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HomeMy WebLinkAboutMinutes - 06/28/1993 - City Council SPECIAL MEETING MONDAY, JUNE 28, 1993 A Special Meeting of the McHenry City Council was called to order by Mayor Cuda on Monday, June 28, 1993 at 7:30 P.M. in the Council Chambers of the McHenry Municipal Center. At roll call the following Aldermen were present: Bolger, Locke, Bates, Lawson, Baird. Absent: None. City Staff in attendance were City Clerk Gilpin, City Attorney McArdle, City Administrator Peterson, Director of Public Works Batt, Director of Parks and Recreation Merkel, and Director of Building and Zoning Lobaito. Absent: Chief of Police Joyce. MEETING PURPOSE Mayor Cuda announced that the purpose of the meeting was to continue the Public Hearing on the proposed Annexation Agreement of Hillside Subdivision by petitioners, Gerstad Builders. Donald and Roger Gerstad of Gerstad Builders were in attendance at the meeting along with their Attorney, Sam Diamond. Attorney Diamond addressed the Council and gave a background on the subdivision. The Petitioners are proposing to contruct 125 homes in two phases. The Developers are proposing to pay annexation fees at the rate of $500.00 per acre and $500.00 per unit plus the current Capital Development Fees for water and sewer. The property will also be subject to the impact fees for the Fire Protection District, the Library District and the two School Districts. In lieu of a contribution to the Park Department, the Developers are proposing the dedication of two park sites - one consisting of 13.1 acres on the east side of Green Street and the other, a one acre tot-lot on the west side of Green Street within the proposed Hillside Subdivision. The recommendation of the Zoning Board of Appeals on a 4-2 vote was to grant the requested RS-2 zoning. The Plan Commission approved the Preliminary Plat on a 5-0 vote. The City Administrator pointed out the following nine issues that should be addressed by the Council concerning this annexation: 1. The points in Baxter & Woodman's July 8, 1992 letter should be implemented; 2. The 13.1 acre detention parcel should be dedicated to the City; 3. The water main should be extended from the north to the Hillside property. The Council previously agreed to extension of the water main from the south along with a contribution for water main extension from the Tonyan water tower to Biscayne Highland Subdivision. The amount of contribution remains to be negotiated. 4. All points contained in Narusis' letter of September 22, 1992 should be corrected or clarified. 5. The Illinois Department of Conservation should be contacted with regard to a wet-lands study of the 13.1 acre detention parcel. 6. A recommendation or statement should be made to the Council regarding maintenance repsonsibility for the detention parcel. City ownership is proposed. 7. A new traffic study should be implemented to answer questions raised in Baxter & Woodman's July 8, 1992 letter. 8. Alignment of the entrance street should be changed shifting it north to Bradford Place. 9. The Council should investigate whether to provide closure or vacation of the Beach Drive extension. Attorney Diamond told the Council that he was presenting a procedural petition for annexation and approval of an annexation agreement. Previously, a notice had been published for a Public Hearing which was held November 23, 1992. At that time, a motion was made to postpone the ..� Hillside Subdivision annexation until such time as the school crisis in the City had been addressed. Therefore, they were here tonight as a continued hearing on this annexation proposal. Diamond explained that this project was being annexed with a Preliminary Plat attached instead of looking at a Concept Plan. He felt that there was one item on the Plat that was a policy decision and that is the location of one road as to whether it should be relocated from where it is shown on the Preliminary Plat. The developer would be willing to do whatever the staff recommended. He felt that all of the �. — --- -- ---...-------.— June 28, 1993 Page 2 items addressed by Administrator Peterson could be handled by the developers. Diamond was requesting input from the Council to see if they could address the other problems so they could determine if they could proceed with the project. The second element was to address the issue of the schools. For purposes of discussion, he wanted to separate the two issues. If the developer has a project which is not acceptable then he felt time would be wasted talking about the school issue. If the project is approved and acceptable to the Council, then they would address the school issue. Roger Gerstad addressed the Council and outlined some benefits of the project: - Economically, they try to hire all construction workers from McHenry as well as suppliers; - Increase in the sales tax from people moving into the community and purchasing items; - Enhancement of the area west of Green Street; - Adds to the expansion of the park system with addition land; - Allows an interconnecting County bike path to go through the park system; and - It would generate a larger population base which would be beneficial for the development of industrial and commercial industries in the area. Mayor Cuda felt that there were three questions that had to be answered if this project was to be moved forward: 1. Whether or not the City wants to annex the property and zone it RS-2. 2. Should the Preliminary Plat be accepted; 3. Does the City want to accept the annexation fees proposed in the Annexation Agreement which was $500.00 per unit and $500.00 per --� acre, along with all the other fees pursuant to City Ordinances. If the City is not willing to annex the property under these terms, then it must be determined under what terms the City would agree to annex the property. Lengthy disucssion took place between the Aldermen and the developers. Mayor Cuda suggested that a motion be made to deny the project and a vote be taken to determine whether or not the project should proceed and if not, then further discussion could be curtailed. Motion by Bates, seconded by Lawson, to deny the Hillside Petition for Annexation. Further discussion ensued. Motion by Baird, seconded by Bolger, to table the motion. Voting Aye: Baird, Lawson, Locke, Bolger. Voting Nay: Bates. Absent: None. Motion carried. Mayor Cuda called for a recess at 8:37 P.M. The meeting reconvened at 8:55 P.M. with everyone still in attendance. Attorney Diamond addressed the Council regarding school donations from the development. He asked Roger Gerstad to make a comment on donations toward the schools. Gerstad said he had been to numerous City Council meetings and had been present at Ad Hoc Committee meetings and had heard what that Committee was proposing for school tax lag contributions. He made the following proposal and asked that it be entered into the record: June 28, 1993 Page 3 "In lieu of being considered to participate in any tax-lag formula or related future ordinances, Gerstad Builders is willing to make a $100,000.00 contribution to the local School Districts to be split 50-50 or otherwise directed by this Council. Payment of these funds will be made on a per unit basis at the time of occupancy, paid directly to the School Districts or to the City of McHenry, as directed by this Council. This would be in addition to all of the other fees which are referred to in the Annexation Agreement." It was determined that if the tax-lag money proposed by the Ad Hoc Committee was approved, it would result in a cost to the Hillside project of $162,500.00. Gerstad was offering $100,00. Discussion was held on the financial summary for the Hillside development proposal as prepared by City Administrator Peterson. One-time annexation fees at $500.00 per acre and $500.00 per unit would result in an annexation fee of $92,760.00. Mayor Cuda ask if there was a possibility that this amount could be paid up front instead of over a period of time. The developer said it was something that could be looked into and discussed later. Gerstad felt it would be a year from now before the housing project could be on line. He felt it would be difficult to put all of that money up front at once but possibly something could be negotiated on it. Don Gerstad said that they would be giving the City $55,000.00 at the time of signing the Annexation Agreement and possibly another $20,000.00 or $30,000.00 could be paid when the Final Plat is recorded. Diamond said if the City is asking for all of the annexation fees up front, and the developers are saying something could be worked out, he felt there could be compromise on the issue. Lengthy discussion took place on the tax lag formula and how and when it should be applied. Don Gerstad had a strong disagreement with the School Districts as to how the tax lag problem came about. He felt the collection of a tax lag fee would be an injustice to the new home owner. He felt new home owners would be doubled taxed. He felt it was unconstitutional because of the double taxation aspect. School District 156 Superintendent Swartzloff was in attendance, along with District 15 Superintendent Dodds and Board President Lucy Fick. They were asked what their opinion was of Gerstad's offer of $100,000.00. They all said they were not impowered to speak for their School Boards and the issue would have to be presented to them for their reaction. Mayor Cuda asked Swartzloff if the City Council were to adopt the tax lag formula as it is currently proposed and with the Developer Donation Fees that are currently in effect, would that be sufficient to satisfy the concerns of the School Board with respect to developments that are before the City Council. Swartzloff replied that he believed that would satisfy District 156's concerns, however, he wouldn't want to say that would apply to all future developments. Dodds replied that their concern is the operation fund. The referendum which passed furnished educational funds. Their initial issue is how to house the new students. He said he would take Gerstad's proposal back to his Board for discussion. Following further discussion, Mayor Cuda suggested that the Public Hearing be closed and that a future date be set so that items discussed at this meeting could be incorporated into the Annexation Agreement and reviewed at a later meeting. He asked if anyone in the audience wished to make any comments concerning the Hillside Subdivision proposal at this Public Hearing. There was no response. Motion by Bates, seconded by Lawson, to close the Public Hearing. Voting Aye: Bates, Lawson, Locke, Bolger. Voting Nay: Baird. Absent: None. Motion carried. June 28, 1993 Page 4 A Special Meeting to discuss the Hillside Annexation was set for Monday, July 12, 1993 at 7:30 P.M. A new draft of the Annexation Agreement will be prepared by Attorney McArdle and discussed at that Special Meeting. Baird commented that in the Annexation Agreement, he would like to see the developer raise his donation from $100,000.00 to $130,000.00. Also, that in the first two years or 30 months, the developer would pay on occupancy per unit and after that, the remainder for each of the lots would be paid in a lump sum. Bates commented that his three areas of concern were: (1) have a lower density over all; (2) a longer build-out done in phases; and (3) increase annexation fees. These are the items he would like to see in order to have the project proceed. ADJOURNMENT Motion by Bates, seconded by Locke, to adjourn. Voting Aye: Bolger, Locke, Bates, Lawson, Baird. Voting Nay: None. Absent: None. Motion carried. Meeting adjourned at 10:10 P.M. City Clerk Mayor