Redevelopment Commission Meeting Minutes 2017

CALL TO ORDER:

Mr. Barenie called the February 23, 2017, special meeting of the Redevelopment Commission meeting to order at 7:30 p.m.

ROLL CALL:

Clerk Treasurer, Beth Hernandez took roll call with the following members present: Mark Barenie, Michael Forbes, Greg Volk, and Steve Hastings. Cindy Sues was present. Attorney David Austgen was present. Town Manager, Steve Kil was present. Mr. Christian Jorgensen was absent. Scott Burdan was absent.

APPROVAL OF MINUTES: JULY 28, 2016 SPECIAL MEETING

Mr. Barenie stated the next item on the agenda was approval of the special meeting minutes for July 28, 2016. He asked for any comments.

Hearing none, Mr. Barenie stated he would entertain a motion to approve the minutes. Mr. Forbes made a motion to approve the minutes. Mr. Hastings seconded the motion. Mr. Volk abstained due to his absence at that meeting. The motion was carried by voice vote (3/0/1). Ayes --- three. Nays --- none. Abstentions –one.

ELECTION OF OFFICERS:

Mr. Barenie asked for nominations for officers.

Mr. Forbes nominated Mr. Barenie for President. Mr. Barenie asked for any other nominations. There were none. The motion for Mr. Barenie for President was carried by voice vote (4/0). Ayes – all. Nays – none.

Mr. Volk nominated Mr. Forbes for Vice-President. Mr. Barenine asked for any other nominations. There were none. The motion for Mr. Forbes as Vice-President was carried by voice vote (4/0). Ayes – all. Nays – none.

Mr. Forbes nominated Mr. Volk for Secretary. Mr. Barenie asked for any other nominations. There were none. The motion for Mr. Volk as Secretary was carried by voice vote (4/0). Ayes – all. Nays – none.

NEW BUSINESS:

A. Consider acceptance and approval of the Annual Report to the Executive and Fiscal Body for CY2016

Mr. Barenie stated the report was produced by our Finance Consultant, Cender and Company. Mr. Kil stated he would give a brief overview of the report but there are copies available for review as well. Mr. Kil stated we get two disbursements in the Redevelopment Department in June and December. In 2016, the disbursements totaled $772,665.82. He added it is basically tax money.

Mr. Kil stated the ending balance on December 31, 2016 in the TIF Fund was $1,455,662.45. The money is allocated for the Rt. 41 TIF district and US 231 TIF district. The Redevelopment Commission is currently working on Rt. 41. The Redevelopment Department currently does not have any debt. The Boyer Project is in a TIF District, and it would be a Redevelopment project if it ever came to fruition.

Mr. Barenie said he would entertain a motion to approve the annual report. Mr. Forbes made a motion to approve the report. Mr. Volk seconded the motion. The motion was carried unanimously by voice vote (4/0). Ayes – all. Nays – none.

B. Resolution No. 2017-02-23 RDC, a resolution to approve the annual notice to the Lake County Auditor for the Capture of Assessment for the January 1, 2017 Assessment Date

Mr. Kil stated this notice occurs annually and tells the Lake County Auditor to capture the assessment in the Redevelopment District to pay for any pending projects. Mr. Barenie asked for any questions.

Hearing none, Mr. Barenie asked for a motion to approve the resolution. Mr. Forbes made a motion to approve Resolution No. 2017-02-23 RDC. Mr. Volk seconded the motion. The motion was carried unanimously by voice vote (4/0). Ayes – all. Nays – none.

REPORTS & CORRESPONDENCE:

There were no reports or correspondence.

PUBLIC COMMENT:

Joe Hero, 11723 South Oak Ridge Drive: Mr. Hero had comments regarding the Boyer Project. He first questioned how much money the project would receive from the disbursements in the Redevelopment Commission. Mr. Forbes replied that it could not be determined yet. Mr. Kil replied that he didn’t understand the question. He wanted clarification on if Mr. Hero was asking if the Town was going to give the developer money. Mr. Hero responded that he is asking about direct and indirect disbursements. Mr. Barenie asked if he was referring to fixing the roads, etc. Mr. Hero asked if that is coming out of the TIF money. Mr. Kil responded that he now understands the question and that no money would be given to the developers to build buildings or anything like that, but the Town would be taking on public improvements in that area such as roads, traffic signals, and things of that nature. He added that the money for those improvements would be taken from the TIF account. Mr. Hero further questioned if eminent domain was needed for the Boyer Project, would the legal fees be taken from the TIF account. Mr. Kil replied that the TIF account funds would be used if that was necessary.

Lastly Mr. Hero questioned if the members of the Redevelopment Commission were paid. Mr. Kil replied the members were not paid. Mr. Hero also wanted to know if members needed to be a resident of St. John. Mr. Kil believed so, but deferred to Mr. Austgen. Mr. Austgen replied that primary members do need to be residents of St. John, but ex-officio members, such as the School Board are not required to be residents. Mr. Hero asked if those members had a vote. Mr. Austgen replied that they did not have a vote.

ADJOURNMENT:

Mr. Barenie stated he would entertain a motion to adjourn. “So moved,” by Mr. Forbes. The motion was seconded by Mr. Volk. The motion was carried by voice vote (4/0). Ayes --- all. Nays --- none.

(The meeting adjourned at 7:39 p.m.)

ATTEST

Beth R Hernandez Clerk-Treasurer

CALL TO ORDER:

Mr. Barenie called the June 29, 2017, Special Meeting of the Redevelopment Commission meeting to order at 7:30 p.m.

ROLL CALL:

Clerk Treasurer, Beth Hernandez took roll call with the following members present: Mark Barenie, Michael Forbes, Greg Volk, Christian Jorgensen and Steve Hastings. Cindy Sues was present. Attorney David Austgen was present. Town Manager, Steve Kil was present. Scott Burdan was absent.

APPROVAL OF MINUTES: February 23, 2017

Mr. Barenie stated the next item on the agenda was approval of the special meeting minutes for February 23, 2017. He asked for any edits, questions, or comments.

Mr. Forbes stated there was a correction. It lists Christian Jorgensen as Vice-President on the top of the minutes and he [Mr. Forbes] is actually the Vice-President. Mr. Volk is the Secretary.

Mr. Barenie: “I believe we kept the officers the same from the year before so that would be correct, right?”

Mr. Jorgensen: “That was my understanding.”

Mr. Forbes: "Nope. That is not. Read the meeting minutes. Mr. Volk nominated Mr. Forbes for Vice-President and Mr. Forbes nominated Mr. Volk for Secretary."

Mr. Volk: "Correct."

Mr. Forbes: "So with that amendment, I make a motion to authorize the meeting minutes."

Mr. Volk: "I’ll second that."

Mr. Hastings: "So moved."

The motion was carried by voice vote (4/1). Ayes---four. Nays---one. Mr. Jorgensen opposed the motion. Mr. Barenie stated it would be best to check the recording to verify the official officers.

PUBLIC COMMENT:

Joe Hero. 11723 South Oak Ridge Drive:

On the agenda, the Council has 95th as a listed item. Mr. Hero assumes that is the Economic Development Agreement. He stated that he would like to remonstrate against the Economic Development Agreement. For one, he believes it is unconstitutional because it predisposes the same Town Council member who composed this Board to do TIF bonds, and it violates having a peer, fair public hearing in the future.

Number two, he thinks this item is going to create heavy traffic on Joliet Street. It is going to cost one million dollars for the light at the intersection of 96th. It is going to adversely affect the public's health, safety, and welfare. The Town has done nothing to improve traffic. This is going to be more congestion just like the shops in Highland.

Mr. Hero mentioned there is a 34.5 million dollar cap on this. It does not provide for a performance bond by the developer. It is an illusionary contract because Phase 1 is not identified on the print attached.

Also, it is going to take 80 to 120 million dollars, from what he has been told, to improve the roads in St. John. This item does nothing to help that. This is going to create an 8-12 thousand dollar tax on new home development, which is going to stunt the growth of St. John or stop all growth.

The other item Mr. Hero questions is Article 4, Economic Development Incentives. Mr. Hero stated that is an unconstitutional taking of property. It allows for eminent domain to take property necessary to make it to Joliet and as well as other property outlined in the diagram.

Mr. Barenie: “Fifteen seconds, Mr. Hero.”

Mr. Hero: “Pardon?”

Mr. Barenie: “Approximately 15 seconds.”

Mr. Hero: “Okay. And for even more reasons that I do not have the time to articulate, you don’t have the authority to perform this unconstitutional act. Thank you.”

Tom Parada 9535 Joliet Street:

Mr. Parada stated he is really reiterating most of what Mr. Hero just said. He thinks all building, not just on Joliet Street should be halted. He asked the Town Council to back up and take a look at everything. He requested they figure out what they are going to do with the infrastructure because things in Town are already all tied up. It's hard to get from one place to another, and it's a safety issue in a lot of ways. Mr. Parada requested the Council to rethink this and take a good look at it.

Theresa Birlson 9520 Joliet Street:

Ms. Birlson stated she would like to remonstrate and object against the Shoppes on 96th Agreement. First, she stated the Town is putting the cart before the horse. There are a lot of commercial units available in this Town that are left empty already. "And we haven't developed out our property." Ms. Birlson said there should be a halt on this, so the Town does not have too much commercial development laying empty in Town.

Ms. Birlson mentioned the Shoppes on 96th are going to dump additional commercial and industrial traffic on Joliet Street, which, in turn, hurts the health and safety of the children in their neighborhood with the increased traffic. The development will reduce the property values in their neighborhood due to this increased traffic.

Also, the road connecting up to Joliet will need to take property that belongs to the Thiel Cabinet Shop that they have owned for over 100 and some years. They are not willing to sell this property, and Ms. Birlson does not think it is right for the Town to take it from them.

This agreement also puts the financial burden on the taxpayers for having that light at 96th. She thinks the Town should take a step back and relook at the options of connecting Joliet Street to Industrial Drive and having it come out at the stop light at Strack's that is already there.

Rita Berg 10351 Joliet Street

Ms. Berg provided a letter to be read aloud. Ms. Hernandez read the following:

"I am giving formal notice to remonstrate against the Boyer Project SJ 96, as it will negatively affect my property value as well as my neighbors' value. This will also make our traffic in this area more of a nightmare.

We were not properly notified of the change in paper work or meeting changes.

Please read this at the town council, redevelopment & any other meetings this day."

NEW BUSINESS:

A. Consider Shops 96 Agreement

Mr. Austgen advised the Commissioners that the action taken in July last year, based upon the then presented Economic Development Agreement, be withdrawn and rescinded, and the current and latest proposed Economic Development Agreement be considered and acted upon based upon a favorable recommendation of the Economic Development Commission. He added that their recommendation is an advisory recommendation to the Town Council.

Mr. Barenie stated many good points have been made tonight and actually have been made for several years by this group, the Economic Development Commission and Town Council. Mr. Barenie appreciates those comments and takes them seriously. It's difficult because the Town has spent money on surveys to get the entire Town's opinions on aspects of the development in Town, and there is a large group that is in favor of new development who oppose this particular group tonight.

Mr. Barenie said he would like to be very, very clear tonight, and acknowledged that maybe they have not been clear enough several years ago, but no homes will be taken. There could be some land that would need to be acquired and that amount is undeterminable until the survey work is done.

Mr. Barenie stated they also feel this development will bring better opportunities for the K-mart area to be revamped. They have had some positive comments that it will turn the K-mart building around. He stated he can't promise that, but it makes logical sense. Mr. Barenie emphasized that this could be a ways off.

Mr. Barenie asked for other input from Council and Board members. Mr. Forbes stated Mr. Barenie covered everything and added that it will be an improvement to our Town. He added this has been a long time coming. Mr. Volk agreed.

Mr. Barenie stated he would entertain a motion. Mr. Forbes made a motion to rescind the original Economic Development Agreement that was presented in July of last year. Mr. Jorgensen seconded the motion. The motion was carried by voice vote 5/0. Ayes-five. Nays-none.

Mr. Forbes made a motion to authorize the Town to accept the Economic Development Agreement with the Boyer Group based on the recommendations of the Economic Development Committee. Mr. Jorgensen seconded the motion. The motion was carried by voice vote 5/0. Ayes-five. Nays-none.

REPORTS & CORRESPONDENCE:

There were no reports or correspondence.

ADJOURNMENT:

Mr. Barenie stated he would entertain a motion to adjourn. "So moved," by Mr. Forbes. The motion was seconded by Mr. Jorgensen. The motion was carried by voice vote (5/0). Ayes ---all. Nays ---none.

(The meeting adjourned at 7:15 p.m.)

ATTEST

Beth R Hernandez Clerk-Treasurer