HomeMy WebLinkAboutMinutes - 1/27/2014 - Community Development Committee COMMUNITY DEVELOPMENT COMMITTEE MEETING
� Monday,January 27, 2014
Aldermen's Conference Room, 7:00 p.m.
In Attendance: Committee Members: Chairman Alderman Condon, Alderman Peterson
and Alderman Santi. Absent: None. Also in Attendance: Deputy City Administrator Martin,
Code Enforceinent Officer Headley and City Clerk Jones.
In Attendance:Kaaren Gies, 800 Center, McHenry, IL
Conor Brown, 405 E. Congress Parkway, McHenry, IL
William Wiltse, 2620 Knob Hill Road, McHenry, IL
Scott Beilfuss, 202 Highbridge Trail, McHenry, IL
Chairman Alderman Condon called the meeting to order at 7:00 pm.
Public Input Session
No one signed in for Public Input Session.
Discussion on Vacant.Abandoned and Distressed Properties
Deputy City Administrator Martin informed the Committee that the 2010 Census indicated that
the City of McHenry had 755 vacant housing units, which is about 7% of the total number of
housing units in the City. Recently, the website Realty Trac indicates 427 properties in the 60050
zip code that are in some stage of foreclosure (i.e., default, auction or bank owned). Fifteen
�" properties are scheduled for auction with judicial sales in January and February of 2014. The
Department of Community and Economic Development currently monitors approximately 50
properties throughout the City that have been vacant for a period of one year or longer.
Two of the largest issues associated with vacant or abandoned properties are learning when a
property has been vacated and/or when it can be classified as such. There are no requirements for
the owner or bank to notify the City when a property is no longer inhabited. As a result, the City
often becomes aware of vacant properties when there is a problem or perceived problems, which
have occurred or are occurring.
Most properties in the City are not considered abandoned. The properties Staff most often have
trouble with ai•e usually the ones where the owner has "walked away." In these cases, an owner
has been given notice of foreclosure and has moved out before the bank or mortgage company
has been given possession of the property. Often, these houses have not been emptied of personal
belongings (both inside and out) leaving the neighbors and the bank believing they are still
occupied. In the summer the grass becomes long, in the winter the water pipes burst due to lack
of heat. This t}pe of property might remain empty for one to three years before the bank or a new
owner takes title. During this period, the property begins to decay, paint becomes loose and/or
peels, soffits, f'ascia and siding can become loose and blow off. In the worst case, the properties
become occupied by squatters and are associated with criminal activities.
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The City's Municipal Code does not include a definition of distressed properties, a term used by
banks, mortgage companies and realtors. The most common definition of a distressed property is
a property un�ier a foreclosure order or advertised for sale by its mortgagee. It nearly always
refers to propE�rty damaged or in poor physical condition due to the owner's precarious financial
condition. The� City receives notices of foreclosure as a matter of legal course when one is filed
with the Circiiit Court if the property is located within the corporate limits of the City. Staff
maintains a spreadsheet of foreclosed properties.
Foreclosure fi'ings were few in number, relatively speaking, in 2008 and 2009, but dramatically
increased in 2010 when there were 260 filings; 2011, 291 filings; 2012, 488 filings; 2013, 396
filings and 29 filings to date in 2014. Deputy City Administrator Martin noted that these figures
are not exact, but are compiled solely from legal notices the City received when a foreclosure is
filed with the Court. He noted that some properties might go through multiple foreclosure filings
within the same year. Filings for foreclosure do not include short sales or sales of properties
considered "underwater" when the dollar amount of the mortgage held exceeds the actual value
of the property�.
The City of McHenry has Ordinances in place that address neglected or deteriorated properties.
The International Maintenance Code allows the City to condemn a structure or equipment that is
found to be unsafe, unfit for human occupancy or is unlawful. Condemn is defined as "adjudge
unfit for occupancy." Upon failure of the owner to correct the conditions leading to
� condemnation, the City may secure (i.e., board up) the structure. The cost of the board up can be
charged against the property in the form of a lien.
Administrative adjudication gives the City the authority to demolish, repair or enclose or cause
the demolition, repair or enclosure of dangerous and unsafe buildings or uncompleted and
abandoned buildings within the City and allows removal of garbage, debris and other hazardous,
noxious or unhealthy substances or materials from the buildings. Any costs incurred by the City,
including attorneys' fees can be recovered by placing a lien on the property.
Deputy City Administrator Martin explained that the Nuisance Abatement section of the
Municipal Code provides the Police Chief the authority to declare a property a "chronic
nuisance" if two or more specific offences have occurred within a 180-day period. The
administrative law judge, during an Administrative Adjudication hearing, may then order the
property be cl<,sed or secured against all use and occupancy for a specified period of time.
Deputy City Administrator Martin stated that the City uses a collection agency in an attempt to
collect outstanding debt, but the success rate is nominal. There are few options available to
address the collection of liens prior to the actual sale of a property, and in many instances, these
properties are foreclosed upon or the owner may have filed for bankruptcy protection. When this
occurs liens are often disregarded or left unpaid due to other debt obligations, such as taxes,
which take precedence. Should the City opt to pursue foreclosure on the lien, the action is costly
and if the end result is successful the City becomes the new property owner, presenting a new set
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of issues, which many would argue is not practical or a situation a municipal governmental body
should place itself.
The Staff of the Community and Economic Development Department, together with the Police
Department a Zd Fire Prevention Bureau (a division of the McHenry Township Fire Protection
District), have increased the sharing of information and maintain regular communication
regarding prot�lem properties,both vacant and occupied.
The Community Development Staff has the tools to address the most serious distressed
properties. Administrative adjudication allows the City to seek an order requiring the owner of
record to demolish, repair or enclose a building or to remove garbage, debris, etc. If the owner
does not comply, the City may enforce the judgment and lien the property. Illinois state statutes
can also be utilized in the enclosure or demolition of the building. The Department has used both
of these methods in the past and has had success in collecting on the debts owed the City.
The most difficult aspect from Staffls perspective is:
• the amount of time required to manage the various types of properties and the ancillary
impacts,which are often associated with them;
• public perception of what the City can legally do;
• how quickly it can be done;
• working with and locating absentee property owners;
`-- • dealing with large financial institutions with no clear process/person designated to
manage the properties;
• legal clearing houses, which manage thousands of foreclosures annually and are difficult
to contact and speak to an actual person;
• third party investors, who acquire this type of property, but are negligent regarding
maintenance
• property managed by HUD. Staff has encountered problems with enforcing property
maintenance issues or pursuing any type of ordinance/legal action.
The process of enclosing/boarding up a property can take an extended period of time:
• Proper notice must be provided to the owner
• Ownership must be verified, often requiring a title search and legal involvement.
• Once proper notice is given, the City must prove the property is dangerous and unsafe,
uncompleted or abandoned.
Demolishing properties can be pursued but is something the City must be extremely careful in
doing. If proper notice is not provided to every party associated with the property, the City can
end up in a precarious situation.
Staff continues to be proactive and has been extremely successful dealing with complex code
enforcement cases at both the Administrative Adjudication level and the Circuit Court level and
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recovering costs associated with actions taken. Staff believes it is important to ensure these types
of properties do not destroy entire neighborhoods.
Staff felt it important to inform the Committee regarding these properties and how Staff deals
with propertie:; falling into the various categories of distressed, vacant and/or abandoned, and the
Ordinances an3 mechanisms the City already has in place to deal with the issues involved with
these types of:�roperties. Additionally, Staff felt the Committee should be provided an overview,
general status �nd complexity of the issue overall. Staff is open to any questions or suggestions
the Committee might have, or areas that they believe Staff can improve upon.
Responding to an inquiry from Chairman Alderman Condon regarding how quickly a
condemnation can be enacted and a property boarded up, Code Enforcement Officer Headley
stated that if a property is dangerous, condemnation can take as little as 14 days.
Responding to an inquiry from the Committee regarding the "Abandoned Residential Property
Municipal Relief Fund" for grants, Deputy City Administrator Martin explained that the grant
was not applied for because they are looking at cities with high levels of abandoned and
distressed properties and the grant is not very large.
Alderman Peterson acknowledged that the process is slow and the City is limited in what it can
actually do.
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Mr. Conor Brown complimented Staff on the work they do and stated that he appreciates that
they have looked at different angles to approach the situation. He opined that he believes that
educating the public about the situation is advantageous.
Mr. William Wiltse informed the Committee that he works solely with industrial and commercial
properties. He suggested when addressing distressed and vacant properties that commercial
properties also be taken into consideration, not only residential.
Mr. Scott Beilfuss stated his firm specializes in distressed properties. He noted that while the
City of McHem•y has a 7% vacancy, Waukegan has 30%vacancy.
Chairman Alderman Condon stated that it is frustrating that the City of McHenry does not have
sufficient Staff for more aggressive enforcement. She opined that she concurs with Staff that a
municipality should not be in the real estate business.
Alderman Santi opined that the adjudication process appears to be functioning well.
Chairman Alderman Condon thanked Code Enforcement Officer Headley for her attendance and
input at the meeting.
It is the consensus of the Committee that Staff is doing the best job possible and the situation, at
� this time, should remain status quo regarding vacant, abandoned and distressed properties.
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Code Enforcement Officer Headley, together with the Ms. Gies and Messrs. Brown, Wiltse and
Bielfuss departed the meeting.
Approval to Brin�Various Amendments to the Citv of McHenry
Si�n Ordinance to the Full Citv Council
Deputy City Administrator Martin informed the Committee of the following information
regarding vari��us proposed amendments to the sign ordinance.
Signs are an integral part of a local business; however, many times those signs can become
unattractive, dominate a site or even be a hazard to motorists. There are many reasons for the
constant review of the sign ordinance, but perhaps the most common is the constantly changing
technology.
The use of light-emitting diode (LED) technology is the preferred method of advertising in the
sign industry. Until recently, the cost has been prohibitive for many local retailers. With
advances in technology, the price of the product has decreased making it more affordable. Staff
has noticed an increase in the use of LED electronic reader boards incorporated into existing
signs and has received multiple variance requests for this type of sign.
Staff has researched how other communities are addressing these same types of signs and has
� incorporated those findings, along with Staff's own experiences, to request the following
amendments to the sign ordinance. In addition to the use of LED technology and electronic
signs, a few other amendments are being proposed, including:
• Directional signs;
• Sandwich boards;
• Feather banners, and
• Additional consideration for"new"businesses.
Deputy City Administrator Martin provided the Committee with a copy of the study conducted
by the University of Cincinnati on signage, specifically the regulation of electronic signage.
Re�ulation of LED and Electronic Si�na�
Currently, the ('ity's Sign Ordinance in the Municipal Code prohibits the use of visible/exposed
LED and neon signs, with the exception of interior window neon signs or electronic/video board
and changeable face, except only 33% of the total sign area can be dedicated to a changeable
face. Additionally, the Sign Ordinance prohibits flashing, blinking, video screen signs, visible
neon tubing or visible LED, with the exception of interior window signage.
In the City's Zoning Ordinance at Chapter III Section N it addresses lighting generally and
prohibits glare, limits light trespass and the use of searchlights, laser and pulse lighting, lights
that flash, rotate or simulate motion for advertising or promotion.
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Staff believes additional regulations would be helpful to incorporate into the Sign Ordinance to
help prevent clriver distraction, light pollution and, at the same time, allow the use of LED
technology and electronic/video board-type signage. A survey of surrounding communities
indicates mo�t do, in some form or another, regulate the use of LED message and
electronic/video boards. Most of the regulations deal with light intensity. Staff believes these
signs are the future of advertising and a few items should be added to the existing Sign
Ordinance. An electronic/video message board or LED message sign should only be allowed on
freestanding signs and this requirement will help limit the size of the video boards. Typically, a
building is allowed to have a larger sign mounted on a wall rather than a freestanding one.
Adding a requirement for automatic sensors on the sign would ensure any light coming off the
sign could be adjusted in accordance with daylight/nighttime hours. The Sign Ordinance already
prohibits off-site advertising, but Staff feels it is important to incorporate this into the video
board/message boards to prevent these types of signs from becoming a billboard type sign. Staff
would like to eliminate the requirement that only 33% of an overall sign can be devoted to a
reader board. Many of the sign variance requests granted in the past have specifically dealt with
the total area devoted to a message board exceeding the 33% total area requirement currently in
place. Staff believes if the following additional regulations and amendments are incorporated
into the Sign Ordinance there is no need to limit the area devoted to a message board:
• An electronic message/video board is limited to freestanding signs only;
� • Remove the prohibition of video screen signs;
• Clarify the provision prohibiting the use of LED technology solely to mirror the
provision regarding the restrictions for neon signs, regarding the use of visible tubing or
for architectural trim or to accentuate windows, doors, signs and buildings;
• The message display must be provided with automatic dimming software or solar sensors
to control brightness for nighttime viewing and varying daytime lighting conditions;
• The message display on the sign shall only direct attention to a business, product, service
or entertainment conducted, sold or offered on the premises on which the sign is located.
Currently, off premise signs are prohibited and this additional language will reinforce
what the ordinance states. Community emergency alerts such as inclement weather or
amber alerts are exempt.
• The electronic message display must be programmed so the message change occurs
instantaneously, without use of scrolling, flashing, blinking, or other similar transitions.
The bo�lyd shall contain static messages only, changed only through dissolve or fade
transitions, but which may otherwise not have movement, or the appearance or optical
illusion of movement varying light intensity, of any part of the board, design or pictorial
segment of the board. The Zoning and Municipal Codes address some of these issues
already, but this language will clarify and reinforce what the Ordinance states generally
regarding all types of signage.
• Remove the restriction of only 33%of the overall sign being changeable face.
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Re�ulation of Directional Si is
The current Sign Ordinance does not require a permit for directional signs that fall within the
guidelines (do not exceed 3 square feet in area or exceed 3 feet in height. Must not have more
than 50% of t;ie sign dedicated to the logo or name of business). Some businesses have taken
advantage of tlie directional sign regulations and scattered several "directional signs" throughout
the property. 7'he intended use of the directional sign is to delineate the location of an entrance,
exit, drive-thn�, loading dock, etc., and is not intended to be used for additional advertising
purposes. Staff'has also noticed businesses using snipe or political type signs as directional signs.
These types of signs are being placed in right-of-ways and in front of businesses. Staff is
proposing to eliminate the provision allowing exempt directional signage and require any
directional signage comply with the regulations in Table 1 of the Sign Ordinance.
Re�ulation of Sandwich Boards
During the last sign update, the Committee and City Council agreed to allow businesses to utilize
sandwich boards on a daily basis for advertising. Size, number of signs and guidelines for the
safety of pedestrian and vehicular traffic were set forth. These guidelines have been successful in
allowing the use of sandwich boards; however, some businesses have been placing the signs near
the road. Staff would like to add the following to sandwich board regulations, as the intended use
of sandwich boards is to advertise products to customers entering a building, not to attract drivers
from the street. The following amendment is proposed:
• Must be placed within 10-feet of the building.
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Additional Si riage for New Businesses
New businesses often request temporary signage for grand openings beyond what is allowed
under the Temporary Sign Ordinance. All business is important to the City and there are
allowances for temporary signs for any business to help with advertising. However, Staff
believes it is important for a new business to get the initial immediate exposure for their benefit
and that of the City as well. Staff is recommending the following set of regulations for new
businesses be added to the Sign Ordinance.
A grand opening occasion would still require a permit with necessary documentation including:
• Locatio�i of all signs; inflatables, etc.;
• A deposit will be required in order to ensure all signs are removed and the property is
returned to pre-event condition;
• Additio�ial grand opening signage would be over and above what any business is
currently allowed by ordinance for temporary signage.
The following amendments are proposed:
� Grand opening events must be held within 180 days of receipt of a certificate of
occupancy and the following would be allowed only one time for a maximum of 14
consecutive days.
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o One banner, maximum of 32 square feet, to be placed a minimum of 5 feet from
any property line;
o Two feather banners, as defined herein, with a maximum height of 12 feet placed
a minimum of 5 feet from any property lines. Feather banners must comply with
additional regulations for feather banners as proposed herein;
o One inflatable (e.g.,balloon, dancing figure) is permitted;
o A permit is required and a fee of $100 shall be assessed for all grand opening
events with a deposit of an additional $100 for a total of$200.
• Define New Business:
o Any business not previously occupying the current space that requires a certificate
of occupancy prior to opening to the public. Change of ownership, and
construction projects requiring new occupancy certificates are excluded (i.e.,
additions, alterations, etc.).
• Define Feather Banner:
o A lightweight portable advertising medium, mounted on a pole that resembles a
sail and not exceeding 12-feet in height.
Tents and food service would still be subject to all City of McHenry and McHenry County
Department of Health regulations.
ReQulations of Feather Banners
� Prior to 2012 feather banners were not allowed for display within the City. The previous update
to the Sign Ordinance included specific regulations on feather banners allowing them under the
temporary sign permit; however, they are restricted and required to be placed within 5 feet of the
building. Staff believes this regulation is impractical and essentially has the same effect as
prohibiting the use of feather banners. Staff believes if the proposed amendments are approved
there may be a reduction in businesses illegally placing the banners either outside of the 5-foot
area or alternatively, in the right-of-way. Many business owners have indicated the current
regulation is unfair and treats feather banners differently than other temporary signs. Business
owners consider them a great tool for advertising.
Staff would like to continue to allow feather banners under the Temporary Sign Ordinance, but
regulate them i�sing the same requirements as all other temporary signs. Currently, temporary
signs are required to maintain a five-foot setback from all property lines, shall not be placed
within a vision sign triangle and shall not exceed a maximum height of 8 feet. Feather banners
are typically 8 to 12 feet in height so an amendment would be required allowing feather banners
not to exceed 12 feet in height.
ReQulations for Si�ns in the Ri�ht of WaY
This type of sign must go before the City Council but in most cases, the timing of the event and
the request often does not leave sufficient time for Council meetings and Council approval. Staff
is proposing to amend the ordinance to only require Council approval if the applicant does not
comply with any of the listed conditions. Even if the requests which comply with all listed
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ordinance provisions were not presented to City Council, Staff would ensure the Council is
informed of the requests and dates the signs would be posted.
Temporary Si€n Deposits
Currently, Sta�f has approximately twenty outstanding temporary sign permit deposits, which
have not been refunded. Staff believes this is because there is no procedure outlined and no
follow-up in the Ordinance as to how a deposit is refunded and whom the burden is placed upon.
Staff is proposing an amendment to the Sign Ordinance which would require an applicant
requesting a te�nporary sign permit be required to notify the City that the sign has been removed,
within five business days of when the sign permit has expired, and request Staff verify the
removal. Subsequently, if the sign has been removed within the permitted time period the permit
would be closed and the deposit refunded. If the applicant fails to contact the City within five
business days, the deposit would automatically be forfeited by the applicant and retained by the
City. It would �tlso require Staff to follow-up in these situations, and alternatively, issue a citation
which would be treated in the same manner as any other code violation.
This information would be provided to the applicant in writing as a condition of permit issuance
so they are aware of the new procedure.
A brief discussion ensured regarding the various proposed amendments.
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Chairman Alderman Condon inquired about sight issues concerning feather banners. Deputy City
Administrator Martin informed the Committee that if there are issues the business has three days
to remove the feather banner. Chairman Alderman Condon opined that she would be more
comfortable with 1-day for removal rather than 3-days. Deputy City Administrator Martin
advised that he would confer with City Attorney McArdle.
Motion by Pete1•son, seconded by Santi recommending Staff present the proposed amendments to
the Sign Ordinance to full City Council for consideration, with the following revisions:
� Grand Re-Openings are excluded;
� Feather banners in sight triangles must be removed within one (1) day and/or the
placement of the sign must be rectified immediately.
Aye: Condon, Peterson, Santi.
Nay: None.
Absent: None.
Motion carried.
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January 2 7, 2014
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Next Meeting Date
Chairman Alderman Condon informed the Committee the Community Development meeting
previously scheduled for Monday, February 24, 2014, has been cancelled due to a Committee
of the Whole meeting.
The next rieeting of the Community Development Committee will be on Monday, March 10,
2014, at 7:00 pm in the Alderman's Conference Room.
Other Business
Deputy City Administrator Martin informed the Committee that Charter Fitness will no
longer be moving into the structure vacated by Petco.
Deputy City Administrator Martin informed the Committee that Shawn Strach, Chairman of
the Planning and Zoning Commission will be in attendance at the meeting on March 10, 2014
for the discussion regarding the Comprehensive Plan and Ordinance Assessment. Also on the
agenda:
• The grant from CMAP;
• Temporary Uses; and
• Mechanical Equipment.
Responding to Alderman Santi's inquiry regarding the Windy City Wings property, Deputy
`.. City Administrator Martin stated that insurance did not generate adequate funds to rebuild at
the site, so the property owner is trying to sell the property.
Adiournment
Motion by Peterson, seconded by Santi to adjourn the meeting at 9:15 p.m.
Aye: Condon, Peterson, Santi.
Nay: None.
Absent: None.
Motion carried.
Respectfully�submitted,
� ',�� , f �
Geri Condon, Chairman
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