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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