HomeMy WebLinkAboutMinutes - 7/15/2024 - Committee of the WholeCity of McHenry
Committee of the Whole
7.15.24
MINUTES
COMMITTEE OF THE WHOLE MEETING
333 S Green St, McHenry, IL 60050
Monday, July 15, 2024, 5:30 p.m.
Roll Call: Mayor Jett opened with the roll call.
Members present Alderman Santi, Alderman Glab, Alderman McClatchey, Alderwoman
Bassi, Alderman Davis, Alderman Koch, Alderwoman Miller, and Mayor Jett. Others present
Attorney McArdle, Administrator Ostrovsky, Director of Community Development Polerecky,
Finance Director Lynch-absent, Director of Parks and Recreation Hobson, Director of
Economic Development Martin, Chief of Police Birk, City Planner Sheriff, Director of Public
Works Wirch, Deputy Clerk Johnson, and City Clerk Ramel.
Administrator Ostrovsky began the committee of the whole meeting by thanking the residents
for attending and giving an overview of how the evening’s process would work. The Shodeen
Group representative David Patzelt was also in attendance to represent the two areas of
development. The first area is Green & Elm and the second area is the Riviera. It was also
noted that the plans are conceptual, and The City Council would have the opportunity to provide
the direction. Feedback requested could include appearance, height, setbacks, etc. per the
slides listed during the opening of the meeting.
Director Polerecky gave a brief history of the Green & Elm site first and talked about its growth.
February 18, 2019, was the first purchase and referenced the old parking lot around the bank
that was purchased. In September of 2021, demolition of the Savings Bank and again was also
purchased to expand the parking. The next purchase was in November 2022, of the funeral
home and then the old carpeting store which was demoed and now is parking. Green Street
café is also now under contract with The City.
Discussion and conceptual presentation by Shodeen Development regarding the
potential development of properties in downtown McHenry, including the Green/Elm
Street area and the property near the former Central Wastewater Treatment Plant site:
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David Patzelt, Shodeen Group out of Geneva IL. Wanted to talk about the architecture of 111
Green Street. The products/style of architecture was explained as being varied and he wanted
to let everyone know they can be changed. It was noted that there can be a change in roof
lines from steeper pitched to clip roofs and more traditional gable style roofs as well, (slides
shown to those in attendance were reflective of this).
Limestone that is shaded and even more natural limestone as well, even red brick and prairie
style orange brick was also presented as choices for building materials.
The eves and soffits, roof siding, and colors are also available in a variety. Roof pitches and
styles and other buildings that the Shodeen Group has already worked on in Oswego and other
areas that have been established were presented.
There was an abundance of slides showing the combinations of architectural interests that the
Shodeen Group has completed, to give The Council and those in attendance ideas for the
development.
Mayor Jett asked if there were any questions regarding the above information, there were no
comments for the above information that was presented.
Next, the site plan was presented for the three buildings: South Building, Northwest Building,
and Northeast Building. The lowest level of the buildings is the South Building, with 138
residential units 8,000 square feet of retail space, with 214 parking spaces in that garage.
The Northwest building has 132 residential units, no retail, and 126 parking spaces single level.
The Northeast has residential 33 units, no retail with 35 parking spaces.
Garage parking was also explained.
Also reviewed was a slide with parking. David had three questions for The Council referencing
the parking situation (Listed below):
• Are they to replace some percentage of the existing parking?
• Are we to use a shared/vacant parking ratio?
• How would the replacement parking cost get paid for?
The breakdown of the parking was also presented to The Council reinforcing that this is
conceptual and would like to know feedback from The Council.
Breakdown from David, Shodeen Development Group’s presentation:
Cost of construction: $98,000,000
City Grant: $2,000,000
Connection Fees: waived
Land Cost: $750,000 – The City of McHenry
Public Utility: The City of McHenry
Total Development Value: $98,750,000
TIF Request (20,000,000)
Net Total after TIF: $78,750,000
Also mentioned by David that there is not a reasonable return, the funds are still a little shore
things can change depending on the evaluation and site changes, etc.
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Also noted that the downtown TIF would be removed and the new redevelopments would have
a separate TIF district for this development, that would not be used for other projects. TIF as
funding can only be used for specific projects, that benefit the municipality, per Administrator
Ostrovsky.
An additional note as pointed out the costs are only for the projects that have been explained,
per David from Shodeen.
Alderwoman Bassi talked about the amounts spent by The City to acquire the carpet store,
Justen Funeral home, and the bank she wanted to know what Shodeen’s contribution would
be to the cost of the land. David stated that the cost analysis for the land cost in those parcels
is contributed to the project for a minimal fee of $10, which if the costs of the parcels were
included would cause there to be a generation for additional increments, however, this is a
common practice with municipalities where there is TIF and land dedication. The alderwoman
rebutted with the statement that the total land was approximately $1.8 million which cost the
taxpayers.
Alderwoman Bassi discussed Green Pea Pod which has been around for 20 years, has been
established on Green Street, and has issues with a corporate landlord to relocate them, they
do not want to move. David agrees that the Green Pea Pod are good business people and has
been in friendly negotiations to keep them in downtown McHenry and move them to an
establishment with one floor and maybe some outdoor dining opportunities than they have
today. Shodeen is not a corporate entity that wants to push them out, per David. There are
303 units on the slide, on June 17th was told that 6 stories were not wanted, not sure if moving
it slightly would change the opinion. 1 car per unit assuming that it is $100 a month $360,000
would be made, but David stated The City would be charging for that.
Alderman Santi thanked David and asked him to go back to the slide with height, he wanted to
know the approximate height. David offered to get him the elevations and grades for the
Alderman. The average is 12 ft per story. Some questions were brought up also about the
setbacks on the East/Southeast side of the building. He would like the buildings to match up
and would not like to see anything generic etc.
Alderman McClatchey has some issues with the number of apartments on Green Street and
would like to see if cut back. He would like to see surface parking and eliminate some of the
apartments. Alderman McClatchey would like to see a two-story development however, David
was not ok with two stories.
Alderman Glab wanted to know how many parking spots for the entire development it was
stated that 422 spaces are shown in this plan per David. Referencing the chart, he believes
329 spaces would be needed for those uses, how many existing spaces would need to be
replaced, and the surplus of 100 spaces could be replaced. Alderman expressed that there is
an enormous need for a parking garage, maybe a public garage could be used, referencing the
parking problems that we currently have, which need to be solved first before we move forward
with a new project.
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Administrator Ostrovsky stated that the garages may also become public as well, as noted.
Alderman Davis asked for clarification of the easements and was shown those slides per David.
Alderwoman Miller thanked David as well, appreciated that the previous parking discussion
has been taken into consideration and he has provided us with numbers as a starting point.
Architecturally she would like to see something more in line with what McHenry has
established. The Northwest building is currently all residential and wanted to know if that new
street “Water Street” was considered commercial. David stated that they are concerned that it
would not work in that favor. Alderwoman also emphasized this is conceptual and would like to
continue the conversation with negotiations on what to see there, she is not opposed but would
like to see something more.
Alderman Koch discussed that this concept would still not solve the problem of parking, and
losing spots, he likes the concepts, but the density of parking is the issue.
Director Polerecky asked David to explain the 80% theory of the parking. If you are in the 90%
of apartment occupancy you are considered doing well, knowing that someone is always
moving out, etc. 5-10% of the units are vacant along with retail there is never 100% either.
Then there is shared parking, which was also outlined as well. Knowing the peak demand for
the apartments vs. the other downtown businesses, which is usually the evening and retail start
to close so they do not need the parking spaces.
Public Comment Move to Regular Agenda:
*Clerk’s note: at 7:00 PM the COW meeting adjourned and The Council moved to the regular
agenda, where you will see a continuation of this discussion for public comment and the rest
of the development. The full video and comments can be viewed through The City of McHenry
YouTube channel as well.
Discussion and conceptual presentation by Shodeen Development regarding the
potential development of properties in downtown McHenry, including the Green/Elm
Street area and the property near the former Central Wastewater Treatment Plant site
Adjourn: A motion was made by Alderman McClatchey and seconded by Alderman Santi
to adjourn the meeting at 7:00 Roll Call: Vote: 7-ayes: Alderman Santi, Alderman Glab,
Alderman McClatchey, Alderwoman Bassi, Alderman Davis, Alderman Koch, Alderwoman
Miller. 0-nay-, 0-abstained. Motion carried.
Wayne Jett, Mayor Trisha Ramel, City Clerk