HomeMy WebLinkAboutMinutes - 01/19/2009 - City Council REGULAR MEETING
JANUARY 19, 2009
A Regular Meeting of the McHenry City Council was called to order by Mayor Low at
7:30 P.M. on Monday, January 19, 2009 in the Council Chambers of the Municipal Center.
At roll call the following Aldermen were present: Santi, Glab, Schaefer, Murgatroyd,
Wimmer, Peterson, and Condon. Absent: None. City Staff in attendance were: City
Administrator Maxeiner, Deputy City Clerk Kunzer, City Attorney McArdle, Deputy City
Administrator Martin, Assistant City Administrator Hobson, Director of Finance Black,
Director of Public Works Schmitt. Absent: City Clerk Jones.
PUBLIC HEARING REGARDING THE CREATION OF A BUSINESS DISTRICT
CONSISTING OF THE GARY LANG AUTO GROUP PROPERTY LOCATED AT 1103
SOUTH ROUTE 31, FOLLOWED BY:
1. CONSIDERATION AND APPROVAL OF AN ORDINANCE CREATING THE
GARY LANG AUTO GROUP BUSINESS DISTRICT COMPRISED OF THE
PROPERTY LOCATED AT 1103 SOUTH ROUTE 31;
2. CONSIDERATION AND APPROVAL OF AN ORDINANCE PROVIDING
FOR THE APPROVAL OF THE GARY LANG AUTO GROUP BUSINESS
DISTRICT PLAN:
3. CONSIDERATION AND APPROVAL OF AN ORDINANCE PROVIDING
AUTHORIZATION FOR THE MAYOR'S SIGNATURE OF THE GARY LANG
BUSINESS DISTRICT DEVELOPMENT AGREEMENT
Mayor Low at 7:31 p.m. called to order a Public Hearing for consideration of the
creation of a Gary Lang Auto Group Business District comprised of the property located at
1103 South Route 31.
In attendance was Mr. Gary Lang, owner and proprietor of Gary Lang Auto Group.
City Administrator Maxeiner stated the intention is to create a business district to
enable the City to enter into a sales tax rebate agreement with Gary Lang, with the rebate
capped at the costs of a proposed expansion in the dealership. Staff believes that
significant competition exists between municipalities for large generators of sales tax and
that it is imperative the City keep Gary Lang's business in the City and to encourage his
business to grow. City Administrator Maxeiner stated this matter has been the focus of
negotiations for a number of years and is not the result of the recent downturn in the
economy.
City Administrator Maxeiner noted there are specific procedures in place pursuant to
State Statutes that the City needs to follow to be able to enter into the development
agreement with Gary Lang. First, the City has to create a business district and business
district plan. Upon closure of the public hearing, Council may choose to consider
ordinances which have been prepared to provide for the creation of the Gary Lang Auto
Group Business District, the Gary Lang Auto Group Business District Plan, and the Gary
Lang Business District Development Agreement.
City Administrator Maxeiner outlined the general components of the development
agreement. The agreement would expire October 1, 2031 (twenty years following the
commencement of the expansion of the business) or at such time as the rebate provided to
Lang matches the cost of the improvement. Mr. Lang is required to commence construction
January 19,2009
Page 2
on the expansion of the facility no later than August 1, 2011 with occupancy to take place
no later than August 1, 2012 (one year later). The sales tax rebate is structured as follows: --`
1. City retains first $450,000 in sales tax generated by Lang and received by the City;
2. City to rebate 100% of the City's share of sales tax receipts generated by Lang and
received by the City between $450,000 and $750,000;
3. City to rebate 60% of the City's share of the sales taxes generated by Lang and
received by the City over$750,000;
4. Total amount rebated to Lang will not exceed 55% of the total sales tax receipts
generated by Lang and received by the City for the year;
5. Cumulative total of the rebate is capped at the cost of construction including land,
construction, engineering, architectural and franchise costs.
City Administrator Maxeiner noted the City's only obligation with regard to the
development agreement is the rebate incentive. He stressed no additional tax would be
imposed as a result of the approval of the development agreement or the creation of the
business district and business district plan.
Mayor Low invited questions and/or comments from the City Council.
Alderman Murgatroyd stated the development agreement has involved a lot of work
and negotiations. He opined it would be in the best interest of the City and the business to
approve the agreement. Gary Lang Auto Group is a large business and employer in the
City and it would be a win-win situation for both the City and Mr. Lang to approve the
development agreement as presented.
Alderman Glab noted benefits would also be reaped by other taxing districts as a
result of Mr. Lang's dealership expansion efforts. He concurred with Alderman Murgatroyd
in expressing the positive attributes of approving the development agreement.
In response to Mayor Low's inquiry there were no questions or comments from the
audience regarding this matter. Deputy Clerk Kunzer confirmed there had been no written
or verbal comments received in the Office of the City Clerk relative to the public hearing.
City Attorney McArdle pointed out the language of the development agreement has
been modified many times. Language modifications were made as late as today, as a result
of suggestions made by Mr. Lang's attorney. Even though final language has not been
worked out, Staff would recommend moving forward with approving the development
agreement this evening rather than bringing this matter back to Council again at a future
meeting. The language revisions will not substantively change the agreement. City Attorney
McArdle noted Mr. Lang intends to expand his business, but the specifics as to date might
not be appropriate, particularly in light of the economy. However, once expansion begins,
each phase would be required to be completed within one year, as stated in the agreement.
Specific indemnification provisions were also added to the language, as well as the eight
required findings relative to establishing a business district as determined by State
Statutes.
January 19,2009
Page 3
Motion by Wimmer, seconded by Santi, to close the Public Hearing at 7:38 p.m.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Motion by Wimmer, seconded by Murgatroyd, to accept Staffs recommendation to
pass an ordinance providing for the creation of the Gary Lang Business District.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Motion by Santi, seconded by Schaefer, to accept Staffs recommendation to pass
an ordinance providing for the approval of the Gary Lang Auto Business District Plan,
subject to the following:
1. removal of the words "in McHenry' from the first sentence of the second paragraph
of the Plan.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Motion by Schaefer, seconded by Murgatroyd, to accept Staffs recommendation to
pass an ordinance providing for the Mayor's authorization to execute the Gary Lang
Business District Development Agreement subject to:
1. City Attorney McArdle confirming language in the agreement allowing for the cost of
future expansions during the entire term of the agreement to be included as
Qualified Development Costs;
2. inclusion of language providing for full indemnification of the City in the event the
agreement is found to be invalid;
3. inclusion of the following findings as prescribed by State Statutes:
i. The subject property to which the rebate will relate has remained underutilized
for a period of at least one year;
ii. The project is expected to create and retain job opportunities within the City;
iii. The project will serve to further the development of adjacent areas;
iv. Without the agreement, the expansion project would not be possible;
v. Gary Lang meets a high standard of creditworthiness and financial strength;
vi. The project will strengthen the commercial sector of the City;
vii. The project will enhance the tax base of the City;
viii.The project is in the best interest of the City.
January 19,2009
Page 4
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon. -�
Voting Nay: None.
Absent: None.
Motion carried.
PUBLIC INPUT SESSION: 10 MINUTE LIMITATION
There was no one who signed in to speak during the Ten Minute Public Input
Session.
CONSENT AGENDA
Motion by Wimmer, seconded by Santi, to approve the Consent Agenda as
presented:
A. MACC Year 2009 Fiesta Days schedule, special event liquor license, and waiver
of all associated fees;
B. MACC request for temporary advertising signs for Fiesta Days 2009;
C. City Council Minutes:
January 12, 2009 Committee of the Whole Meeting;
D. List of Bills:
ACE HARDWARE, BJORKMAN'S 2,696.16
ACE TOWING & RECOVERY 125.00
ADAMS STEEL SERVICE INC 20.16
AFTERMATH INC 245.00
ARAMARK WORK APPAREL & U 335.40
AUTO TECH CENTERS INC 409.00
B&W CONTROL SYSTEMS INTE 919.83
BIRK, ADRIANA 758.57
BUSS FORD SALES 98.38
CARQUEST AUTO PARTS STOR 101.59
CENTEGRA WORKSITE WELLNE 3,705.00
CHICAGO INTERNATIONAL TR 207.96
CINTAS CORPORATION #355 1,260.14
CONSTELLATION NEWENERGY 11,249.49
CORNERSTONE MATERIAL REC 4,466.00
D'ANGELO NATURAL SPRING 54.25
DUCAK, JASON 79.99
FAMILY SERVICES 5,928.00
FAST EDDIES CAR WASH 143.00
FLESCH COMPANY INC, GORD 427.23
G IMPRESSIONS INC 20.00
GALLS INCORPORATED 134.97
GITZKE, WILLIAM J 229.95
GURRIE, LETITIA 59.79
HONKALA, CHRIS 40.00
HOPP, SHELLY 59.98
IAEI 102.00
INTERSTATE BATTERY SYSTE 34.50
J G UNIFORMS INC 98.56
JOHNS TREE SERVICE 1,500.00
KALE UNIFORMS INC 122.57
KDS TECH SERVICES INC 510.40
KIMBALL MIDWEST 248.80
KING, LAURA 329.38
KTD INC 3.75
LANG PONTIAC-CADILLAC-SU 150.43
MALZAHN, CAROL 76.00
MCCANN INDUSTRIES INC 2,676.36
MCHENRY COMMUNITY HIGH S 53,905.25
MCHENRY COMMUNITY SCHOOL 99,324.75
MCHENRY COUNTY COUNCIL O 1,564.00
MCHENRY COUNTY RECORDER 200.00
MCHENRY FIRESTONE 1,549.67
MCHENRY NAPA 888.57
January 19,2009
Page 5
MCHENRY PUBLIC LIBRARY 27,034.00
MCHENRY TOWNSHIP FIRE PR 26,968.00
MEYER MATERIAL COMPANY 1,109.61
MIDCO 335.50
MIEWEST HOSE AND FITTING 72.50
MINUTEMAN PRESS OF MCH 316.07
MOORE, DAWN 35.00
MORITZ, SHERRIE 121.93
MORRIS, FRED 50.00
NANAS KITCHEN 32.50
NORTH SUBURBAN WATER 60.00
NORTHWEST ELECTRICAL SUP 24.67
OTTOSEN BRITZ KELLY COOP 700.00
PARKSON CORPORATION 2,270.16
PETROLIANCE LLC 23,623.99
PETTIBONE & CO, P F 59.00
POLERECKY, ROSS 94.95
POPP, LARRY 13.25
PORTER LEE CORPORATION 1,150.00
RADICOM INC 582.00
REGNER, WILLIAM J 109.67
REICHE'S PLUMBING SEWER 100.00
REX AUTO BODY 833.55
RIVERSIDE ANIMAL CLINIC 298.30
RUSHING, RHONDA 125.00
RYAN, NATHAN 167.50
S-F ANALYTICAL LABORATOR 445.00
SEC GROUP INC 28,416.85
SEXTON, ERIC M 50.82
SIRCHIE FINGER PRINT LAB 491.12
SEEER FINANCIAL 389.51
ST PAULS EPISCOPAL CHURC 833.25
STANS OFFICE TECHNOLOGIE 73.34
STAPLES BUSINESS ADVANTA 36.69
SUDSY WASH 30.00
UNIVERSITY OF ILLINOIS P 120.00
USA BLUEBOOK 82.17
VIKING CHEMICAL COMPANY 1,878.40
ZALKE, PATRICIA 30.00
ZINANNI, VICKIE 45.28
ZMT INC 110.00
GRAND TOTALS 316,378.41
FUND TOTALS
GENERAL FUND 53,807.08
ANNEXATION FUND 4,129.00
DEVELOPER DONATION FUND 206,995.50
DEBT SERVICE-1997A FUND 389.51
WATER/SEWER FUND 20,308.92
UTILITY IMPROVEMENTS FUND 18,844.50
EMPLOYEE INSURANCE FUND 3,705.00
RISK MANAGEMENT FUND 833.55
INFORMATION TECHNOLOGY FUND 1,485.50
RETAINED PERSONNEL ESCROW 5,879.85
TOTALS 316,378.41
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
McHenry Area Chamber of Commerce Chief Executive Officer Kay Bates expressed
the Chamber's gratitude to the City for all of its efforts on its behalf.
TEMPORARY USE AND SIGN VARIANCE - FIRESTONE COMPLETE AUTOCARE.
3624 DIAMOND DRIVE
In attendance was Mr. Rick Tomlinson, Jr., store manager of Firestone Complete
AutoCare.
January 19,2009
Page 6
Deputy City Administrator Martin stated Mr. Tomlinson is seeking approval of a
temporary use to allow a grand opening event for Firestone's new facility located at 3624
Diamond Drive. The event is scheduled for January 23rd and 24th. The event would include
signage announcing the grand opening.
Deputy City Administrator Martin noted Mr. Tomlinson is also requesting a sign
variance to permit a grand opening banner plus seven flexible flags to be displayed for 30
consecutive days. Additionally, there would be two 10' X 10' inflatable tires and a 15-20' tall
red wind dancer inflatable sign. All signs would be posted for 30 days.
Deputy City Administrator Martin stated Staff has reviewed the requests and
supports the temporary use and sign variance as presented.
Alderman Santi inquired if the inflatable signs would be anchored to the ground. Mr.
Tomlinson responded the signs would be anchored. The inflatable signs would be deflated
and taken in at night. Responding to further inquiry, Mr. Tomlinson stated the business
opened on December 8, 2008.
Alderman Condon noted she normally would not be in favor of approving so many
signs, but recognized that the business it tucked away in the back of the development and
the increased signage for the event seems appropriate.
Motion by Santi, seconded by Schaefer, to accept Staffs recommendation to
approve the following for Firestone Complete AutoCare located at 3624 Diamond Drive: �--
1. Temporary use to allow a grand opening event on January 23, 2009 and January 24,
2009;
2. Temporary sign variance from January 20, 2009 until February 20, 2009, to allow grand
opening signage in accordance with the approved site plan.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
ORDINANCE PROVIDING FOR THE RENAMING OF 533 NORTH DRAPER ROAD
In attendance was Vernon Schiller, resident of 533 North Draper Road.
Deputy City Administrator Martin noted there are two homes on the property
identified as 533 North Draper Road. Mr. Vern Schiller recently approached Staff
requesting that one of the residences be re-addressed in an effort to avoid confusion for the
U.S. Mail, emergency vehicles, fire district, etc. Mr. Schiller resides at one of the
residences; Mr. George Johnson is the owner of the other. Both Mr. Schiller and Mr.
Johnson have indicated their approval of re-addressing the farmhouse to 537 North Draper
Road. Staff has prepared an ordinance providing for the re-addressing of the farmhouse to
537 North Draper Road. The ordinance would take effect 30 days following its approval.
r
Alderman Murgatroyd opined this should have been done a long time ago.
Alderman Glab requested clarification as to why an addressing concern is being
January 19,2009
Page 7
brought before Council. Deputy City Administrator Martin responded that when a site is re-
addressed Council must approve an ordinance providing for the re-addressing.
Motion by Murgatroyd, seconded by Wimmer, to accept Staff s recommendation to
pass an ordinance providing for the re-addressing of the farmhouse located at 533 North
Draper Road to 537 North Draper Road.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Mr. Schiller thanked Staff and Council for their efficiency in handling his request.
COMMITTEE RECOMMENDATION: APPROVE CITY OF MCHENRY ECONOMIC
DEVELOPMENT PLAN
Deputy City Administrator Martin stated Staff has working on the creation of an
economic development plan. The Plan was initiated by the Economic Development
Commission at a retreat brainstorming session. The results of that session were
transmitted to the Community Development Committee who reviewed, enhanced and
updated the suggestions made by the EDC. Deputy City Administrator Martin noted the
purpose of the Economic Development Plan is to create a vision statement, and the goals
and objectives necessary to establish that vision. He noted this is a dynamic document.
The six primary goals are already in place in the Plan. Deputy City Administrator Martin
concluded noting the Plan is before Council this evening for approval.
Alderman Schaefer stated this is a good plan. Alderman Murgatroyd concurred,
noting it is a good working document.
Alderman Wimmer reported the document took a long time coming. It will serve the
community in years to come.
Alderman Condon stated it is important that the City follow its Economic
Development Plan. It should be updated on a regular basis.
Alderman Santi stated he believed the Plan to be a good working document and it
would serve as a guideline for economic development in the City.
Alderman Glab stated the document has been a long time in the making. He
questioned why it was being presented 11 months after consideration by the Community
Development Committee. He opined the Plan should be updated on a regular basis.
Alderman Condon opined the Plan could be reviewed annually by the Community
Development Committee.
Motion by Schaefer, seconded by Condon, to accept the recommendation of the
Community Development Committee to approve the City of McHenry Economic
Development Plan as presented.
January 19,2009
Page 8
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
MAYOR— STATEMENT AND REPORT
Mayor Low, noting the inauguration of our new President tomorrow, expressed her
desire to publicly thank all of those who volunteer and offer service on behalf of the
McHenry Community.
COMMITTEE REPORTS
There were no Committee Reports.
STAFF REPORTS
City Administrator Maxeiner announced the Public Works Department has relocated
to its new facility on Industrial Drive. In the near future, an open house will be held for
Council and the public.
FUTURE AGENDA ITEMS
Alderman Glab noted clearance signs for the soon-to-be closed Circuit City store are
appearing in the right-of-way. He noted walkers with sandwich signs are also present. He
inquired if Staff could advise Circuit City's liquidation firm of the City's sign ordinance
restrictions. City Administrator Maxeiner responded that Staff would make that contact,
although when a bankruptcy is impending sometimes the local ordinances do not apply.
EXECUTIVE SESSION: PROPERTY ACQUISITION
Motion by Wimmer, seconded by Schaefer, to go into Executive Session at 7:56
p.m. to discuss Property Acquisition.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Council went into Executive Session at 8:07 p.m.
Motion by Glab, seconded by Wimmer, to go back into Open Session at 8:13 p.m.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
Council went back into Open Session at 813 p.m.
January 19,2009
Page 9
OPEN SESSION REGARDING MATTERS DISCUSSED IN EXECUTIVE SESSION
Motion by Wimmer, seconded by Glab, to authorize the Mayor's execution of an
easement agreement in the amount of$5,000 with 3622 W. Elm Street LLC.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
ADJOURNMENT
Motion by Wimmer, seconded by Schaefer, to adjourn the meeting at 8:15 p.m.
Voting Aye: Santi, Glab, Schaefer, Murgatroyd, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
The Meeting was adjourned at 8:15 p.m.
MAYOR DEPUTY CITY CLERK