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PLAN COMMISSION 2014/12/10 MinutesThe City of Lake Forest Plan Commission Proceedings of the December 10, 2014 A regular meeting of the Lake Forest Plan Commission was held on Wednesday, December 10, 2014, at 6:30 p.m., at City Hall, 220 E. Deerpath, Lake Forest, Illinois. Commission members present: Chairman Michael Ley and Commissioners Guy Berg, Tim Henry, Lloyd Culbertson and Jim Carris Commissioners absent: Commissioners Jeff Kuchman and John Anderson Staff present: Catherine Czerniak, Director of Community Development Consultant: Lee Brown, Teska Associates, Inc. 1. Introduction of Commissioners and staff. Chairman Ley introduced the members of the Commission and City staff. 2. Public Hearing and Action: Consideration of the establishment of a Tax Increment Financing District (TIF) on the approximately 10 acre parcel located at the northwest corner of Laurel and Western Avenues, the City’s Former Municipal Services Site. Representative: Lee Brown, Teska Associated, Inc. (City’s TIF Consultant) Chairman Ley asked the Commission for any conflicts of interest or Ex Parte contacts. Hearing none, he swore in all those intending to speak on this matter. He invited a presentation from the City’s TIF Consultant, Lee Brown. Mr. Brown provided a summary of Tax Increment Financing Districts in general. He stated that a TIF District does not establish a new tax and reviewed a simple example of how a TIF District works and a graphic explaining how a successful TIF District generates revenue. He reviewed the various taxing districts in Lake Forest and the percent of the total tax base that each district receives. He explained that the intent of TIF Districts is to establish a continuous cycle within which public investment drives private investment generating revenues to support the public improvements. He explained the types of improvements that are eligible for reimbursement with the revenues generated by the TIF District. He reviewed the conditions that qualify an area for a TIF District and stated that an Eligibility Study was completed for this site and a copy was included in the Commission’s packet. He stated that there are more than 1,500 TIF Districts in the Chicago area and noted that the City of Lake Forest has had one TIF District to date which proved to be very successful and resulted in the development in west Lake Forest, along Waukegan Road. He reviewed the anticipated value of the west Lake Forest TIF District when it was formed and the Plan Commission Minutes – December 10, 2014 Page 2 of 11 significantly greater value that was actually achieved at the close out of the District. He talked about the TIF District now proposed on the northwest corner of Laurel and Western Avenues. He reviewed the boundary of the proposed TIF District noting that the adjacent rights-of-way will be included in the development to facilitate improvements that may be needed. He reviewed the existing land use and stated that all of the parcels, except one, are owned by the City. He reviewed the eligibility criteria for TIF District and the findings in the Eligibility Report. He stated that the TIF Plan and Program are consistent with the City’s Comprehensive Plan. He noted that the proposed TIF budget is included in the materials presented to the Commission and will establish the basis for expenditures going forward. He stated that the TIF District will support assembly of property, clean up and remediation of the site. He stated that the TIF District anticipates the increase in tax value that will occur upon the transfer of the site to a private party and remediation of the site. Ms. Czerniak stated that this public hearing is a next step in what has been a long process of considering the future of the former site of the City’s Municipal Services Facility. She noted that in 2007and 2008, community visioning sessions were held by an independent committee which was appointed by the Mayor to plan for redevelopment of the site. She stated that as an outcome of those sessions, Development Parameters were drafted and later accepted by the City Council. She noted that due to the economic downturn, the City Council decided at that time to put the redevelopment project on hold. She stated that in 2012, the City Council re- established the redevelopment of the site as a high priority. She noted that the City Council directed the Plan Commission to re-consider the previously accepted Development Parameters. She stated that after re-consideration, the Plan Commission recommended some modifications to the Development Parameters to the City Council and the Council accepted the modified Development Parameters. She explained that the Council then directed that a Request for Qualifications and later, a Request for Proposals be issued and the Development Parameters were used as the basis for the proposals requested. She stated that the City Council spent a considerable amount of time evaluating whether a TIF District should be considered as a tool to support the redevelopment of the site. She noted that the Council reviewed the basics of TIF Districts and the success of the previous TIF District in west Lake Forest. She stated that the City Council concluded that consideration of a TIF District was worthwhile and directed the Plan Commission to conduct a public hearing on the issue. She noted that a TIF District could support the costs of demolition of the buildings, remediation, dealing with unstable soils and improvements to public utilities and roads. She stated that findings in support of formation of a TIF District are included in the staff report. She stated that if, after conducting the public hearing, the Commission desires to do so, a recommendation in support of the establishment of a TIF District would be appropriate. In response to questions from Chairman Ley, Mr. Brown explained that the funds made available through the TIF District will support elimination of the conditions on the site that make development difficult and make it ready for private investment Plan Commission Minutes – December 10, 2014 Page 3 of 11 In response to questions from Commissioner Culbertson, Mr. Brown explained that the City Council will likely follow a “pay as you go” approach. He stated that the City will use the incremental revenues received to pay off debt incurred and to make any required payments to the School and Library Districts. Ms. Czerniak noted that the majority of the property in the proposed district currently generates no property taxes at all because it is owned by the City. In response to questions from Commissioner Carris, Mr. Brown explained that a Joint Review Board made up of representatives of the various taxing bodies met to review the proposed TIF District and forwarded a recommendation to the Plan Commission in support of the District. He confirmed that the Joint Review Board will be required to continue to meet during the life of the TIF District to review the progress, revenues generated and reimbursements. He explained the differences between the TIF District that was recently closed out in west Lake Forest and the proposed District noting that the District now proposed is much smaller and has more certainty with respect to how redevelopment will occur. He stated that as soon as the property is cleared and transferred to the developer, an increment in value will be received. He stated that the TIF projections used are conservative. Commissioner Carris stated that his primary concern is the possibility that the City will issue bonds and will not receive the anticipated revenues from the TIF District in the time frame projected. In response to questions from Commissioner Berg, Mr. Brown reviewed the types of improvements that are eligible for TIF reimbursement. In response to questions from Commissioner Culbertson, Mr. Brown reviewed the revenue projections. Hearing no further questions from the Commission, Chairman Ley invited public testimony. Paul Haman, 511 Beverly Place, stated that he is a 56 year resident of Lake Forest. He commented on the operating and capital costs for the School Districts. He reviewed the costs per student and stated that each new housing unit imposes a cost on the School Districts. He stated that the City is still using the Municipal Services site for storage. He stated opposition to the creation of a TIF District. Dick Wood, 1032 N. Western Avenue, stated that he is a resident of the Regents Row development. He encouraged the Plan Commission and City Council to be open minded about the pros and cons of a TIF District and to watch a video by the Kellogg School of Management on the subject. He said that he is surprised to hear that he lives near a blighted area. He questioned whether TIF Districts are appropriate for Plan Commission Minutes – December 10, 2014 Page 4 of 11 City owned properties. He noted that developers are usually asked to do improvements that are necessary for redevelopment projects. Richard Cottrell, 119 Laurel Avenue, stated that he is not for or opposed to a TIF District but commented that the redevelopment plan appears to present a rather bloated plan for the site. He questioned how much time the City has to pay off the costs incurred for the development and what would happen if there is not sufficient interest in the development. He asked what will happen to the TIF District if the proposed development is not approved. He pointed out that one of the buildings proposed is as tall as the clock tower in Market Square. He asked about guest parking for the development. In response to public testimony, Mr. Brown explained that the establishment of a TIF District does not commit the City to borrow money or fund improvements. He stated that instead, the TIF District provides a tool for the City to use, if desired. He noted that whether or not the Focus Development plan is approved, the site still needs to be cleaned up and noted that those costs can be reimbursed by the TIF District. He stated that the City Council is carefully considering the right time to issue bonds and added that the issuance of bonds will likely occur in phases. In response to questions from Commissioner Culbertson, Mr. Brown confirmed that many TIFs include properties owned by municipalities. Commissioner Henry noted that some important points were raised in the public testimony. He stated that in his opinion, it would be difficult, if not impossible, to achieve the desired redevelopment of the site without the assistance of a TIF District. He expressed concern that the details of the Purchase/Sale Agreement for the parcel are not available to the Plan Commission noting that it is difficult to separate the details of the development from the financial aspects of the project. In response to questions from Commissioner Henry, Mr. Brown confirmed that all financial decisions pertaining to the development and TIF District require review and approval by the City Council. He explained that the TIF District is a tool that can be used to achieve the desired development and related improvements. He noted that the TIF District allows the City to more proactively direct redevelopment of the site. Chairman Ley, at the request of a member of the public, allowed additional public testimony. A resident of 40 Thomas Place asked what will happen if the redevelopment does not generate the anticipated revenues and the funds necessary to pay off the bonds. In response to public testimony, Mr. Brown explained that it is likely that the City Council will stage the issuance of bonds and not commit all of the funds up front. He stated that the City will be responsible for repaying any debt incurred. He stated that Plan Commission Minutes – December 10, 2014 Page 5 of 11 in this case, the borrowing will be based on realistic assumptions and he reiterated that any borrowing will likely be phased. Hearing no further requests to speak, Chairman Ley closed the public hearing. He invited comments and deliberation from the Commission. Commissioner Berg stated that a recommendation in support of the TIF District does not approve a particular development plan. In response to questions, Mr. Brown explained that the City Council will need to act on the Plan Commission’s recommendation on the TIF District within 90 days. He stated that if no action is taken by the City Council, a TIF District could be reconsidered at a later date and would require another public hearing. Commissioner Henry stated that the Commission’s recommendation should note that because the Plan Commission is not informed of all of the financial aspects of the proposed deal or the terms of the sale of the property, the recommendation only pertains to the appropriateness of the use of a TIF District as a tool and the appropriateness of the use of that tool for this site. Chairman Ley reiterated that the terms of the Purchase/Sale Agreement and the sale price are under the purview of the City Council, not the Plan Commission, and as a result, are not known to the Commission at this time since the sale of the property has not closed and the terms are not public. Commissioner Carris agreed with Commissioner Henry’s comments about supporting the concept of the use of a TIF District as a tool but stated that he is not comfortable recommending that the City incur debt without knowing the details of the deal. He stated that caution is advisable. Ms. Czerniak suggested that the Commission’s motion could recognize that the financial aspects of the deal rest with the City Council and that the Commission focused on the land use aspects of the TIF District. She stated that if desired, the Plan Commission could indicate that the TIF District, as a tool, is recommended and that the Commission believes that the site meets the requirements for the establishment of a TIF District and that the TIF Plan and Program are consistent with the Comprehensive Plan. Commissioner Carris stated that he is not concerned with the TIF District as a vehicle, but stated that he does not know enough about the financial aspects of the deal to make a recommendation on those aspects of the project. Chairman Ley clarified that the Commission is being asked to look at the TIF District with respect to the accuracy of the Eligibility Study and to determine whether the Redevelopment Plan and Program are consistent with the City’s Comprehensive Plan Plan Commission Minutes – December 10, 2014 Page 6 of 11 and the Development Parameters previously recommended by the Plan Commission and accepted by the City Council. He noted that there are findings in the staff report in support of those aspects of the TIF District. Commissioner Henry stated that he believes that the Redevelopment Plan and Program and the establishment of a TIF District are appropriate from a land use point of view and consistent with the Comprehensive Plan. He reiterated that he cannot weigh in on the advisability of the TIF District from a financial perspective because the Plan Commission has not been provided with the financial details. Commissioner Carris stated that he could support a recommendation on the TIF District with a cautionary note to the City Council regarding the financial aspects of the project which have not been provided to the Commission. He stated that he can support the TIF District as a vehicle. He noted that as explained by Mr. Brown, there is a Joint Review Board that will meet on an ongoing to oversee the TIF District. Commissioner Culbertson stated that by recommending approval of the TIF District to the City Council, the Commission is not specifically endorsing any financial aspects of the deal. Commissioner Carris made a motion to recommend approval of the TIF District for the Laurel and Western Avenue site to the City Council as a vehicle for supporting redevelopment. He noted that the recommendation is based on the findings detailed in the staff report and in the materials provided by Mr. Brown. He added that the motion includes a recommendation to the City Council that careful due diligence of the financial aspects of the project should be conducted to minimize risk to the City and to assure that the anticipated benefit is provided to the community. He noted that the Plan Commission was not provided with the details of the financial aspects of the deal and therefore, offers no endorsement of those aspects of the project. The motion was seconded by Commissioner Henry and was approved by a vote of 5 to 0. 3. Introduction and Preliminary Information about the Proposed Redevelopment of the 10 Acre Parcel Located on the Northwest Corner of Laurel and Western Avenues. Representatives: Tim Anderson, CEO, Christine Kolb, Development Manager – Focus Development Chairman Ley asked the Commission for any conflicts of interest or Ex Parte contacts, hearing none; he invited a presentation from the Focus Development representatives. Plan Commission Minutes – December 10, 2014 Page 7 of 11 Ms. Kolb stated that Focus Development is excited to have the opportunity to work in Lake Forest and to begin the public review process. She stated that preliminary design concepts for redevelopment of the site will be presented and that the development team is interested in hearing initial thoughts, concerns and questions from the community and Plan Commission. She introduced Tim Anderson, the CEO of Focus Development. Mr. Anderson, President, CEO and owner of Focus Development, Inc., stated that he and his team welcome this part of the process. He reviewed his background noting that after graduating from IIT, he worked as an architect for 10 years before moving into the developer role. He stated that early in his career, he developed The Laurels, a condominium development across the street from this property, on the south side of Laurel Avenue. He stated that he founded Focus Development, Inc. in 1993 and since that time, Focus has completed several successful developments on the North Shore and in Chicago. He stated that his firm has a broad range of experience and uses an integrated development model with construction “in house”. He stated that this approach results in high accountability and responsiveness. He pointed out that everyone on the design team for this project has had experience working in Lake Forest and working with each other. He added that his team has experience working with TIF Districts and with public/private partnerships. Ms. Kolb introduced the design concepts noting that the design was closely based on the Development Parameters which were developed by the community, reviewed and recommended by the Plan Commission, and accepted by the City Council. She stated to date, the team has completed considerable due diligence to gather information about the site and the general area. She noted that as described in the Request for Proposals for the site, the design concepts focus on integration of the site with the surrounding area, connectivity, open space and quality detailing and materials. She reviewed the site noting that it has been vacant since 2008 with some continued passive use of the site by the City. She reviewed the surrounding area noting that there are various residential and commercial buildings of different sizes, shapes, materials and styles. She reviewed the proposed site plan noting that it is sensitive to the large oak tree and responds to the Development Parameters established by the City. She stated that the plan integrates three product types, single family homes, condos and luxury apartments. She stated that the heights of the buildings respect the adjacent development. She said that consistent with the City’s Development Parameters, a new road connecting Laurel Avenue and Franklin Place is provided along with public walkways through the site. She reviewed the open space areas on the site and stated that 65 percent of the site will be open space. She stated that all of parking will be underground and out of sight. She talked about the residential units noting that one, two and three bedroom apartments are planned and pointing out that the units will be larger than typically seen to meet the Lake Forest market. She pointed out that there will be a club house on the site and 24-7on site management. She stated that the apartments will be constructed to condominium quality standards. She explained that the single family Plan Commission Minutes – December 10, 2014 Page 8 of 11 units will be clustered on the west side of the site and will have first floor master bedrooms and offer maintenance free living. She reviewed the proposed streetscapes and introduced the landscape consultant. Carrie, Mariani Landscape, reviewed the open space areas proposed in the plan. She stated that the open area in the middle will serve as the heart of the development and a gathering place. She noted that an outdoor swimming pool is proposed near the club house. She noted that the area of Franklin Park will have new walkways and other park improvements. She stated that the open spaces and walk ways are intended to be used by residents in the development and by neighbors of the site. She stated that the development will not be gated, but will be open to everyone. She stated that the existing street lights will be used in the development and a special hardscape treatment is planned for the new street. She stated that native plants are proposed and will be arranged in a formal setting. Larry Booth, Booth Hansen Architects, and a member of the project team stated that the garden is the star of the show in the proposed development. He noted that the center open space is almost the length of a football field and will serve as a great lawn. He stated that the architecture of the buildings is inspired by Thomas Jefferson with the use of red brick throughout. He stated that the design will follow American traditions with simple four square buildings, simple craftsmanship, variety in height, slate roofs and other high quality materials consistent with other architecture in Lake Forest. He stated that there will be sufficient open space and setbacks to support the taller buildings. He noted that the majority of the parking will be underground and out of view. He reiterated that the focus will be a great landscape. Chairman Ley thanked the Focus Development team for the introduction to the project and invited preliminary public comments and questions. Steven Bruhn, 1261 Burr Oak Road, stated that he has been following plans for redevelopment of this parcel since 2007. He stated that he has offered the same comments consistently. He noted that Franklin Place is a lovely street and questioned what will happen to the streetscape. He noted that if Franklin Place is widened, the trees in the parkway will be lost. He noted that the City has a Tree Preservation Ordinance and stated that the trees along Franklin Place have been there a long time. He talked about Franklin Park noting that the proposed site plan shows that for all intents and purposes, the park will be eliminated. He stated that he is not opposed to the development, but asked that Franklin Place and Franklin Park be preserved. Jim Warfield, 140 Franklin Place, stated that he is fearful that the City will approve variances to achieve specific financial goals. He noted concerns about the setbacks, building heights and density. He stated that given the number of residents planned to live on the site, access should be provided from Western Avenue. He expressed concern about the impact on groundwater with such a large building Plan Commission Minutes – December 10, 2014 Page 9 of 11 footprint and underground parking. He questioned whether the number of apartments is in the best interest of the City. He stated that he is in support of having the process continue and the site developed. Jan Gibson, 59 Franklin Place, stated that she is an adjacent homeowner. She stated that she has never been against development of the site. She comments on previous plans for redevelopment of the site and noted that the conceptual plan now presented is not yet “right”. She stated concern about traffic flows, adequacy of parking, the scale and compatibility of the project and encouraged that quality building design and materials be required. She stated that she is pleased to hear about the amount of green space being preserved but questioned whether it is in the right locations. She stated that there is significant traffic in the neighborhood today and said that parking is difficult. She questioned the wisdom of the proposed ingress and egress to the site. She questioned why cars do not exit directly on to Western Avenue since they will end up there anyway. She stated that as proposed, the building will loom over walkers and bikers and will create a wall along Western Avenue. She noted the setback distances for the buildings in the Crystal Point development. She recommended that a mock-up of the proposed building height be set up on the site. She stated that the pocket park at the corner of Franklin Place and Western Avenue is used by many, not just those who live in the neighborhood. She expressed concern that the green spaces on the site appear to be configured in a way that discourages use by the public. She stated the importance of quality construction and stated that corners should not be cut with materials, windows or design details. She encouraged all parties to do this development right. Diane Karzas, 140 E. Franklin, stated that she agrees with the comments of the other speakers. She expressed concern that the private road in the Crystal Point development will be used by thru traffic. She asked that consideration be given to providing entrances to the site from Western Avenue. Phelps Langtry, 1230 N. Western Avenue, Crystal Point, asked about the requirements of the inclusionary housing ordinance and what constitutes an affordable unit. He asked which of the units will be considered affordable. Beth Napoli, 58 E. Laurel Avenue, stated that she has lived in Lake Forest for 35 years. She stated that the development will be in her backyard. She stated that she is not against development, but asked that the density, height and some of the design elements be reconsidered. She stated that the site should be entered from Western Avenue. She noted that access on to Green Bay Road will be difficult. She questioned who will use the club house that is proposed on the site. She stated that people using the center lawn will be surrounding by buildings. She stated that there are lots of aspects of the plan that need to be re-considered. Ms. Ackerman, 1260 Western Avenue, reiterated that the trees along Franklin Place, the berm and Franklin Park should be saved. She stated that the park should be Plan Commission Minutes – December 10, 2014 Page 10 of 11 enlarged, not reduced in size. She stated that she would prefer to have a dog park and a community garden on the site. Pat Kammerer, 1361 Estate Lane, asked about the range of price points for the affordable units. She asked how many people are expected in the development. She suggested that a piece of the property be reserved for public parking. Mary Lindfurth, 1350 N. Western Avenue, stated that she is a 48 year resident of Lake Forest and agree with the comments of other speakers. She stated that she used to live on Burr Oak and is now a resident of Crystal Point. She said that Burr Oak is a quiet family oriented street. She stated opposition to a street connection between Franklin Place and Laurel Avenue. She expressed concern about traffic and density. She commended the plan, but stated that she wished it was proposed somewhere else. Kevin Carden, 275 E. Woodland Road, stated that he fails to see how a 4-story building near Western Avenue is in keeping with the character of the area. He stated that the single family houses should follow the same standards for diversity, simplicity and quality as other houses in the community. He asked for a definition of the affordable housing planned for the site. Phelps Langtry, 1230 N. Western, stated that there are water problems on Western Avenue when it rains. He questioned what effect the development will have on drainage in the area and questioned whether there is sufficient capacity to handle the additional runoff. Richard Cottrell, 119 Laurel Avenue, suggested that the condominium proposed for on Laurel Avenue should be duplicated on Franklin Place and the four story structure should be reduced to three stories. He noted that apartments will attract more transient people than apartments. He suggested that the number of apartments should be minimized. He noted that as proposed, the tallest building will be the height of the clock tower in Market Square. Chairman Ley thanked all parties for the comments noting that the intent of this meeting was to provide input to Focus Development on the preliminary concepts. He stated that after the design concepts are refined and the necessary technical information reviewed by staff, the formal public hearing on this petition will be held. He noted the good outcome that resulted from the public review process for the hospital and noted that he expected the end result of this process will also result in a superb development. He stated appreciation for everyone’s comments. Ms. Czerniak said that notice of future public hearings on this matter will be provided to all those who have received notice to date. She asked that anyone who did not receive a mailed notice, and would like to receive notice of future meetings, contact the City’s Community Development Department. Plan Commission Minutes – December 10, 2014 Page 11 of 11 Chairman Ley invited final comments from Focus Development. Tim Anderson stated that his team is thankful for the input received and said that it was helpful to his team. He stated that he looks forward to returning to the Commission for further discussion. The meeting was adjourned at 9:49 p.m. Respectfully submitted, Catherine Czerniak Director of Community Development