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HomeMy WebLinkAboutMinutes - 12/11/2017 - Community Development Committee (2) COMMUNITY DEVELOPMENT COMMITTEE MEETING REPORT December 11, 2017 �"' McHenry Municipal Center 1. Call to Order. Chairwoman Condon called the meeting to order at 7:00 PM. 2. Roll Call. Chairwoman Condon, Alderman Santi, Alderman Devine. Al;�o in attendance Director Polerecky and City Clerk Nevitt. 3. PubGc Comment. Ncne. 4. Discussion on a Real Estate Transfer Ordinance. Chairwoman Condon asked Director Polerecky to present this item to the Committee. Director Polerecky reported he found an article that explains what the Real Estate Trtinsfer Tax is used for, how the revenue can be used from the tax, and key hurdles encountered from adopting the tax. Chairwoman Condon stated the article was a good resource. In 2017, this was identified as an item for the Committee to review. A list of counties and municipalities obtained from First American Title Insurance Company that L- utilize the tax and that defines how they use it was provided to the committee. During a real estate closing, the title company must obtain a signature from the municipality declaring they are aware the transaction. The reason for this is to clear lieiis, outstanding billing, code enforcement violations, and any information the municipality wants to provide to the buyer. The tax is also used as a method to obtain up-to-date property owner data and helps to determine if the owner lives in the property or if it is income property. The department could use the tax to help track rental properties. Chairwoman Condon said she thought liens were recorded and the property could not be sold until the lien was paid. Director Polerecky said there are rare instances when liens are overlooked. Chairwoman Condon asked what the city does in those instances and Director Polerecky said sometimes the new owner will pay the lien; it may be written off if it is for a small amount, or if it is for a substantial amount such as grass mowing where a contractor has been paid, the city will pursue the previous owner. Water/Sewer billing information for new accounts is now transferred to the BSA software and consequently, the department has owner and tenant information. The city currently has over 2,300 rental properties registered in the city or approximately one-third of the citv's housing stock, which includes houses and apartments units. � y Alderman Devine asked what benefit would the tax provide the city other than water/sewer billing information. Director Polerecky said it would assist with updating records owners and tracking rentals and investment properties. It would not cover Communit��Development Committee Meeting Report December �1,2017 Page 2 � oiitstanding payments or liens because the transaction has already occurred by the time w�are aware of the sale. A discussion ensued on the process of shutting off water service for non-payment of bills. Cliairwoman Condon asked if the city shuts water service off in the winter and Director Pc�lerecky answered yes. Water is required to occupy a home so when it is shut off; the C��mmunity Development Department is notified and informs the occupant that if the bill is not paid, the city will move forward with eviction. This does not happen often as the hcmeowner usually pays after the service is discontinued. In addition, the department will not issue building permits until the account is paid. N�� municipalities in McHenry County have adopted a real estate transfer tax however; the County has a transfer ordinance in place. McHenry County charges $0.25/$100 to re�,ord the transaction. 'The spreadsheet indicates that many communities require real estate inspections and charge a real estate inspection fee. The inspection is performed prior to the sale of the property and would be required prior to the title company issuing the title to the new owner. Alderman Santi said this sound like a time consuming process. Director Polerecky contacted a local realtor who informed him that last year there were approximately 600-700 real estate transaction in the city. Chairwoman Condon said the tax can protect the new owner and yet nobody wants to pay `' for it. Alderman Santi asked Director Polerecky to explain the Island Lake Owners Transfer Inspection Fee and the process for collecting the fee. Director Polerecky said a village employee inspects the dwelling for life/safety matters and the village issues an electrical compliance certificate. The original building file for the property will be reviewed prior to the inspection to determine if work was done in the home without a permit. Often with rental properties, basements are finished without a permit and the basement does not meet emergency escape requirements. Chairwoman Condon noted that many communities on the list state no stamps required but a final water bill is required and asked if that is the same in McHenry. Director Polerecky said yes, but there is no way to enforce it. There may be something in there orciinance that requires a final water bill. Chairwoman Condon said in the past, the Committee had discussed the transfer tax opiion and decided not to pursue it and instead created the rental registration. Director Polerecky informed the Committee that the rental registration program has been suc:cessful in assisting the department with resolving code maintenance violations. Alderman Devine asked if property owners information could be obtained through the County and Director Polerecky said yes, we have a program to look up properties �' however if the property is owned by a Trust, it is more difficult to track the owner. Communit}�Development Committee Meeting Report December: 1,2017 Page 3 � Alderman Devine asked how much the city would charge for a transfer tax adding he is of the opinion that a fee of no more than $25 per transaction would probably be more ac�;eptable to residents. Director Polerecky noted to cover the cost for an administrative err.ployee is something to consider. With the software available to the city, this would nor take long. When the city liens a property, the building software is red tagged and permits are not issued until the lien is paid. Alclerman Santi asked what would the city do for the transfer fee and is this a way to get payment on a final bill. Director Polerecky said the title company would contact the department and request a signature on a document, which would initiate a final read for water/sewer billing. Chairwoman Condon asked about the recent Woodstock proposal. Director Polerecky said that was a rental inspection program. A discussion ensued on the need to review building permit fees. Director Polerecky statc�d the topic might be presented to the Committee in January. If the Committee decides to move forward with the real estate transfer tax program, the city attorney would be asked to write an ordinance for review by the Committee prior to presentation to the full City Council. � Chairwoman Condon said since the rental registration program is providing the department with owner and tenant information, she does not think there is a need for a transfer tax at this time. Alderman Santi asked Director Polerecky if he had conversation with real estate agents regarding the transfer tax. He answered that he spoke with one realtor who said he undei•stood the reason behind the tax but the McHenry County Association of Realtors would probably not support it. The Committee agreed not to pursue this at this time and asked Director Polerecky to bring the topic up again in 2019. 5. Update on Code Enforcement Strategy. Chairwoman Condon asked Director Polerecky to present this item to the Committee. Director Polerecky provided an update on the progress of the Code Enforcement Strategy docurr�ent. He reported the code enforcement officer is currently working on completing all of the compliance checks and anticipates the document will be completed in the spring An updated copy of the document will be provided to the Committee at the next meeting. 6. Review of 2017 Committee Topics and Proposed 2018 Committee meeting date. � An update 017 the tOpiCs and status of those items discussed by the Community Development Committee in 2017 was provided: Community Development Committee Meeting Report December 11,2017 Page 4 '�... August 2017: Established a schedule for 2017 meeting dates Se��tember 2017: Discussion on allowing backyard chickens. A decision was made to tab'e the item and for further review in August 2019. October 2017: The Code Enforcement Strategy document was presented to the Cornmittee. Also, placement of garbage receptacles was discussed and forwarded to the Coi�ncil. No�•ember 2017: This meeting was cancelled. Twc� items proposed and not discussed in 2017 were a review and analysis of the current Conimunity Development fees and the formation of a Community Involvement Cortunittee. At the request of Chairwoman Condon, Director Polerecky explained the idea is to create a committee that somehow allows individuals to be involved in minor proj�:cts throughout the community such as painting, cleaning areas of town, etc. The diffi��ulty with this initiative is that most of the people interested are not directly asso�;iated with the city; they are separate non-profit or established groups. The city's liabi:ity with this type of initiative was discussed. Chairwoman Condon suggested perh�ips asking the Chamber to take the lead in organizing this with assistance from the city to find projects. � Alderman Devine suggested perhaps naming it the Community Improvement Group. A discussion ensued on the upcoming review of building permit fees. Chairwoman Condon said she thinks this is a good idea and said it should be made clear that an incre�ise in fees would be to help cover the city's costs, not to make money. Director Poler�;cky noted the city is currently not covering the city's costs and McHenry has the lowest fees in the county. Answering Chairwoman Condon's question, Director Polerecky said fees were review in 2010 and only minor increases were made. Director Polerecky said he would also like to address recreational fire pits and burning. The current ordinance requires recreational fires be conducted in a portable unit. Many residents have constructed brick fireplaces in their backyards, which are no different from a portable unit however, it is a violation of the current code. Chair�voman Condon asked the Committee if there were any topics or issues they would like to add for future discussion and encouraged the committee to email Director Polerecky with ideas. 2018 Proposed Meetin Dates• A comparison of the proposed 2018 City Council meeting schedule and the proposed Committee schedule was reviewed. � Upon viewin a co S py of the draft Council meeting resolution, Director Polerecky proposed the following 2018 committee meeting dates: March 12, May 14, June 11, July TBD, September TBD, October 22, December 10. Community Development Committee Meeting Report December 1 l,2017 Page 5 � Ch,iirwoman Condon informed the Committee that she would be out of town the first wec�k in May The Committee agreed to meet on January 22 and review the dates after adoption of the Council meeting schedule. 7. Department Updates: Director Polerecky reported on the following department activities: • The new Dunkin' Donuts location on Front Street is open for business. A temporary occupancy was issued pending landscaping and parking lot striping. Alderman Devine asked if a sign will be erected and Director Polerecky answered, the location of the freestanding sign was revised and it will be erected soon. • Construction of two new single-family homes on Hillside is nearly completed. A single-family home on Bennington was demolished and construction of a new home on the lot is underway. The previous structure was a two-story house and the new home will is a ranch. � • A few units on Shamrock Lane sustained water damage due to poorly installed water heaters. Staff is working with the management company to get this resolved. • Staff is working to resolve a hoarding case in the Fawn Ridge Apartment complex. The Code Enforcement Officer was issued a subpoena to appear in court and the case was continued twice. • The proposed CIP for Community Development and Building Maintenance was recently submitted to the City Administrator and included a request to replace one vehicle. For Building Maintenance, proposed is new carpeting for the Municipal Center, replacement of the RTU rooftop units and boiler. The mechanicals in the building are aging and need to be addressed. • The deparhnent is in the process of digitizing all the documents in the file room. • .�lderman Santi inquired about the second location of Kathryn's Bridal Shop. ]�irector Polerecky informed the committee that the owner opened a second location for overstock inventory in the former Pet Central on Elm Street. • Alderman Santi said he walked through the new theater and DC Cobbs building � over the weekend and reported construction is moving along. Director Polerecky reported DC Cobbs will install louvered awnings over the patio. Community Development Committee Meeting Report December 11,2017 Page 6 � 8. Adjournment. Alclerman Santi made a motion, seconded by Alderman Devine to adjourn the meeting at 8:12 pm. Voting Aye: Santi, Devine, Condon Voting Nay: None Absent: None Mo-:ion carried. Respectfull y submitted by Marci Geraghty, Executive AssistandDeputy City Clerk Reviewed azid Approved on the o2� day of �u, , 2018. -__���ti�'.��.�.�• Chairwomar�. Geri Condon �.. �