DeKalb Times

City of Dekalb City Council met Sept. 8.

Here is the agenda provided by the council:

A. CALL TO ORDER

B. PLEDGE OF ALLEGIANCE

C. APPROVAL OF THE AGENDA

D. PRESENTATIONS

1. Proclamation: Recognizing the 35th Anniversary of the DeKalb Area Alano Club (August 16, 2025).

2. Proclamation: Scouting America Troop 4 Day, September 14, 2025.

3. Proclamation: “Be The One Day”, September 21, 2025.

4. Proclamation: Ovarian Cancer Awareness Month – September 2025.

E. PUBLIC PARTICIPATION

F. APPOINTMENTS

None.

G. CONSENT AGENDA

1. Minutes of the Regular City Council Meeting of August 11, 2025.

2. Minutes of the Regular City Council Meeting of August 25, 2025.

3. Accounts Payable and Payroll through September 8, 2025, in the Amount of $2,190,787.46.

4. Crime Free Housing Bureau Report – August 2025.

H. PUBLIC HEARINGS

1. Public Hearing Regarding a Proposed Annexation and Development Agreement for Approximately 30 Acres of Property Located Along the West Side of Peace Road Between Greenwood Acres Drive and Challenger Drive for a Solar Energy System (Solar Field) and Two Data Storage Buildings (Donato Solar).

City Manager’s Summary: The purpose of this hearing is a petition from Donato Solar seeking annexation, rezoning, and approval of a development agreement for a 4-megawatt ground mounted solar energy system (solar field) and two 6,000 square foot data storage buildings. The subject site is approximately 30 acres along the west side of Peace Road between Greenwood Acres Drive and Challenger Drive. The request would change the zoning of the subject property, after annexation, from the “SFR1” Single Family Residential District to the “PD-I” Planned Development Industrial District to accommodate the proposed uses. The site is contiguous to DeKalb next to Challenger Drive. The applicant will be purchasing the property from the current owner, which is currently being used for agricultural purposes. The City’s 2022 Comprehensive Plan recommends “Industrial” for the site.

The applicant is an independent renewable energy company based in Champaign, Illinois. The project would interconnect with the existing Ameren (power company) 12 kV distribution grid. The project will be “Behind the Meter”, meaning the solar energy created will be metered as it is transformed by the ComEd system. There will be two 50’ x 200’ Battery Energy Storage Systems connected to the arrays at the site. The interconnection facilities will be collocated with the small data storage buildings on the property. Donato Solar will develop solar energy systems and battery systems and lease data storage to tenants.

On January 6, 2025, the Planning and Zoning Commission reviewed a Concept Plan for the construction of a 4-megawatt ground mounted solar array energy system (solar field) with two data storage buildings. No official action took place since it was a Concept Plan, however, there was consensus by the Planning and Zoning Commission to move forward with the project. A few residents from the subdivision (Summit Enclave) to the west spoke at the Planning and Zoning Commission meeting and had questions about noise levels, the cooling system, fire suppression, and land preservation. Questions raised by the Planning and Zoning Commission were related to the decommissioning plan, battery storage areas, the height of solar array panels, and landscaping/screening around the site. A copy of the minutes and Concept Plan from the January 6, 2025, Planning and Zoning Commission meeting are included in the background materials provided.

The applicant’s summary explains that in addition to the solar field, infrastructure onsite will include two data storage buildings at 6,000 square feet each and a Battery Energy Storage System (BESS) that meets the City’s fire prevention code provisions. The data storage buildings will have little foot traffic and are monitored remotely. The main foot traffic will come from routine maintenance checks. The solar arrays will be about eight feet in height. The solar array and data storage building combination will provide a direct offset to utility costs, particularly during peak energy consumption periods when grid rates are typically higher. This results in a reduction of both operational expenses and the environmental impact of the data storage building’s energy consumption.

The Unified Development Ordinance (UDO) requires a 50-foot setback for any aspect of the solar field, except fences and transmission lines. The plan shows a minimum 50-foot buffer around the perimeter of the site that meets the City’s setback requirements. There is a 100- foot setback to residential areas to the west, which will be met. The nearest home in Summit Enclave to the area where the solar arrays would be constructed is approximately 265 feet. In addition, there is an 80-foot-wide line of dense mature trees along the west property line

Assistive services, including hearing assistance devices, available upon request. that will remain and provide solid screening of the site (see below). This enormous buffer has a ComEd high voltage line running down the middle.

Tree Line Between Site and Summit Enclave

Tree Line (See Background) From Nearest Summit Enclave Homes

Since the subject property is along a major roadway, additional landscape screening was requested and will be added along Peace Road. A detailed screening plan for the native vegetation must be approved by City staff prior to any construction on the site. The plan shall address soil stabilization and the prevention and spread of weeds.

Additionally, the following agreed steps are important to note:

▪ Access to the two data storage buildings will be off Challenger Drive.

▪ Water and sanitary sewers will be extended to the data storage buildings simply for the installation of a stool and lavatory in each building for the occasional use of visiting employees.

▪ The cooling of the buildings will be from standard air conditioning units.

▪ Both the City and the Kishwaukee Water Reclamation District (KWRD) have reviewed the plans and have provided direction regarding utility connections.

▪ The acting city engineer has provided guidance with respect to storm water management.

▪ The orientation of the solar panels is due south, or away from the Summit Enclave development (see below).

▪ A decommissioning plan for the solar field has been submitted per the UDO requirements.

▪ The solar facility will be surrounded by a six-foot-high chain link fence.

Ordinances that would annex and rezone the property and approve a development agreement appear later on this agenda.

I. CONSIDERATIONS

None.

J. RESOLUTIONS

1. Resolution 2025-081 Approving a Hotel Tax Rebate Agreement with Peace Road Hotels LLC.

City Manager’s Summary: At the last regular City Council meeting of August 25, the Council considered a request from Pramit Patel for public assistance to offset a portion of the development cost of a TownePlace Suites and Fairfield Inn Hotel slated for construction on a 2.5-acre site at 902 Peace Road. The four-story Marriott-branded hotel will contain 120 rooms,

Assistive services, including hearing assistance devices, available upon request. with 61 rooms designated as “standard stay” and 59 rooms dedicated to “extended stay” customers.

Mr. Patel’s development company, Peace Road Hotels LLC, received the Council’s approval for a final development plan on August 26, 2024. Over the past year, Mr. Patel has worked with architects and engineers to create the site and building plans required for local permitting. The creation of the final building and site plans has enabled Mr. Patel and his team to invite contractor bids for the project. In recent weeks, Mr. Patel approached City officials to investigate whether some financial incentive might be available to bride a funding gap. His financial challenge, in his words, is owning to “current economic conditions, tariffs, and inflation”, which have driven his construction budget to approximately $23.2 million – an increase of approximately $4 million over his estimated budget at the time of the Council approval in August 2024.

The Incentive Request

Peace Road Hotels LLC has qualified for the state-level exemption on sales tax for building materials under the DeKalb County Enterprise Zone system, which is administered by the DeKalb County Economic Development Corporation (DCEDC). Mr. Patel has proposed a performance-based use tax sharing agreement with the City of DeKalb.

By virtue of its home rule status under Article VII, Section 6, of the Illinois Constitution of 1970, the City enacted a hotel-motel tax in 1984. This tax increased to 7.5% in December of 2018. The tax is levied on the rent charged for the privilege and use of renting a hotel or motel room in DeKalb (see Chapter 55 “Hotels and Motels”, Section 55.02 “Tax”, of the City of DeKalb Municipal Code).

Mr. Patel has proposed the following terms, which are described in the attached draft agreement:

▪ A hotel tax sharing period of 10 years, beginning on the first day of the next calendar month after the City’s issuance of a temporary occupancy permit.

▪ Sharing or distribution of the hotel tax revenue as follows:

⮚Hotel Tax Year 1: 90% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 2: 80% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 3: 70% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 4: 60% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 5: 50% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 6: 50% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 7: 50% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 8: 50% of the Hotel Tax Revenue to the Company;

⮚Hotel Tax Year 9: 50% of the Hotel Tax Revenue to the Company; and

⮚Hotel Tax Year 10: 50% of the Hotel Tax Revenue to the Company.

▪ A maximum or not-to-exceed payment over 10 years of $2,000,000.

▪ The City’s tax distribution to the company shall be payable solely from the hotel revenues that are generated by the property at 902 Peace Road.

▪ Payments shall be rendered within 60 days of the City’s receipt of the actual tax proceeds.

▪ The City will be entitled to relevant tax returns for the hotel revenue to assure appropriate hotel tax distribution.

Assistive services, including hearing assistance devices, available upon request.

A spreadsheet projecting the tax receipts and tax sharing is attached.

At the City Council meeting of August 25, the Council consensus was in support of Mr. Patel’s proposal.

City Council approval is recommended.

2. Resolution 2025-082 Authorizing a Purchase and Sale Agreement with Mereo Real Estate Partners LLC for the Vacated Simonds Avenue Property and Adjacent Parcels.

City Manager’s Summary: On April 28, 2025, the City Council voted to approve Ordinance 2025-015, which vacated the part of Simonds Avenue (the “Ordinance”) that is shown as Tract 5 in the Survey. The Ordinance was the first step in an anticipated purchase and sale agreement with Mereo regarding their intended development of a private road from its adjacent Algus Packaging property at 1212 E. Taylor Street (the “Algus Property) to Simonds Avenue. Such a private road would direct the Algus Property truck traffic away from the adjacent residential community and City streets along Taylor Street to the industrial uses on Simonds Avenue. Moreover, Mereo would be responsible for building, maintaining, and owning the private road in accordance with the UDO standards and the City would no longer bear the burden of maintaining the property.

The second step in the anticipated purchase and sale agreement involved Mereo’s purchase of additional property from the City, shown as Tracts 3 and 4 in the Survey. The City acquired Tracts 3 and 4 by deeds decades ago, which the City held for the potential future development and expansion of Simonds Avenue. However, the City did not build, nor does it intend to build, that expansion of Simonds Avenue. The City could not legally vacate Tracts 3 and 4 in the Ordinance because they were never legally dedicated as a public road, but the City may legally convey Tracts 3 and 4 by deed to Mereo, which is why the Ordinance anticipated a subsequent purchase and sale agreement.

During the negotiations for the purchase and sale agreement, Mereo expressed an interest in acquiring Tracts 1 and 2 from the City. Upon information and belief, the City acquired Tracts 1 and 2 by deed many years ago for the potential development of a road that would intersect Taylor Street and Silverfross Lane, but the City did not build, nor does it intend to build, that road. Accordingly, Tracts 1 and 2 are small, odd-shaped parcels of land that serve no development purpose except for assemblage purposes.

Ultimately, Mereo offered to purchase all the property (Tracts 1, 2, 3, 4, and 5) for $200 plus 100% of the closing costs. No other party expressed an interest in buying any of the property. Furthermore, Mereo’s ownership of the property should generate additional property tax revenues while also relieving the City of the financial and legal burdens of owning property that no longer serves a public purpose.

For the proposed conveyance of public property, a super-majority (3/4) of the corporate authorities then holding office is required.

City Council approval is recommended.

K. ORDINANCES – SECOND READING

None.

Assistive services, including hearing assistance devices, available upon request.

L. ORDINANCES – FIRST READING

1. Ordinance 2025-038 Amending Chapter 51 “Traffic”, Schedule Q “Speed Restrictions”.

City Manager’s Summary: To help address a pattern of speeding on W. Bethany Road on both the east and west approaches to Sangamon Road, which provides access to the Gwendolyn Brooks Elementary School and many townhouses, the speed limit will be adjusted in two steps:

▪ from Annie Glidden Road to 600 feet west of Sangamon Road, the speed limit will be reduced from 55 mph to 45 mph; and

▪ from 600 feet west of Sangamon Road to N. First Street the speed will be a consistent 35 mph.

These changes should help reduce speeding on the Bethany Road curves in this general area and reduce accidents during the winter months as motorists navigate the curves and narrow, unpaved shoulders. In addition to the reduction in speed limits, a targeted police enforcement effort will be undertaken to emphasize the City’s concern for safety.

City Council approval on First Reading with a waiver of Second Reading is recommended.

2. Ordinance 2025-039 Authorizing an Annexation and Development Agreement with Donato Solar for Property Located Along the West Side of Peace Road Between Greenwood Acres Drive and Challenger Drive for a Solar Energy System (Solar Field) and Two Data Storage Buildings (Donato Solar).

City Manager’s Summary: At the top of this Agenda under “Hearings,” an annexation and rezoning petition with a development agreement from Donato Solar is described in detail. If approved, the annexation will proceed according to the terms in the development agreement and the preliminary and final development plans (see attached).

As stated above, the intent is to construct a 4-megawatt ground mounted solar energy system (solar field) and two 6,000 square foot data storage buildings. The subject site is approximately 30 acres along the west side of Peace Road between Greenwood Acres Drive and Challenger Drive. The request would change the zoning of the subject property, after annexation, from the “SFR1” Single Family Residential District to the “PD-I” Planned Development Industrial District to accommodate the proposed uses. The site is contiguous to DeKalb next to Challenger Drive. The applicant will be purchasing the property from the current owner, which is currently being used for agricultural purposes. The City’s 2022 Comprehensive Plan recommends “Industrial” for the site.

The applicant is an independent renewable energy company based in Champaign, Illinois. The project would interconnect with the existing Ameren (power company) 12 kV distribution grid. The project will be “Behind the Meter”, meaning the solar energy created will be metered as it is transformed by the ComEd system. There will be two 50’ x 200’ Battery Energy Storage Systems connected to the arrays at the site. The interconnection facilities will be collocated with the data storage buildings on the property. Donato Solar will develop solar energy systems and battery systems and lease data storage to tenants.

On January 6, 2025, the Planning and Zoning Commission reviewed a Concept Plan for the construction of a 4-megawatt ground mounted solar array energy system (solar field) with two

Assistive services, including hearing assistance devices, available upon request. data storage buildings. No official action took place since it was a Concept Plan, however, there was consensus by the PZC to move forward with the project.

On September 2, 2025, the Planning and Zoning Commission held a public hearing on the annexation and development agreement and the proposed rezoning. At the meeting, three residents of the nearby Summit Enclave housing development spoke against the proposed annexation during the public hearing. After the close of the public hearing, the minutes of the meeting show that the Commission Chair turned to the Commission for discussion, then abruptly reopened the hearing as members of the audience asked for more time. An additional three residents of the Enclave were then invited to speak. The concerns of all six speakers from the audience are summarized below along with facts presented by Planning Director Dan Olson prior to the Commission’s discussion:

▪ “What is the purpose of the “data center?”

Answer: To create data storage space for interested parties willing to lease such space.

▪ “Can Donato Solar guarantee that property values will not decrease?” Answer: It’s not within any entity’s power – whether private or public – to “guarantee” that property values will always increase through booms or busts but the value of this 30 acres will unavoidably increase once it is re-zoned from Ag land to industrial-zoned land, and the addition of the solar field and data storage buildings will further increase the overall equalized assessed valuation (EAV) of the property upon completion.

▪ “When will the project begin?”

Answer: If the project is approved, the transfer of ownership is scheduled to occur before the end of September.

▪ “Why was farmland chosen for the site instead of installing solar panels on existing buildings?”

Answer: The answer is obvious – there are no buildings with 20-30 acres (i.e., 871,200 to 1,306,800 square feet) of unified roof space available.

▪ “Why doesn’t the City hold out for another industrial use?”

Answer: The City has no control over the timing of private land transactions. The property has been vacant for several decades and presumably the seller has been selective in terms of price and purpose. In this instance, a solar use in some demand is presented that offers no measurable impact on adjacent properties.

▪ “How much energy will be produced?”

Answer: It is a 4-megawatt system. Its energy will be metered as it is transformed by the ComEd system. Some of the energy that is created will be stored in a battery system within the buildings so that the data storage is protected with steady power through sunny days and cloudy days.

Following the extended public participation, a brief Commission discussion occurred. A roll call vote resulted in a surprising tally of 6 votes against, with one member absent. Following the vote, some members of the Commission explained that they were influenced by the objections of the residents.

By state statute and by City ordinance, the Planning and Zoning Commission – unlike the Council – is an administrative advisory body and not an elective body. It does not represent local residents and businesses but instead advises the corporate authorities on land planning matters. Such commissions are required of municipalities to see that proposals conform with the long-range planning objectives of the corporate authorities (65 ILCS 5/Art. 11 Div 12).

Assistive services, including hearing assistance devices, available upon request.

Such long-range planning is expressed in detail in a community’s comprehensive land use plan. As reported in the September 2 Commission agenda, the proposed Donato solar project is proposed for land that the City’s Comprehensive Plan has dedicated for industrial uses.

State statute and the City’s UDO also require that the Commission take into account the following:

▪ Whether the proposed development will have a detrimental effect on the long-range development of adjacent properties. The built space to the west is shielded by a formidable tree line, and the properties to the north and south are all zoned for industrial uses.

▪ Whether the proposed rezoning will warrant different land uses because of the length of time the property has been vacant, as originally zoned, and taking into account the surrounding area’s trend of development. The property has been vacant for decades despite the revival of industrial growth in DeKalb in recent years. The proposed solar project would have a lesser impact in terms of traffic, water use, light and sound than other nearby industrial uses.

Additionally, since the proposed project is a solar facility, it should be noted that state statute requires that a Commission promote the realization of “solar energy necessary for the proper functioning of solar energy systems” as defined in Section 1.2 of the Comprehensive Solar Energy Act (cf. 65 ILCS 5/11-12-5).

▪ Whether adequate public facilities and services exist or can be provided. The water use will be less than a single-family house because it will be limited to the use of bathroom facilities to serve occasional visits by employees to monitor the facilities. No water will be used for the cooling of servers and interior spaces (standard AC units will be installed).

The findings of fact are the principal responsibility of the Commission in service to the corporate authorities (the Mayor and Council then seated). The Mayor and Council depend on the dispassionate and objective review of the Commission on development matters including the consideration of preliminary and final plans, rezoning, and annexation and development agreements. In this instance, the findings are consistent with Council approval.

The City Manager recommends City Council approval of the annexation and development agreement per the preliminary and final plans for the Donato Solar project along the west side of Peace Road between Greenwood Acres Drive and Challenger Drive.

3. Ordinance 2025-040 Approving the Annexation of Certain Property Located Along the West Side of Peace Road Between Greenwood Acres Drive and Challenger Drive for a Solar Energy System (Solar Field) and Two Data Storage Buildings (Donato Solar.

City Manager’s Summary: If the Council approves the proposed annexation and development agreement, it cannot reasonably withhold support from the actual annexation of the approximately 30-acre site between Greenwood Acres Drive and Challenger Drive on Peace Road.

City Council approval is recommended.

Assistive services, including hearing assistance devices, available upon request.

4. Ordinance 2025-041 Approving the Zoning Petition of Donato Solar to Rezone Certain Property Located Along the West Side of Peace Road Between Greenwood Acres Drive and Challenger Drive to the “PD-I” Planned Development Industrial District and Approving a Preliminary and Final Development Plan for the Development of a Solar Energy System (Solar Field) and Two Data Storage Buildings on Approximately 30 Acres.

City Manager’s Summary: After annexation, this request would change the zoning of the subject property from the “SFR1” Single-Family Residential District to the “PD-I” Planned Development Industrial District to accommodate the proposed uses and in conformance with the annexation and development agreement presented earlier in this agenda. The site is contiguous to DeKalb’s corporate limits and next to Challenger Drive. The property has been used for agricultural purposes for decades. The City’s 2022 Comprehensive Plan recommends “Industrial” for the site.

Upon annexation, properties automatically assume the community’s most restrictive zoning, which is “SFR1” Single Family Residential District in DeKalb. The City Manager recommends rezoning the subject property to “PD-I” Planned Development Industrial District. Under Section 20.04.04 of the City’s UDO, the Council can authorize the re-zoning amendment by a simple majority, even if the Planning and Zoning Commission does not support the amendment.

City Council approval is recommended.

M. REPORTS AND COMMUNICATIONS

1. Council Member Reports.

2. City Manager Report.

N. EXECUTIVE SESSION

None.

O. ADJOURNMENT

https://www.cityofdekalb.com/AgendaCenter/ViewFile/Agenda/_09082025-2744