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HomeMy WebLinkAboutMinutes - 4/6/2010 - Economic Development Commission McHenry Economic Development Commission Annual Meeting Tuesday, April 6, 2010 Members Present: William Bolger, Kathleen Kunzer, Mayor Susan Low, Kathleen Marinangel, Douglas Maxeiner, Jack Minero, Ned Neumann, Dick Paegelow (arrived 12:43 p.m.). Members Absent: Kay Bates, Kit Carstens, David Gelwicks, Richard Wimmer. Vice Chairman Neumann convened the meeting at 12:33 p.m. in the McHenry Municipal Center Council Chambers. ResiQnation of Chairman Wimmer Neumann read into the record a letter of resignation submitted by EDC Chairman Richard Wimmer. Wimmer cited lack of direction and/or apparent need for continued functioning of the EDC as his primary reasons for resignation. He noted the time for the need of the EDC in the community had expired. He noted Staff has taken over the functions previously handled by the EDC. Motion by Bolger, seconded by Mayor Low, to accept Chairman Wimmer's resignation. All Ayes. Motion carried. Mayor Low interjected in view of the current economic conditions Mr. Wimmer is working more hours at his business and no longer has the flexibility to be able to actively participate on the EDC. Approval of Minutes Motion by Minero, seconded by Marinangel, to approve the minutes of the April 14, 2009 Annual Meeting as presented. All Ayes. Motion carried. Discussion on EDC Viabilitv Bolger opined he would like to see the EDC continue and encouraged better coordination with City Staff and officials. He stated he would like to see Deputy City Administrator poug Martin as EDC Chairman. Mayor Low noted Martin is not a member of the EDC. Marinangel suggested Neumann should be the Chairman. Neumann stated someday the EDC might be a viable organization although it is not at the present time. He stated it would be easy to keep the organization alive by holding annual meetings in order to comply with the organization bylaws. He noted he has been an EDC member for many years and the organization has accomplished nothing. If the EDC is going to be viable, there must be some initiative by its members. He also judged there needs to be new "blood" in the EDC in order to bring forth new ideas. He opined it is hard to move forward when the EDC members feel unwanted. If there is some level where the EDC can be useful, then the group should continue to meet annually rather than letting the charter die. If the EDC intends to maintain its charter to keep the organization alive, there must be goals established to be EDC • Apri16,2010 Page 2 accomplished by its members. He suggested the EDC meet again in three months with goals suggested by the membership. Mayor Low stated the EDC should take a step back and review the origin and reasons for the establishment of the organization. She noted the EDC was formed as an offshoot of the Chamber. She stated the EDC is not a committee of the City. She noted City officials, Staff and members of the community are proud to be on the EDC board. She concurred that new people are needed to bring life to the board. Mayor Low noted if the EDC intends to continue as an organization, its members need to have a reason for existence. She stated the EDC does not "do" anything. She referenced a remark previously stated by Kit Carstens, stating "the EDC has put itself out of business." Mayor Low further stated at times when City representatives have come to the EDC meetings they felt like "sitting ducks" listening to the complaints of the board members focusing on what the City has done wrong. She stated providing board members an opportunity to tell the City Staff what they have not accomplished is not a good reason for keeping the EDC alive. Marinangel stated she sees the EDC as a board of professionals who can be the eyes and ears for the City. The EDC can promote new business in the community, especially during these difficult economic times. She stated she believed the City could use the EDC to bounce ideas off of. As an example, she noted the City could have used the EDC during its consideration of allowing the Riverwalk Center to abandon construction of the parking garage. Neumann stated the EDC goal could be to deal with empty big box stores, similar to how the EDC pursued a banquet facility in recent years. He suggested the search for a banquet facility operator could be renewed. Mayor Low interjected the County EDC is struggling as well. They have some great ideas for expansion and growth in the County, but tough economic times make bringing those ideas to fruition difficult. Paegelow arrived at 12:47 p.m. Neumann inquired if the EDC should again seek to find a banquet facility operator. He noted one of the vacant big box sites, such as Dominic's, would be an ideal location. Minero stated the EDC should not recruit�g people to come to its meetings. Once they come to a meetmg, they would not return as nothing is being accomplished at these meetings. If the EDC wants to bring in new people, there must be a strategy in order to have a reason for meeting and to meet more than once per year. Marinangel stated people come up with ideas. Being present at a meeting where nothing is accomplished would discourage young people from coming again. She stated the EDC could recruit new members, but would the EDC be able to retain them? EDC " April 6,2010 Page 3 Neumann inquired what is the City's biggest issue in which assistance from the EDC would be helpful. Maxeiner noted general consumer spending is at a low. Consumers are not spending. Neumann responded the City could implement "McHenry Dollars" to encourage spending in the City. He stated the EDC could help with that. Maxeiner noted the City's budget is so tight it could not fund a project like that. Neumann stated the EDC could be motivated to get ideas going to stimulate consumer spending to help the City's economy. He noted there is a glut of vacant commercial space. Minero noted there is so much vacant commercial space. People are not spending due to the high rate of unemployment. The unemployment rate is not something the EDC could address. Mayor Low stated everyone is in a wait and see mode. She noted Deputy City Administrator Martin spends a great deal of time and energy soliciting new stores, merchants and developers. He has good ideas and has pursued many different companies. However, no one is doing anything right now. Minero inquired if there would be any way for the City to offer incentives to someone who built a banquet facility at this time. Maxeiner responded everything is negotiable. Right now the City is competing for stores on a more regional-type basis. The City negotiated an agreement with Gary Lang Auto Group. The City has spoken with Wal-Mart officials on several occasions regarding potential incentives. In fact, the City is still talking with Wal-Mart. There is no conclusive deal on the table at this time. Mayor Low indicated Johnsburg is in a position to give Wal-Mart anything they want. Johnsburg has approved Wal-Mart's coming to the community. At this time it is not certain if the deal has been consummated. Maxeiner noted the City actually proposed assisting Wal-Mart in purchasing and redeveloping the Dominic's site as well as other locations in the vicinity. He stated in discussion with retailers, the City has to look at the artificially high level of spending caused by easy access to credit. People have become accustomed to spending beyond their means. Eventually there will be a new spending level. Once people are comfortable with the new spending levels there will be renewed consumer spending which will help to lift the economy. At this point, the City needs to maintain a wait and see attitude. Bolger stated the McHenry community is doing better than most. The City is in pretty good shape. Maxeiner stated he heard from corporate offices that the McHenry opening of Olive Garden restaurant was the most successful ever anywhere in the Country. Their parent firm owns the property adjacent to the McHenry restaurant, and, in spite of the great success of the Olive Garden, they are not willing to open another store/restaurant on the adjacent property until the economy improves. Paegelow stated there is so much vacant retail space. He suggested property owners should lower rental rates in order to fill the vacant spaces. EDC ' April 6,2010 Page 4 Minero stated property owners need to lower rental rates, or they will go out of business. The smart property and business owners are negotiating leases to lower monthly rental rates. Marinangel stated there is a glut of houses on the market. It is cheaper to buy a house than to build one at the current time. It is a very bad housing market and it will not be a quick recovery. She stated the unemployment rate is high in this area. Neumann noted in spite of the economy there is still commerce occurring. Marinangel suggested the EDC do what is necessary to keep the organization viable. The board can meet when there is a need in which the EDC can assist. Minero noted the large number of unemployed people is contributing to the failure of business as no one is spending freely. The City needs to entice businesses to come to McHenry. People are choosing to lease rather than buy. The EDC should draw in new business to rejuvenate the economy in this town. Neumann stated the City of McHenry was the largest town without a furniture store. McHenry was finally successful in getting a Wickes and then the franchise went out of business nationwide.Neumann suggested the board meet again in six months. Bolger stated the board should meet quarterly. Minero stated the board does not need to meet just to meet. However, one meeting per year is too infrequent. He stated twice per year would be better. Neumann noted the board needs new blood. The EDC is not an arm of the City as pointed out by Mayor Low. He stated he would like to have everyone bring one or two guests to the next meeting. Minero suggested maybe EDC members could go visit potential new board members — have a one on one as opposed to bringing them all to a board meeting. Maxeiner reiterated the EDC needs to have a game plan with goals. Otherwise there is not much reason for potential new members to be here. Mayor Low stated the board could meet quarterly. She suggested the board come together at the next meeting with two or three identifiable ideas (goals) to work on. She noted if the board cannot come up with ideas or goals, the board has answered its own question regarding its need to survive. Marinangel inquired if the board should contact another successful EDC and find out how or why they are successful. Minero responded John Smith brought in members of the Oswego Illiiiois EDC who are very successful. The EDC was not really able to implement any of the Oswego ideas. EDC ' �pri16,2010 Page 5 Neumann suggested the City come up with some ideas for goals for the EDC. He noted the EDC needs to be a catalyst. Marinangel concurred with Mayor Low and suggested the board come together in three months with the agenda of each member coming up with potential goals for the board. Paegelow opined there are enough people on the board at the present time. However, the board needs to be doing something. Election of Officers Motion by Low, seconded by Minero, to nominate Ned Neumann as Chairman of the EDC for a two-year term. All Ayes. Motion carried. Motion by Maxeiner, seconded by Low, to nominate Jack Minero as Vice Chairman of the EDC for a two-year term. All Ayes. Motion carried. Motion by Marinangel, seconded by Paegelow, to nominate Kathleen Kunzer as Secretary/Treasurer of the EDC for a two-year term. All Ayes. Motion carried. Other Business Following brief discussion, Chairman Neumann announced the next meeting of the EDC would be scheduled for Tuesday, July 13, 2010 at 12:30 p.m. in the Municipal Center Council Chambers. Bolger stated he wanted to go on record acknowledging the EDC's contributions to helping McHenry obtain the finest hospital in northern Illinois and locating the McHenry Corporate Center in our community. At the request of the board, Maxeiner stated he would provide information at the next meeting regarding small business loans, fa�ade improvement grants and revolving loan funding which are available to business in the community or seeking to locate in the City. Adjournment Motion by Minero, seconded by Paegelow, to adjourn the meeting at 1.26 p.m. All Ayes. Motion carried. Respectfully submitted, Kathleen M Kunzer Secretary/Treasurer