HomeMy WebLinkAboutMinutes - 10/05/1992 - City CouncilSPECIAL MEETING
OCTOBER 5, 1992
A Special Meeting of the McHenry City Council was called to order by
Mayor Busse on Monday, October 5, 1992 at 7:30 P.M. in the Council
Chambers of the Municipal Center. At roll call the following Aldermen
were present: Bolger, Smith, Adams, Patterson, Serritella. Lieder
arrived at 8:25 P.M. Donahue arrived at 8:40 P.M. Absent: Locke. City
Staff in attendance were City Clerk Gilpin, City Administrator Peterson,
City Attorney Narusis, Director of Parks and Recreation Merkel, Director
of Building and Zoning Lobaito. Absent: Chief of Police Joyce, Director
of Public Works Batt.
The purpose of this special meeting was to consider a proposal from
the Centex Corporation for annexation of a parcel of land known as the
Fritsch Farm, located on the southeast corner of Bull Valley and Crystal
Lake Roads. The petitioner desires to bring the property into the City
as a Planned Unit Development. This meeting was not to negotiate the
terms and conditions of an annexation agreement, but to consider the
proposed concept plan and provide direction to the developer on which way
to proceed from here.
Mayor Busse said some key questions were:
- Did the Council want a public golf course at this location for
the benefit of the City residents and others.
- Did the City want to engage in the development of this parcel,
and if so, what kind of revenue generating stream of funds
should be used to make this a facility that would be an asset to
the Parks and Recreation program.
The petitioner wanted feedback from this meeting to use in his final
proposal. The meeting tonight was not to discuss every minute detail,
but to provide general input and direction to the petitioner.
Speaking on behalf of the petitioner was Jerry Harker, President of
the Illinois Division of Centex. Also in attendance were the following
members of his team: Attorney Fred Finestein of McDermott, Will & Emery;
Traffic Engineer David Miller of Metro Transportation; Engineer Paul
Ulatowski and Land Planner Virginia Taylor.
Harker announced that he would be presenting an in-depth overview, as
opposed to a specific recitation of each and every item. When a Public
Hearing was held, they would be specific and appear with market data,
complete appraisal data, brokerage information, tax impact studies, full
traffic studies, full engineering services and full planning.
Their main presentation tonight would be on the golf course and
residential properties. Harker said the property is presently zoned
Agriculture in the County. They are proposing to annex 522 acres as a
Planned Unit Development. Seventy-eight acres is east of the tracks, and
is proposed as Business Park zoning. The remaining 444 acres would be a
Planned Unit Development with approximately 230 acres to be donated for
an 18-hole golf course, a golf driving range, approximately 5 acres for
retail, a club house facility, and residential units of multi and single
family.
At this point, the residential area contains 516 single family
residential lots and 328 multi -family residential units for sale, for a
total of 844 units. A typical lot in the single family area is proposed
to be 70 feet wide by 120 feet deep, totalling 8400 square feet. The
overall density comes to 1.97 units per acre.
Harker said the 8400 square foot lots do not meet the current minimum
lot size. If the golf course were not a part of the proposal, the
property would yield 810 single family lots that would conform to the
City's Zoning Ordinance. If the multi -family were included, there would
be some trade-off, he said, but density would be higher. He noted that
they could not afford to give up 230 acres for the golf course, 190 of
which are buildable, without compensating for the donations in the
typical lot size.
October 5, 19992 Page 2
At the present time, the property is being farmed. Harker said they
would want to continue farming the property until the subdivision was
under construction. The topography of the ground is gently rolling, and
has a dish characteristic. If the average elevation through the property
was taken, it would be somewhat beneath the elevation of the adjacent
Crystal Lake and Bull Valley Roads. There are approximately 37 acres of
wetlands on the property. The soil types are typical for northern
Illinois; they average about one foot of topsoil over the surface of the
property, and that overlays sandy, silty clays. Harker noted that from
extensive soil reports they have taken, it should not present any unusual
problems for residential construction, basement or otherwise.
The northern reaches of the subdivision do contain a high water table
situation. Harker felt those water tables would serve to regenerate the
ponds, and present an ideal case for the irrigation of a golf course once
it is completed. However, there was a concern as to basement
construction, and the pesky problem of running sump pumps. He said they
would work with the City Staff and Engineers on that problem.
As to a system of storm water management, Harker said they would be
utilizing the golf course for the retention/detention of storm water.
Harker said that his team had worked together on two other successful
golf course projects and this would be their third. In designing the
proposed golf course, their priorities were to provide a safety factor on
the course for those playing the course, a safety factor of the adjacent
residential units, and the least possible way to affect the wetlands.
They provided an access path from the residential area to the proposed
bike path that is to go on the west side of the right-of-way of the
railroad tracks. They designated a parcel of land for a possible water
reservoir.
Other changes since the initial plan were: inclusion of a tot lot
recreation area in the multi -family section; moving the commercial area
from the corner of Bull Valley and Crystal Lake Roads further south;
installing a golf driving range at the corner of Bull Valley and Crystal
Lake Roads; and showed a location for a clubhouse. Parking at the
clubhouse showed room for over 200 automobiles. The driving range had
from 30 to 35 stations, with a maximum range of 400 yards. The
commercial area was less than 5 acres, and a 25,000 square foot
clubhouse facility which had ample room for an enlargement as a building
for any park purpose.
At a previous meeting, Harker proposed that they would develop the
table top for the golf course, and the City would have to install the
tees, greens, sandtraps, and bring it to a finished course state. Since
then, Centex has prepared an alternate plan whereby they would build the
entire course. Harker said the alternative plan could be accomplished,
but Centex would expect to be repaid for the differences between the two
proposals. They felt this could be achieved by the forgiveness of
annexation fees and a cash payment plan over a period of 5 years. He
noted that the driving range would be turned over to the City in a
completed 100% done state. That is not figured into the forgiveness of
fees and cash payment that he mentioned previously.
In developing the golf course, by the end of the first year the
course would be graded, shaped and seeded on the northern portion. In
addition, they would have approximatley 75 to 100 of the residential lots
fully completed, meaning sewer and water to each site, a paved street in
front and ready for them to start construction.
During the first half of construction year two, they would have the
south portion of the golf course graded, shaped and seeded. By the end
of year two, Harker said it would be their goal to have the golf course
100% completed. That would include trees and other landscaping. This
also depends on weather conditions. By completed, Harker said it must be
understood that it is a drop -seed contract, which means that the growing
period has not been completed for playing.
Regarding the residential area, Harker said that by today's market
conditions, they plan a 7-10 year build -out. Size ranges of the houses
would be between 1500 and 2300 square feet, with the opening prices
probably from the upper $120,000's to $160,000's. Calculations on the
multi -family areas and prices have not as yet been developed.
October 5, 1992 Page 3
Harker said the road and street plans, as well as an improvement to
Crystal Lake Road, was still being developed. Of great concern to him
was the extension of Mason Hill Road as a continuing thoroughfare, or an
arterial through the subdivision. Soils, wetlands, and ability to
negotiate or obtain an on -grade crossing across the Northwestern railroad
tracks would be problems that might prohibit the continuation of that
road. The concept plan, as presented, did not continue the road through
the project.
Harker indicated that if there was going to be a west McHenry bypass
through the Centex property, there would be no golf course, which would
result in no subdivision, and no Centex development. This road would
take the viability of the project away completely, he said.
Regarding the schools, Harker said they had several meetings with the
School Districts, and are continuing to talk to them.
Harker emphasized that their laundry list of variations for obtaining
annexation were very short.
(1) The lot size;
(2) If the alternate proposal for the golf course was chosen, they
would be looking for a waiver of annexation fees;
(3) Ask consideration to eliminate public sidewalks on one side of
the street in non-residential areas;
(4) Placement of sanitary sewer lines in areas other than under the
paved surface of streets;
In conclusion, Harker said he felt annexation of the parcel would
provide an amenity to the City for a golf course; would secure forever
230 acres of permanent open space; would provide a source of other
recreational pursuits, such as ice skating, cross country skiing; would
provide land for a community -wide recreation facility serving golfers and
non -golfers; would provide a new revenue source to the City through the
driving range and golf course; would bring in 78 acres of Business Use
property that provides a broader tax base, and requires a minimum of
municipal services; would bring a broader housing stock to the community;
would provide jobs in the construction of the residential units, and in
the operation of the golf course; would bring increased income to the
City in many forms of taxation; and finally would bring a quality
developer into the City of McHenry.
Harker stressed that Centex could develop this quality project
because they have done it before, and done it well. They have assets,
the financial ability, the expertise, and a desire to build this course
and residential community in the City of McHenry.
People presenting negative views for this development would probably
view the growth of McHenry as a base item, Harker said. However, he
pointed out that growth is inevitable as history shows, and it is better
to have control over that growth, and simultaneously bring an amenity to
McHenry for all its citizens. It would also bring students, which is a
fact of life if you are going to have growth. This is a problem
confronting all school districts in the Country. They have shown a
willingness to work with the school systems and with the educators to do
their part in helping solve the problem. It would also bring more
traffic and they realized there is already congestion in the area. In
the design of this subdivision, Harker said they would do all they could
to help resolve that problem.
QUESTIONS FROM THE COUNCIL
Mayor Busse asked that the difference between the original proposal
for development of the golf course, and the alternate proposal mentioned
tonight be more fully explained.
City Administrator Peterson said that originally, Centex agreed to do
the mass grading and some of the seeding, and the City would have to take
over and complete the course. It would be a cost to the City of about
$2-3 million to bring that course to a playable condition. At that
point, discussion was held on the likely method of financing those
improvements, without passing those costs on to the general taxpayers and
the residents of the City. That could be done through the sale of
revenue bonds that would be payable from the revenues derived from the
golf course and the driving range.
October 5, 1992 Page 4
In the alternate proposal where Centex would complete the golf
course, there would be no revenue bonds issued for the construction of
the golf course. The City could fund approximately $2.5 million for
completion of the golf course by using funds that are on hand or are
expected to be paid by the developer. Approximately $600,000 in
annexation fees would be contributed towards the costs. There is also
approximately $500,000 in the Park Development Fund that could be used
for this project. That would leave about $1.4 million, which would have
to be paid to Centex to complete the golf course. These funds could come
from future park development fees.
Harker indicated in a letter, that after the course was turned over
to the City, they would be willing to have that money repaid through the
annexation agreement on some type of payment terms over 5 years. .
Peterson said there are significant savings when you don't have to issue
bonds, do not have to pay amoratized interest, and do not have to issue
debt before the course becomes playable.
Payments to Centex could be made through excess funds derived from
the driving range, and from golf course play itself. Other sources for
revenue could possibly be made by taking Park Development fees, or some
percentage thereof, from other developments that are proceeding in the
City, and take a percentage of that to pay the debt on an annual basis.
The same could be true of annexations. There would be no new fees
applied. These would be existing fees. They would just be earmarked for
this community resource.
In reviewing the past and future revenue numbers, Peterson felt the
City could support and comfortably repay $300,000 a year for that type of
debt retirement. Busse noted that details of the alternate plan would
have to be worked out, but the idea was that the debt could be
conceivably worked down using other revenue streams.
It was noted that Centex was not asking for a waiver of the
annexation fees, but those fees would be earmarked or dedicated to the
specific use of constructing the golf course. The City would be
collecting the fees, but they would be dedicated toward the construction
of the golf course, paying down the construction costs. The annexation
fees are strictly fees that the City would collect, not funds dedicated
to schools, parks, libraries, or the fire district.
Concerns expressed by the Aldermen were: 1) variation of lot sizes;
2) ditches along fairways; 3) planting of trees on the course; 4) golf
cross streets; 5) time frame of construction and phasing of the golf
course; 6) necessity for a bypass road through the subdivision; 7)
capability of the City to handle water and sewer service for this
subdivision; 8) background data for the number of students the developer
said would be generated from this project; 9) the need for additional
turn lanes on Crystal Lake Road; and 10) the location and type of water
tower.
Harker addressed the following: Tree planting - an overall
landscaping plan would be presented for approval of both golf course and
residential areas; Cross streets - they would work with the City's
engineers and Park Department to keep them at an absolute minimum;
Timeframe to construct the course - 2 1/2 to 3 years and maybe longer
depending on when it is started and on weather conditions; Ditches - they
are proposing gentle slopes of no more than a 2 to 5 percent grade from
the center line of the fairway to the edge of the course; Phasing - in
the first construction year, they would be devoting men and equipment to
the northern part of the course. During the second construction year,
they would complete the course. Harker said they would work with the
City on the remaining concerns.
Alderman Adams left the meeting at 9:52 P.M.
City Administrator Peterson presented a financial impact analysis of
the proposed subdivision. He distributed these to everyone in attendance
and discussed the numbers: the library and fire protection fees would be
$169,000 each; school impact fees would be $2,056,000.00; total number of
residents would be about 2,409; water and sewer connection fees would be
$127,000.00 each; Water Capital Development fees would be $750,000.00 and
Sewer Capital Development fees would be about $1.2 million.
October 5, 1992 Page 5
Annual real estate taxes that would be generated upon completion of
this development at the City's current rate would be approximately
$280,000 a year. District 15 would receive $950,000 a year at a $2.28
rate, and District 156 would receive $858,000 at a $2.06 rate. Other
revenues would be from Motor Fuel Tax, Income Tax, and Sales Tax. In
considering the expenditures and the revenues, Peterson said it appeared
that this development would pay for itself.
Prior to adjournment, Mayor Busse noted that for the Planned Unit
Development procedure, it goes to the PUD Committee which includes some
staff, some Aldermen, the City Engineer, and the City Attorney. Other
people can also be added to that review committee. The PUD Committee
makes a recommendation to the Zoning Board of Appeals, and that's where
the Public Hearings are held. It then comes back to the City Council for
final action. Busse noted that the PUD process offers some flexibilities
and some higher standards of design that might be very applicable to this
development.
RECESS
Motion by Smith, seconded by Patterson, to recess the meeting to
Thursday, November 12, 1992 at 7:30 P.M. for further discussion.
Voting Aye: Bolger, Donahue, Lieder,
Smith, Patterson, Serritella.
Voting Nay: None.
Absent: Locke, Adams.
Motion carried.
The Meeting recessed at 10:10 P.M.
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CITY CLERK/ MAYdR