HomeMy WebLinkAboutMinutes - 09/23/1985 - City CouncilSPECIAL MEETING
SEPTEMBER 23, 1985 7:30 P.M.
The Special Meeting of the McHenry City Council was called to
order by Mayor Busse on Monday, September 23, 1985 at 7:30 P.M. in city
hall. At roll call the following Aldermen were present: Bolger, Lieder, Council
McClatchey, Smith, Snell, Serritella, Teta. Absent: Nolan. City staff Mtgs.-
in attendance were Supt. Halvensleben, Attorney Narusis, Clerk Gilpin. Attendance
Absent: Park Director Merkel, Chief Joyce.
Mayor Busse announced that the Special Meeting was called for
the purpose of considering the request by John & Tamara Tyshenko of 135
Main Street, Lake Geneva, Wisconsin for the execution of an annexation
agreement in regard to annexation of property that is contiguous and
adjacent to the corporate limits of the City of McHenry located on the
west side of Route 31 approximately 1/2 mile south of the intersection of
Bull Valley Road and Route 31 in Nunda Township containing approximately
41.0956 acres (commonly known as J.B. & Clara Subdivision) and to award
the bid for the Mc Cullom Lake Road Watermain Extension Project.
In attendance at the meeting were Attorney Dan Curran, repre-
senting the McHenry Area Economic Development Commission; John, Tamara,
John Jr. and Nadine Tyshenko; Attorney Sam Diamond, representing the
Tyshenkos; Attorney Jeff Ladd, representing NIMED; Attorney Tom Rupp and
his client Ted Pitzen, co -trustee of the property in question; Kit
Carstens and Dave Gelwicks of the McHenry Economic Development Com-
mission; John Smith, engineer for the project subdivision; Fran Olsen,
executive director of the Chamber of Commerce and Ron Bossi, potential
developer of a health club facility on Parcel B in said annexation.
The first matter of business was awarding of the bid for the
Mc Cullom Lake Road Watermain Extension Project„ Six bids were opened at
the September 23, 1985 bid opening. They were as follows: Paul May &
Sons of Spring Grove $31,207.50, Ingram Construction Co. of Russell
$35,482.00, William Ziegler & Son of Round Lake $35,568.00, Wadsworth
Excavating of Wadsworth $38,475.00, C.H. Ward Contractors of Wauconda
$38,475.00, Gluth Construction of Woodstock $38,835.00. Engineers
estimate for this project was $30,000.00. It was the recommendation of
City Engineers Baxter & Woodman to award the bid to Paul May & Sons Inc.
of Spring Grove and to waive the technicality for the requirement of a
bidders statement of competency to be filed with the bids.
Motion by Lieder, seconded by Snell, to accept the recom-
mendation of Baxter & Woodman and award the contract for the Mc Cullom
Lake Watermain Extension Project to Paul May & Sons Inc. of Spring Grove
at the low bid price of $31,207.50 and to waive the requirement for the
bidders statement of competency.
Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
The Public Hearing on the J.B. & Clara Subdivision was then
taken under consideration. Attorney Curran presented a certificate
of publication from the McHenry Plaindealer indicating that the
proper public notice had been published in the McHenry Plaindealer on
September 6, 1985. Curran explained how the McHenry Economic Devel-
opment Commission had been established in 1981 as a not for profit
group for the purpose of promoting industry, commerce and residential
development in the McHenry Area. The EDC actively solocited through
its executive director, for the establishment of a hotel/motel in the
McHenry Area. He stated that the Chamber and City Government had
been seeking such an establishment for the past 25 years. The EDC
contacted John Tyshenko who presently runs a hotel in Lake Geneva.
Tyshenko along with the EDC surveyed the McHenry area to find a loca-
tion for construction of a hotel building. They contacted several
property owners and were successful in getting the Stilling family to
work with the EDC to make the land available for development.
The property in question is located on the west side of
Route 31 approximately 1/2 mile south of the intersection of Bull
Valley Road and Route 31. It contains approximately 41 acres and is
Special
Meetings
Annexation
Bid
Opening &
Awarding
Watermain
Extension
Monday, September 23, 1985 page 2
presently vacant and unimproved. The property is contiguous to the
south boundary of the NIMED property line. The property was divided
into three lots with parcel A containing approximately 11 acres which
was seeking classification as B-2 for construction of a motel/hotel;
Parcel B consisting of approximately 8 acres to be classified as B-2
and Parcel C consisting of approximately 21 acres to be classified as
R-4. The motel/hotel was to be constructed on Parcel A. A potential
health club facility was to be constructed on Parcel B and Parcel C
had no immediate plans presented.
John Tyshenko addressed the Council and told them that he
planned to build a hotel with 58 rooms, a banquet hall to serve 400,
a cocktail lounge to serve 80, a dining room to serve 60 and an
enclosed swimming pool/greenhouse. The building would be constructed
of solid masonry, prestressed concrete and white brick. A schematic
drawing of the motel layout was shown to the Council. There would be
no exit off of Route 31. Shamrock Lane would be constructed in an
east/west direction and the entrance and exit to the hotel would be
off of Shamrock Lane.
The Council and Attorney Narusis then reviewed the proposed
annexation agreement page by page. Corrections, additions, stipu-
lations and deletions were made on various paragraphs on the
annexation agreement. In paragraph 6 the petitioners agreed to limit
the permitted uses on Parcel B to a health club with ancillary type
services, motels, hotels, offices, restaurants and indoor theatres.
Attorney Jeff Ladd, representing Northern Illinois Medical Center,
stated that the permitted uses as stipulated were acceptable to
Pitzen and the hospital.
The Council also requested that language be put into the
annexation agreement stating that the artist's rendering as presented
at the Council meeting, would essentially be the same building that
would be constructed on the property. This was acceptable to all
parties. Tyshenko also agreed to establish the rear building line as
35 feet from the north property line and a set back of at least 100
feet on the east property line along Route 31.
Minimum language changes were also made to paragraphs 8 and
9. Attorney Diamond asked that it be put on the record that sewer
and water capacity was available for development of the motel/hotel
at the present time. The Council agreed to so state. Attorney
Narusis suggested the deletion of paragraph 11 since the same
language is basically in paragraphs 14 and 20 of the annexation
agreement. Paragraph 12 which set forth payment of sewer and water
tap -on and capital development fees was discussed at length.
Mayor Busse called for a recess at 8:40 P.M. The meeting
reconvened at 8:48 P.M. with everyone still in attendance. After one
hour of discussion, it was the consensus of opinion to charge the
following hookup and tap on fees: Capital development fee for water
$6,000, water hook-up fee $1,600, sewer capital development fee
$11,000, sewer hook-up fee $5,800, banquet fee and lounge sewer fee
$300, for a total of $24,700.
Motion by Bolger, seconded by McClatchey, to insert the
Water Service amount of $24,700 in paragraph 12 of the annexation agreement for
Sewer Misc. payment of sewer and water tap -on and capital development fees.
Voting Aye: Bolger, Lieder, McClatchey,
'Smith, Snell, Serritella.
Voting Nay: Teta.
Absent: Nolan.
Motion carried.
Motion by Smith, seconded by Serritella, that the payment
Water Service schedule for the $24,700 be as follows: one-third of the amount on
Sewer Misc. the second anniversary date of the annexation agreement, one-third on
the third anniversary date of the agreement and the final one-third
payment on the fourth anniversary date of the agreement with the
additional stipulation that no interest will be charged.
Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
Monday, September 23, 1985 page 3
Motion by Bolger, seconded by Teta, to concur with paragraph Annexations
13 of the annexation agreement and forgive the payment of any and all
annexation fees that may be due.
Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
Concerning paragraph 14, it was noted that the entire
right-of-way easement for Shamrock Lane would be dedicated to the
City but that Shamrock Lane would only be improved westerly from
Route 31 for a distance of 500 feet as depicted on the final plat.
When the balance of the property is developed, -it would be up to the
owner/developer to extend and make the final improvements on Shamrock
Lane through the entire 41 acre parcel. The water line would be
extended westerly from Route 31 for a distance of 500 feet. The
sewer line would be extended along the entire roadway easement. It
was also suggested that some sort of barrier be located at the end of
the 500 foot roadway and that a turn around of some sort be located
at the end of the 500 foot roadway to facilitate snow plowing.
Because the developer does not have the easement from the
hospital for the sewer pipe, language would be added that says after
the final plat is approved by the City Council, it will not be
recorded until the sewer main easement from the hospital is
obtained. But to enable Tyshenko to proceed immediately, the agree-
ment would also provide that he can obtain his building permit and
start construction even though there is some delay in getting the
easement from the hospital and therefore some delay in getting the
final plat recorded. But no occupancy would be allowed until such
time as both the easement and the final plat are recorded. This is
being done to eliminate any delays so that Tyshenko could begin
construction this season.
Mayor Busse said he had received correspondence from Harold
Kivgey of Baxter & Woodman concerning the oversizing of lines in that
area. A sewer study done several years ago suggested that an 18"
sewer line be installed along the west side of the hospital and the
Pi,tzen properties and that a 24" sewer line should run along Bull
Valley Road which would eventually extend west of the tracks. The
estimated cost of oversizing those lines would be $60,000. It was up
to the City to decide if the oversizing of those lines should take
place at this time. Attorney Narusis reported that the authority is
not there for the City to recapture. If at some future time other
portions of land were to desire annexation to the City, the City
could then recapture some of those costs from a potential annexation
as part of the negotiating process. Therefore, any parcel that is to
the south or west of the City could be required to pay for some of
the oversizing of these lines in the same manner as the recapture
fee, only it would not be considered a recapture fee but negotiated
through annexation agreements. It was noted that there would be no
recapture or assessment against the parcels in question at this
hearing.
Motion by Lieder, seconded by Smith, to authorize the expen-
diture of $60,000 to oversize the water and sewer lines as per Baxter Water/Sewer
& Woodman's recommendation with the money to be paid from the Capital Lines
Development Fund.
Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
Mayor Busse called for a recess at 10:25 P.M. The meeting
reconvened at 10:36 P.M. with everyone still in attendance.
Motion by Lieder, seconded by Bolger, to insert language
into the annexation agreement which states that there will be no
motel tax imposed on the property in question for five years. Annexations
Voting Aye: 5olggr, 4iedgr McClatchey,
erritel a, e$a.
Voting Nay: Smith, Snell.
Absent: Nolan.
Motion carried.
Monday, September 23, 1985 page 4
Ordinances Motion by Bolger, seconded by Snell, to pass an ordinance
approving the annexation agreement as amended subject to the language
Annexations changes discussed at this meeting and to authorize the Mayor and
Clerk to sign on behalf of the City.
Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
Attorney Narusis announced that the amended agreement with
all its revisions will be presented to the City Council at the
October 2, 1985 Meeting for review by the Council prior to the Mayor
and Clerk signing the agreement. If there are no questions on the
amended version, Narusis suggested that as a matter of course, the
City Council should repass the amended clean copy of the annexation
agreement.
Ordinances Motion by Smith, seconded by McClatchey, to pass an ordi-
nance annexing the territory in question and zoning the property with
Annexations the limitations on parcel A & B as proposed at this meeting.
Zoning Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
Motion by Smith, seconded by McClatchey, to adjourn.
Voting Aye: Bolger, Lieder, McClatchey, Smith, Snell
Serritella, Teta.
Voting Nay: None.
Absent: Nolan.
Motion carried.
Meeting adjourned at 11:01 P.M.
CITY CLERK' MAYOR