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HomeMy WebLinkAboutMinutes - 08/29/2016 - Community Development CommitteeCOMMUNITY DEVELOPMENT COMMITTEE MEETING REPORT August 29, 2016 McHenry Municipal Center In Attendance: Committee Members: Chairman Alderman Condon, Alderman Peterson and Alderman Santi. Absent: None. Also in Attendance: Alderman Glab, Alderman Curry, Alderman Schaefer, City Administrator Morefield, Director of Community Development Polerecky, City Clerk Jones and Helen Glab. 1. Call to Order Chairman Alderman Condon called the meeting to order at 7:00 pm. 2. Public Input None. 3. Motion to approve the July 11, 2016 Community Development Committee Meeting Report Motion by Santi, second by Peterson, approving the July 11, 2016 Community Development Committee Meeting Report. Voting Aye: Condon, Peterson, Santi Voting Nay: None Absent: None Motion carried. 4. Discussion of Proposed Amendments to the McHenry Zoning Ordinance, Chapter XII Performance Standards, regarding sound and lighting standards and direction to forward the matter to the Planning and Zoning Commission for consideration Director of Community Development Polerecky informed the Committee that Staff has received m increasing number of calls from residents regarding light pollution from neighboring property. Director Polerecky stated that while lighting concerns motivated Staff to review the Ordinance, Staff also ascertained that it would be prudent to review the Sound Ordinance in conjunction with review of the Light Ordinance. Director Polerecky provided the Committee with a summary of the changes recommended for presentation to the Planning and Zoning Commission: He noted that changes are a result of Staff s review of the current Ordinances and having researched and obtained information from surrounding communities. Responding to an inquiry by Chairman Alderman Condon regarding whether there have been any complaints from residents regarding the high school football games, Director Polerecky stated that he is not aware of any. Responding to Alderman Santi's inquiry regarding resident vs resident conflicts, Director Polerecky noted that resident issues were determined by the City's Nuisance Ordinance. Additionally, in response to Alderman Santi's inquiry about how a foot candle is measured, Director Polerecky explained the process. Community Development Committee Meeting Report August 29, 2016 Page 2 Mr. Ron Reber, resident at 3916 West Avenue addressed the Committee. Mr. Reber stated that he has been a resident of McHenry in excess of 14 years. He informed the Committee that there are a number of issues concerning the basketball court across from his home, not just the lighting (which he believes is due to the sight barrier not being installed this year), but cars parked on resident's lawns, noise late into the night and debris left in residents' yards. Mr. Reber voiced concerns regarding property value in the area. Mr. Reber noted that at time the light from the basketball court shines into his home quite brightly. He requested that, if possible, he would like to see the basketball court locked up at 9:00 pm nightly. City Administrator Morefield assured Mr. Reber that he would alert the McHenry Policy Department regarding enforcement at the basketball court. Director Polerecky thanked Mr. Reber for bringing these issues'to his attention. He assured Mr. Reber that he would work to make sure that the lights at the basketball court are off at the appropriate time and that the Police Department checks on compliance. Alderman Schaefer noted that it was his understanding that the basketball court had recently been resurfaced. Mr. Reber noted that it was recently resurfaced which has increased attendance at the basketball court, including a lot of skateboarding. Director Polerecky noted that skateboarding is not permitted at the basketball court. Alderman Santi requested assurance that the sound readings are taken at a time of high construction activity. Addressing an inquiry from the Committee, Director Polerecky stated that construction is not permitted to begin until 8:00 am on Saturday and that no construction is permitted on Sunday. Regarding the sound issues and deletion of Table 22, Alderman Curry inquired if sound was still graded according to frequency. Alderman Curry expressed concern because most sound is middle frequency and at "70" would be a large increase or a higher sound level, which could be a problem. Director Polerecky stated that Staff based their determination on the Ordinances in surrounding communities due to ease of measurement. Director Polerecky inquired if the Committee would be more comfortable if Staff researched the matter further, prior to submission to the Planning and Zoning Commission. Alderman Schaefer opined that ambient noise has to be considered also. He noted that it is difficult to determine "sound" and "glare" so there must be some sort of standard. A brief discussion ensued. Motion by Santi, second by Peterson, directing Staff to move forward with the revisions to the Lighting and Sound Ordinance for presentation to the Planning and Zoning Commission, as presented. Voting Aye: Condon, Peterson, Santi Voting Nay: None Absent: None Motion carried. Community Development Committee Meeting Report August 29, 2016 Page 3 5. Discussion Regarding Video Gaming Regulations City Administrator Morefield addressed the Committee. He reiterated that in 2009 the Illinois General Assembly approved the Video Gaming Act (the "Act"), allowing municipalities the opportunity to allow video gaming within their corporate limits. Prior to approval, video gaming was automatically prohibited if current ordinances banned gaming without any exception for video gaming devices. City Administrator Morefield stated that the Act permits Video Gaming Terminals ("VGT") to be placed in "Licensed Establishments, Licensed Fraternal Establishments, Licensed Veterans Establishments and Licensed Truck Stop Establishments." City Administrator Morefield provided the Committee of the various definitions for what constitutes a VGT and each type of establishment where those terminals could be legally located in accordance with Illinois State Statutes. City Administrator Morefield informed the Committee that the Illinois Gaming Board ("IGB") is responsible for implementing and regulating video gaming and adopting administrative rules governing operation and regulation of the same. There is an extensive licensure approve process, background investigation and financial disclosure requirements of each person/entity having, or who will have, direct ownership interest in the video gaming operation. The IGB and its agents have unrestricted access to enter the premises or motor vehicle of any licensee or applicant where evidence of compliance or noncompliance exists with provided included in the Act. A maximum of five (5) VGT are permitted by statute. City Administrator Morefield outlined the location restrictions that apply to businesses/establishments seeking to be licensed by the IGB. City Administrator Morefield reiterated to the Committee that on June 18, 2012 the Finance and Personnel Committee discussed video gaming and unanimously directed Staff to prepare proposed amendments to the Zoning Ordinance and Municipal Code for consideration by full Council. On July 16, 2012, Council took up the issue of video gaming and adopted, by a votes of 5 ayes to 1 nay, with 1 abstention (Ordinance No. MG124053), amending Chapter 9 of the Municipal Code to allow video gaming. This included the implementation of a process for obtaining licensure and a $100 Annual License Fee, per video gaming terminal. Director Morefield informed the Committee that he has run some numbers and as of August 15, 2016, the City has twenty five (25) active video gaming licenses, which include 111 video gaming terminals. Of the 25 licenses, two are veteran organizations and the remaining are businesses. Of the 25 licenses, only three (3) can be identified as "video gaming cafes," which have been established since July 2012: • Lucky Poker (5 terminals); • Betty's Bistro (5 terminals); and 0 Stella's Place (5 terminals). Community Development Committee Meeting Report August 29, 2016 Page 4 Additionally, currently three (3) establishments that have been approved by the City for a liquor license and are awaiting licensure by the State of Illinois for gaming. These include: • The Sports Page Bar &Eatery; • Lacey's Place (Diamond Drive); and • Meat & Potato Eatery. Once a liquor license has been issued by the City an establishment can apply to the State of Illinois for a Gaming License. City Administrator Morefield informed the Committee that since amending the Ordinance in July 2012, the City has realized an estimated $663,121.65 in revenues (the City received 5%) from a combination of video gaming receipts and the Annual License Renewal Fee of $100 per machine. Alderman Santi expressed concerns regarding the specific size of establishments, and the service of food and liquor, relative to gaming. He suggested: 1. Higher fees for a Gaming License issued by the City; 2. Establishments based on square footage; 3. Limiting the number of machines; and 4. Connecting the Gaming License to the Liquor License. Alderman Santi opined that it would have been helpful if the City Attorney was in attendance to explain the legality of some suggestions. Chairman Alderman Condon stated that the attendance of the City Attorney was unnecessary because tonight's topic is for discussion purposes only. Director of Community Development Polerecky stated that Staff is struggling with why video gaming has become a concern and now Staff is expected to address issues expressed by some members of the Council. Alderman Peterson inquired about how Staff could be expected to regulate what is considered a "full" kitchen. He opined it is appropriate to look at the Gaming Licensing process through the Liquor Licensing process because the City has the ability to limit Liquor Licenses. Alderman Peterson suggested a moratorium on liquor licenses, unless there is a legitimate restaurant where 70% of the business is food service. Chairman Alderman Condon concurred with Alderman Peterson regarding the licensing being regulated through the Liquor License process, however, she opined that it is inappropriate to limit someone's activity and she believes Staff conducted due diligence when the Ordinance was originally established. Alderman Schaefer opined that it appeared that the Video Gaming License process in the City of McHenry appears to begin with a request for a Variance, and then a request for a Liquor License. Community Development Committee Meeting Report August 29, 2016 Page 5 He suggested the Liquor License be proposed initially. Alderman Schaefer stated that Council needs to make a determination, in order to give clear direction to Staff, about what specifically about video gaming establishments is at issue and what is opposed. Alderman Schaefer noted that specifically the issues he has concerns with are: 1. The number of new establishments. It has become apparent that some of the current business owners that do not have liquor licenses are concerned about the competition. 2. Some of the video gaming establishments have food on the menu and are selling food, but are not actually restaurant. 3. Would like to see a limit on the "cafe" style establishments offering video gaming. 4. Suggested changing/increasing the fee for the video gaming terminals. 5. With the current parameters concerned that video gaming terminals will begin to show up at large gas stations and truck stops. City Administrator Morefield stated that Staff is concerned that changing the fees would have an impact on current business owners or potential establishments that might have an interest in opening in the City of McHenry. Alderman Glab inquired about whether the City of McHenry had zoning for a truck stop establishment. Director Polerecky informed the Committee that truck stops are permitted in the C.5 Zoning District. Alderman Glab suggested looking into the criteria the State of Illinois is using. Alderman Glab recommended a Conditional Use. Director Polerecky opined that a Conditional Use in a Zoning District might prove too restrictive. Alderman Glab suggested limited Liquor Licenses to restaurants with a certain number of seating capacity. Director Polerecky noted that business owners are knowledgeable and aware that the City's Ordinances permit certain Variances and Staff is not in a position to deny an applicant that requests a Variance. City Administrator Morefield stated that some communities have established certain zones for video gaming and have lost business in the community. Alderman Curry expressed concerns regarding what the City of McHenry will look like if video gaming establishments continue being approved. Alderman Curry stated that he has no issues with video gaming per se, but with the video gaming "cafe" type establishment that appears to be growing in the City. Alderman Curry opined that he supports establishments that can survive without video gaming. Alderman Curry suggested establishing some rules in the Liquor License procedure, or related to the size of the establishment, that would create a defining structure. Director Polerecky stated that Staff has been provided tonight with many options to explore. He stated that it would be challenging for the City to limit the video gaming establishments according to a specific Zoning District. Community Development Committee Meeting Report August 29, 2016 Page 6 Chairman Alderman Condon acknowledged that everyone desires a balanced community, the discussion tonight has been beneficial and all the points expressed have been valid. She stated the following appears to be a common thread: • Control: o Truck stops are a new concept. Chairman Alderman Condon requested Staff conduct research on zoning and truck stops. • Regulating: o The Gaming License is currently linked to a Liquor License determined by Council. ■ Increasing the fees for each video gaming terminal. ■ Limiting video gaming establishments to a particular Zoning District. ■ Limiting a Gaming License to the establishment's percentage of income or seating capacity. ■ Limiting signage. City Administrator Morefield responded to Alderman Peterson's inquiry requesting clarification of what defines a "Liquor License." Alderman Curry suggested the following limitations on video gaming cafes: 1. Three (3) video gaming terminal limit; 2. The video gaming terminals cannot be seen from the window of the establishment; 3. No additional video gaming terminals can be requested following licensing; 4. An increase in the fees for video gaming terminals; and 5. All establishments must agree to the terms set out by Council. Chairman Alderman Condon stated that the Council currently has an avenue to deny a Gaming License through the Liquor License process. She stated that the issue remains that the Committee must give Staff direction regarding how to revise the regulations concerning the "video cafes," except through the current Liquor License process. Chairman Alderman Condon asked if there was consensus among the Committee to give Staff any specific direction regarding procedurally doing anything differently than that is being done now regarding video gaming. Alderman Santi responded that if anything specific came to mind he would notify Director of Community Development Polerecky. 6. Department Updates There were no Department Updates. Chairman Alderman Condon informed the Committee that the next meeting of the Community Development Committee is scheduled on Monday, October 10, 2016, at 7:00 pm in the Municipal Center Council Chambers. Community Development Committee Meeting Report August 29, 2016 Page 7 7. Adjournment There being no further business to discuss. Motion by Peterson, second by Santi to adjourn the meeting at 8:50 pm. Voting Aye: Condon, Peterson, Santi. Voting Nay: None Absent: None Motion carried. Reviewed and Approved: Condon, Chairman