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HomeMy WebLinkAboutMinutes - 10/17/2016 - City CouncilREGULAR MEETING October 17, 2016 Mayor Low called the regularly scheduled October 17, 2016 meeting of the McHenry City Council to order at 7:00 p.m. In attendance were the following Aldermen: Santi, Glab, Schaefer, Curry and Condon. Absent: Aldermen Wimmer and Peterson. Also in attendance: City Administrator Morefield, Deputy City Administrator Hobson, Director of Economic Development Martin, Director of Community Development Polerecky, Director of Public Works Schmitt, Police Commander Walsh, City Attorney McArdle, City Engineer Pieper, and City Clerk Jones. CITY OF MCHENRY MISSION STATEMENT Mayor Low read aloud the Mission Statement of the City of McHenry. PUBLIC INPUT SESSION Mr. Bob Funk of 1622 Riverside Drive addressed Council regarding his opposition to Agenda Item No. 8, granting a Use Variance to allow a restaurant with outdoor seating, including outdoor service of food and alcohol and outdoor entertainment for the property located at 1402 N. Riverside Drive. Mr. Funk owns the property immediately adjacent to the property in question and requested Council consider the impact the Use Variance would have on parking in the area. CONSENT AGENDA A. Change Order No. 2 and final pay application to Keno & Son Construction for the Fieldstone Lift Station Rehabilitation Project, for an amount not to exceed $2,248; B. Authorization to accept and execute a time and material proposal from Maneval Construction Inc. for paving in conjunction with the Knox Park ITEP Bike Path Project, in the amount of $18,371; C. August 1, 2016 City Council meeting minutes; D. Approval of Payment of Bills, in the amount of $451,139.28; and E. Approval of Issuance of As Needed Checks, in the amount of $23,689.53. Motion by Schaefer, second by Curry, approving Consent Agenda, as presented. Voting Aye: Santi, Glab, Curry, Schaefer, Condon. Voting Nay: None. Absent: Wimmer, Peterson. Motion carried. MOTION TO APPROVE A CONNECTION TO THE CITY'S SANITARY SEWER SYSTEM AT RESIDENTIAL RATES FOR THE PROPERTY LOCATED AT 2301 W. COUNTRY LANE AND WAIVER OF THE ANNEXATION REQUIREMENT TO THE CITY OF MCHENRY Director of Community Development Polerecky informed Council the applicant is requesting Council consider permitting the property located at 2301 W. Country Lane to connect to the City's sanitary sewer system without annexation to the City of McHenry and payment of connection and user fees at the resident rates. David and Bonnie Harmon, owners of the property located at 2301 W. Country Lane, are currently on a private septic system that is Regular Meeting Page 2 October 17, 2016 failing. Staff informed the Harmon's it has been the City's policy that any connect to City water or sewer requires annexation to the City. The property is contiguous to City boundaries to the south. The sewer line is directly south of the property however Staff believes it is not advantageous to the City to annex the Harmon's property due to the location of the sewer line and that adjacent properties to the east, west and north are not within the City's corporate limits. Additionally, when a property is annexed to the City the annexation is extended to the far side of the road. If the property were annexed, the City would be required to maintain that section of Country Lane directly contiguous to 2301 W. Country Lane in addition to providing services such as police protection, code enforcement, road maintenance, snow plowing, etc. Staff has ascertained that from a time and expense standpoint it is in the City's best interest to not annex the subject property at this time. Staff is recommending the property owner be charged resident rates to connect, as well as residential sewer usage fees. Director Polerecky noted that a similar request was granted to 2305 W. Country Lane in July of this year. Responding to an inquiry from Alderman Santi regarding limiting these types of request, Director Polerecky noted this type of opportunity is only available to 12 properties on Country Lane. Alderman Glab expressed concerns with the issue of non-annexation of property while paying resident rates. Alderman Condon opined that Staffs' recommendation is reasonable. If the property is annexed to the City, the City becomes responsible for City services to the property. This situation merits Staffs' recommendation to not annex property for the reasons indicated. Motion by Santi, second by Condon, granting the request to allow the property located at 2301 W. Country Lane to connect to the City of McHenry's sewer system and pay the resident rates for both the connection and sanitary sewer usage. Voting Aye: Voting Nay: Absent: Motion carried. Santi, Curry, Schaefer, Condon. Glab. Wimmer, Peterson. MOTION TO APPROVE AN ORDINANCE GRANTING A USE VARIANCE TO ALLOW A RESTAURANT WITH OUTDOOR SEATING, INCLUDING OUTDOOR SERVICE OF FOOD AND ALCOHOL AND OUTDOOR ENTERTAINMENT, FOR THE PROPERTY LOCATED AT 1402 N. RIVERSIDE DRIVE Director of Economic Development Martin informed Council the applicant, John Macrito, owner of Corkscrew Pointe, submitted an application for a Use Variance to allow a restaurant serving alcohol with outdoor seating, as well as service and consumption of food and alcohol outdoors and limited outdoor entertainment and any other variances requested, for the property located at 1402 N. Riverside Drive, McHenry, Illinois. Regular Meeting Page 3 October 17, 2016 Director Martin provided Council with a brief history of the establishment, Corkscrew Pointe, together with the recent history of Conditional Use Permits approved for similar venues in the same corridor. The applicant appeared before the Planning and Zoning Commission on February 17, 2016, presenting the same request as presented tonight. The major concerns discussed at the Planning and Zoning Commission included lack of parking, enforcement of parking, outdoor music/entertainment, potential for amplification of music, fighting/disorderly conduct and enforcement, and lack of security. The Planning and Zoning Commission approved the request by a vote of 3-2. As a result, that a 2/3 majority vote is required by Council to approve the request. Director Martin stated that following the Planning and Zoning Commission meeting the applicant met to discuss the concerns, as they related to police calls and loud music, fighting and disorderly conduct. Applicant acknowledged and understood the concerns. At that time, Staff recommended applicant withdraw his request, address the concerns and reapply in the fall. Since that time, the applicant has hired security and since his withdrawal of his initial request there has been significant improvement. Staff has spoken with the Police Department and there has been only one substantiated call in the past 6.5 months. The applicant stated he would adhere to the same outdoor entertainment restrictions as Buddyz on Green Street where entertainment is permitted from 7:00 pm to 10:00 pm. Director Martin informed Council that on September 21, 2016, the Planning and Zoning Commission again considered applicant's request and unanimously recommended approval of the application for a Use Variance to allow a restaurant with outdoor seating, including outdoor service of food and alcohol and outdoor entertainment with any other variances required to effectuate the aforementioned request with the following conditions: • Outdoor entertainment, including live musical entertainment, shall only be permitted from 7:00 pm to 10:00 pm; • Outdoor seating shall not extend beyond the hours dictated by the applicant's liquor license; • Separate permits are required for exterior signage; • Any and all electric shall be weather proof and ground fault circuit interrupt protected and comply with the 2008 Edition of the National Electric Code; • Abide by the Illinois Accessibility Code at all times; • Sound levels being generated shall comply with the requirements found in Section XII of the City of McHenry Zoning Ordinance and Chapter 14.8 of the Municipal Code; • Access to the outdoor seating area shall be perpetually restricted to the free flow of pedestrian traffic and generally be directed through the building with the exception of emergency access. The outdoor patio shall be completely fenced-off to the general public around the perimeter; • A decorative-style fence shall be utilized to enclose the proposed outdoor patio, which is transparent, with less than 50% opacity, and may include decorative PVC, vinyl, or Regular Meeting Page 4 October 17, 2016 wrought iron; but not to include chain link, solid wood, or other fencing that is with more than 50% opacity. • Outdoor dumpster shall be screened in accordance with the Zoning Ordinance; • After construction is completed, a topographic survey shall be completed to ensure property is in compliance with Floodplain Ordinance restrictions and consistent with the initial topographic survey; and • Site shall be developed in substantial conformance with the site plan and elevation renderings prepared by Aspect Design Inc., dated 12/16/15, and a latest version date of 1/20/16, consisting of three sheets. Staff believes applicants request will provide a significant enhancement and improvement to the downtown, adding to the City's revitalization efforts. While parking is an ongoing concern, there is no parking requirement in the C-4 district. Staff is recommending approval of a Use Variance to allow a restaurant with outdoor seating; including outdoor service of food and alcohol and outdoor entertainment and any other variances required to effectuate the aforementioned request with conditions as presented and Staff finds all requirement in Table 32(A) of the Zoning Ordinance have been satisfied. Alderman Schaefer expressed concern for businesses on the south side of Pearl Street. He suggested that the option for a tow be provided should parking at the subject businesses become an issue for those adjacent businesses. He also noted concerns with the placement of the garbage receptacles. Director Martin stated the receptacles require screening, the permit is yet to come, and the proprietor is at liberty to make the determination regarding location of the garbage location as long as they are in compliance. Responding to Alderman Curry's inquiry regarding why the seating area is required to be fenced off without access to the Fox River, Director Martin stated that it is a control measure when alcohol is served. Alderman Condon expressed concern with parking in the vicinity, but said she supports expansion of potential business for the Riverwalk. Responding to an inquiry from Alderman Santi, Director Martin stated entertainment is prohibited after 10:00 pm. Alderman Glab stated the request meets the criteria for a Use Variance so, while he has significant concerns regarding parking issues, he would support the motion. Motion by Schaefer, second by Santi, approving the Ordinance granting a Use Variance to allow a restaurant with outdoor seating, including outdoor service of food and alcohol and outdoor entertainment, for the property located at 1402 N. Riverside Drive, with the following conditions, as presented Regular Meeting Page 5 October 17, 2016 • Outdoor entertainment, including live musical entertainment, shall only be permitted from 7:00 pm to 10:00 pm; • Outdoor seating shall not extend beyond the hours dictated by the applicant's liquor license; • Separate permits are required for exterior signage; • Any and all electric shall be weather proof and ground fault circuit interrupt protected and comply with the 2008 Edition of the National Electric Code; • Abide by the Illinois Accessibility Code at all times; • Sound levels being generated shall comply with the requirements found in Section XII of the City of McHenry Zoning Ordinance and Chapter 14.8 of the Municipal Code; • Access to the outdoor seating area shall be perpetually restricted to the free flow of pedestrian traffic and generally be directed through the building with the exception of emergency access. The outdoor patio shall be completely fenced-off to the general public around the perimeter; • A decorative-style fence shall be utilized to enclose the proposed outdoor patio, which is transparent, with less than 50% opacity, and may include decorative PVC, vinyl, or wrought iron; but not to include chain link, solid wood, or other fencing that is with more than 50% opacity. • Outdoor dumpster shall be screened in accordance with the Zoning Ordinance; • After construction is completed, a topographic survey shall be completed to ensure property is in compliance with Floodplain Ordinance restrictions and consistent with the initial topographic survey; and • Site shall be developed in substantial conformance with the site plan and elevation renderings prepared by Aspect Design Inc., dated 12/16/15, and a latest version date of 1/20/16, consisting of three sheets. Voting Aye: Santi, Glab, Schaefer, Curry, Condon. Voting Nay: None. Absent: Wimmer, Peterson. Motion carried. MOTION TO APPROVE AN ORDINANCE GRANTING THE FOLLOWING FOR THE PROPERTY LOCATED AT THE NORTHWEST CORNER OF ROUTE 120 AND CHAPEL HILL ROAD (EXCLUDING THE RIVERSIDE CHOCOLATE PROPERTY), AS REQUESTED BY THE CONTRACT PURCHASER, BLUESTONE SINGLE TENANT PROPERTIES: • A CONDITIONAL USE PERMIT TO ALLOW AN AUTOMOBILE FUELING STATION AND DRIVE-IN ESTABLISHMENT ASSOCIATED WITH AN AUTOMOBILE WASH; • A CONDITIONAL USE PERMIT TO ALLOW A DRIVE-IN ESTABLISHMENT AS PART OF A FREESTANDING MULTI-TENANT RETAIL BUILDING; • A VARIANCE FROM THE OFF-STREET PARKING AND LOADING REQUIREMENTS; • A VARIANCE TO ALLOW MULTIPLE PRINCIPAL BUILDINGS AND LAND USES ON ONE ZONING LOT (CONVENIENCE STORE AND AUTOMOBILE WASHING FACILITY; Regular Meeting Page 6 October 17, 2016 • A VARIANCE FORM THE MINIMUM SPACING REQUIREMENT BETWEEN SERVICE STATIONS; • A VARIANCE FROM THE MINIMUM PARKING SCREENING STRIP REQUIREMENT AND ANY OTHER VARIANCES REQUIRED TO DEVELOP THE SUBJECT PROPERTY IN SUBSTANTIAL ACCORDANCE WITH THE SITE AND LANDSCAPE PLANS AND BUILDING ELEVATIONS SUBMITTED FOR THIS PETITION; AND • APPROVAL OF A PRELIMINARY PLAT OF SUBDIVISION. Director of Economic Development Martin informed Council the applicant is requesting a Conditional Use Permit to: 1. Allow an automobile fueling station and drive-in establishment associated with an automobile wash; 2. A Conditional Use Permit to allow a drive-in establishment as part of a freestanding multi-tenant retain building; 3. Variance from the off-street parking and loading requirements; 4. A Variance to allow multiple principal building and land uses on one zoning lot (convenience store and automobile wash facility); 5. A Variance from the minimum spacing requirement between services stations; and 6. A Variance from the minimum parking screening strip requirement and any other variances required to develop the subject property, in substantial accordance with the site and landscape plans and building elevations submitted for this Petition; and, 7. Preliminary Plat of Subdivision Approval. Director Martin explained that various land uses have been proposed on the subject property over the past 15 or 20 years, however, one of the major impediments for each of the proposed past developments has been the lack of access to the municipal water. The applicant, as part of the proposed project, plans to extend the City's watermain from its terminus, approximately 160 feet north of Illinois Route 120 on Adams Drive, along the south side of Illinois Route 120, approximately 2,042 feet east and north of the City's sewer main on the south side of Route 120, to service the proposed development. Director Martin provided Council with details regarding applicant's proposed construction plans for the site. Director Martin informed Council the Planning and Zoning Commission recommended approval, by a vote of 6-1, of a Conditional Use Permit to allow an automobile fueling station and drive-in establishment associated with an automobile wash and Conditional Use Permit to allow a drive-in establishment as part of a freestanding multi-tenant retain building, subject to the conditions outlined in the Agenda Supplement and included on the Ordinance being considered at the October 17, 2016 Council meeting. Director Martin introduced Mr. Rick Heidner, President of Heidner Properties, Inc., stating Mr. Heidner is available to address any questions regarding the project. Robert Hunter, owner of Riverside Chocolate Factory asked and to address the Council. Mr. Hunter thanked the City of McHenry and Council for the support he has received over the years. Mr. Hunter informed Council that he has been in business at Riverside Chocolate Factory Regular Meeting Page 7 October 17, 2016 for 30 years and he fully supports the Ricky Rockets development moving forward and believes the property would be a wonderful asset to the City of McHenry and surrounding businesses. Mr. Rick Heidner addressed Council, answering multiple questions regarding the project. Mr. Heidner stated that he looks forward to establishing a presence in the City of McHenry and becoming part of the community. Responding to concern expressed by Alderman Schaefer regarding U-turns that might take place from the property, Director Martin stated that the applicant is working with McHenry County personnel and IDOT personnel to address the issue. Responding to an inquiry from Alderman Glab, Director Martin stated the property is zoned C-5. Mayor Low stated the project has been professionally thought out and the applicant has been cooperative throughout the process. Motion by Santi, second by Schaefer, approving the Ordinance granting the following for the property located at the northwest corner of Route 120 and Chapel Hill Road (excluding the Riverside Chocolate Factory property), as requested by the Contract Purchaser, Bluestone Single Tenant Properties: 1. A Conditional Use Permit to allow an automobile fueling station and drive-in establishment associated with an automobile wash; 2. A Conditional Use Permit to allow a drive-in establishment as part of a freestanding multi-tenant retain building; 3. A Variance from the off-street parking and loading requirements; 4. A Variance to allow multiple principal building and land uses on one zoning lot (convenience store and automobile wash facility); 5. A Variance from the minimum spacing requirement between services stations; and 6. A Variance from the minimum parking screening strip requirement and any other variances required to develop the subject property, in substantial accordance with the site and landscape plans and building elevations submitted for this Petition; and, 7. Preliminary Plat of Subdivision Approval. Voting Aye: Santi, Glab, Schaefer, Curry, Condon. Voting Nay: None. Absent: Wimmer, Peterson. Motion carried. Regular Meeting Page 8 October 17, 2016 MOTION TO APPROVE AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A DEVELOPMENT AND ECONOMIC INCENTIVE AGREEMENT BETWEEN THE CITY OF MCHENRY AND BLUESTONE SINGLE TENANT PROPERTIES LLC City Attorney McArdle informed Council that they are being asked to consider a Development and Economic Incentive Agreement with Bluestone Single Tenant Properties LLC, to partially offset extraordinary development expenses for the development of a projected $15,000,000 fueling center and retail development, including the extension of the City's watermain approximately one half mile, for the property located at the northwest corner of Chapel Hill Road and Illinois Route 120. The developer is requesting $1.5 million in sales tax incentives/rebates over a 20-year term. The development includes an approximately 8,400 square foot convenience store and fueling center, state-of-the-art car wash and an additional 10,600 square foot of in-line space for retail and restaurant tenants with associated drive-in establishment. City Attorney McArdle explained the evaluation criteria. He stated that Staff believes the proposed Agreement is justified due to the extraordinary circumstances surrounding the proposed development. Rebates are considered very closely and on a case-by-case basis, which has been the policy of the City Council. Staff believes the proposed rebate is not excessive and the positive impacts the redevelopment will have, financially and aesthetically to City residents and businesses exceeds the requested financial incentive. City Attorney McArdle summarized the Agreement to Council. Responding to an inquiry from Alderman Curry, Director of Economic Development Martin explained the incentives. Alderman Condon expressed support for the Agreement, stating that this is the intent of the incentives. Responding to Alderman Santi's inquiry regarding the number of video gaming terminals that Mr. Heidner anticipates installing on the premises, Mr. Heidner responded that five (5) terminals are permitted and that is the number he plans on installing. Alderman Santi inquired about how quickly the project would be constructed. Mr. Heidner stated that he anticipates approximately in nine months. Responding to Alderman Glab's inquiry regarding a Recapture Fee, Director Martin stated there is no recapture. Motion by Schaefer, second by Santi, approving the Ordinance authorizing the Mayor's execution of a Development and Economic Incentive Agreement between the City of McHenry and Bluestone Single Tenant Properties, subject to review by the City Attorney. Regular Meeting Page 9 October 17, 2016 Voting Aye: Santi, Glab, Curry, Schaefer, Condon. Voting Nay: None. Absent: Wimmer, Peterson. Motion carried. DISCUSSION REGARDING CHAPTER 9 {DEVICES, COIN OPERATED), SECTION 9-10 VIDEO GAMING TERMINALS OF THE MCHENRY MUNICIPAL CODE Addressing the concerns expressed by some members of Council regarding the city's video gaming ordinance, Mayor Low stated the City Attorney suggested handling the matter as an agenda item for discussion. Mayor Low also indicated that Staff requires specific direction regarding how to proceed. Alderman Schaefer expressed appreciation and thanked Mayor Low for putting this item on the Agenda. He suggested the following with regarding the specific direction: 1. A fee structure for establishments with video gaming (both for existing and future establishments; 2. A definition in the Ordinance regarding what is considered a cafe type establishment versus a bar/tavern/restaurant type establishment; 3. A square footage limitation; and 4. Food service restrictions. Alderman Curry suggested that a determination be made regarding where the revenue of the establishment is originating, i.e., from video gaming as opposed to a tavern/restaurant business. He concurred with Alderman Schaefer regarding a fee structure for establishments and also said the signage and video gaming machines not have visibility from the street outside of the building. Alderman Condon, (Chairman of the Community Development Committee), stated several alderman were present at the Community Development Committee meeting when this matter was discussed however they provided no direction. Alderman Condon added she is open to reviewing the fee structure and she prefers the video gaming machines not be visible from the street. Alderman Condon suggested specific guidelines regarding whether the establishment is a video gaming establishment or a component of a larger establishment. She also expressed concern that limited zoning might prohibit a viable business from consideration of the City of McHenry as a business opportunity. Alderman Condon said she is open to exploring different avenues regarding video gaming however the Council currently has the ability to limit or prohibit video gaming establishments through the liquor license process. Alderman Glab stated he has concerns with the number of video gaming establishments opening in the city and the appearance they give of the City of McHenry. He further stated he agrees a discussion at the Council level is necessary to observe how the entire Council feels about the issues. The City needs a mix of businesses not only video gaming destinations. He Regular Meeting Page 10 October 17, 2016 stated he is not against gambling or video gaming and requested staff research restrictions in surrounding municipalities. Alderman Santi opined that he wished the City Attorney had been in attendance at the Community Development Committee meeting. Alderman Santi suggested the following with regards to video gaming establishments: • Square footage be taken into consideration with regarding to the establishment; • Establishment should have a real menu and food service; • Permit fees for the establishment should be higher and raised annually; and • Moratorium on establishing additional video gaming establishments. Mayor Low opined the State of Illinois has established that video gaming is legal. If space, zoning is limited or a moratorium is put in place, legally it could be an issue. As Alderman Condon stated, the Council currently controls the matter through the Liquor License approval. Mayor Low inquired why Council would chose to limit business opportunities. Mayor Low informed Council that there have been no police calls associated with video gaming and the establishments with video gaming have reinvested in the community with upgrades and renovations. Mayor Low informed Council that while she does not play video games, she does have some friends that enjoy the pastime and have indicated they prefer gaming in the cafe atmosphere to being in a bar or tavern. Mayor Low cautioned Council regarding their decisions on video gaming establishments and she complimented Staff on the remarkable job they have done during this economy in working with persons and businesses interested in establishing themselves in the City of McHenry. Mayor Low noted fees should be reviewed during the budget process. City Attorney McArdle informed Council that permitting gaming in certain zoning areas and not in others exposes the City to liability from an applicant seeking to establish a business. Attorney McArdle reiterated that the Council is able to say no to an establishment through the Liquor Licensing process. Establishing a fee structure is possible however attempting to enact regulations regarding signage would be risky due to vested rights and a moratorium would be pointless. Alderman Curry said he would like to see a limit on video gaming establishments short of Council having to refuse a Liquor License. City Attorney McArdle stated that any restrictions the City choses to enact could be tied to the Liquor License. Alderman Schaefer opined that it makes sense to ties the square footage of an establishment to the Liquor License. Alderman Schaefer suggested that perhaps there should be another class of liquor license for the video gaming cafe establishments. Regular Meeting Page 11 October 17, 2016 Responding to Alderman Condon's inquiry whether it is legal to ask a business how they intend to generate their revenue, City Attorney McArdle stated if Council asks the applicant then the question will be answered. City Attorney McArdle stated that if a liquor license is limited by the square footage of an establishment and the establishment is too small, a Variance could be requested. Mr. Rick Heidner, of Ricky Rockets, addressed Council. Mr. Heidner stated that it is imperative to his business that he obtain three (3) liquor licenses and he would not have considered coming to the City of McHenry without the option of video gaming as it is one of the components of the project. Mr. Heidner informed Council of the expense involved when a business purchases and maintains video gaming machines versus the profit from the machines. He informed Council he is a firm believer in reinvesting in communities where he establishes his businesses. City Administrator Morefield informed Council that Staff will gather information, research regulations in surrounding municipalities that permit video gaming, and gather comparisons on the issues identified by Council and return with the analysis. MAYOR'S STATEMENT AND REPORT Mayor Low informed Council that Halloween is on Monday, October 31 st and Trick or Treat hours in the City are from 4:00 pm to 7:00 pm. COMMITTEE REPORTS Alderman Condon, Chairman of the Community Development Committee, informed Council that a meeting of the Community Development Committee was held on Monday, October 10, 2016, and minutes would be forthcoming. City Administrator Morefield informed Council that prior to tonight's Council meeting a meeting of the Finance and Personnel was held. Minutes would be forthcoming. STAFF REPORTS There were no Staff Reports. FUTURE AGENDA ITEMS There were no future agenda items. ADJOURNMENT Motion by Curry, second by Condon, to adjourn the meeting at 8:54 pm. Voting Aye: Voting Nay: Absent: Santi, Glab, Schaefer, Curry, Condon. None. Wimmer, Peterson. Regular Meeting Page 12 October 17, 2016 Motion carried. The meeting was adjourned at 8:54 pm. May6r