HomeMy WebLinkAboutPacket - 10/22/2018 - Community Development CommitteeCommunity Development Committee
McHenry Municipal Center
333 S Green Street
McHenry, IL 60050
October 22, 2018
7:30 PM
AGENDA
1. Call to Order
2. Public Comment: Any person wishing to address the Committee will be asked to
identify themselves for the record and will be asked but are not required to provide
their address. Public comment may be restricted to three -minutes for each
individual speaker. Order and decorum shall be maintained at public meetings.
3. Motion to approve the August 29, 2018 Community Development Meeting
Minutes
4. Discussion on Political Signs
5. Department Updates
6. Motion to adjourn the meeting
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Community Development Committee
Meeting Minutes
August 29, 2018
Call to Order
Alderwoman Condon called the meeting to order at 7:00 p.m. Deputy Clerk Meadows called the roll. Roll
call: Members present: Alderman Santi, Alderman Devine and Alderwoman Condon. Others present:
Mayor Jett and Director of Community Development Polerecky.
Public Comment
Alderwoman Condon asked those in attendance if they had any questions or comments regarding any
topic that is not listed on the agenda. Those in the audience offered no comments.
A Motion to approve the June 11, 2018 Committee Development Meeting Report
A Motion was made by Alderman Santi and seconded by Alderman Devine to approve the June 11.2018
minutes as presented. Roll call: Vote: 3-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion
carried.
Impact fee reduction discussion
Director Polerecky reported that the guests in attendance had a vested interest in the topic under
discussion as they are the potential developer and builder of a certain partially completed subdivision in
town. Alderwoman Condon stated that this meeting is open and informal and they are welcome to speak
after the Committee's discussion has concluded.
Director Polerecky discussed the past decline in the economy and the impact the slowdown had on the
housing market, which left several uncompleted subdivisions in town. The City is fortunate that the
majority of the uncompleted subdivisions have the infrastructure improvements in place which makes the
lots buildable and desirable to developers. He continued on to report that developers are now expressing
an interest in developing the empty lots. However, their biggest concern is the City's impact fee structure.
Staff has taken on the task of reviewing the existing fee structures.
Director Polerecky commented on a recent City Council meeting in which D.R. Horton was presenting a
development proposal when a conservation arose with respect to reducing impact fees and the Council
Members questioned what was the methodology used in calculating impact fees. Director Polerecky
reported that the impact fees are based on the fair market home value of a home on a one acre lot.
However, the City does not have any one acre lots so the City's fair market home value is based on a
acre lot. In addition, the annexation agreements' impact fees vary due to separate negotiations. He
recommends Council along with Staff review the fair market value trends every two years.
Director Polerecky continued on to report that the School Districts' enrollment numbers are down by 10%.
In addition, McHenry County, Sugar Grove and Richmond have reduced their impact fees by 100%.
Alderwoman Condon asked what the surrounding communities' positions were such as Woodstock,
Crystal Lake, Johnsburg and Cary.
Director Polerecky reported that Woodstock had reduced their impact fees by 30%. However, he was
uncertain about the other communities. Alderman Santi asked if Staff was aware of what Huntley's
position was regarding impact fees. Mr. Hoffman (D.R. Horton representative) reported that he believes
Huntley is considering reducing their impact fees by 30-35%. Alderwoman Condon suggested Staff draft a
list of all the surrounding communities' impact fees and any reductions of those fees prior to bringing this
matter before the full City Council. Alderwoman Condon noted that although what the other
communities' positions are will have no impact on the outcome it would be beneficial to know their
positions prior to voting on this matter.
Director Polerecky stated that his concern if the City is not proactive regarding the impact fee reduction
the City may lose out on residential growth which in his opinion drives the local economy.
Director Polerecky discussed in detail his proposal regarding the reduction in impact fees. He is
recommending a 50% reduction in impact fees for a two year period with an option to pay the impact fees
upfront. The upfront payment would allow for the developer to extend the completion date of the build -
out if necessary. In addition, if the developer chooses not to pay the impact fees upfront after two years
the impact fees for that particular development would be subject to review. He noted that this reduction
only applies to active annexation agreements consisting of platted lots.
Alderwoman Condon inquired at what point in the process are the impact fees paid. Director Polerecky
reported that the impact fees are paid at the time of permit.
Alderman Devine asked if this impact fee incentive program would also apply to stand alone lots. Director
Polerecky reported yes, the proposed impact fee reduction would also applied to the standard impact
fees.
Director Polerecky reported that currently the City has 350 undeveloped platted residential lots which
would be sufficiently supported by the current infrastructure systems. In fact, the current water and
wastewater infrastructure systems has more than enough capacity to support these additional residential
homes and the benefits to the City includes additional system users along with an increase in the tax rolls.
Alderman Santi asked if the permit fees would also be reduced. Director Polerecky reported that the
permit fees will remain the same.
Alderwoman Condon commented on the fact that she would like to see the residential developments
completed. Director Polerecky noted that the undeveloped lots drive existing property values down. In
addition, the current housing market trends shows new housing is attracting the empty nesters which
would have very little impact on the school districts.
Mayor Jett stated that he supported the impact fee reduction incentive program. In his opinion, the
incentive program would spark residential development which in turn would have a positive impact on
commercial growth.
Alderman Santi discussed at length his uncertainty if a 50% reduction was the correct percentage to offer
developers.
Alderwoman Condo opened the discussion to the members in the audience.
Avanti Group representative Dean Edmeier addressed the Committee. Mr. Edmeier reported that he
supports the impact fee reduction limited to a two year period along with the optional prepayment
incentive.
Mr. Roger Gerstad (Gerstad Builders) reported that he is an owner of a small local home construction
company and in today's housing market the actual home construction cost and the home's appraised
value leaves a small profit margin. He supports the impact fee reduction and commended the Council
Members for taking a leadership role regarding this matter.
Mr. Hoffman (D.R. Horton representative) also commented on the proposed impact fee reduction. He
stated that he appreciates the thoughtful conversation regarding this matter. If the City Council approves
the annexation agreement amendments D.R. Horton would complete the Oak at Irish Prairie Subdivision.
Which in return would increase the property values and enhance the neighborhoods within that
subdivision.
Director Polerecky provided the Committee Members with an overview of the annexation agreement
amendment process. He reported on September 101h the Council would conduct a public hearing on all
the existing annexation agreements. After the public hearing is concluded the Council Members will
consider the annexation agreement amendments by separate ordinances.
Alderman Santi once again expressed his concerns with the proposed impact fee reduction percentage.
He reported that he would abstain from a formal Committee vote. He recommended bringing this matter
to the full City Council for discussion.
Alderwoman Condon noted that she also would prefer a 30% reduction. However, when you compare the
positions of the surrounding communities and the current economic trends the 50% appears to be a
reasonable percentage and will spark local economic growth.
A Motion was made by Alderman Devine and seconded by Alderman Santi to recommend to the full
City Council approval of a 50% impact fee reduction for all platted lots within the City limits for a period
of two years with an option to prepay the impact fees. Roll call: Vote: 2-ayes: Alderwoman Condon and
Alderman Devine, 1-abstained: Alderman Santi. 0-nays. Motion carried.
Department Updates
Director Polerecky provided the Committee Members with an update of the Community Development
Department's activities. He reported that the Centegra Hospital complex expansion is proceeding as
planned. Jexal's exterior walls have been constructed and they still intend on opening within 60 days. He
continued on to report that Moe's On Main has completed the facade improvements and will be adding
a new addition to the back of the building. Cuant Builders continue to construct single family homes. The
Community Development Department continues to make big strides with property maintenance
compliance by knocking on doors and educating the community.
Director Polerecky commented on other developments. He reported that J.A. Frate is in the process of
constructing a 40,000' expansion and a new Butcher/Deli will be opening by the theater. In addition, the
Hidden Pearl's remodeling project is moving slowly and Planet Fitness will be opening in a portion of what
was once Best Buy. Director Polerecky concluded his updates by reporting that Ricky Rockets is still in
negations with Thornton's.
Alderwoman Condon ask if there was any progress regarding the implementation of a Community
Involvement Program. Director Polerecky reported that he has been working with the City's Attorney on
how to proceed with this matter.
Alderman Devine asked how the newly established restaurant Unrooted was doing. Director Polerecky
reported that they are having a hard time staffing the restaurant.
Alderman Santi asked if the Community Development Department could investigate the front porch
furniture located on some of the properties along Front Street. Director Polerecky will investigate this
matter.
Motion to adjourn
A Motion was made by Alderman Devine and seconded by Alderman Santi to adjourn from the public
meeting at 8:25 p.m. Roll call: Vote: 3-ayes by unanimous voice vote. 0-nays, 0-abstained. Motion carried.
Respectfully submitted,
Debra Meadows
Approved this day of , 2018
Alderwoman Condon
Department of Community &
Economic Development
Ross Polerecky, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2182
Fax: (815) 363-2173
rpolerecky@ci.mchenry.il.us
City of McHenry
Committee Agenda Item
Submittal Form
Meeting Date: October 22, 2018
Agenda Item Name:
Submittal Date: October 17, 2018
Draft: Yes
Final:
Approved:
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Department of Community &
Economic Development
Ross Polerecky, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2182
Fax: (815) 363-2173
rpolerecky@ci.mchenry.il.us
Community Development Committee
Agenda Supplement
DATE: October 22, 2018
TO: Community Development Committee
FROM: Ross Polerecky, Director of Community Development
RE: Discussion on political sign ordinance
Attachments: Current Sign Ordinance,
Political signs have always been a topic of discussion and enforcement in the City of McHenry,
especially during political seasons. The topics of discussion revolve around how many signs a
parcel can have, how large of a sign can be placed on a parcel and how long can a sign be posted
on a property. Community Development Staff has always played a key role in enforcement of
political signs and for many reasons, CED staff travels most of the City in a single day, CED staff
enforces ordinances on all othertypes of signs and CED staff handles all violations minus vehicular
and criminal. Currently the City of McHenry sign ordinance defines an election/ campaign sign
as a non -permanent sign posted on private property to show support of a political candidate or
item. With this definition the ordinance also exempts a political sign from a permit, however it
does limit the signs to one per street frontage per lot and it must not be illuminated. An email
below from the city attorney's office explains how are current ordinance is out of date with
legislation passed within the last 10 years.
McHenry's ordinance, limiting political signs to one, not only violates a state statute —in residential
districts, but also, in commercial districts, may violate the Supreme Court's ruling in Reed v. Town of
Gilbert.
Residential: Pursuant to 651LCS 5/11-13-1(12), "other than reasonable restrictions as to size, no home
rule or non -home rule municipality may prohibit the display of outdoor political campaign signs on
Department of Community &
Economic Development
Ross Polerecky, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2182
Fax: (815) 363-2173
rpolerecky@ci.mchenry.il.us
residential property during any period of time. "As such, any ordinance limiting the number of political
signs on a residential property violates this law.
Commercial: Although regulating the number of signs in the commercial districts of the City may not
violate state law, above, such a regulation may constitute a "content -based law — one that targets
speech based on its communicative content — which are presumably unconstitutional and may be
justified only if the government proves that they are narrowly tailored to serve compelling state
interests." Reed v. Town of Gilbert, 135 S. Ct. 2218, 2226 (2015). Additionally, "government regulation of
speech is content based if a law applies to particular speech because of the topic discussed or the idea or
message expressed. This commonsense meaning of the phrase 'content based' requires a court to
consider whether a regulation of speech 'on its face' draws distinctions based on the message a speaker
conveys." Id. at 2227.
Here, the City's regulation of "Election Campaign Signs" may be challenged as unconstitutionally
regulating the content of the signs (i.e. you are only able to know that it is an election sign because you
looked at the content of the sign). It would take a court ruling on the City's specific situation to know for
certain. However, the trend in the law is to expand free speech/political speech not to restrict it.
Current enforcement policies on political signs:
• Signs on private property, residential or commercial, are left alone
• Signs located in the city right of way or on any other city owned property are collected by CED
staff
• Signs are placed at public works and candidates are notified they can be picked up there.
• City hall is a polling place, during early voting and on election day, signs may be placed on City
Hall property no closer than 100 feet from the entrance to the polling area (court entrance)
• A form letter is sent to all candidates in the area explaining that no signs may be posted in the
right of way within the City of McHenry's jurisdiction.
These policies, although sometimes hard to explain to candidates generally work and follow all state
laws. It is recommended that the restrictions on the number of signs per lot and the restriction of
illumination be removed from the ordinance in order to fall back to within the state statues per the city
attorney.
Department of Community &
Economic Development
Ross Polerecky, Director
McHenry Municipal Center
333 Green Street
McHenry, Illinois 60050
Phone: (815) 363-2182
Fax: (815) 363-2173
rpolerecky@ci.mchenry.il.us
Sign Ordinance
B. Exempt Signs.
The types of signs listed below and any change thereto that does not convert them into non-
exempt signs, shall
be exempt from:
• the requirement for a Sign Permit; and
• the Sign Standards provided in Table 1.
All other provisions shall apply to the following signs except as otherwise provided herein:
1) City -Sponsored Event Signs.
Not to exceed 3 square feet in area. Such signs may be located in the public right-
of-way.
2) Election Campaign Signs.
One per street frontage per lot that:
a. is not illuminated
3) Garage Sale Signs.
Not exceeding 2 square feet in area displayed for no more than 4 consecutive
days and no
more than 4 days in any 90-day period.
Permit Updates
• Jexals
• Hidden Pearl
• Starbucks
• Hospital
• Speedway North/South
• BP Crystal Lake Road and Bull
Valley
• Hub Market
• JA Frate
• D.R. Horton
• Legend Lakes
• CED Move to downstairs
• Planner Position