HomeMy WebLinkAboutMinutes - 02/24/2014 - Committee of the WholeCOMMITTEE OF THE WHOLE
MEETING
February 24, 2014
Mayor Low called the Committee of the Whole meeting of February 24, 2014 to order at 7:30
p.m. In attendance were Mayor Low and the following Aldermen: Santi, Glab, Schaefer, Blake,
Wimmer, Peterson and Condon. Absent: None. Also in attendance: City Administrator
Morefield, Deputy City Administrator Martin, Deputy City Administrator Hobson, City Engineer
Pieper, Director of Public Works Schmitt, Director of Finance Lynch, City Engineer Pieper and
City Clerk Jones.
Also in Attendance: John Smith, President, McHenry Riverwalk Foundation
Marc Munaretto, President, M.J. Munaretto & Co., Inc.
No one spoke at the Public Input Session.
PUBLIC INPUT SESSION
City Administrator Morefield provided a brief summary of the Riverwalk project. He
noted that the Miller Point property has been repeatedly identified as a key piece for private
redevelopment to the Fox River and that, as planned, would house the bulk of the public boat
docks for the Riverwalk, as well as other public improvements related to the Riverwalk. Initially,
the Riverwalk plans centered around Joey T’s restaurant and the historic Dobyn’s House.
Unfortunately, there was no foreseeing the events which left the parcel vacant.
PRESENTATION OF MILLER POINT MARKETING ANALYSIS BY M. J. MUNARETTO & CO., INC.
AND DISCUSSION REGARDING SITE MARKETING AND REDEVELOPMENT OPTIONS
City Administrator Morefield advised Council that the desired outcome of the
Committee of the Whole meeting is to reach a consensus regarding what is presented in M.J.
Munaretto & Co.’s report, identified as the “Riverwalk Marketing Plan Outline,” which identifies
strategies for generating private interest in the Miller Point site or to take another direction.
City Administrator Morefield requested that Deputy City Administrator Hobson provide
Council with an outline of transpired events.
Deputy City Administrator Hobson noted that City Administration immediately
recognized the value of the parcel when an analysis was conducted regarding the best way to
initiate the TIF district development. At the time, however, the purchase price of the parcel was
beyond the City’s financial reach. Additionally, the restaurant, Joey T’s, was still viable. It has
been the City’s desire that the parcel be privately developed, initially including the restaurant
and following the fire, an overall property development.
In late 2012 the City was provided with an opportunity to acquire the Miller Point
property for $550,000. This amount was substantially below the appraised value of $856,000.
While continued private ownership and redevelopment was preferred, the City took advantage
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February 24, 2014
of the opportunity and acquired the site in the spring of 2013. This was done, primarily, to
ensure that public easements could be identified, the site could be moderately improved and
made available to the public, and that a private site redevelopment process could be initiated.
In late 2013 the Riverwalk Foundation offered to fund the retention of a commercial
real estate marketing firm, M.J. Munaretto & Co., Inc., to undertake a comprehensive market
analysis to identify a market-driven use for the redevelopment of the Miller Point property and
as a spark for additional downtown development. The analysis was completed at the end of
2013. Since the analysis was funded by the Riverwalk Foundation for property
owned/controlled by the City of McHenry and since the goal is to develop/adopt a process for
moving the redevelopment of the property forward, it was recommended that a Committee of
the Whole meeting be scheduled, with an invitation to the Riverwalk Foundation, to have the
analysis presented by M.J. Munaretto & Co., Inc. It is hoped that this presentation would allow
an opportunity for the exchange of information and the development of a strategy.
Deputy City Administrator Hobson noted that while Council has been provided with a
copy of the analysis, not all of the attachments have been provided due to confidentiality, or
because they are larger site renderings. Mr. Munaretto will be in attendance to present the
findings, answer questions regarding his professional insights and provide information.
Deputy City Administrator Hobson introduced Marc Munaretto, President of M.J.
Munaretto & Co., Inc. who provided Council with information and a PowerPoint presentation
regarding:
I. Demographic Analysis and Trade Area for the Miller Point Site, which included
• Impacts on the McHenry Retail Scene and the Riverwalk
• The Retail Economy of the Trade Area
• Consumer Spending Trends
II. Highest and Best Use Analysis
• How much building area can be developed on the site
• “Eater-tainment”?
• The Fox River?
• McHenry Corporate Center?
• Pedestrian Focus?
• Hotel Development?
• Neighborhood Shopping Center Development?
• Downtown Storefront Type Retail?
• Senior Housing?
III. Limiting Conditions
IV. Municipality’s Role in the Development
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February 24, 2014
V. Miller Point Marketing Plan Outline
• Riverwalk Marketing Plan Outline
• Price
• Costar and Loopnet
• Website
• Direct Mail (e-mail)
• Advertising – Publications
• Marketing Collaterals
• Site Signage
• International Council of Shopping Centers
• Broker versus In-House
• Riverwalk Unified Marketing and Development
VI. Site Plan Alternatives for Miller Point
VII. Potential Prospects
VIII. Winery Directory
IX. Cidery Directory
X. Brew Pub Directory
Alderman Glab noted that he was supportive when the property was purchased. He
opined that public parking is an important component to consider during the development of
the property. Alderman Glab expressed concern regarding the amount of open space that was
allocated on the site plans presented. He opined that the information presented by Mr.
Munaretto should be looked at closely and any offers regarding marketing should be analyzed
carefully.
Alderman Glab stated that the Council needs to be selective regarding development of
the site. He noted he does not care for the senior housing concept for the site and feels Council
should establish some specific parameters regarding any development.
Responding to Alderman Schaefer’s inquiry regarding whether the boating populace had
been looked at, Mr. Munaretto stated no trade area was specifically targeted as there is no
perfect circle. What was looked at was a 10-mile area. However, Mr. Munaretto stated that an
important component to the development of the property is the Fox River and Chain of Lakes.
Alderman Schaefer opined that the property is a prime location, but requires additional
marketing for the Chain O’Lakes waterway region since the property has the potential to be a
great venue for access and use of the Fox River.
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February 24, 2014
Responding to an inquiry from Alderman Santi regarding the feasibility of a 2-story
building on the site, Mr. Munaretto opined it is not likely, as a restaurant operation functions
more efficiently on a single level. Alderman Santi stated he was visualizing a concept of a
restaurant on the bottom floor and a banquet facility on the second floor.
Alderman Santi opined that he like the layout of the green space on the site.
Responding to an inquiry from an audience member regarding the flood plain, Mayor
Low stated that this is a Committee of the Whole regarding a conceptual plan and that specifics
would be addressed in later discussions. She stated that she concurred with Alderman Glab
regarding not supporting a senior housing development for the property.
Alderman Blake stated that he liked the restaurant/dining concept for the property.
Alderman Blake opined that he is aware that the ultimate plan is to get the property into an
individual’s hands and on the tax rolls, but is most interested in seeing the right development
on the property.
Alderman Glab inquired about whether soil conditions had been looked into. Deputy
City Administrator Hobson stated soil conditions have not been looked into at this point. The
expense would only be incurred as development of the property is closer.
Responding to an inquiry from Alderman Schaefer regarding development of a hotel on
the site, Mr. Munaretto stated that finding an investor during the current economic conditions
would be difficult, hotels are expensive and there is really no market for another hotel in the
area.
A brief discussion ensued regarding possible marketing for a destination location facility
for entertainment, theatre, lodging, dining, etc. Alderman Schaefer suggested something
similar to the Raue Center in Crystal Lake.
Alderman Condon opined that she has found it helpful to have Mr. Munaretto’s
directions regarding a marketing concept. She feels the site has potential for an entertainment
venue in conjunction with a restaurant and can see the site as a destination for boaters.
Alderman Condon stated that as the concepts move forward, it is advantageous that the City
now owns the property and is able to guide the development. Mayor Low concurred with
Alderman Condon.
City Administrator Morefield reiterated to the Council that the TIF expires in 2025 and
that any incentives offered need to be cognizant of that date. He also noted that as long as the
City owns the property no taxes are generated.
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February 24, 2014
City Administrator Morefield asked Mr. Munaretto what decisions he was seeking from
Council this evening. Mr. Munaretto advised that Council needs to decide if they want to do
something with the information provided in the plan presented and he would like a consensus
regarding the highest and best use. Mr. Munaretto noted that once the property is actively
marketed there is a lot of information that can be acquired from potential developers that is
not currently available.
Responding to City Administrator Morefield’s inquiry regarding a timeframe for
development of the property, Mr. Munaretto stated that it is a difficult question because of the
current economy, but he stated 2-years is a likely period, however his expectations are for an
earlier timeframe.
Alderman Glab suggested that Council should have a meeting regarding all the current
TIF information, in order to provide Mr. Munaretto with information he might find helpful in
marketing the property.
Responding to an inquiry from City Administrator Morefield regarding property
disposition, Mr. Munaretto suggested that the economics could be discussed more openly
during an Executive Session.
Mayor Low opined there appears to be consensus regarding the general concept that is
envisioned for the property. She thanked Mr. Munaretto for providing a clearer picture of what
is possible for the site. She asked if Council would like to take the next step and see what the
City can do to market the property. Mayor Low opined that Mr. Munaretto and his firm were
recommended by members of the Riverwalk Foundation and she is comfortable with their
recommendation.
City Administrator Morefield requested that Council provide consensus that M.J.
Munaretto & Co., Inc. present a proposal for services for Council’s consideration.
It was the consensus of Council that M.J. Munaretto & Co., Inc. present a proposal for
services for Council’s consideration. Mr. Munaretto thanked Council for their consideration and
stated that Staff would have a proposal by the end of the week.
Motion by Condon, seconded by Blake, to adjourn the Committee of the Whole meeting
at 8:49 pm.
ADJOURNMENT
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Committee of the Whole Meeting
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February 24, 2014
The Committee of the Whole meeting adjourned at 8:49 pm.
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Mayor City Clerk