HomeMy WebLinkAboutMinutes - 04/11/2011 - City Council REGULAR MEETING
APRIL 11, 2011
Mayor Low called the regularly scheduled April 11, 2011 meeting of the McHenry City
Council to order at 7:30 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer,
Blake, Wimmer, Peterson, and Condon. Absent: None. Also in attendance were City
Administrator Black, Deputy City Administrator Martin, Assistant City Administrator Hobson,
City Clerk Jones, City Attorney McArdle, Construction and Neighborhood Services Director
Schwalenberg, Public Works Director Schmitt, Chief of Police Jones.
PUBLIC INPUT SESSION
There was no one who signed in to speak during the Ten Minutes of Public Input.
CONSENT AGENDA
Motion by Wimmer, seconded by Santi, to approve the Consent Agenda as presented:
A. Temporary Use Permit for outdoor garden center-Jewel/Osco;4222 West Elm Street
B. Temporary Use Permit for construction trailer-Shaces McNutt Construction,3901 Mercy Drive;
C. City Council Minutes:
April 4,2011 regularly scheduled meeting;
D. List of Bills:
AALTO, BRIAN 28.63
ADAMS ENTERPRISES INC, R 1,390.41
ADAMS STEEL SERVICE INC 1,026.28
ALL AROUND WELDING INC 200.00
ARAMARK 290.69
AT&T 31.43
AUTO TECH CENTERS INC 8.25
BANKCARD PROCESSING CENT 1,232.68
BAXTER & WOODMAN 32.50
BELL, STEPHEN 50.00
BROWN, JUDY I 125.00
BURRAFATO, SAM 70.69
BURRIS EQUIPMENT COMPANY 30.45
BUSS FORD SALES 76.02
CHICAGO INTERNATIONAL TR 24.08
CLESEN, NICHOLAS 66.49
COMCAST CABLE 74.90
COMED 30,392.15
CONSERV FS 49.90
CUNAT CORP 60.00
CYNOWA, LEROY 169.00
DOCUMENT IMAGING DIMENSI 725.00
DREISILKER ELECTRIC MOTO 18.66
DUHAMEL, GARY 37.64
ED'S AUTOMOTIVE/JIM'S MU 115.00
FOREMAN & COMPANY, JOSEP 60.00
GROVE, KELLY 804.38
GRUNDER, HELENE 95.00
HAWKINS INC 3,283.70
HD SUPPLY WATERWORKS 648.00
ILLINOIS AUDIO PRODUCTIO 135.00
JENSEN SALES CO INC, LEE 1,300.00
KALE UNIFORMS INC 198.13
KIMBALL MIDWEST 242.55
KING, LAURA 8.00
KLEAN, TRACY 108.41
LANG PONTIAC-CADILLAC-SU 1.55
��� LEE AUTO MCHENRY 832.81
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April 11,2011
LUNKENHEIMER, JOHN 135.00
MACE, DOUG 7.51
MATUSZEWICH, JOYCE 15.00
MCANDREWS PC, THE LAW OF 6,800.00
MCAULIFF & SEMROW PC 862.50
MCCANN INDUSTRIES INC 257.69
MCHENRY COUNTY COUNCIL O 140.00
MEYER MATERIAL COMPANY 61.20
MID AMERICAN WATER OF WA 189.94
MINUTEMAN PRESS OF MCH 670.08
NESTER, F PETER 31.01
NORTH EAST MULTI-REGIONA 400.00
PATTEN INDUSTRIES INC 466.80
PEPSI BEVERAGE COMPANY 280.36
PETROLIANCE LLC 4,244.06
PETTIBONE & CO, P F 210.50
PRATHER, PAUL 5.08
PRECISION SHARPENING 11.00
RADICOM INC 1,448.00
SIRCHIE FINGER PRINT LAB 335.22
STANS OFFICE TECHNOLOGIE 145.63
STAPLES ADVANTAGE 827.76
TRIKHA, SHEEL K 1,421.00
USA BLUEBOOK 99.57
VALENTINES REPAIR 87.67
VALLEY VIEW ACRES 170.00
WASILOWSKI, CONNIE 378.00
ZARNOTH BRUSH WORKS INC 628.00
TOTALS 64,371.96
FUND TOTALS
GENERAL FUND 52,223.87
DEVELOPER DONATION FUND 16.000R
WATER/SEWER FUND 10,252.00
MARINA OPERATIONS FUND 61.20
RISK MANAGEMENT FUND 648.00
INFORMATION TECHNOLOGY FUND 1,102.89
POLICE PENSION FUND 100.00
TOTALS 64,371.96
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
TEMPORARY SIGN VARIANCE AND REQUEST FOR WAIVER OF FEES - STEFFAN'S JEWELERS
325 NORTH FRONT STREET
Deputy Administrator Martin stated a request was submitted for a temporary sign
variance by Steffan's Jewelers located at 325 North Front Street. Business Owner Suzanne
Cannon is requesting a variance to allow the installation of an 80 square foot banner to be
displayed on the Fountain Shoppes building until the end of December 2011. The sign
ordinance provides for display of temporary signs subject to the following restrictions:
1. Sign cannot exceed 32 square feet in area;
2. Sign cannot be displayed for more than 30 days at one time and no more than 60
cumulative days per calendar year.
3. Temporary signs are permitted for a maximum of four times per calendar year; and
4. A minimum of 30 days must elapse between each of the four temporary sign display
periods.
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April 11,2011
Deputy Administrator Martin noted the applicant has also requested a waiver of the temporary
sign variance fee.
Alderman Condon stated she would support the sign variance but not the waiver of the
variance application fee.
Motion by Condon, seconded by Schaefer, to accept Staff's recommendation to approve
a temporary sign variance allowing an 80 square foot banner to be posted on the Fountain
Shoppes building located at 325 North Front Street from April 11, 2011 until December 31,
2011, subject to the condition that the banner be replaced if it becomes worn or tattered, and
that the request for waiver of the variance application fee in the amount of$175 be denied.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
THIRD AMENDMENT TO THE REDEVELOPMENT AGREEMENT FOR THE FORMER MEDICAL ARTS
BUILDING SITE
City Administrator Black stated Council in 2007 entered into a redevelopment
agreement for the property located at 1110 North Green Street, the site of the former Medical
Arts Building. Two subsequent amendments to the original redevelopment agreement were
approved in 2008 and 2009. First Midwest Bank has taken title to the property from the original
developer. In addition, First Midwest Bank has entered into a contract purchase agreement
with 1110 N Green Street LLC. The purchase of the property is contingent upon City Council
approval of an amendment to the original redevelopment agreement and its amendments.
City Administrator Black stated the primary issues contained within the proposed third
amendment include:
1. Conversion of the residential dwelling units from individual condominiums to
apartments;
2. Creation of rental and property standards for the development in an effort to ensure
quality of the property;
3. Establishment of deadlines for completion of the "Wahl" parking lot and the residential
units;
4. Disposition of the remaining financial incentives for the project;
5. Modification of terms relating to the eight boat slips provided to the developer as part
of the original redevelopment agreement.
City Administrator Black noted Mr. Roy Blavvise of the 1110 North Green Street LLC, the
consortium contemplating purchase of the property, is in attendance at this evening's meeting.
The group is qualified to undertake a project of this type and magnitude. He noted the most
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April 11,2011
viable option in the current financial market is to convert the condominiums to rental units. He
stated both Staff and the developer are cognizant of parking issues.
Mayor Low announced she would first open the floor to discussion, comments and
questions from the City Council. Subsequently, in spite of the fact that this is not a public
hearing, she would open the floor to questions and comments from the audience.
Alderman Blake inquired as to the proposed rental cost of an apartment. Mr. Blavvise
stated the group's vision is that it be a premier building for the City of McHenry. He stated the
rent would likely be $1 to $1.20 per square foot ($1,200-$1,700 per unit). He noted the rent
would depend upon what the market could bear. The project would be offering amenities and a
lifestyle; a gym/fitness center and business center would be included. He also opined the retail
available in the building offers a nice amenity as well. Prospective tenants would be attracted
to the building, its amenities and its location.
Alderman Blake inquired if the fitness center would be open to the public. Mr. Blavvise
responded in the negative; it would be reserved for the exclusive use of the residents.
Alderman Condon expressed concern with leaving the conversion back to condos open-
ended. She stated she would be willing to go with rentals for 3 to 4 years with the ability for
reconsideration at that time. She would be willing to go up to four years with the rental option.
If the economy has not recovered at that time, then the rental/condo options should be
discussed and the project re-evaluated.
Alderman Schaefer noted the City Council and the City of McHenry provided incentives
for this project based on its being a condominium development. He stated the City needs to
work toward that end and protect the City's investment in the property. Decisions need to be
made for a pinnacle piece of property in the City. The market will dictate what direction the
property takes.
Alderman Glab inquired if property index numbers have been established for each unit.
Deputy Administrator Martin responded in the negative. No vertical plat has been established.
Alderman Glab inquired if the units went from condominium to apartment would the City
realize a reduction in property tax revenue. He stated he has no problem with rentals of
condominiums for three to four years. There is no need to allow the units to become
apartments. He stated he would be more comfortable if each unit was a condo and had a
property index number for tax purposes. He stated he concurred with Alderman Condon
regarding not having an open-ended rental agreement.
Alderman Peterson asked if the developer would consider a rent to own option. Mr.
Blavvise responded the market is not conducive to selling condos at this time. The group would .�
consider rent to own, as the ultimate plan for this project is to be a condo building. Alderman
Peterson expressed concern regarding parking. Mr. Blavvise stated he met with Alderman Santi
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April 11,2011
yesterday at the property and concurred that (lack of) parking is an issue. Mr. Blavvise stated
there appears to be a real push from the City to rectify the parking issues. There are certainly
ways available to improve the situation. The group wants the project to be a success.
Alderman Wimmer asked if there is a marketing plan in place for the project. Mr.
Blavvise stated the LLC first needs to know that they are moving forward with purchasing the
building. The building has had a lot of bad publicity during the last few years. It needs some
assistance with its image.
Alderman Santi expressed his appreciation to Mr. Blavvise for the time spent yesterday
at the building site. He noted the building is in his Ward and he wants to make certain the
building maintains its integrity. Alderman Santi inquired as to the time frame should the LLC
purchase the building. Mr. Blavvise responded the following steps would occur from May until
September:
1. Finish the units;
2. Open the leasing center;
3. Aim for 80% occupancy by October 315t;
4. Enhance the lobby;
5. Reach out for additional retail businesses.
Alderman Blake noted everyone would like to see the project succeed.
City Attorney McArdle noted the main issue during ongoing discussions with Attorney
Steve Cuda, the attorney for LLC, was defining a drop-dead date for conversion to condo units.
He questioned what is the market standard that determines when the building goes condo?
Council needs a comfort zone regarding when the building would be required to convert to
condos.
Alderman Condon stated she likes the amenities and the exclusivity of the fitness and
business centers. Permitting rentals now would help everyone. It needs to be a collaborative
effort. She stated she does not feel she can commit to the project until she knows
"approximately" when the condo conversion will take place.
Attorney Cuda inquired what the criteria are for "when the market comes back". The
issue needs to be specific for an agreement to be enforceable. What issues will be discussed
four years from now?
Alderman Condon stated right now the building includes condominiums. Council is
making concessions, justifiably, considering apartments. Attorney Cuda stated he is unable to
determine when the building should convert back to condos.
Alderman Glab opined the building should retain the condos. This is the City's vision for
the building. He opined it would set a poor precedent to allow apartments in the building.
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April 11,2011
Attorney Cuda stated apartments are getting a bad rap. It is not the designation "condo" or ION
"apartment" that determines the quality of a building.
Alderman Glab expressed concerns with the piers/slips sale structure within the
agreement. Attorney Cuda explained the structure in the proposed third amendment is more
favorable to the City than in previous amendments to the agreement.
Mayor Low noted the project from the beginning has been a challenge. It is difficult to
make decisions in the best interest of the City. In addition to the residential portion of the
building, there are thriving businesses in the building. The City has an obligation to the existing
businesses in the building and businesses in the downtown area. Mayor Low stated she
understands the process is difficult. Council has to look at things from a different point of view.
Mayor Low stated she believes in the concept presented at this evening's meeting.
Further discussion ensued regarding a potential trigger for condo conversion between
Alderman Condon and Mr. Blavvise.
City Administrator Black stated the intent and direction is clear from Council. Perhaps it
is time for the attorneys to discuss some options.
Alderman Santi stated he cannot support a rental proposal without seeing a plan r
regarding access and egress. Attorney Cuda stated that would be addressed in site
development plans.
Mayor Low stated she believes Alderman Santi is not referring to accessing the site.
Alderman Santi stated he discussed parking garage issues with Mr. Blavvise. If Council
approves the new plan, convenience factor for tenants has not been addressed. The number of
parking spaces and their configuration is not amenable to tenants.
Alderman Schaefer noted the entrance to the site has been altered and it is awkward.
Alderman Peterson stated he would like to see the building be maintained as a quality
building if rentals are allowed.
Mayor Low inquired if there were additional comments or questions from the City
Council.
Alderman Glab noted he would not support the project unless it is developed as condos,
although he has no objection to rentals if it is only for a brief period.
Alderman Wimmer noted the developers could walk away as they might not want to be
dictated to in four years.
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April 11,2011
Alderman Schaefer stated he is comfortable with the rental concept but would want a
provision that the building be converted back to condos.
Alderman Peterson stated he has an open mind with regard to the proposal and noted
he would like to hear from the business owners currently in the building.
Mr. Jo Scarnato, owner of Buddyz, stated there is always a risk with business. The bank
that currently owns the building is not interested in investing any money in the building. The
bank has not addressed leaking roofs or other issues. There are many issues which need to be
resolved. Mr. Scarnato stated he believed in the Riverwalk project from the beginning.
Ms. Jevonne Riley, owner of JR Salon, noted she is a tenant in both the retail portion as
well as the residential part of the building. The original vision for the building is not what is
actually happening. She expressed concern with the safety of the building. She opined Council
must be open-minded and willing to make changes if the project is to succeed.
Rose Lillegard, owner of Some Other Nuts, located north of the subject property on
Green Street, noted the question has been raised — would the rentals be for single-family or
multi-family residences. She also questioned how the rental rules and regulations would be
enforced. Attorney Cuda responded the units would rent as single-family residences and
regulations would be enforced by the building owner.
Ms. Lillegard inquired if the City has only one zoning officer. City Administrator Black
responded there are multiple Staff in the department whose responsibilities include zoning
enforcement. Ms. Lillegard inquired as to the amount of real estate taxes the property would
generate. City Administrator Black responded the City does not have any delusions about the
amount of real estate taxes the property will generate. He estimated the property would
generate approximately$100,000 annually in property taxes.
Mayor Low expressed her appreciation to the community for attending and
participating in this evening's discussion regarding the proposal. She stated her belief that
further discussions are necessary. She stated she does not believe the Council is prepared to
make a decision regarding this proposal this evening.
Attorney Cuda concurred with Mayor Low and noted the proposed amendment to the
redevelopment agreement needs to be tweaked prior to action by the City Council.
Mr. Blavvise noted as far as tenants are concerned, it is a short rental season. The
developers would like to address this matter sooner rather than later. He opined it is in no
one's best interest for the building to remain in its current state.
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Mayor Low suggested Attorney Cuda and City Attorney McArdle further discuss the
matter and return to Council with a modified amendment to the agreement. Mayor Low
expressed her gratitude to all who attended this evening's meeting.
MAYOR STATEMENT AND REPORT
Mayor Low congratulated Alderman Blake on his election as Alderman. She also
congratulated Aldermen Glab, Peterson and Condon on their re-election.
Mayor Low reported on Thursday, April 14th she will be judging a coloring contest for
the City's 175th anniversary birthday card.
COMMITTEE REPORTS
There were no Committee Reports.
STAFF REPORTS
Assistant Administrator Hobson reported the United Way 5K Run will take place
Saturday, April 161h at 9 a.m. in the McHenry Corporate Center.
Assistant Administrator Hobson also reported the Jaycees annual Easter Egg Hunt is
scheduled for Sunday, April 17th at 11 a.m. in Petersen Park.
FUTURE AGENDA ITEMS ---
There were no Future Agenda Items discussed.
ADJOURNMENT
Motion by Condon, seconded by Wimmer, to adjourn the meeting at 9:37 p.m.
Voting Aye: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon.
Voting Nay: None.
Absent: None.
Motion carried.
The eeting was adjourned at 9:37 p.m.
Mayor 1 City Clerk
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