HomeMy WebLinkAboutMinutes - 08/16/1989 - City Council (2)PUBLIC HEARING
WEDNESDAY, AUGUST 16, 1989
A Public Hearing was called to order by Mayor Busse on
Wednesday, August 16, 1989 at 7:30 P.M. at City Hall for the purpose of
considering a Community Development Assistance Program (CDAP) General
Economic Development Grant for RAE Corporation. At roll call the
following Aldermen were present: Bolger, Lieder, Smith, McClatchey.
Donahue and Teta arrived at 7:45 P.M. Serritella and Patterson arrived at
7:55 P.M. Absent: None. City staff in attendance were Clerk Gilpin,
Finance and Personnel Administrator Vitas, Director of Development
Greenwood. Approximately 24 people were in attendance at the hearing
which included Sandra Pierce and David Geiser, officials of RAE
Corporation. Jim Cummings, Grant Coordinator, explained the procedures
for the Public Hearing and pointed out areas that needed to be discussed
at this meeting. The purpose of the meeting was to obtain citizens
opinions, suggestions and priorities and to hold public discussion of the
proposed project. He provided four fact sheets to the Council and the
audience that explained the Community Development Assistance Program and
where the funds came from.
This grant request was for an economic development grant for
installation of infrastructure. Each grant award must benefit low and
moderate income persons. The maximum grant available i- $400,000. There
must be a substantial number of jobs created or retained in order to
qualify for this type of grant. The money is loaned to the City and the
City then loans the money to the grant applicant. The recapture strategy
must be submitted with the grant application in which the City shows how
the funds recaptured will be used by the City to further enhance economic
development. The City recently updated their recapture strategy document
to meet this requirement. The City also adopted a residential
anti -displacement and relocation assistance document on May 31, 1989
which would apply to this grant also. It was noted that the public has
access to records on this grant accept records kept on personnel and
finance by the individual private company. Those records are accessible
to the state which will monitor the program and to the City of McHenry
which administers the loan program. Construction and payroll records are
also not open to the public. All other books regarding this project
which are maintained by the City are open to the public.
Specific description of this grant request was for $379,000 to
extend water and sewer lines in the McHenry Corporate Center Business
Park on South 31. The grant is being requested by RAE Corporation which
is currently located on Dot Street in McHenry. They want to move from
their existing facility and feel the McHenry Corporate Center would be an
ideal location for their operations, largely because of the CDAP Grant
availability. If the water and sewer grant is provided, then the McHenry
Corporate Center developers can pass along the savings to RAE
Corporation. With this grant the savings would be passed on and the
property for RAE Corporation could be purchased at approximately
one-third the cost of such land. If RAE Corporation did move in that
location, they would remain in the City and keep the 100 jobs that are
now with that company plus hiring more persons for the new location. The
project is for installation of approximatley 2,400 feet of water lines
and 3,600 feet of sewer lines. The grant would pay fnr the water and
ses r lines and the corporate center would pay fcr the in the
business park to service RAE Coporation's proposed new building.
During the comment period Alderman Bolger said that he supported
this project very enthusiastically. The City is looking for more
industry and we want to keep what we have as well as encourage new
industry to settle in McHenry. This is one of the many steps we hope to
take in the future to broaden the tax base and take some of the burden
off the residential taxpayers.
Alderman Lieder asked what the timeframe was for the grant
application and awarding of the funds. Cummings said the documents would
be shipped in immediately and usually there is a 30 to 45 day wait before
approval. He felt, though, that this project would likely take less
time to get approval.
Wednesday, August 16, 1989 Paqe 2
Mayor Busse commented that the McHenry Corporate Center Project
has been on a fast track with the City of McHenry recognizing the
significance it has on broadening our tax base. It also offers the
County the first of its kind in this type of business park development.
The City supports its construction and feels that these types of grants
should be used for such projects that will enhance the quality of life in
our community as well as offer a type of development that the City really
has not had available in the last ten years.
Cummings pointed out that RAE Corporation had done a survey and
the paperwork was completed to ensure that the company would meet the
criteria for low to moderate income households. He also noted that the
Environmental Protection Agency will have to do a review of the project
as well as the Illinois Department of Agriculture and the Illinois
Preservation Agency. It has already been determined that there are no
archiological resources in the 60 acres being served by this grant.
Nancy Bykowski of McHenry an employee of RAE Corporation
commented that the majority of the workers at RAE Corporation are single
parents or single workers and the majority have been there over ten
years. "If we should lose RAE Corporation, it will be like losing home",
she said.
Mayor Busse closed the hearing by saying RAE Corporation is a
part of the community and has been for years. The City would feel a loss
if RAE Corporation had to make other plans to leave the community - not
just in terms of jobs lost to our residents but also losing a viable
employer with a viable production base in McHenry. The City is very
loyal to our businesses and we work very hard to retain old businesses
and attract new businesses, he said.
There were no further comments on the project.
Motion by Bolger, seconded by McClatchey, to adjourn.
Voting Aye: Bolger, Donahue, Lieder, Teta, Smith,
McClatchey, Patterson, Serritella.
Voting Nay: None.
Absent: None.
Motion carried.
Meeting adjourned at 7:55 p.m.
_ W
CITY CLERK M YOR