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PLAN COMMISSION 2017/08/09 MinutesThe City of Lake Forest Plan Commission Proceedings of the August 9, 2017 Meeting A meeting of the Lake Forest Plan Commission was held on Wednesday, August 9, 2017, at 6:30 p.m., at City Hall, 220 E. Deerpath, Lake Forest, Illinois. Commission members present: Chairman Ley and Commissioners: Monica Ruggles, Michael Freeman, Tim Henry, and Rosemary Kehr Commissioners absent: Commissioners: Louis Pickus and Guy Berg Staff present: Catherine Czerniak, Director of Community Development 1. Introduction of Commissioners and staff. Chairman Ley introduced the members of the Commission and staff. 2. Consideration of the minutes of the July 12, 2017 meeting. The minutes of the July 12, 2017 meeting were approved as submitted. 3. Recognition of Past Plan Commission Member Lloyd Culbertson. Chairman Ley recognized past Plan Commissioner Lloyd Culbertson for his service to the Commission and the community. He listed various petitions that were reviewed by the Commission during his time of service including the Northwestern Lake Forest Hospital Master Plan and the redevelopment plans for the former City Municipal Services site at Laurel and Western Avenues. He presented a plaque to Commissioner Culbertson in appreciation for his contributions and service. 4. Public Hearing and Action: Consideration of a request for approval of a Special Use Permit to authorize a restaurant to operate within 150 feet of a residential zoning district. The restaurant is proposed in an existing building located at 202 Wisconsin Avenue and will operate in collaboration with an existing art gallery at the same location. An outdoor patio is also proposed. Property Owners: Amador E. and Silveria Vazquez Petitioners and Representatives: Cecilia Lanyon and Dominic Zumpano Chairman Ley asked the Commission for any conflicts of interest or Ex Parte contacts. Hearing none, he swore in all those intending to speak and invited a presentation from the petitioners. Ms. Lanyon introduced the petition. She explained that a Special Use Permit is requested for a restaurant, The Gallery. She stated that she and her partner have a passion for the proposed business and believe that the unique restaurant will be a Plan Commission Minutes – August 9, 2017 Meeting Page 2 of 18 benefit to the community. She stated that the restaurant will be a collaborative venture with the art gallery they currently operate in the space. She stated that she grew up in the neighborhood, on Oakwood Avenue, and now lives three blocks from the restaurant. She stated that she loves Lake Forest and the neighborhood. She explained that she has been a business owner for five years and has operated retail space, a fine arts gallery and studio space. She stated that the retail business was difficult. She stated that she and her partner previously operated a restaurant in Chicago and decided to relocate to Lake Forest and work with the creative community to establish a venue for art exhibits for the benefit of students, not for profit organizations, local photographers and independent artists. She stated that since opening the gallery space on Wisconsin Avenue, the community has been very supportive and the use of the space has expanded to include a location for celebrations and small special events. She stated that there appears to be an opportunity for the business to evolve and expand to include a culinary program, dining spaces, and an outdoor courtyard. She stated that The Gallery will be an extension of her home and a realization of the dream that brought her back to Lake Forest. Ms. Czerniak reviewed the request explaining that restaurants within 150 feet of residential properties must be reviewed and approved through the Special Use Permit process. She explained that the business was originally approved as an art gallery with the understanding that from time to time, limited food would be offered at art showings. She noted that the City Council previously approved a bring-your- own-beverage liquor license for the art gallery. She stated that the gallery is evolving into a restaurant and in compliance with the Code, the business owners are seeking approval of a Special Use Permit to authorize a restaurant in the space because it is located adjacent to a residential neighborhood. She noted that patrons of the business have contacted the City questioning why the restaurant was “closed down”. She clarified that City staff contacted the business owners to alert them of the need for a Special Use Permit given the location of the proposed restaurant next to single family homes. She explained that restaurants, near residential neighborhoods, are permitted only as special uses to provide the opportunity for a review of the specifics of the proposed restaurant use and an evaluation of its compatibility, or lack thereof, with the adjacent neighborhood. She noted that in this case, the proposed restaurant is small, does a low volume of business, has adequate parking nearby, has limited hours and does not require a hood exhaust which could impact neighboring homes with fumes and odors. She stated that the staff report recommends approval of the restaurant subject to conditions that are intended to minimize impacts on the adjacent homes and the neighborhood. She noted that to date, staff has received some complaints from neighbors about noise and light impacts on homes and private yards stemming from the use of the outdoor patio. She suggested that consideration of additional screening, although the space for screening is limited, and some restriction on hours and lighting would be appropriate in an effort to mitigate the impacts. She added that any use of the patio by patrons of the business should be conditioned upon a review of life safety issues such as the provision for adequate egress from the patio. She stated that the Plan Commission Minutes – August 9, 2017 Meeting Page 3 of 18 staff report presents findings in support of the petition subject to conditions of approval. In response to questions from Chairman Ley, Ms. Lanyon stated that no significant improvements are planned to the building or patio. She explained that a “culinary studio” showcases food as an art form. She confirmed that cooking in the space will be very limited noting that only an electrical stove will be used to warm food. She confirmed that food will be prepared on the site. In response to questions from Commissioner Ruggles, Ms. Lanyon confirmed that she has an agreement with the adjoining property, the owner of 222 Wisconsin Avenue, which allows her to use trash and recycling dumpsters located in the parking lot of that property. In response to questions from Commissioner Ruggles, Ms. Czerniak stated that if the agreement to share the trash and recycling dumpsters with the neighboring commercial property is ended, Ms. Lanyon would need to accommodate a trash and recycling area on the restaurant property in compliance with the Code requirements. She noted that any new dumpsters would need to be screened and set back from the adjacent residential properties. In response to questions from Commissioner Kehr, Ms. Czerniak confirmed that Lake County, not the City, is responsible for issuing health licenses for restaurants. Hearing no further questions from the Commission, Chairman Ley invited public comment and swore in all those intending to testify. Phillip Ross, 213 Hancock Avenue in Lake Bluff, stated that he is the Vice President of Artists on the Bluff, a not for profit organization that exhibits artwork in the gallery. He stated support for the innovative and entrepreneurial spirit of the business. He noted that the business has gotten the attention of the community. Corinne Stagen-Torkelsen, 217 Hancock Avenue in Lake Bluff, stated that she has exhibited her work at the gallery since it opened. She voiced her support for the food offered at the gallery noting that it is something different from what is offered elsewhere in the community. Kelly McInerney, 1445 N. McKinley Road, stated that she is a frequent patron of the business noting that everyone enjoys the space and the exceptional food. She said it is an exciting new offering in the community to see food paired with art. Hearing no further requests to speak from the public; Chairman Ley invited final comments or questions from the Commission. In response to questions from Commissioner Freeman, Ms. Czerniak stated that it is the obligation of the business owner to monitor parking. She stated that if the City Plan Commission Minutes – August 9, 2017 Meeting Page 4 of 18 receives complaints that employees or patrons of the business are parking in the residential neighborhood, the City will monitor the situation, alert the property owner and, if violations of the Special Use Permit are found and not corrected, the Special Use Permit could be brought before the Plan Commission for reconsideration or could be rescinded by the City Council. Chairman Ley asked that a condition be added to require consideration of an amendment to the Special Use Permit if the business owners propose to expand food preparations at the restaurant in a manner that would require the installation of a hood exhaust system. Commissioner Henry asked that all trash and recycling containers be handled consistent with the Code requirements for food establishments. In response to questions from Commissioner Kehr, Ms. Czerniak confirmed that a neighbor raised concerns about noise and light impacts resulting from activity on the patio. She noted that the staff report recommends that some parameters be established through conditions of approval to limit use of the patio in an effort to mitigate impacts on the neighboring residential properties. She stated that staff encouraged the business owners to talk with the adjacent residential property owners in an effort to understand their concerns. She stated that if, after a Special Use Permit is granted and use of the patio causes negative impacts on neighboring properties, the matter can be brought back to the Plan Commission for further consideration. Commissioner Ruggles noted that compatibility with surrounding residential properties is one of the criteria that must be considered by the Commission. She stated that minimizing impacts on the neighboring homes through higher fencing or some other sound mitigating measures will be important. Hearing no further comments from the Commission, Chairman Ley invited a motion Commissioner Henry made a motion to recommend approval of a Special Use Permit to allow a restaurant to operate in conjunction with an art gallery in the existing building at 202 Wisconsin Avenue subject to the following conditions of approval. Parking 1. Employees must park in public parking lots located throughout the Central Business District. No on street parking by employees is permitted. 2. Customer parking on residential streets is prohibited. 3. The business owner is responsible for advising employees and patrons of permitted parking areas and for assuring compliance with the conditions of approval. Patio Plan Commission Minutes – August 9, 2017 Meeting Page 5 of 18 4. Use of the patio is permitted from June 1st through October 1st, from noon to 9 p.m. on Fridays and Saturdays and from 4 p.m. to 7 p.m. the rest of the week. 5. No more than 25 people may occupy the patio at any time. 6. Staff clean-up of the patio must be completed within 30 minutes after the closing times noted in Condition #4 and all exterior lights, except for those required by Code for life safety, must be turned off at that time. 7. Efforts shall be made to enhance screening along the west and north sides of the patio to buffer the neighboring homes from noise, lights and activity on the patio. This condition recognizes the limited space within which to add plant materials. General 8. No cooking exhaust hood is permitted. If changes in the restaurant offerings are proposed in a manner that would require an exhaust hood, consideration of an amendment to the Special Use Permit is required to provide for the opportunity to assess impacts on the neighboring residential properties. 9. No outdoor speakers of any type are permitted on the exterior of the building, no amplified music or amplified sound of any type is permitted on the patio, and no amplified music or sound is permitted in the building if any windows or doors are open. 10. Given the small size of the building and property, attendance at special events shall not exceed 60 people at any one time for the total property. 11. All egress and other life safety requirements shall be met to the satisfaction of the Director of Community Development and Fire Chief for the interior space and for the patio. 12. The source of light for all exterior lighting shall be shielded from view from off of the property. All exterior lights shall be directed downward to mitigate off site impacts. A permit must be obtained prior to the installation of any new exterior lighting. 13. Deliveries shall be made only between the hours of 9 a.m. and 5 p.m. 14. Trash and recycling containers for food waste of any type shall not be located within 20 feet of a residential property line and shall be located within enclosures consistent with the requirements of the Code. The motion was seconded by Commissioner Freeman and was approved by the Commission by a vote of 5 to 0. 5. Introduction and Opening of Public Hearing: Consideration of a request for approval of a Special Use Permit to authorize the location of a Chase Bank branch and bank drive thru facility on property located at 884 S. Waukegan Road. Banks and drive thru facilities are permitted in the B-1 zoning district only as special uses. The site is currently the location of McDonald’s. Demolition of the existing building and construction of a new building is proposed. This meeting is intended as an Plan Commission Minutes – August 9, 2017 Meeting Page 6 of 18 opportunity for the Commission to hear an introduction of the petition and to invite initial public comment on the request. Property Owner: 884 S. Waukegan Road, LLC (Frank Mariani 50%, John Fiore, Jr. 50%) Petitioner: Jon Krissoff, Market Director of Real Estate JPMorgan Chase & Co. 10 S. Dearborn, Floor 15 Chicago, IL 60603 Representatives: Timothy Meseck, The Architects Partnership Allen Kracower, Kracower & Associates Robert O’Donnell, Attorney Chairman Ley asked the Commission for any conflicts of interest or Ex Parte contacts. Hearing none, he swore in all those intending to speak and invited a presentation from the petitioners. Mr. Krissoff stated that he is the Market Director for Chase Bank for the greater Chicago area and lives in Libertyville. He stated that he is responsible for 350 bank branches and about 1500 automatic teller machines. He stated that he helps create and implement Chase Bank’s strategy for branch banks and automatic teller machines across the network. He stated that the greater Chicago area is extremely important to Chase, including Lake Forest. He stated that Chase Bank is the number one bank in the region. He stated that Chase Bank currently serves Lake Forest with one branch bank located on the east side of the community. He stated that there is not currently a Chase Bank branch that conveniently serves west Lake Forest. He noted that in the west Lake Forest trade area, which Chase defines as the area within a two mile radius of the site now proposed for development with a new branch bank, there are 8,275 households, 75 percent of which are Chase customers who have at least one checking account with Chase Bank. He noted that if all products offered by Chase Bank are considered, the customer number is higher. He acknowledged that many customers use two or three different banks and are not exclusively Chase Bank customers. He stated that based on Chase Bank’s experience, customers demand a branch within a three minute drive of their homes or places of employment. He stated areas near grocery stores, pharmacies and public transportation are good locations for banks. He stated that the proposed location on Waukegan Road is a good spot for a Chase branch. He stated that a typical Lake Forest resident has a significant need for bank services and Chase wants to be positioned to meet those needs. He stated that JP Morgan Chase is strong. He acknowledged that the retail banking industry is changing as is the entire retail industry. He stated that the type of branch proposed in west Lake Forest is a new model which is designed to serve the community for decades to come. He acknowledged that in person bank transactions are falling off considerably as bank customers migrate to mobile sites and use debit and credit cards. He stated that people are holding less cash, but noted that Chase finds that 99.9 percent of customers still want a personal touch when opening a new account, managing investments, refinancing a mortgage or servicing accounts. He said that Chase does Plan Commission Minutes – August 9, 2017 Meeting Page 7 of 18 not see that preference changing any time soon. He explained that the building proposed at this location is the bank branch of the future. He stated that upon entering the bank, customers will not see a long teller line. He explained that instead, customers will see a reception area and private offices. He stated that ideally, Chase customers will be greeted by name by their private investment advisors. He stated that the new branch bank is much smaller than existing branch banks noting that the proposed building is 3,600 square feet and older branches are 15,000 to 20,000 square feet. He stated that although the building foot print is very small, the intent is to design and build a high quality structure to fit in with the surrounding development adding that construction will cost an estimated 4.5 million, a high cost for a building of this size. He emphasized Chase’s long term commitment to this site and the Lake Forest community. Tim Messick, Architects Partnership, stated that his firm is the architect of record for the project. He stated that his office is located at 200 S. Michigan Avenue, in Chicago. He reviewed the existing site plan noting that the parcel is one acre and is currently the site of McDonalds’ restaurant. He stated that the existing building, which is proposed for demolition, is a single story with the appearance of second floor massing. He stated that there are 40 parking spaces on the site today. He reviewed the existing ingress and egress points from Waukegan Road and Gloucester Crossing noting that there will be no change in the access to the site. He stated that the proposed building has generally the same footprint as the existing building. He stated that most of the existing landscaping and trees will remain on the site. He stated that the site, as proposed, will have 37 parking spaces and a 3,600 square foot, single story building. He noted that there is an access easement across the west end of the property which provides for access to the Forest Square development to the north, from Gloucester Crossing. He stated that the access easement must remain. He stated that parking will be located to the north and west of the building, as it is today. He stated that a drive thru lane will be located on the south side of the building to provide access to the ATM. He added that a by-pass lane is also proposed on the south side of the building. He reviewed the conceptual landscape plan stating that the existing mature trees will be preserved to the extent possible. He stated that two trees are proposed for removal. He reviewed the floor plan noting that all of the bankers will be visible with the open plan concept. He presented a conceptual rendering of the building noting that it is designed in the traditional style and that natural materials are proposed for the exterior of the building. He noted that the main entrance will be on the north façade but explained that the east elevation will also appear as the front of the building from the streetscape. He stated that all elevations will be detailed consistently recognizing the visibility of all sides of the building. He stated that the proposed building is designed in a manner consistent with other structures in the area. He stated that the drive thru is de-emphasized when viewed from the intersection noting that the drive thru is designed to safely accommodate both pedestrians and vehicles to the extent possible. He presented signage concepts noting the intent to have signs on all four elevations in addition to a monument sign along the Waukegan Road streetscape. He pointed out that customers will be approaching Plan Commission Minutes – August 9, 2017 Meeting Page 8 of 18 the building from all four directions. He presented a massing study illustrating how the proposed building will fit into the context of other buildings in the area. Finally, he presented an adaptive reuse plan commenting that if necessary, the proposed building could be reconfigured as two separate tenant spaces in the future. Frank Mariani, property owner, stated that he lives less than a mile from the site on Old Mill Road. He stated that he bought the property with his uncle, John Fiore, more than 30 years ago and a tree and landscape business was established on the site. He stated that prior to that, the property was a service station. He stated that after the tree and landscape business vacated the site, it was leased to an auto repair shop. He stated that more than 20 years ago, the City approached him and his uncle about redeveloping the area as Settler’s Square, through the establishment of a Tax Increment Financing District. He stated that at the request of the City, he and his uncle agreed to sell a considerable amount of the property to the City to allow the Square on Gloucester Crossing to be created. He noted that by selling the land as requested by the City, the footprint of his property was reduced, forever limiting the size of a building that could be built on the site. He stated that McDonald’s 20- year lease ends in August and at that time, he intends to buy out his uncle’s share in the property noting that his uncle is in his 80’s and does not want to go through another approval process like occurred when McDonalds was proposed for the site. He clarified that during the discussions about redevelopment of this area, the City approached him and his uncle about locating a McDonalds on the site. He noted that Bill McEssy, the franchise owner of many McDonalds’ restaurants, wanted to do something special at this location and designed a building that was not a traditional McDonalds’ building, without the usual signage or a drive-thru. He stated that citizens of the community opposed it and litigation followed. He noted however that once the McDonalds was built and opened, the many problems residents feared, did not come to pass. He stated that a drive-thru was added to make the restaurant viable after the cost of litigation. He noted however that the sales volume at this location never reached that of a typical McDonalds’ restaurant. He stated that despite his efforts, he was not able to reach agreement with McDonalds Corporation to renew the lease. He noted that he was approached by Starbucks but noted that Starbucks is a key tenant of the Forest Square center directly to the north and he did not want to take that business from the development. He noted that today, filling retail tenant spaces is difficult. He stated that Chase Bank came to him; he did not pursue a bank for the site. He stated that Chase Bank intends to design a building that can be adaptively reused for a different type of business in the future if necessary. He stated that significant money will be put into the building to make it aesthetically pleasing and noted that his company, Mariani Landscaping, will see that the site is properly landscaped. He commented that as a resident, he does not understand other residents’ perception that there are too many banks commenting that business is business. He stated that if someone is willing to make an investment in a property that is the way the market operates. He stated that he would have liked to see Lovell’s remain, but noted that the building in which the restaurant was located is now a health care facility. He stated that not enough people patronized McDonalds to make it a viable location for McDonalds Corporation. He noted that Plan Commission Minutes – August 9, 2017 Meeting Page 9 of 18 banks in the area do very well and stated that he expects that Chase will do well at this location. He added that a business that helps to reduce traffic in the area on the weekends will be great for the community in his opinion. Ms. Czerniak stated that the petition is before Commission at this time for an introduction to allow the Commission to hear initial comments from all parties and gain a good understanding of the request and related issues. She noted that the criteria that the Plan Commission will ultimately use to evaluate the petition are included in the staff report. She stated however, staff did not prepare findings in response to the criteria yet in order to allow further information to be gathered. She stated that City staff received a number of phone calls and comments from residents expressing concern that there are too many banks in the area. She reviewed that a number of years ago, in response to the number of banks in the community, the Plan Commission, at the direction of the City Council, reviewed the Zoning Code with respect to banks. She explained that after study, the Commission recommended that banks be categorized as special uses, rather than remain as uses that are permitted outright, to allow the opportunity for a review of future banks based on specific criteria. She noted that the criteria require that proposed banks and drive thru facilities be evaluated on various factors including how they relate to pedestrian activity, the overall context of the business district and whether the proposed building lends itself to future adaptive reuse for other uses including retail stores and restaurants. She clarified that the City Council established a moratorium on new banks only during the time the Code language was being amended and the criteria developed. She stated that today, based on the Code, banks are permitted in the various business districts so long as the applicable criteria are satisfied. She noted that many local banks are involved in supporting the community in various ways adding that some banks are more involved in the community than others. She stated that in early meetings with Chase representatives, staff encouraged them to be very involved in and present in the discussion before the Plan Commission and in the community overall. She stated that a number of points are called out in the staff report including preservation and relocation of the mural located in McDonalds. She stated that staff encouraged Chase Bank representatives to step forward to support the relocation efforts. She stated that the financial aspects of the proposed use, the change from a sales tax producing use to a non-sales tax producing use, are under the purview of the City Council. She noted that at the time the Lovell’s Restaurant was converted to a non-sales tax producing use, the Lovell’s and Northshore University Healthcare Systems came forward with contributions to support infrastructure, landscaping and parking in the area. She stated that the proposed bank use does not appear to have negative impacts on the surrounding area related to the standard special use criteria which include traffic, drainage, parking, lights, noise and odors. She confirmed that the existing building is proposed for demolition and a new building is proposed generally in the footprint of the existing building. She stated that preserving the few mature trees on the site will help to allow the new building to fit into the established business district. She summarized that at this time, the Commission is asked to consider the presentation by Chase Bank representatives and the property owner; listen to public testimony, and provide Plan Commission Minutes – August 9, 2017 Meeting Page 10 of 18 direction to staff and the petitioner on any additional information that is needed by the Commission to allow for a full evaluation. She noted the importance the design of the site and the building and recommended that the project be forwarded to the Building Review Board for initial review of the building massing and design, signage, lighting and landscaping. In response to questions from Chairman Ley, Mr. Krissoff stated that there will be about ten employees at the proposed branch. He stated that the proposed building will be one of the smaller branches in the Chase network. He stated that branch banks are needed for face to face contact with customers. He stated that the proposed bank is not just intended to advertise Chase Bank, but to serve residents in the area. He confirmed that the existing branch on Illinois Road, in the Central Business District, will remain. In response to questions from Commissioner Kehr, Mr. Krissoff clarified that as proposed, the building will not have interior second floor space although it will appear from the exterior to have two-story massing to fit the context of the area. In response to questions from Commissioner Kehr, Tim Messick stated that Chase Bank buildings are designed to be green, but noted that Chase does not pursue LEED certification due to the cost for obtaining the certification. He noted for example that building materials will be sourced locally, water efficient fixtures will be used and landscaping will be selected that does not require significant watering. He confirmed that the interior of the building is designed to de-emphasize the teller line. He stated that the proposed branch will have drive-up and walk-up ATM machines. He stated that the vestibule will be accessible to customers 24-hours a day, with key card access. He stated that security lighting and convenient parking will be provided. He reviewed the alternate plan noting how the space could be divided into two tenant areas in the future, if the bank vacates the site, with one of the tenant spaces facing Waukegan Road. In response to questions from Commissioner Kehr, Ms. Czerniak confirmed that the pedestrian tunnel under the railroad tracks that is being discussed will not be impacted by the proposed development. She also confirmed that the recent discussions about the potential addition of a siding rail line in the future, to allow commuter trains to bypass slower freight trains, will not be impacted by the proposed bank. She stated that a number of people and groups have stepped forward with ideas about where the mural that is currently located in the McDonalds could be installed to preserve it for the community. Commissioner Kehr suggested that consideration could be given to relocating the mural to the future pedestrian tunnel. She suggested that Chase work with the Career Resource Center to identify potential employees. In response to questions from Commissioner Freeman, Mr. Mariani stated that there were several conversations with Mr. McEssy about renewing the lease. He pointed Plan Commission Minutes – August 9, 2017 Meeting Page 11 of 18 out that a new McDonalds was recently opened about a mile to the south and stated that sealed the deal for both of them. He stated that negotiations went back and forth for over a year and initially, Mr. McEssy indicated that he would like to remain at the site but at a rate the he could not accept. Commissioner Freeman referred to a discussion at the Commission’s meeting in March about another property in the area for which two special uses were also proposed. He stated that the discussion focused on the B-1 District and how it relates to property rights. He noted that the Commission discussed how sending a petition to the Building Review Board for design review can deter development by dragging out the review process before the threshold issues are resolved. He stated that dragging out the process does not serve the community well. He noted that two special uses are proposed as part of the current petition as well. He pointed about that the threshold questions for the Commission is not financial viability, or why Chase Bank plans to invest 4 million dollars into the site, but instead, whether the proposed uses are consistent with the B-1 District and what it was established to do, and whether or not the proposed uses are consistent with the purpose of the B-1 District as stated in the Code. He reviewed the purpose of the B-1 District noting that it is intended to accommodate small retail and service businesses that are required to meet the frequently recurring needs of persons residing in adjacent or nearby residential areas. He stated that once those two questions are answered, then, if appropriate, discussions can turn to what conditions of approval should be considered and consideration of the design of the building. He questioned whether given the concerns raised by residents about the availability of other banks, including Chase branches, in the general area, and the availability of banking apps on phones, the proposed bank is required to meet a frequent and recurring need. He stated that the market has changed and reviewed data on bank branches that have been closed. He asked what is it about this service business that makes it a required use that is needed to meet the frequently recurring needs of residents in the area. In response to questions from Commissioner Freeman, Mr. Krissoff agreed that retail banking is changing and confirmed that Chase has closed branches in some areas. He noted that when Dominick’s closed, several Chase Bank branches had to close quickly. He stated that Chase is trying to position itself to serve people better. He stated that west Lake Forest is developed with households that have strong banking needs and many Chase customers live in the area. He stated that the proposed location fills one of the largest gaps that exist in the Chase network. He stated that he has been working to find a suitable location for a Chase branch in this area for several years. He stated that the proposed site is a perfect long term location. He acknowledged that banking will continue to change and pointed out that the proposed building will provide flexibility to meet employee and customer needs in the future. He stated that the bank will always have employees. Plan Commission Minutes – August 9, 2017 Meeting Page 12 of 18 Commissioner Freeman stated appreciation for the significant investment proposed by Chase Bank at the site. He noted that he is a customer. He stated that he is weighing the proposed use against the requirements of the Code. In response to a question from Commissioner Kehr, Mr. Krissoff said that the bank that was in the former Dominick’s grocery store in Bannockburn was not replaced and agreed that the proposed location will fill in part of the gap left due to that closing. Hearing no further comments from the Commission, Chairman Ley invited public comment. Steve Ricmeier, 851 Gloucester Crossing, stated that he is not opposed to the bank noting that he does not see any negative impacts from the bank, but adding that he does not see any positive impacts either. He stated that losing McDonalds is the down side of the proposal. He stated that he and other community members enjoy being in the McDonalds’ space, talking through issues and meeting other customers who come to the business. He noted that his Homeowners’ Association often meets at McDonalds noting that it is neutral territory. He added that he takes his grandchildren to McDonalds when they visit and stated that there is value in having McDonalds in the neighborhood. He acknowledged that he could go elsewhere but noted that he likes to patronize businesses in his neighborhood. He stated that he will be sorry to see McDonalds close noting that it has become part of the fabric of the community. Dan Siebald, 560 Ivy Court, agreed with Commissioner Freeman’s comments. He stated that diversity of businesses is important and noted that the business district along Waukegan Road lacks a distinct character. He stated that in general, he does not like fast food restaurants noting that they are auto oriented and result in litter sometimes far from the business itself. He stated that as proposed, the bank will have far more parking than is needed and questioned whether the proposed plan presents a good use for the property. He added that the drive thru and ATM require a great deal of hardscape. He suggested revising the site plan to minimize the amount of pavement and suggested that the ATM be available for walk up service, instead of drive thru service. He suggested that careful consideration be given to building a structure that will be useable for other types of business in the future. Larry Crohn, resident of Washington Circle, stated that he is a life-long resident of Lake Forest, 87 years. He stated that he remembers when the area west of Skokie Highway was in the County. He noted that he is a retired letter carrier and knows the community well. He stated that he and 10 or 12 others meet at McDonalds every morning for coffee and conversation. He stated that there is no other place to meet in the area. He said that when he is at McDonalds, he notices customers including people with children and people traveling along Waukegan Road. He noted that there is no other restaurant in the area. He commented that Lake Forest has grown and there are many families in west Lake Forest today. He stated opposition to another bank. He pointed out that there are five banks in the Central Business District Plan Commission Minutes – August 9, 2017 Meeting Page 13 of 18 and three banks along Waukegan Road. He said that he has watched the existing banks and few customers go into them. He noted that McDonalds is well run noting that it is clean, the trash is contained and there is no loitering on the site. He noted that many laborers and service employees stop at McDonalds each morning to get coffee and food. Allen Palmer, 1077 Coventry Drive, stated that he lives in the first house north of the Waukegan Road business district. He stated that the sidewalk near his house is below the grade of the street. He noted that the south side of the business district has large trees but on the north side, diseased and dead trees were cut and the stumps were not removed. He noted that the City has an easement behind his house, adjacent to the business district, which is not landscaped. He noted that his house is impacted by lighting from the business district. He questioned whether the lights at Chase Bank would be on all night. He noted that this is a high traffic area. He stated that in his opinion, another bank in this area will not benefit the community, only the corporation. He noted that the City approves many businesses, such as health care offices, that do not generate sales tax to benefit the community. He stated that the north side of the business district has not been maintained for 30 years. He asked that the light pollution from the business district be addressed. Steve Douglass, 460 Washington Road, stated that he is employed by the company that owns Forest Square, the development to the north of the McDonalds’ site. He stated agreement with Mr. Mariani’s comments about how difficult it is to lease retail space. He acknowledged that many people love McDonalds but noted that if enough people loved it, McDonalds Corporation would be willing to pay a market rent. He stated that it is important to not have vacancies in the business district. He stated that he sees the bank as a strong draw, bringing people into the area and to other businesses nearby. He stated that he would rather see the site redeveloped with a bank than sit vacant. He stated that his hope is that the banks and other service uses draw additional retail into the area. He stated that he supports the project. Hearing no further requests to speak, Chairman Ley reiterated that the public hearing on this matter will remain open. He invited final questions and comments from the Commission. In response to questions from Commissioner Kehr, Ms. Czerniak stated that she is not aware of any comments from Northern Trust Bank about why they left the Waukegan Road area. She noted that the former Northern Trust Bank building is now owned by Lake Forest Bank and Trust and the first floor is occupied by the bank and the second floor, by medical offices which bring employees and patients into the area. She noted that the Chase Bank building could be designed with the capability of building out second floor office space. Commissioner Kehr stated that she is aware of a significant amount of available office space elsewhere. Plan Commission Minutes – August 9, 2017 Meeting Page 14 of 18 In response to a question from Commissioner Henry, Mr. Krissoff stated that Chase Bank is not in the speculative office business. Commissioner Ruggles stated that the presentation was inclusive and well thought out. She stated that the public testimony was helpful and stated that she understands that it is emotional to lose a community restaurant. She noted however that if the existing McDonalds’ is not viable, then a vacant building could be the alternative. She stated that a vacant building or property is not beneficial to the community but investment in the west business district will be beneficial. She agreed with the staff recommendation that the petition should be forwarded to the Building Review Board for design review. She stated that she has no requests for additional information. Chairman Ley agreed that the proposed development should be reviewed by the Building Review Board soon to assure that the design is tailored to meet the City’s design standards. He stated that in his opinion, some refinements to the design are needed. Commissioner Freeman stated that in his opinion, referring the petition to the Building Review Board at this time puts the cart before the horse. He asked why the Board should discuss the building, landscaping and design of the ATM before the question of whether the petition meets the purpose of the B-1 district is answered. He reviewed data on the number of bank branches that have closed or are slated for closure providing percentages and noting the source for the information. He added that banks are providing disincentives to visit branch banks by charging fees for service and by offering online and phone apps to do business. He commented on the traffic study that was provided to the Commission noting that it concludes that the proposed development will generate 25% less traffic than the existing development on the site. He noted that the projections are based on handbooks that are outdated and suggested that actual traffic counts be taken to understand what the traffic levels would be and how other businesses in the area would be affected. He noted that the traffic generated by the adjacent bank was not measured but as noted by one of the residents who testified, the neighboring bank does not generate much traffic. He stated that the Commission is not in a position to make a judgement about the profitability, or lack thereof, of the existing business. He pointed out however that no testimony was presented stating that the existing McDonalds is not profitable. He questioned whether the proposed use is one that is needed to meet the frequent and recurring needs of residents in the area. He noted that there are four Chase Bank branches within 4 miles of the proposed site and 8 Chase Bank branches within 5 miles of the site. He noted that those numbers do not include Chase branded ATMs or the availability of online and phone apps. He continued noting that there are 16 Chase Banks within 6-1/2 miles of the site. He stated that there are local and national banks in the immediate vicinity. He stated that a search for banks in Lake Forest brings up 20 results noting that if that number is correct, there is a bank for every 800 to 900 residents. He stated that he cannot see how there could be a genuine required and repetitive need for the proposed use. Plan Commission Minutes – August 9, 2017 Meeting Page 15 of 18 He stated that it is wrong to make suggestions about the viability of the existing use and wrong to delay a decision on this petition until after the lease with the current tenant expires and employees are laid off. He stated that the community will have lost something and the Commission will be faced with a manufactured choice, a vacant building or Chase Bank. He stated that in his opinion, that is not the way the Commission should deliberate. He stated that until the Commission determines whether the proposed use is consistent with the purpose of the B-1 District, the petition should not be sent to the Building Review Board. Commissioner Henry stated that he agrees with Commissioner Freeman’s points but noted that he is sensitive to the property owners and the current zoning on the property. He stated that he would feel differently if he knew that there were four or five retail uses lining up to fill the 3,600 square foot space. He stated that some protections are built into the proposed project given the planned investment of 4.5 million dollars into the site by Chase Bank. He stated that he understands Commissioner Freeman’s interpretation of the purpose of the B-1 District and he noted that the Tax Increment District was established in this area to provide businesses and services that residents in the area need. He stated that in his opinion, banks are battling for business and noted that there will be clear winners and losers. He noted that maybe locating a bank in the area where 75 percent of the local residents have accounts or use the services makes sense. He noted that Chase Bank should not be penalized noting that they may be paying the highest rent in the area and constructing the most expensive building. He stated that he feels some responsibility to the property owners to carefully consider the petition. Commissioner Ruggles stated that she understands Commissioner Freeman’s comments about the B-1 District and stated that a bank is a service that people use regularly. She noted that banks are appropriate in the B-1 District because there are several located in the district already. She stated that because there are banks already there, that should not mean that there cannot be any more. She stated that the City must support an open market which will result in winners and losers. She stated that Chase Bank is taking a risk based on the business plan they have developed for the site. She stated that the Commission should consider the petition in the context of the Code language and determine whether the proposed use meets the applicable criteria. She stated that the city should encourage businesses to be successful and to move into the community. Commissioner Kehr stated that a bank is an acceptable use in the B-1 District. She noted that hearing that 75 percent of residents in the area are already customers of Chase Bank is an important piece of information. She noted that Chase Bank will be the only National bank in the area noting that the others are regional or super regional. She questioned whether there are alternative uses that would be viable at or interested in the site in today’s retail environment. She agreed that a fast, casual restaurant could be accommodated on the site noting that there is sufficient parking if there was a restaurant that wanted the space. She noted that the available on site parking provides opportunities for the site in the future. She noted Chase Bank’s Plan Commission Minutes – August 9, 2017 Meeting Page 16 of 18 excellent credit rating and stated that they would be considered a high quality tenant. She stated that she would find it difficult to deny this application based on the factors that the Plan Commission is charged with considering. Chairman Ley asked that staff prepare findings to assist the Commission in evaluating the petition based on the applicable criteria and standards in the Code. He encouraged Mr. Krissoff to work with others in his organization to respond directly to the applicable criteria. Commissioner Henry encouraged Chase Bank to consider community contributions such as those made by North Shore University Healthcare Systems when they proposed to occupy the Lovell’s property. Commissioner Freeman stated that the Commission is not in the business of picking winners and losers with respect to property values or determining whether it makes sense for Chase to spend $4.5 million dollars to construct a bank branch. He stated however that the Commission does have an obligation to assure that the petition meets the purpose and intent of the ordinance and to consider the request in the context of the city plan. He stated that the Commission should consider whether the proposed use benefits the residents and whether the community is losing something in return. He stated that his kids, like others, grew up at the McDonalds. He noted that community members are attached to the murals in McDonalds not only because they are the work of a local artist, but because they socialized around the murals. He stated that he is surprised that it is not being acknowledged that the community is losing something. He questioned what is being gained in return. He acknowledged that a bank is an appropriate use in the B-1 District but questioned whether with as many banks as now exist; another bank branch will really meet a frequent need of the residents in the area. He suggested that an argument could be made that bank branches do not serve any need any more. He stated that projected customer counts for the proposed bank cannot overlap with service areas for other existing branches. He stated that residents who currently go to other branches should not be counted in the service area for the proposed bank. He stated that type of information does not allow an intellectually honest discussion. He stated that an ongoing business enterprise will close and people will be laid off. He stated that once closed, the vacant building will be used as leverage to view the situation differently. He stated that in his opinion, that is wrong and not the way the process should work. He stated that traffic counts should have dates attached to them so it can be put in context. He stated that the traffic that goes into the existing banks should be studied. He questioned what additive value another bank will bring to the community. He stated that in his opinion, the proposed use does not meet the purpose of the B-1 District. He stated that no further hearing is required. He stated that he is surprised that more testimony was not presented given the discussions about the issue that have appeared on social media. Commissioner Kehr noted that any correspondence received by the City on the petition is provided to the Commission. She noted that no written testimony was Plan Commission Minutes – August 9, 2017 Meeting Page 17 of 18 received on this petition. She stated appreciation for the testimony presented at the hearing noting that when she goes to Sunset, she rarely sees much activity at McDonalds. Chairman Ley asked that clarification be provided on the traffic study noting that the differential in the existing and anticipated traffic appears to be based on ITE handbook standards rather than on actual traffic counts. He questioned whether the reduction in traffic volumes will be as great as suggested in the study. He asked that “conservative” be defined to clarify whether the numbers are conservative on the high or low side. At the request of the property owner, Chairman Ley agreed to allow an additional comment. In response to Commission comments, Mr. Mariani clarified that the McDonalds’ lease is up at the end of the month. He stated that is a reality and is not being used as a hammer. He stated that it is m isleading to say that the closing of McDonalds can be stopped. He stated that he understands that the closing of McDonalds will take away a space used by the community and noted that he is sympathetic to that loss. He stated that this McDonalds is not a high performing location. He stated that despite significant efforts on his part and on the part of the franchise owner, a deal with McDonalds Corporation could not be reached. He noted that he approached other restaurants as possible tenants, with no success. He pointed out that for some uses; the site is not large enough. He reiterated that he worked closely with the City to establish the Settler’s Square business district and as a result, his property is smaller than it otherwise would have been. He stated that he wants to do what is right for the community. Hearing no further discussion by the Commission, Chairman Ley asked for input from the Commission on whether the petition should be referred to the Building Review Board at this time. Hearing a consensus of the Commission, he noted that the petition should not be presented to the Building Review Board until the Commission considers the petition further. He invited a motion. Commissioner Henry made a motion to continue the petition to allow the petitioner to respond to the questions and comments from the Commission and the public. The motion was seconded by Commissioner Ruggles and was approved by the Commission by a vote of 4 to 1 with Commissioner Freeman voting nay. Commissioner Freeman stated that he objects to the continuance noting that Chase Bank presented its case and in his opinion, the applicable criteria are not met. 5. Additional public comment on non-agenda items There was no testimony was presented on non-agenda items. Plan Commission Minutes – August 9, 2017 Meeting Page 18 of 18 6. Additional information from staff. There was no additional information presented by staff. The meeting was adjourned at 8:54 p.m. Respectfully submitted, Catherine Czerniak Director of Community Development