In mid April, the PGAV staff conducted field investigations to document existing conditions of the properties proposed for the area, and to examine parcels, buildings and public infrastructure for deterioration, dilapidation, vacancy, approximate age, current land use, etc.

The key findings of the draft Redevelopment Plan are noted below:

▪ The proposed TIF area does not qualify as a “blighted” zone but does qualify as a “conservation area” with some significant obsolescence, deteriorating infrastructure, and many buildings demanding rehabilitation.

▪ Age is a prerequisite factor in determining an area’s qualification as a conservation area. According to the TIF Act, 50% or more of the structures within the proposed district must have an age of 35 years or more to meet this criterion. The proposed TIF area contains 292 buildings, of which 276 (94.5%) were determined to be 35 years of age or older. More than 50% of the buildings exceed 35 years of age.

▪ Deteriorating conditions were recorded on 104 of the 199 improved parcels (52.3%). “Deterioration” with respect to buildings in this context can include major defects in doors, windows, porches, downspouts, and fascia. With respect to surface improvements, deterioration includes but is not limited to surface cracking, crumbling, potholes, loose paving material, weeds protruding through street gutter lines, etc.

▪ Declining or Sub-par EAV growth. The area, on the whole, contains property whose EAV has grown at a lower rate than the balance of the City for 5 out of the past 5 years.

▪ Fourteen (14) of the properties were vacant and all but one were adjacent to properties containing a deteriorated structure.

▪ Several parcels that constitute the former Protano Salvage Yard will require substantial remediation expenses to make them buildable. A Phase II investigation completed in June 2013 placed the remaining cleanup at between $360,000 and 415,000. Allowing for inflation, the upper end of the estimated cost of remediation in 2024 dollars could be as much as $550,000.

▪ Finally, and importantly, the PGAV study concluded that, in general, the properties in the Plan area are not reasonably anticipated to be improved without the direct participation of the City to provide funding in the form of financial incentives and infrastructure spending. Specifically, the study concludes that the most reliable method to incentivize such reinvestment by private entities and public bodies is through a TIF program.

The Proposed Redevelopment Plan

In general, the Redevelopment Plan and Project for the South Fourth Street corridor area has the following objectives:

1. To provide adequate infrastructure to alleviate blight, ensure safe conditions, and invite private reinvestment. This infrastructure could include, but is not limited to, sidewalks, streets, underground utilities, and streetlights.

2. To enhance the tax base for the City and all other taxing bodies.

3. To encourage and assist private investment and redevelopment within the area through the provision of financial assistance as permitted by the TIF Act.

4. To complete all public and private actions that might evolve from this plan in an expeditious manner.

5. To aid in the remediation and redevelopment of environmentally contaminated properties.

6. To maintain transparency and accountability with residents and taxing bodies by reporting regularly on area projects to the Joint Review Board.

7. To enter into agreements with private parties and public agencies that protect the long term financial health and well-being of the city.

The most recent (2023) total equalized assessed valuation (EAV) for the properties in the area is estimated to be $12,411,930. It is estimated that re-investment through a TIF plan could increase the assessed valuation within the map area to approximately $22,463,811. A very provisional allocation of TIF increment was suggested by the consultant in the draft Plan (p. 22) and is shown on the following page. The focus is the incentivization of private reinvestment. The list would of course be subject to review by the JRB and always subject to the approval of the City Council. Further discussion of this provisional breakdown will occur at the special JRB meeting on September 27 and at the Council level in October and November.

Description Estimated Cost 1, 2, & 3 A. Public Works or Improvements $2,001,000

B. Property Assembly, Site Preparation, Demolition $1,500,000

C. Building Rehabilitation/ Retrofit $5,003,000

D. Relocation costs $250,000

E. Taxing District Capital Costs $250,000

F. Job Training $200,000

G. Planning, Legal & Professional Services $250,000

H. General Administration $250,000

I. Financing Costs $300,000

J. Interest Costs Incurred by Developers $500,000

K. Contingency (10%) $1,200,500

Total Estimated Costs 4 $13,205,500 Notes:

1. All costs shown are in 2024 dollars.

2. Adjustments may be made among line items within the budget to reflect program implementation experience.

3. Private redevelopment costs and investment are in addition to the above.

4. The total estimated redevelopment project costs shall not be increased by more than 5% after adjustment for inflation from the date of the Plan adoption, per subsection 11-74.4.5 (c) of the Act.

Finally, a number of local taxing bodies own property within the proposed South Fourth Street Redevelopment Area. The parcels are as follows:

▪ DeKalb Community Unit School District #428: Lincoln Elementary School, Founders Elementary School, and the School Administration Center.

▪ DeKalb Park District: Sports and Recreation Center.

▪ DeKalb Township Road Commissioner: Road District and Administrative Offices.

▪ City of DeKalb: Various streets and dedicated alleys, plus the former Protano Salvage Yard.

Interested residents and groups are encouraged to attend. (click here for additional information)

I. CONSIDERATIONS

None.

J. RESOLUTIONS

1. Resolution 2024-092 Establishing a Time and Place for a Public Hearing to Consider the Redevelopment Plan and Project for the South Fourth Street TIF Redevelopment Project Area.

City Manager’s Summary: The attached resolution establishes that on October 28, 2024, at 6:00 p.m. in the Yusunas Meeting Room (lower level) at the DeKalb Public Library, 309 Oak Street, DeKalb, Illinois 60115, a Public Hearing will be held to consider the adoption of the South Fourth Street TIF Redevelopment Project Area. The detailed and very public process by which a TIF redevelopment plan is reviewed is well-represented by the attached timeline.

City Council approval is recommended. (click here for additional information)

2. Resolution 2024-093 Authorizing an Architectural Improvement Program (AIP) Economic Incentive for the DeKalb Elks Lodge at 209 S. Annie Glidden Road in the Amount of $25,000.

City Manager’s Summary: The DeKalb Elks Club has requested a non-TIF AIP grant to help offset a portion of the cost for the re-surfacing of the large parking area that surrounds the club at its location at 209 S. Annie Glidden Road. The re-surfacing project has been a subject of discussion within the club and between the club and the City for several years. Based on estimates received from the club’s president, the paving work was projected to cost in the vicinity of $75,000 which is a very substantial sum for a private, not-for-profit to absorb. Adding to the projected cost was the local interest in better access to the Veteran’s Memorial which was built at the north end of the club’s property.

The Elks Club invited bids and the lowest bid was from Royer Asphalt Paving in the amount of $75,035. The non-TIF Architectural Improvement Program (AIP) lists parking lot re surfacing (as opposed to patching) at a 50% reimbursement level. However, the maximum grant under the non-TIF AIP program is $25,000.

City Council approval of a $25,000 Fund 400 (400-00-00-69199) grant is recommended. (click here for additional information)

K. ORDINANCES – SECOND READING

None.

L. ORDINANCES – FIRST READING

1. Ordinance 2024-039 Approving the Final Development Plan for the Towneplace Suites and Fairfield Inn Hotel at 902 Peace Road (Peace Road Hotels LLC).

City Manager’s Summary: On May 8, 2023, the City Council passed Ordinance 2023-019 which approved the rezoning and preliminary plan for the construction of a 4-story, Marriott branded hotel with 120 rooms for the vacant lot at 902 Peace Road. The subject site comprises 2.5 acres and is located between the Bumper to Bumper auto parts store and the Fast Stop Express gas station along the east side of Peace Road, north of Pleasant Street. The site is Lot 2 in the Airport North Industrial Park, Unit Four, and was approved in 1997. The dual branded hotel will include a Towneplace Suites and Fairfield Inn. Site work is planned to start in early September.

Ordinance 2023-019 rezoned the subject site from the “HI” Heavy Industrial District to the “PD-I” Industrial District to accommodate the hotel. The Ordinance also approved a preliminary development plan and waivers to the Unified Development Ordinance (UDO) for site coverage and parking setbacks. The Ordinance required the submittal of a Final Development Plan prior to a building permit being issued for the site. The Final Development Plan includes the final engineering plan, landscape plan, lighting (photometric) plan, and final building elevations. The Ordinance also required approval of the Plan by the Planning and Zoning Commission and City Council.

The applicant, Pramit Patel, owns and operates the Hampton Inn and Home2Suites Hotels along S. Annie Glidden Road. The applicant purchased the subject site in August 2023. Sixty one (61) rooms will be branded as Fairfield Inn and Suites by Marriott (standard stay) and fifty-nine (59) rooms will be branded as TownePlace Suites by Marriott (extended stay). They will share the same lobby, front desk, meeting room, and swimming pool.

Access is provided from the frontage road that also serves the gas station, auto parts store and other businesses to the south. The frontage road has a direct, full access to Peace Road. The access into the hotel was modified on the Final Development Plan to allow for a safer and more efficient entrance into the hotel than what the Preliminary Plan showed. A total of 126 parking spaces are provided on the Plan, as required by the UDO parking requirement of one space for every hotel room (120) and one space for every employee on the maximum shift (6). Included in the 126 spaces are six handicap accessible spaces.

The proposed hotel meets many of the Commercial Development Goals and Objectives found in the 2022 Comprehensive Plan. The hotel will provide diversity in commercial services and will be the first Marriott-branded hotel in DeKalb County. The hotel will also provide a new option for visitors to the area and keep Marriott loyal guests in DeKalb. Finally, the development will increase hotel/motel and property tax revenue for the City and other taxing bodies. The development of the hotel should be a catalyst for further commercial development along the Peace Road corridor.

The Final Development Plan was reviewed by the various City departments, the Kishwaukee Water Reclamation District (KWRD), and other agencies. The Final Plan is in substantial compliance with the approved Preliminary Plan. In addition, the final building elevations are consistent with the building elevations approved with the Preliminary Plan. The landscaping plan is in conformance with the UDO and the lighting plan will be revised in order to meet the standards in the UDO. Finally, some site comments from the Fire Department will be addressed prior to the issuance of a building permit. Once the revisions are made, the plan will not substantially change. A site development permit can be issued that will allow grading to occur on the site before a full building permit is approved.

The Planning and Zoning Commission reviewed the Final Development Plan at their meeting on August 19, 2024. By a vote of 4 to 0 (Commissioners Maxwell and O’Flaherty were absent) the Commission recommended City Council approval of the Final Development Plan for a 120-room, Mariott-branded hotel on the subject site at 902 Peace Road according to the Plans described above and subject to all staff comments being addressed prior to the issuance of a building permit.

City Council approval of the Planning and Zoning Commission recommendation is requested. (click here for additional information)

2. Ordinance 2024-040 Authorizing Northern Illinois Gas Company (d/b/a Nicor Gas Company), Its Successors and Assigns, to Construct, Operate, and Maintain a Gas Distributing System In and Through the City of DeKalb, and Approving a Letter of Agreement Concerning a Therm Allocation Without Charge to the City of DeKalb.

City Manager’s Summary: The City’s 25-year franchise agreement with Nicor Gas expires in 2025. The franchise agreement has two parts: a “gas ordinance” which provides the utility access to the City’s public rights of way and, in consideration of such an agreement, the utility provides the City unbilled therms at its principal public buildings in lieu of a cash payment every year. Beyond these provisions, the franchise agreement is highly regulated by the Illinois Commerce Commission and other state bodies which limit the City’s latitude for broader negotiation.

Kevin Gadzala, Nicor’s Regional Manager of Community Affairs, has worked collaboratively with the City Manager, City Attorney, and City Engineer to prepare a successor agreement. The term is 25 years, which is shorter than the 50 years negotiated in other communities. The City’s revised annual therm allocation (i.e. natural gas) to be supplied without charge to municipal government buildings is based on the last Census (40,290) as follows:

▪ First 10,000 of population: 3.60 therms per capita;

▪ Next 10,000 of population: 2.40 therms per capita;

▪ Next 80,000 of population: 1.20 therms per capita

City Council approval of the attached franchise agreement is recommended. (click here for additional information)

3. Ordinance 2024-041 Providing for an Increase or Decrease in the Salary of the Elected Officers of the City of DeKalb for the Terms of Office Beginning in May 2025 and May 2027.

City Manager’s Summary: On July 22, 2024, the Council considered the compensation for elected officials taking office after the municipal elections of April 2025. Under the Illinois Constitution, an increase or decrease in the salary of the City’s elected officers cannot take effect during the term for which that officer is elected. The discussion was in accordance with Section 2 of the Local Government Officer Compensation Act (50 ILCS 145/2), which specifies that compensation of officers “shall be fixed at least 180 days before the beginning of the terms of the officers whose compensation is to be fixed.” The Spring 2025 municipal elections will include the positions of Mayor, and the Aldermanic seats for the Second, Fourth, Fifth (unexpired 2-year term), and Sixth Wards, and possibly the position of City Clerk (if the November 5 referendum asking whether the Clerk position should be appointed rather than elected is not successful).

The Council direction from the July 22 meeting was as follows:

▪ To retain the current base salaries for the Mayor ($22,500) and alderpersons ($5,400) with a modest annual cost of living adjustment. Because State law prohibits elected officer compensation that is variable during the elected officer’s term of office, the attached ordinance pegs the annual salary increase to approximately 2.5%.

▪ To “zero” ($0.00) the annual compensation for the City Clerk. During and after the derelict tenure of former City Clerk Sasha Cohen, all of the Clerk functions were unselfishly and effectively assumed by the City’s Executive Assistant, an appointed City official who is very experienced in performing the duties of City Clerk and other City ministerial functions. This arrangement has served the City government well, and it is not recommended to change the present assumption of the Clerk functions by the Executive Assistant.

The proposed salary for the City’s elected officials is as follows:

Elected Office

Current Salary

Salary for FY2025 & New TermsStarting in 2025

Salary for FY2026

Salary for FY2027 & New Terms Starting in 2027

Salary for FY2028

Mayor

$22,500

$23,000

$23,500

$24,000

$24,500

Clerk

$8,000

$0

$0

$0

$0

Alderperson - Ward 1

$5,400

$5,400

$5,400

$6,250

$6,500

Alderperson - Ward 2

$5,400

$5,750

$6,000

$6,250

$6,500

Alderperson - Ward 3

$5,400

$5,400

$5,400

$6,250

$6,500

Alderperson - Ward 4

$5,400

$5,750

$6,000

$6,250

$6,500

Alderperson - Ward 5

$5,400

$5,400

$5,400

$6,250

$6,500

Alderperson - Ward 6

$5,400

$5,750

$6,000

$6,250

$6,500

Alderperson - Ward 7

$5,400

$5,400

$5,400

$6,250

$6,500

Total Salary of City’s Elected Officials

Current

FY2025

FY2026

FY2027

FY2028

$68,300

$62,600

$63,100

$67,750

$70,000

As noted on the previous page, the proposed ordinance decreases the total amount of the current budget line item for legislative salary over the next three years, resulting in a cost savings for the City.

City Council approval is recommended. (click here for additional information)

4. Ordinance 2024-042 Amending Chapter 50 “Citizens’ Environmental Commission”, Section 50.01 “Establishment”, and Section 50.02 “Membership”, as it Pertains to Reducing the Number of Regular Members from Eight to Six.

City Manager’s Summary: Aside from the Library Board, the Citizens’ Environmental Commission (CEC) is formally the City’s largest volunteer body with eight voting members and four non-voting, ex-officio members. The Commission has failed to achieve a quorum for five of the eight scheduled monthly meetings in 2024. A reduction to six voting members (while maintaining four ex-officio members) might “right-size” the CEC. At a smaller size, there will still be a total of 10 members (six voting and four ex-officio members), which makes a quorum more likely and provides enough dedicated volunteers to pursue the Commission’s work (including the recently approved Sustainability Plan) while allowing for robust discussions at meetings.

City Council approval is recommended. (click here for additional information) M. REPORTS AND COMMUNICATIONS

1. Council Member Reports.

2. City Manager Report.

N. EXECUTIVE SESSION

1. Approval to Hold an Executive Session in Order to Discuss the Purchase or Lease of Real Property as Provided for in 5 ILCS 120/2(c)(5).

O. ADJOURNMENT

https://www.cityofdekalb.com/AgendaCenter/ViewFile/Agenda/_08262024-2578