HomeMy WebLinkAboutOrdinances - ORD-02-1068 - 04/15/2002 - APPROVE DOWNTOWN REDEVELOPMENT PROJECT AND PLANO R D I N A N C E No. ORD-02-1068
AN ORDINANCE OF THE CITY OF MCHENRY,
MCHENRY COUNTY, ILLINOIS, APPROVING DOWNTOWN MCHENRY
REDEVELOPMENT PROJECT AND PLAN FOR THE
CITY OF MCHENRY TAX INCREMENT REDEVELOPMENT PROJECT AREA
WHEREAS, the Mayor and City Council (the "Corporate Authorities") of the City of
McHenry, McHenry County, Illinois (the "Municipality"), have heretofore determined that the
stable economic and physical development of the Municipality is endangered by the presence of
blighting factors as often manifested by progressive and advanced deterioration of structures, by
a lack of physical maintenance of such structures, by obsolete and inadequate community facilities,
by obsolete platting, and by deleterious land use and layout, with a resulting decline of the
Municipality which impairs the value of private investments and threatens the sound growth and
the tax base of the Municipality and the taxing districts having the power to tax real property in
the Municipality (the "Taxing Districts") and threatens the health, safety, morals and welfare of
the public; and,
WHEREAS, the Corporate Authorities have heretofore determined that in order to
promote and protect the health, safety, morals and welfare of the public, blighting conditions in
the Municipality need to be eradicated and redevelopment of the Municipality be undertaken in
order to remove and alleviate adverse conditions; encourage private investment; and, restore and
enhance the tax base of the Municipality and the Taxing Districts; and,
WHEREAS, the Municipality has heretofore caused to be conducted an eligibility study
to determine whether the proposed Downtown McHenry Tax Increment Financing Redevelopment
Project Area (the "Proposed Area") qualifies as a "redevelopment project area" pursuant to the
Illinois Tax Increment Allocation Redevelopment Act, as amended (the "TIFAct"), 65 ILCS 5111-
74.4-1 et seq., which study was conducted by Trkla, Pettigrew, Allen & Payne, Inc. of Chicago,
Illinois ("TPAP"); and reviewed by Kathleen Field Orr & Associates of Chicago, Illinois; and,
WHEREAS, the Municipality has heretofore evaluated various lawfully available programs
to provide such assistance and has determined that the use of tax increment allocation financing
is necessary to achieve the redevelopment goals of the Municipality for the Proposed Area; and,
WHEREAS, TPAP has heretofore concluded and has advised the Municipality that the
Proposed Area qualifies as a "redevelopment project area" under 65 ILCS 5/11-74.4-3 of the TIF
Act; and,
WHEREAS, the Municipality has further caused the preparation of and made available for
public inspection a proposed redevelopment project and plan for the Proposed Area (the "Plan"
and "Project"); and,
WHEREAS, the Project and Plan sets forth in writing the program to be undertaken to
accomplish the objectives of the Municipality and includes estimated redevelopment project costs
proposed for the Proposed Area, evidence indicating that the Proposed Area on the whole has not
been subject to growth and development through investment by private enterprise, an assessment
of the financial impact of the Proposed Area on or any increased demand for services from any
taxing district affected by the Plan and any program to address such financial impact or increased
demand, the sources of funds to pay costs, the nature and term of the obligations to be issued, if
any, the most recent equalized assessed valuation of the Proposed Area, an estimate as to the
equalized assessed valuation after redevelopment, the general land uses to apply in the Proposed
Area, and a commitment to fair employment practices and an affirmative action plan, and the
Project and Plan accordingly complies in all respects with the requirements of the TIFAct; and,
2
(d) The Project and Plan conform to the interim comprehensive plan for the
development of the Municipality as a whole.
(e) As set forth in the Plan and in the testimony at the public hearing, the
estimated date of completion of the Project is APR. 15, 2025 , and the
estimated date of the retirement of all obligation incurred to finance
redevelopment project costs as defined in the Plan is APR. 15. 2025
(f) The parcels of real property in the Proposed Area are contiguous, and only
those contiguous parcels of real property and improvements thereon which
will be substantially benefitted by the proposed Project improvements are
included in the Proposed Area.
Section 2. Exhibits Incorporated by Reference. The Project and Plan which were the
subject matter of the public hearing held on the 1" day of April, 2002, are hereby adopted and
approved. A copy of the Project and Plan is set forth in Exhibit C attached hereto and
incorporated herein as if set out in full by this reference.
Section 3. Invalidity of Any Section. If any section, paragraph or provision of this
Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or
unenforceability of such section, paragraph or provision shall not affect any of the remaining
provisions of this Ordinance.
Section 4. Effective Date. This Ordinance shall be in full force and effect inunediately
upon its passage by the Corporate Authorities and approval as provided by law.
1.1
WHEREAS, pursuant to 65 ILCS 5/11-74.4-5 of the TIF Act, the Corporate Authorities
by Ordinance adopted the 4'' day of February, 2002, called a public hearing (the "Hearing")
relative to the Project and Plan and the designation of the Proposed Area as a redevelopment
project area under the TIFAct and fixed the time and place for such Hearing, being the 1" day of
April, 2002, at the City Hall, 333 South Green Street, Cicero, Illinois; and,
WHEREAS, due notice in respect to such Hearing was given pursuant to 65 ILCS 5/11-
74.4-5 of the TIF Act, said notice, together with a copy of the Plan, and the name of a person to
contact for further information, being given to Taxing Districts and to the Department of
Commerce and Community Affairs of the State of Illinois by certified mail on FEB. 8,2002 , by
publication on MAR. 6, 2002
within the Proposed Area on
and MAR. 19, 2002
MARCH 6, 2002 ;and,
, and by certified mail to taxpayers
WHEREAS, the Municipality has heretofore convened a Joint Review Board as required
by and in all respects in compliance with the provisions of the TIF Act; and,
WHEREAS, the Joint Review Board has met at the times and as required by the TIFAct
and has reviewed the public record, planning documents and a form of proposed ordinance
approving the Project and Plan; and,
WHEREAS, the Joint Review Board has adopted by a majority vote an advisory, non-
binding recommendation that the Municipality proceed to implement the Project and Plan and to
designate the Proposed Area as a redevelopment project area under the TIFAct; and,
WHEREAS, the Joint Review Board based its decision to approve the proposal on the
basis of the Proposed Area satisfying the eligibility criteria defined in 65 ILCS 11-74.4-3 of the
TIFAct, all as provided in 65 ILCS 5/11-74.4-5(b) of the TIFAct; and,
M
WHEREAS, the Municipality held the Hearing on April 1, 2002, at the City of McHenry,
333 South Green Street, McHenry, Illinois; and,
WHEREAS, at the Hearing, any interested person or affected taxing district was permitted
to file with the City Clerk written objections and was heard orally in respect to any issues
embodied in the notice of said Hearing, and the Municipality heard and determined all protests and
objections at the Hearing; and,
WHEREAS, the Hearing was adjourned on the 151 day of April, 2002; and,
WHEREAS, the Project and Plan set forth the factors which cause the Proposed Area to
be blighted, and the Corporate Authorities have reviewed the information concerning such factors
presented at the Hearing and have reviewed other studies and are generally informed of the
conditions in the Proposed Area which could cause the area to be a "blighted area" as defined in
the TIF Act; and,
WHEREAS, the Corporate Authorities have reviewed evidence indicating that the
Proposed Area on the whole has not been subject to growth and development through investment
by private enterprise and have reviewed the conditions pertaining to lack of private investment in
the Proposed Area to determine whether private development would take place in the Proposed
Area as a whole without the adoption of the proposed Plan; and,
WHEREAS, the Corporate Authorities have reviewed the conditions pertaining to real
property in the Proposed Area to determine whether contiguous parcels of real property and
improvements thereon in the Proposed Area would be substantially benefitted by the proposed
Project improvements; and,
0
WHEREAS, the Corporate Authorities have made an assessment of any financial impact
of the Proposed Area on or any increased demand for services from any taxing district affected
by the Project and Plan and any program to address such financial impact or increased demand;
and,
WHEREAS, the Corporate Authorities have reviewed the proposed Project and Plan and
also the comprehensive plan for development of the Municipality as a whole to determine whether
the proposed Project and Plan conform to the such comprehensive plan of the Municipality.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the City
McHenry, McHenry County, Illinois, as follows:
Section 1. Findings. The Corporate Authorities hereby make the following findings:
(a) The Proposed Area is described in Exhibit A attached hereto and
incorporated herein as if set out in full by this reference. The map of the
Proposed Area is depicted on Exhibit B attached hereto and incorporated
herein as if set out in full by this reference.
(b) There exist conditions which cause the Proposed Area to be subject: to
designation as a redevelopment project area under the TIF Act and to be
classified as a "blighted area," as defined in 65 ILCS 5/11-74.4-3 of the
TIF Act.
(c) The Proposed Area on the whole has not been subject to growth and
development through investment by private enterprise and would not be
reasonably anticipated to be developed without the adoption of the Plan.
5
Legal Description
The boundaries of -the Project Area are legally described as follows:
That part of Sections 26, 35, and 36, TQwnship 45, Range 8 East of the Third Principal Meridian,
located in the City of McHenry and described as follows: Beginning at the Southeasterly comer
of Lot 4 in E.M. Owen's Estates Addition to West McHenry, according to the Plat thereof
recorded January 31, 1893, as Document #9232 in Book 1 of Plats, page 39, in McHenry County,
Illinois; thence Northeasterly along the Southeasterly line of said Lot 4 for a distance of 132 feet
to the. most Northeasterly comer of said Lot 4; thence continuing Northeasterly along the last
described.. course - for a distance of 132 feet; thence continuing Northeasterly along the last
described course (being along the Southeasterly.line of the lands described ii Document•#311537
in McHenry County, Illinois) for a distance of 50 feet, more or less, to the -Southeasterly corner of
lands described in Document #634138 (excepting lands described in Document #471975) in
McHenry County, Illinois; thence continuing Northeasterly along the Southeasterly line of said
lands .described in said Document #634138 (excepting lands described in 7#471975 in McHenry
County, Illinois), for a distance of 132.0 feet; thence continuing Northeasterly to a point of
deflection in the East boundary of said lands described in Document #634134 (excepting lands
described in Document #471975 in McHenry County, 1;U.pois); thence continuing Northwesterly
along a line that deflects 14' 29' 11" to the left- of the h1ortherly extension of the; last described
course for a distance of 24.13 feet; thence continuing Northwesterly along the last described
course (being along the Northeasterly line of lands described in Document #715924 in McHenry
County, Illinois) for a distance of 109.37, more or less, to a point on the Southeast right-of-way
line of State Route 120; thence Southwesterly along the' Southeasterly right-of-way of State
Route 120 for a distance bf 30.2 feet; thence continuing Southwesterly along a 7° 07' deflection
to the left of the last described course for. a distance of 120.8 feet; thence Northwesterly at*90° to
the last described course for a distance of 80 feet to the Southwesterly comer of Lot 14 it Matt
Baur's Addition to the City of McHenry, according to the Plat thereof recorded February 2, 1932,
as Document #100509 in McHenry County, Illinois; thence Northwesterly along the Southwest-
erly line of said Lot 14 for a distance of'225.19 feet, more or less, to the most Westerly corner of
Exhibit A
said Lot 14; thence continuing Northwesterly along the last described course for a distance of
24.81 feet, more or less, to an intersection with the Southeasterly right-of-way line of Mill
Stream Drive according to the plat of Freund's Mill Stream Park Addition Unit #1, recorded
April 19, 1949, as Document-#219945 in McHenry County, Illinois; thence continuing North-
westerly along the last described course for a distance of 50 feet, more or less, to an intersection
with the Northwesterly right-of-way line of said Mill Stream Drive; thence Northeasterly along
said Northwesterly right-of-way line of said Mill Stream Drive to a 90" deflection point in said
right-of-way; thence Southeasterly along the Southwesterly line of Block 3 in Freund's Mill
Stream Park Addition Unit #1 for a distance of 50 feet, more or less, to the Southwesterly -most
corner of Lot 20 in Block 3 in said Freund's Mill Stream. Park Addition Unit #1; thence
continuing Northeasterly along the Southeasterly line of said Lot 20 in Block 3 for a distance of
142.8 feet; thence continuing Northeastefiy along the last described course to an intersection with
the Southwesterly line of Lot 29, in Block 6 in said Freund's Mill Stream Park Addition Unit #1;
thence Southeasterly along the Southwesterly lines of Lots 29 and 30 in said Block 6 in said
Freund's Mill Stream Park Addition Unit #1 to a point of intersection with the Northwesterly
right-of-way line of State Route 120; thence Northeasterly along said Northwesterly right -of -way -
line of State Route 120, for a distance of 73 feet, more or less, to the most Southeasterly comer'of
-Lot 30 in Block 6 in Freund's Mill Stream Park Addition Unit #l; thence continuing Northea:;t-
erly along said Northwesterly right-of-way line of Route 120 (being also the South end of Freund
Avenue) for a distance of 30 feet; thenct continuing Northeasterly 9.12 feet to a jog point in said
Northwesterly right-of-way line; thence Southerly 4 feet along said Northwesterly right -of -wary
jog; thence Easterly along the Northwesterly right-of-way in said State Route 120 for a distance
of 34.3 feet to a jog point; thence Northeasterly along said Northwesterly right-of-way of said
State Route 120 for a distance of 53.95 feet; thence Northeasterly along said Northwesterly right-
of-way line of said State Route 120 for a distance of 126.42 feet, more or less, to a point of
curvature; thence Northeasterly along a curve to the left having a radius of 92.3 feet for an aic
distance of 115.7 feet, more or less, to a point of tangency; thence Northerly along the Westerly
right-of-way line of State Route 31 (being also the Easterly line of Owen's Outlots according to
the Plat thereof recorded October 27, 1876 in Book 59 of Deeds, page 265 in McHenry County,
Illinois, to air intersection with the Northwesterly extension of the Northeasterly right-of-way line
of Pearl Street; thence Southeasterly along said Northwesterly extension of said Northeasterly
right-of-way of Peail Street as ,said Pearl Street was recorded on McHenry Plat #11 according to
the Plat thereof recorded May 6, 1902 as Document #14087, in Book 106 of Deeds, page 111 to
an intersection with the Easterly right-of-way line of State Route 31; thence continuing South-
easterly along the last described course which is the Northerly right-of-way line of -said Pearl
Street to a point of intersection with the Northwesterly right-of-way line of Back Street on the
Original Plat of Village (now- City of) McHenry on the West Side of Fox River, according to the:
Plat thereof recorded in June of 1840, in Book `B", pages 160 through163 of Deeds, in McHenry
County, Illinois; thence continuing Southeasterly along said Northeasterly right-of-way line of'
Pearl Street for a distance of 990 feet, more or less, to the Northwesterly right-of-way line of
Park Street as said Street was recorded on the said Original Plat of the Village (now City of)
McHenry on the West Side of Fox River; thence Northeasterly along said Northwesterly right-of-
way line of Park Street for a distance of 476 feet, more or less, to an intersection with the
Northeasterly right-of-way line of Broad Street as recorded on said Original Plat of the Village
(now City of) McHenry on the West Side of Fox River; thence continuing Southeasterly on said
Northeasterly right-of-way of Broad Street to the Westerly shoreline of the Fox River; thence
continuing on the last described course Southeasterly across the Fox River to the Easterly
shoreline of said Fox River; thence Southerly along the Easterly shoreline of the Fox River 1450
feet, more or less, to an intersection with the South line of the Southeast Quarter of said Section
26; thence continuing Southerly along the said Easterly shoreline of the Fox River 910 feet, more
or less, to an intersection with the Easterly extension of the Northerly line of lands described in
Document #195566.and recorded in Book 289 of Deeds, page 475, in McHenry County, Illinois;
thence Westerly crossing the Fox River to the Northeast corner of said lands described in said
Document #195566 in McHenry County, Illinois; thence continuing Westerly along the said
Northerly line of lands described in said Document #195566 in McHenry County, Illinois, (said
Northerly linebei.ng' also the Northerly ownership line of the McHenry Country Club) for a
distance of 815.0 feet; thence Southerly along a line parallel with and'40 feet East of the Easterly
line of the Northwest Quarter of the Northeast Quarter of said Section 35 to the Southwest corner
of lands described in said Document #195566 in McHenry County, Illinois; thence Westerly
along the Westerly extension of said South line of lands described in Document 4195566 in
McHenry County, Illinois, for a distance of 40 feet, more or less, to the Southeasterly corner of
Lot 5 in County Clerk's Plat of the North Half of Section 35, Township 45, Range 8 East as
recorded in Book 2 of Plats, page 42, in McHenry County, Illinois; thence Westerly along said
Southerly line of Lot 5 in said County Clerk's Plat for a distance of 500 feet, more or less, to the
Southwesterly corner of said Lot 5; .thence Southerly along the Southerly extension of the
Westerly line of said Lot 5 for a distance of 30.75 feet, more or less, to a deflection• in the
Easterly -most line of lands described in Document #216124 in Book 334 of Deeds, page 196 in
McHenry County, Illinois; thence Southwesterly for a distance of 214.9 feet along a line.that
deflects 15' 06' to the right of the Southeasterly projection of the last described course, to an
intersection with the Northeasterly right-of-way of John -Street; thence Southwesterly 50 feet,
more or less, to the most Easterly comer of Lot 19'in Owen, Stenger and Allens 2nd Addition
according to the Plat thereof recorded April 11, 1922, as Document #54653 in Book 4 of Deeds,
page 53 in McHenry County, Illinois, (said point also being located on the Southwesterly right -of
way line of John Street); thence Northwesterly along the said Southwesterly right-of-way line of
John Street for a distance of 743 feet, more or less, to an intersection with the Easterly right-of-
way line of Green Street; thence continuing Northwesterly along the last described course 68.7
feet, more or less, to an intersection with the Westerly right-of-way line of Green Street; thence
Northerly 630 feet, more or less, along the Westerly right-of-way line of Green Street as said
right-of-way was established by the Original Plat of West McHenry, according to the Plat thereof
recorded June 14, 1859, in Book 24 of Deeds, pages 22 and 23, in McHenry County, Illinois, to
an intersection with the Southwesterly right-of-way line of Waukegan Road; thence Northwest-
erly along the Southwesterly right-of-way line of said Waukegan Road as established by said
Original Plat of West McHenry, for a distance of 817 feet, more or less, to the most Easterly
comer of Lot 1 in Block 2 in said Original Plat of West McHenry; thence Northeasterly 66 feet.,
more or less, to the point of beginning. All located within the City of McHenry, McHenry
County, Illinois.
c
1
Mum ■ lw=. Project Area Boundary
zos Block Number
Exhibit B
Project Area Boundary
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DOWNTOWN MCHENRY
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AND PLAN
City of McHenry, Illinois
January 25, 2002
Prepared by:
Trkla, Pettigrew, Allen & Payne, Inc.
DOWNTOWN MCHENRY
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AND PLAN
City of McHenry, Illinois
January 25, 2002
Prepared by:
Trkla, Pettigrew, Allen & Payne, Inc.
DOWNTOWN MCHENRY
TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AND PLAN
City of McHenry, Illinois
This Redevelopment Plan is subject to review
and comment and may be revised
after comment and hearing.
Prepared by:
Trkla, Pettigrew, Allen & Payne, Inc.
January 25, 2002
TABLE OF CONTENTS
I. INTRODUCTION............................................................................................................. 1
A. Tax increment Financing................................................................................................. 2
B. Downtown McHenry Tax Increment Financing Redevelopment Project Area .............. 3
C. Downtown McHenry Tax Increment Financing Redevelopment Project and Plan ....... 4
II. LEGAL DESCRIPTION.................................................................................................. 6
III. PROJECT AREA ELIGIBILITY CONDITIONS..................................................... 10
IV. REDEVELOPMENT GOALS AND POLICIES........................................................ 12
A. General Goals................................................................................................................. 12
B. Redevelopment Objectives............................................................................................ 13
V. REDEVELOPMENT PROJECT.................................................................................. 15
A. Overall Redevelopment Concept................................................................................... 15
B. Generalized Land Use Plan............................................................................................. 16
C. Development and Design Objectives............................................................................ 17
D. Redevelopment Improvements and Activities................................................................ 21
E. Redevelopment Project Costs......................................................................................... 24
F. Sources of Funds to Pay Redevelopment Project Costs .................................................. 29
G. Issuance of Obligations.................................................................................................. 29
H. Valuation of the Project Area........................................................................................ 30
VI. LACK OF GROWTH AND DEVELOPMENT THROUGH INVESTMENT BY
PRIVATE ENTERPRISE.............................................................................................. 37
VII. FINANCIAL IMPACT................................................................................................... 38
VIII. DEMAND ON TAXING DISTRICT SERVICES...................................................... 39
IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND PROGRAM TO
THE COMPREHENSIVE PLAN FOR THE DEVELOPMENT OF THE CITY AS
AWHOLE........................................................................................................................ 41
X. PHASING AND SCHEDULING................................................................................... 42
XI. PROVISIONS FOR AMENDING THE REDEVELOPMENT PLAN .................... 43
XII. COMMITMENT TO FAIR EMPLOYMENT PRACTICES AND AFFIRMATIVE
ACTIONPLAN............................................................................................................... 44
XIII. IMPACT ON INHABITED RESIDENTIAL UNITS ................................................. 45
TABLES, FIGURES AND EXHIBITS
TABLE 1. ESTIMATED REDEVELOPMENT PROJECT COSTS.............................................................. 28
TABLE 2.2001 EAV BY TAX PARCEL....................................................................................................... 31
TABLE 3. GROWTH OF THE PROJECT AREA VS. CITY OF MCHENRY............................................. 37
FIGURE 1. PROJECT AREA BOUNDARY.................................................................................................... 9
FIGURE2. LAND USE PLAN........................................................................................................................ 20
EXHIBIT I: DOWNTON MCHENRY REDEVELOPMENT PROJECT AREA TAX INCREMENT
FINANCING ELIGIBILITY STUDY
EXHIBIT I: DOWNTON MCHENRY REDEVELOPMENT PROJECT AREA TAX INCREMENT
FINANCING HOUSING IMPACT STUDY
I. INTRODUCTION
This document is to serve as a redevelopment plan (the "Redevelopment Plan") for an irregularly
shaped area west of the Fox River and encompassing a portion of the City of McHenry's downtown
that is generally bounded by portions of Elm, Pearl, and Broad Streets on the north; the eastern
boundary of the Fox River and a portion of a line parallel to and approximately 800 feet east of
Green Street on the east; portions of John Street and Waukegan Road on the south; and portions of
Third Street, Green Street, and Richmond Road on the west. The area is subsequently referred to in
this document as the Downtown McHenry Tax Increment Financing Redevelopment Project Area
(the "Project Area").
As part of a strategy to encourage managed growth, deter future deterioration, minimize excessive
vacancies and stimulate private investment in the Project Area, the City engaged Trkla, Pettigrew,
Allen & Payne, Inc. ("TPAP") to investigate whether an approximately 129.2-acre area qualifies as
a "conservation area," a "blighted area," or a combination thereof, under the Illinois Tax Increment
Allocation Redevelopment Act (the "Act").
The City of McHenry (the "City") is located in the County of McHenry approximately 15 miles
south of the Illinois/Wisconsin border and 55 miles northwest of downtown Chicago. The City
spans approximately 10 square miles and is generally bordered by Johnsburg and McCullom Lake
to the north, Lakemoor and Lilymoor to the east, Prairie Grove and Holiday Hills to the south, and
Bull Valley and Wonder Lake to the west. McHenry is accessible by Illinois Route 120 from the
east and west, Illinois Route 31 from the north and south, and by the Metra Union Pacific
Northwest commuter rail line.
McHenry was originally settled in the mid- 19th century and incorporated as a village in 1872 and
then as a city in 1923. McHenry's scenic, convenient setting along the Fox River and "gateway"
relationship to the Chain O' Lakes area of northern Illinois contributed to the City's early beginnings
and historical development as a small mercantile town, recreational area and overall important
location of the region --including a short stint (1837 to 1843) as the county seat for an area that
encompassed what is now Lake and McHenry Counties. McHenry generally developed slowly and
quietly as a rural community with great appeal for living, fanning, small business/industry and as a
recreational retreat for visitors from Chicago and suburbs. The picturesque and functional
proximity along the Fox River also stimulated the development of a centrally -located downtown
district which, over time, has included a mix of uses including, shops, businesses, restaurants,
homes and cottages, civic uses/activities and river -related commerce, activities and amenities.
As development of metropolitan Chicago has pushed outward over the last several decades,
McHenry's small town appeal and desirable quality -of -life features have attracted residential,
commercial and industrial growth. Such development has led to population growth and
community -wide changes for McHenry; indeed, the City's population has grown from 2,080
persons in 1950, to 11,949 in 1980, to 21,501 in 2000 and is estimated to reach 27,600 in 2020.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 1
McHenry, Illinois —January 25, 2002
Accordingly, guiding growth and development in order to maintain small town character, respond
to contemporary needs of the community, and plan for the future are ongoing priorities for the City.
The Project Area encompasses some of the oldest properties of McHenry and constitutes a
significant portion of the City's historic downtown area. The Project Area also contains a number
of buildings, sites and groupings of properties that are considered historically or architecturally
significant. The downtown is generally an active mixed -use activity area with small entrepreneurial
convenience, service and specialty businesses, residential uses, some public and civic uses and a
patchwork of features supporting use and access to the Fox River and Boone Lagoon. Over the past
decade or more, however, the core retail functions of the downtown have diminished significantly
due primarily to competition from new or planned commercial/retail development along Route 31,
Route 120 and other sites within the City and in neighboring communities where large lots have
been assembled for convenient automobile access for strip mall, "big box", and "power" retail
shopping centers. In short, while the outer edges and previously undeveloped areas of the City have
benefited from much growth and development, the Project Area has generally lacked new private
investment.
As a result of these commercial development and general market changes, the City's historic
downtown currently faces a number of challenges and concerns. Portions of the downtown,
including the Project Area, show signs of decline, deteriorating physical conditions, vacant and/or
underdeveloped sites, sub -optimal land uses, obsolescent buildings, and constrained building and
site layouts. These changing conditions and needs must be addressed to ensure the long-term health
and viability of the Project Area, the downtown and the community as a whole.
The City recognizes the changing needs and opportunities for growth and development of the
Project Area and the incumbent responsibility to plan for such needs and changes on a coordinated
and comprehensive basis. Recent planning efforts which address this concern include the 1999
Comprehensive Plan and Development Policies for the City of McHenry and the McHenry
Riverwalk Master Plan (2000). These plans set forth recommendations for development and
redevelopment of the Project Area and form the basis for many of the recommendations presented
in this Redevelopment Plan.
A. Tax increment Financing
In January 1977, tax increment financing ("TIF") was made possible by the Illinois General
Assembly through passage of the Tax Increment Allocation Redevelopment Act. The Act is found
in Illinois Compiled Statutes, Chapter 65, Act 5, Section 11-74.4-1 et seq., as amended. The Act
provides a means for municipalities, after the approval of a redevelopment plan and project, to
redevelop blighted, conservation, or industrial park conservation areas and to finance
redevelopment project costs (sometimes referred to as "Project Costs" or "Redevelopment Project
Costs") with incremental property tax revenues. "Incremental Property Tax" or "Incremental
Property Taxes" are derived from the increase in the current equalized assessed valuation ("EAW)
of real property within the Project Area over and above the "Certified Initial EAW of the real
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 2
McHenry, Illinois — January 25, 2002
property. Any increase in EAV is then multiplied by the current tax rate which results in
Incremental Property Taxes. A decline in current EAV does not result in a negative Incremental
Property Tax.
To finance Project Costs, a municipality may issue obligations secured by estimated Incremental
Property Taxes to be generated within the project area. In addition, a municipality may pledge
towards payment of such obligations any part or any combination of the following: (a) net revenues
of all or part of any redevelopment project; (b) taxes levied and collected on any or all property in
the municipality; (c) the full faith and credit of the municipality; (d) a mortgage on part or alll of the
redevelopment project; or (e) any other taxes or anticipated receipts that the municipality may
lawfully pledge.
Tax increment financing does not generate tax revenues by increasing tax rates; it is a financing
mechanism that allows the municipality to capture, for a certain number of years, the new tax
revenues generated by the enhanced valuation of properties resulting from the municipality's
redevelopment improvements and activities, various redevelopment projects, and the reassessment
of properties. Under TIF, all taxing districts continue to receive property taxes levied on the initial
valuation of properties within the redevelopment project area. Additionally, taxing districts can
receive distributions of surplus Incremental Property Taxes when annual Incremental Property
Taxes received exceed any principal and interest obligations for that year and expected
redevelopment project cost expenditures necessary to implement the Redevelopment Plan. Taxing
districts also benefit from the increased property tax base after Project Costs and obligations are
paid.
B. Downtown McHenry Tax Increment Financing Redevelopment Project
Area
At the request of the City, TPAP surveyed the area identified by the City and referred to as the
Project Area to document any conservation factors that may exist within the Project Area. TPAP
documented these factors in a study entitled the "Downtown McHenry Tax Increment Financing
Redevelopment Area Eligibility Study" (the "Eligibility Study"). The Project Area and its existing
conditions are briefly described below. For greater detail on the eligibility factors, please refer to
Section I, Basis for Redevelopment of the Eligibility Study.
The Project Area encompasses approximately 129.2 acres constituting a significant portion of the
City's historic downtown area including properties along the western banks of the Fox River and
along the northern and southern banks of the Boone Lagoon. The Project Area contains 167
buildings within twenty-one full and partial tax blocks (for the purposes of this report tax, blocks
379 and 380 are considered one block). The Project Area contains a variety of uses, including
retail, commercial service, offices, boating related structures and amenities, public/institutional,
buildings with mixed commercial and residential activity and a variety of residential buildings. All
blocks contain residential units in either single-family, multi -family or in mixed -use buildings.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 3
McHenry, Illinois — January 25, 2002
Public and semi-public uses are also scattered throughout the Project Area including parks and open
space, the McHenry Community High School East Campus, Landmark Elementary School, and a
City water treatment plant. The Project Area is characterized by assorted deterioration of structures
and sites, obsolete platting and constrained or irregular site layouts, vacancies, obsolescent
buildings, and an overall lack of community planning.
C. Downtown McHenry Tax Increment Financing Redevelopment Project
and Plan
As evidenced in Section VI, the Project Area as a whole has not been subject to growth and
development through private investment. Furthermore, it is not reasonable to expect that the Project
Area will be redeveloped without the use of TIF.
This Redevelopment Plan has been prepared in accordance with the provisions of the Act and is
intended to guide improvements and activities within the Project Area in order to stimulate private
investment. The goal of the City, through the implementation of this Redevelopment Plan, is that
the entire Project Area be revitalized on a comprehensive and planned development basis, in order
to ensure that private investment in rehabilitation and new development occurs:
1. On a coordinated rather than piecemeal basis to ensure that the land use, pedestrian access,
vehicular circulation, parking, service and urban design systems are functionally integrated
and meet present-day principles and standards;
2. On a reasonable, comprehensive and integrated basis to ensure that conservation area
factors or the presence of blight are prevented or eliminated; and
3. Within a reasonable and defined time period so that the area may contribute productively to
the economic vitality of the City.
The Redevelopment Plan sets forth the overall Redevelopment Project to be undertaken to
accomplish the above -stated goals. During the implementation of the Redevelopment Project, the
City may, from time to time, (i) undertake or cause to be undertaken public improvements and
activities as described in Section V of this Redevelopment Plan and (ii) enter into redevelopment
agreements with private entities to construct, rehabilitate, renovate or restore private improvements
on one or several parcels (collectively referred to as "Redevelopment Project").
This Redevelopment Plan specifically describes the Project Area and sets forth the conservation
factors which qualify the Project Area for designation as a conservation area as defined in the Act.
Section II of the Redevelopment Plan contains the legal description and map depicting the
boundaries of the Project Area.
Successful implementation of this Redevelopment Plan requires that the City utilize Incremental
Property Taxes and other resources in accordance with the Act to stimulate the comprehensive and
coordinated development of the Project Area. Only through the utilization of TIF will the Project
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 4
McHenry, Illinois — January 25, 2002
Area develop on a comprehensive and coordinated basis, thereby eliminating the conservation area
factors which have precluded development of the Project Area by the private sector.
The use of Incremental Property Taxes will permit the City to direct, implement, and coordinate
public improvements and activities to stimulate private investment within the Project Area. These
improvements, activities and investments will benefit the City, its residents, and all taxing districts
having jurisdiction over the Project Area. The anticipated benefits include:
• A revitalized downtown which exemplifies the City's identity and character and serves more
effectively as a central location for a core mix of community activities including business,
living, entertainment, recreation, and civic and community gatherings.
• A new "riverwalk" system of waterfront amenities and features (pedestrian pathways and
bridges, open spaces, boating facilities, pavilion(s), signage, lighting, etc.) along and near
the Fox River and the Boone Lagoon that improves public access, stimulates activity, and
integrates with existing key downtown locations and upgraded downtown public
infrastructure.
• Adaptive reuse and rehabilitation of historically significant or architecturally unique
structures throughout the Project Area.
• An increase in construction, business, retail, commercial, and other full-time employment
opportunities for existing and future residents of the City.
• An increased property tax base arising from new residential and commercial development
and the rehabilitation of existing buildings.
• Elimination of problem conditions in the Project Area as well as general physical
improvement and upgrading of properties.
• The creation of new housing opportunities to support the local population, attract new
residents and enhance the overall quality and character of the community.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 5
McHenry, Illinois — January 25, 2002
II. LEGAL DESCRIPTION
The boundaries of the Project Area have been carefully drawn to include only those contiguous
parcels of real property and improvements substantially benefited by the proposed Redevelopment
Project to be undertaken as part of this Redevelopment Plan. The boundaries are shown in Figure 1,
Project Area Boundary, and are generally described below:
The Project Area encompasses a portion of the City's downtown and is an irregularly shaped area
adjacent to and west of the Fox River that is generally bounded by portions of Elm, Pearl, and
Broad Streets on the north; the eastern boundary of the Fox River and a portion of a line parallel to
and approximately 800 feet east of Green Street on the east; portions of John Street and Waukegan
Road on the south; and portions of Third Street, Green Street, and Richmond Road on the west.
The boundaries of the Project Area are legally described as follows:
That part of Sections 26, 35, and 36, Township 45, Range 8 East of the Third Principal Meridian,
located in the City of McHenry and described as follows: Beginning at the Southeasterly corner
of Lot 4 in E.M. Owen's Estates Addition to West McHenry, according to the Plat thereof
recorded January 31, 1893, as Document #9232 in Book 1 of Plats, page 39, in McHenry County,
Illinois; thence Northeasterly along the Southeasterly line of said Lot 4 for a distance of 132 feet
to the most Northeasterly corner of said Lot 4; thence continuing Northeasterly along the last
described course for a distance of 132 feet; thence continuing Northeasterly along the last
described course (being along the Southeasterly line of the lands described in Document #311537
in McHenry County, Illinois) for a distance of 50 feet, more or less, to the Southeasterly corner of
lands described in Document #634138 (excepting lands described in Document #471975) in
McHenry County, Illinois; thence continuing Northeasterly along the Southeasterly line of said
lands described in said Document #634138 (excepting lands described in #471975 in McHenry
County, Illinois), for a distance of 132.0 feet; thence continuing Northeasterly to a point of
deflection in the East boundary of said lands described in Document #634134 (excepting lands
described in Document #471975 in McHenry County, Illinois); thence continuing Northwesterly
along a line that deflects 14' 29' 11" to the left of the Northerly extension of the last described
course for a distance of 24.13 feet; thence continuing Northwesterly along the last described
course (being along the Northeasterly line of lands described in Document #715924 in McHenry
County, Illinois) for a distance of 109.37, more or less, to a point on the Southeast right-of-way
line of State Route 120; thence Southwesterly along the Southeasterly right-of-way of State
Route 120 for a distance of 30.2 feet; thence continuing Southwesterly along a 7° 07' deflection
to the left of the last described course for a distance of 120.8 feet; thence Northwesterly at 90' to
the last described course for a distance of 80 feet to the Southwesterly corner of Lot 14 in Matt
Baur's Addition to the City of McHenry, according to the Plat thereof recorded February 2, 1932,
as Document #100509 in McHenry County, Illinois; thence Northwesterly along the Southwest-
erly line of said Lot 14 for a distance of 225.19 feet, more or less, to the most Westerly corner of
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 6
McHenry, Illinois — January 25, 2002
said Lot 14; thence continuing Northwesterly along the last described course for a distance of
24.81 feet, more or less, to an intersection with the Southeasterly right-of-way line of Mill
Stream Drive according to the plat of Freund's Mill Stream Park Addition Unit #l, recorded
April 19, 1949, as Document #219945 in McHenry County, Illinois; thence continuing North-
westerly along the last described course for a distance of 50 feet, more or less, to an intersection
with the Northwesterly right-of-way line of said Mill Stream Drive; thence Northeasterly along
said Northwesterly right-of-way line of said Mill Stream Drive to a 90' deflection point in said
right-of-way; thence Southeasterly along the Southwesterly line of Block 3 in Freund's Mill
Stream Park Addition Unit #1 for a distance of 50 feet, more or less, to the Southwesterly -most
corner of Lot 20 in Block 3 in said Freund's Mill Stream Park Addition Unit #1; thence
continuing Northeasterly along the Southeasterly line of said Lot 20 in Block 3 for a distance of
142.8 feet; thence continuing Northeasterly along the last described course to an intersection with
the Southwesterly line of Lot 29, in Block 6 in said Freund's Mill Stream Park Addition Unit #1;
thence Southeasterly along the Southwesterly lines of Lots 29 and 30 in said Block 6 in said
Freund's Mill Stream Park Addition Unit #1 to a point of intersection with the Northwesterly
right-of-way line of State Route 120; thence Northeasterly along said Northwesterly right-of-way
line of State Route 120 for a distance of 73 feet, more or less, to the most Southeasterly corner of
Lot 30 in Block 6 in Freund's Mill Stream Park Addition Unit #1; thence continuing Northeast-
erly along said Northwesterly right-of-way line of Route 120 (being also the South end of Freund
Avenue) for a distance of 30 feet; thence continuing Northeasterly 9.12 feet to a jog point in said
Northwesterly right-of-way line; thence Southerly 4 feet along said Northwesterly right-of-way
jog; thence Easterly along the Northwesterly right-of-way in said State Route 120 for a distance
of 34.3 feet to a jog point; thence Northeasterly along said Northwesterly right-of-way of said
State Route 120 for a distance of 53.95 feet; thence Northeasterly along said Northwesterly right-
of-way line of said State Route 120 for a distance of 126.42 feet, more or less, to a point of
curvature; thence Northeasterly along a curve to the left having a radius of 92.3 feet for an arc
distance of 115.7 feet, more or less, to a point of tangency; thence Northerly along the Westerly
right-of-way line of State Route 31 (being also the Easterly line of Owen's Outlots according to
the Plat thereof recorded October 27, 1876 in Book 59 of Deeds, page 265 in McHenry County,
Illinois, to an intersection with the Northwesterly extension of the Northeasterly right-of-way line
of Pearl Street; thence Southeasterly along said Northwesterly extension of said Northeasterly
right-of-way of Pearl Street as said Pearl Street was recorded on McHenry Plat #11 according to
the Plat thereof recorded May 6, 1902 as Document #14087, in Book 106 of Deeds, page 111 to
an intersection with the Easterly right-of-way line of State Route 31; thence continuing; South-
easterly along the last described course which is the Northerly right-of-way line of said Pearl
Street to a point of intersection with the Northwesterly right-of-way line of Back Street on the
Original Plat of Village (now City of) McHenry on the West Side of Fox River, according to the
Plat thereof recorded in June of 1840, in Book "B", pages 160 through163 of Deeds, in McHenry
County, Illinois; thence continuing Southeasterly along said Northeasterly right-of-way line of
Pearl Street for a distance of 990 feet, more or less, to the Northwesterly right-of-way line of
Park Street as said Street was recorded on the said Original Plat of the Village (now City of)
McHenry on the West Side of Fox River; thence Northeasterly along said Northwesterly fight -of -
way line of Park Street for a distance of 476 feet, more or less, to an intersection with the
Northeasterly right-of-way line of Broad Street as recorded on said Original Plat of the Village
(now City of) McHenry on the West Side of Fox River; thence continuing Southeasterly on said
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 7
McHenry, Illinois — January 25, 2002
Northeasterly right-of-way of Broad Street to the Westerly shoreline of the Fox River; thence
continuing on the last described course Southeasterly across the Fox River to the Easterly
shoreline of said Fox River; thence Southerly along the Easterly shoreline of the Fox River 1450
feet, more or less, to an intersection with the South line of the Southeast Quarter of said Section
26; thence continuing Southerly along the said Easterly shoreline of the Fox River 910 feet, more
or less, to an intersection with the Easterly extension of the Northerly line of lands described in
Document #195566 and recorded in Book 289 of Deeds, page 475, in McHenry County, Illinois;
thence Westerly crossing the Fox River to the Northeast corner of said lands described in said
Document #195566 in McHenry County, Illinois; thence continuing Westerly along the said
Northerly line of lands described in said Document #195566 in McHenry County, Illinois, (said
Northerly line being also the Northerly ownership line of the McHenry Country Club) for a
distance of 815.0 feet; thence Southerly along a line parallel with and 40 feet East of the Easterly
line of the Northwest Quarter of the Northeast Quarter of said Section 35 to the Southwest corner
of lands described in said Document #195566 in McHenry County, Illinois; thence Westerly
along the Westerly extension of said South line of lands described in Document #195566 in
McHenry County, Illinois, for a distance of 40 feet, more or less, to the Southeasterly corner of
Lot 5 in County Clerk's Plat of the North Half of Section 35, Township 45, Range 8 East as
recorded in Book 2 of Plats, page 42, in McHenry County, Illinois; thence Westerly along said
Southerly line of Lot 5 in said County Clerk's Plat for a distance of 500 feet, more or less, to the
Southwesterly corner of said Lot 5; thence Southerly along the Southerly extension of the
Westerly, line of said Lot 5 for a distance of 30.75 feet, more or less, to a deflection in the
Easterly -most line of lands described in Document #216124 in Book 334 of Deeds, page 196 in
McHenry County, Illinois; thence Southwesterly for a distance of 214.9 feet along a line that
deflects 15' 06' to the right of the Southeasterly projection of the last described course, to an
intersection with the Northeasterly right-of-way of John Street; thence Southwesterly 50 feet,
more or less, to the most Easterly corner of Lot 19 in Owen, Stenger and Allens 2"d ,Addition
according to the Plat thereof recorded April 12, 1922, as Document #54653 in Book 4 of Deeds,
page 53 in McHenry County, Illinois, (said point also being located on the Southwesterly right -of
way line of John Street); thence Northwesterly along the said Southwesterly right-of-way line of
John Street for a distance of 743 feet, more or less, to an intersection with the Easterly right-of-
way line of Green Street; thence continuing Northwesterly along the last described course 68.7
feet, more or less, to an intersection with the Westerly right-of-way line of Green Street; thence
Northerly 630 feet, more or less, along the Westerly right-of-way line of Green Street as said
right-of-way was established by the Original Plat of West McHenry, according to the Plat thereof
recorded June 14, 1859, in Book 24 of Deeds, pages 22 and 23, in McHenry County, Illinois, to
an intersection with the Southwesterly right-of-way line of Waukegan Road; thence Northwest-
erly along the Southwesterly right-of-way line of said Waukegan Road as established by said
Original Plat of West McHenry, for a distance of 817 feet, more or less, to the most Easterly
corner of Lot 1 in Block 2 in said Original Plat of West McHenry; thence Northeasterly 66 feet,
more or less, to the point of beginning. All located within the City of McHenry, McHenry
County, Illinois.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 8
McHenry, Illinois — January 25, 2002
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Project Area Boundary
Tax Increment Financing Redevelopment Project Area Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
III. PROJECT AREA ELIGIBILITY CONDITIONS
The Project Area conditions documented in this section are based on surveys and analyses
conducted for the City by TPAP. As set forth in the Act, the Project Area qualifies as a
"conservation area."
Conservation Area
To meet the requirements under the Act for designation as a "conservation area," the area must
meet the prerequisite that 50 percent or more of the ,structures in the area must be 35 years of age or
more. In addition, a minimum of 3 factors from a total of 13 additional factors must be present in
the area.
The improved portion of the Project Area is eligible as a conservation area within the requirements
of the Act. Specifically:
• Of the 167 buildings within the improved portion of the Project Area, 142 (85 percent) are
35 years of age or older. The Project Area meets the conservation area prerequisite that 50
percent or more of the structures in the area must be 35 years of age or older.
• Of the 13 factors set forth in the Act for conservation areas, 9 are present in the Project
Area.
• Of the nine factors present, five are present to a major extent and reasonably distributed
throughout the Project Area. These factors include: obsolescence; deterioration; deleterious
land use or layout; lack of community planning; and a lagging rate of annual growth of total
equalized assessed valuation.
• Of the nine factors present, four are present to a limited extent and reasonably distributed
throughout the Project Area. These factors include: dilapidation; structures below
minimum code standards; excessive vacancies, and excessive land coverage and
overcrowding of structures and community facilities.
• All blocks within the Project Area show the presence of conservation area factors.
• The Project Area includes only real property and improvements thereon substantially
benefited by the proposed redevelopment project activities and improvements.
A detailed report concerning the definition, application and extent of the conservation area factors
in the Project Area is contained in a report prepared by TPAP entitled Downtown McHenry Tax
Increment Financing Redevelopment Project Area Eligibility Study (the "Eligibility Study"). This
eligibility study is attached as Exhibit I to this Redevelopment Plan.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Yage 1U
McHenry, Illinois — January 25, 2002
Surveys and Analyses Conducted
The conditions summarized above are based upon surveys and analyses conducted by TPAP. The
surveys and analyses conducted include:
1. Exterior survey of the condition and use of all buildings and sites;
2. Field survey of environmental conditions covering streets, sidewalks, curbs and gutters,
lighting, traffic, parking facilities, landscaping, fences, and general property
maintenance;
3. Analysis of the existing uses within the Project Area and their relationships to the
surroundings;
4. Comparison of current land use to current zoning ordinance and the current zoning map;
5. Analysis of original and current platting and building size and layout;
6. Analysis of vacant portions of the sites and buildings;
7. Analysis of building floor area and site coverage;
8. Review of City of McHenry sewer, water and capital improvements reports;
9. Review of previously prepared plans, studies and data; and
10. Analysis of McHenry Township Assessor records for equalized assessed valuations for
tax parcels in the Project Area for assessment years 1996 to 2001.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 11
McHenry, Illinois — January 25, 2002
IV. REDEVELOPMENT GOALS AND POLICIES
Comprehensive and coordinated area -wide investment in new public and private improvements and
facilities is essential for the successful redevelopment of the Project Area and the elimination of
conditions that have impeded redevelopment of the Project Area in the past. Redevelopment of the
Project Area will benefit the City through improvements in the physical environment, an increased
tax base, new commercial and housing opportunities, new recreational and community facilities,
additional employment opportunities and an increase in the vitality of the Project Area.
This section identifies the general goals and objectives for redevelopment of the Project Area.
Section V of this Redevelopment Plan presents more specific objectives for development and design
within the Project Area, and describes the redevelopment activities the City intends to undertake to
achieve the redevelopment goals and objectives presented in this Section.
A. General Goals
Listed below are the general goals for redevelopment of the Project Area. These goals provide
overall focus and direction for this Redevelopment Plan.
1. An environment within the Project Area which will contribute more positively to the
health, safety and general welfare of the City, and preserve or enhance the value of
properties adjacent to the Project Area.
2. Sound economic development in the Project Area, thereby creating employment
opportunities commensurate with the capacity of the area.
3. Restoration of the liveliness, activity, and vitality of the downtown through the
addition of new destination locations and anchor components, developments and
improvements.
4. An increased real estate tax base for the City and other taxing districts having
jurisdiction over the Project Area.
6. Attraction of new business, commercial, retail, and residential development and the
creation of new job opportunities within the Project Area.
7. Enhancement and expansion of community facilities and open space in the Project
Area, with particular emphasis on waterfront access, areas, and amenities.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 11
McHenry, Illinois — January 25, 2002
B. Redevelopment Objectives
Listed below are the redevelopment objectives which will guide planning decisions regarding
redevelopment within the Project Area.
1. Reduce or eliminate the conditions which qualify the Project Area as a conservation
area and eliminate the influences and manifestations of physical and economic
deterioration and obsolescence. These conditions are described briefly in Section III
of this Redevelopment Plan.
2. Strengthen the economic well-being of the Project Area and the City by increasing
taxable values and housing opportunities.
3. Construct a riverwalk system of waterfront infrastructure, amenities, and
enhancements to create a distinctive destination for residents and visitors and
improve access, stimulate a range of uses and activities, and provide locations for
community events and programming.
4. Encourage a high -quality appearance of buildings, rights -of -way, and open spaces
and encourage high standards of design.
5. Encourage coordinated development of parcels and structures in order to achieve
efficient building design and off-street parking and service facilities.
6. Create an environment and provide incentives that stimulate private investment in
the upgrading of buildings and/or expansion of existing businesses and new
construction.
7. Provide needed improvements or facilities in proper relationship to the projected
demand for such facilities and in accordance with present-day design standards for
such facilities.
8. Assemble or encourage the assembly of land into parcels of appropriate shape and
sufficient size for redevelopment in accordance with this Redevelopment Plan.
9. Create new job opportunities for City residents utilizing appropriate job training and
hiring programs.
10. Provide safe and efficient vehicular and pedestrian circulation systems which will
enable adequate access to, movement within and connections throughout the Project
Area.
11. Where possible, provide for consolidated off-street loading and service facilities
which are screened and buffered from adjacent development areas and public
streets.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 13
McHenry, Illinois — January 25, 2002
12. Provide an overall system of signage that will establish visual continuity,
understandable way finding routes, and promote a positive overall image for the
Project Area.
13. Undertake landscaping, lighting and signage improvements to upgrade the
appearance of public rights -of -way within and adjacent to the Project Area.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 14
McHenry, Illinois — January 25, 2002
V. REDEVELOPMENT PROJECT
This section presents the Redevelopment Project anticipated to be undertaken by the City and by
private entities in furtherance of this Redevelopment Plan. Previous plans and policies, including
the 1999 Comprehensive Plan and Development Policies for the City of McHenry, the City Zoning
Ordinance and 2001 City Zoning Map and the McHenry Rvverwalk Master Plan (2000) have been
reviewed and form the basis for many of the recommendations presented in this Redevelopment
Plan. The Redevelopment Project described in this Redevelopment Plan and pursuant to the Act
includes the a) the overall redevelopment concept, b) the land use plan, c) development and design
objectives, d) a description of redevelopment improvements and activities, e) estimated
redevelopment project costs, f) a description of sources of funds to pay estimated redevelopment
project costs, g) a description of obligations that may be issued, and h) identification of the most
recent EAV of properties in the Project Area and an estimate of future EAV.
A. Overall Redevelopment Concept
The Project Area should be revitalized and redeveloped as a cohesive, distinctive, and active
mixed -use activity area with commercial, residential, recreational, entertainment, cultural and
public uses that restore vitality to the downtown and provide for the needs of residents, businesses,
and visitors. The Project Area should consist of (i) business uses offering a range of site
development opportunities, including commercial uses that provide contemporary space for office
and retail businesses to serve and support surrounding neighborhoods and to provide employment
and entrepreneurial opportunities; (ii) residential uses, including a mix of detached and attached
housing styles as well as buildings with a mixture of residential and commercial uses; and (Ili) a
range of public/community facilities, open space, river -related and pedestrian amenities.
Waterfront locations, access points and edges should be improved and enhanced as part of a
comprehensive "riverwalk" system that includes walkways and bridges, open space, boating
facilities, and other amenities that create destination locations and provide links to other key sites or
activity areas of the downtown or surrounding neighborhoods.
The Project Area should be served by a street system, parking facilities and public infrastructure
that provide safe and convenient access to and circulation within the Project Area for vehicles,
pedestrians and bicycles. The Project Area should also be characterized by cohesive urban design
features that organize and provide focus to the Project Area, including pedestrian and streetscape
amenities which link retail and commercial sub -districts, residential development, community
facilities, open spaces, and the riverfront. Individual developments should also be visually
distinctive and compatible with the overall character of the Project Area. New private waterfront
development and upgrading of existing waterfront properties should be undertaken in coordination
with and in a manner that is compatible with public waterfront improvements and amenities.
Development, redevelopment and improvement activities should respect architecturally and
historically significant buildings or areas of the Project Area as well as the City's traditional
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 15
McHenry, Illinois — January 25, 2002
community form which is characterized by a compact, walkable mixed -use downtown with
buildings facing the street and located at or near the front property line and surrounded by generally
low to moderate -density residential neighborhoods.
The entire Project Area should be marked by improvements in safety and infrastructure; retention
and expansion of jobs and businesses; new commercial and residential development; new
community, recreational and open space facilities and amenities; and enhancement of the area's
overall image and appearance. Improvement projects should include: the rehabilitation and reuse
of existing retail, office, residential, and commercial buildings, especially if identified by the City as
architecturally or historically significant; new retail, office, residential and commercial construction
in vacant or underutilized properties within the Project Area; viable existing businesses should be
retained and enhanced; street and infrastructure improvements; creation of new and upgrading of
existing open space, waterfront amenities, landscaping and other appearance enhancements; and the
provision of new amenities which enhance the overall social, cultural, and aesthetic atmosphere of
the Project Area.
B. Generalized Land Use Plan
Figure 2 presents the Land Use Plan that will be in effect upon adoption of this Redevelopment
Plan. The Land Use Plan conforms to the land use development policies and standards for the City
as set forth in the City 's Comprehensive Plan and Zoning Map.
The Land Use Plan designates the entire Project Area as a Downtown Mixed -Use area providing
sites for a diverse range of retail, residential, entertainment, service, office, institutional,
community, public, open space and recreational uses. The Plan promotes the restoration of a viable
and attractive downtown environment which will sustain a vibrant mix of activity during daytime
and evenings hours and across seasons. Improvements will be undertaken to create a vibrant, safe
and attractive shopping, living, employment and leisure -time environment for the Project Area.
Retail, restaurant and commercial uses are core activity generators throughout the Project Area,
with well -established pedestrian -oriented business/shopping sub -districts along Riverside Drive and
Green Street. Elm Street (IL Route 120) serves as a more auto -oriented commercial sub -district
with high vehicular traffic volume and function. These patterns should be reinforced and built upon
as anchor features of the existing Project Area. Permitted commercial uses generally should
include those uses permitted in the City's C-4 Downtown Commercial district, as well as any other
retail or commercial use not in conflict with existing or future ordinances of the City. Small office
uses are encouraged to provide daytime activity, complement a retail base and to provide transitions
from high commercial activity areas and residential areas. A range of residential units is
encouraged, including moderate- to high -density detached units; a mix of low-, medium-, and high -
density attached units; and mixed -use formats with residential located in the upper floors of
commercial buildings. Retail, service, and restaurant uses are encouraged in ground floor spaces of
mixed -use commercial/residential buildings.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 16
McHenry, Illinois — January 25, 2002
Parks, open space, public and institutional uses are currently key features and facilities of the
Project Area. Additional public spaces, access routes/points, and features should be identified and
developed along waterfront locations to encourage safe, convenient, and inviting access to and from
the waterfront and to provide strategic links to other key activity areas and public uses throughout
the Project Area.
C. Development and Design Objectives
Listed below are the specific development and design objectives which will assist the City in
directing and coordinating public and private improvement and investment within the Project Area
in order to achieve the general goals and objectives identified in Section IV of this Redevelopment
Plan.
Land Use
• Promote comprehensive, area -wide redevelopment of the Project Area, allowing a wide
range of business, residential, retail, commercial services, open space, recreational, public
and institutional uses that benefits the larger McHenry community.
• Promote quality new residential and commercial facilities in the Project Area.
• Promote development of residential uses, through new construction, infill and adaptive
reuse of existing structures.
• Promote the development of new parks, open space, and recreational and public facilities.
• Encourage the clustering of similar and supporting commercial uses to promote cumulative
attraction.
• Establish a range and pattern of compatible uses arranged to maximize operational and
economic relationships.
Transportation, Infrastructure, and Parking
• Ensure safe, efficient, and convenient access to and circulation within the Project Area for
pedestrians, bicyclists, autos, trucks and public transportation.
• Promote the development of waterfront amenities and provide a system of well-defined,
safe pedestrian pathways, including bridges, along the waterfront and linking to pedestrian -
oriented areas of the Project Area.
• Where feasible and appropriate, improve street surface conditions, sidewalks, and natural
water drainage, street lighting, and traffic signalization.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 17
McHenry, Illinois — January 25, 2002
• Alleviate traffic congestion along arterial routes through limited driveways, shared loading
zones, efficient bus stop locations and traffic management improvements.
• Upgrade public utilities and infrastructure as required.
• Ensure that all commercial/retail businesses are served by an adequate supply of
conveniently located parking, to be located to the side or rear of buildings or in parking
structures.
• Ensure construction of an adequate supply of off-street parking by encouraging larger new
developments to construct spaces in excess of their projected needs. These excess spaces
will then capture overflow from street parking at peak periods.
• Maintain curb parking on selected streets to serve the retail and commercial businesses.
• Promote shared parking through cooperative arrangements between businesses which
would permit existing parking lots to be used by neighboring businesses during off-peak
periods.
• Ensure that parking lots are attractively designed and adequately maintained.
Building and Site Development
• Preserve, rehabilitate or adaptively reuse buildings and/or sites with historic and/or
architectural value where appropriate.
• Where feasible, repair and rehabilitate existing buildings in poor condition.
• Where rehabilitation is not feasible, demolish deteriorated existing buildings to allow for
new development.
• Reuse vacant buildings in serviceable condition for new businesses, residential uses, or
mixed -use development.
• Ensure that the design of new buildings is compatible with the surrounding building
context.
• Locate building service and loading areas away from front entrances and major streets
where possible.
• Encourage parking, service, loading and support facilities which can be shared by multiple
businesses.
• Encourage retail, entertainment, and restaurants on the first floor of buildings to contribute
to a pedestrian -oriented environment.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 18
McHenry, Illinois —January 25, 2002
• Improve the design and appearance of commercial storefronts, including facade treatment,
color, materials, awnings, canopies, and signage.
Urban Design, Landscaping and Open Space
• Establish a distinctive and cohesive visual identity for the Project Area.
• Ensure high quality and harmonious architectural and landscape design throughout the
Project Area.
• Provide new pedestrian -scale lighting in areas with intense pedestrian activity.
• Provide new street trees and accent lighting where space permits.
• Provide amenities and facilities to expand and encourage recreational use of the Fox River
and Boone Lagoon, including landscape treatments and pedestrian amenities to define
connecting links from the waterfront into adjoining neighborhoods.
• Promote the use of landscaping and attractive fencing to screen dumpsters, waste collection
areas. loading and service areas, and the perimeter of parking lots and other vehicular use
areas.
• Promote a coordinated landscape plan for the riverwalk system, streetscapes, and gateway
locations of the Project Area.
• Promote the development of shared open spaces within the Project Area, including
courtyards, eating areas, recreational areas, etc.
• Ensure that all open spaces are designed, landscaped and lighted to achieve a high level of
security.
• Provide amenities and facilities to expand and encourage recreational use of the Fox. River
and Boone Lagoon, including landscape treatments and pedestrian amenities to define
connecting links from the riverfront into adjoining neighborhoods.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 19
McHenry, Illinois — January 25, 2002
c
1
■ �• Project Area Boundary
soa Block Number
Downtown Mixed Use
Figure 2
Land Use Plan
N
W
Tax Increment Financing Redevelopment Project Area
Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
D. Redevelopment Improvements and Activities
The City proposes to achieve its redevelopment goals and objectives for the Project Area through
the use of public financing techniques including, but not limited to, tax increment financing, to
undertake some or all of the activities and improvements authorized under the Act, including the
activities and improvements described below. The City also maintains the flexibility to undertake
additional activities and improvements authorized under the Act, if the need for activities or
improvements change as redevelopment occurs in the Project Area.
The City may enter into redevelopment agreements with public or private entities for the
furtherance of this Redevelopment Plan. Such redevelopment agreements may be for the
assemblage of land; the construction, rehabilitation, renovation or restoration of improvements or
facilities; the provision of services; or any other lawful purpose. Redevelopment agreements may
contain terms and provisions which are more specific than the general principles set forth in this
Redevelopment Plan.
1. Analysis, Administration, Studies, Surveys, Legal, Marketing, etc.
The City may undertake or engage professional consultants, engineers, architects,
attoineys, etc. to conduct various analyses, studies. surveys, administration or ,le -al
services to establish, implement and manage the Redevelopment Plan. The City may also
undertake the cost of marketing sites within the Project Area to prospective businesses,
developers and investors.
2. Property Assembly
The City, or an agent for the City, may acquire and assemble land for the purpose of
redevelopment. Vacant or underutilized property may be acquired by purchase, exchange
or long-term lease by private developers or the City for the purpose of new development.
Costs may include site preparation, site improvements, and the clearing and grading of
land.
3. Rehabilitation of Existing Buildings
The City will encourage the rehabilitation of buildings that are basically sound and/or
historically or architecturally significant.
4. Provision of Public Works or Improvements
The City may provide public improvements and facilities that are necessary to service the
Project Area in accordance with the Redevelopment Plan and the Comprehensive Plan.
Public improvements and facilities may include, but are not limited to, the following:
a) Streets, Sidewalks, Bridges, Utilities and Parking
It is anticipated that public infrastructure improvements and public parking
facilities, ranging from repair and resurfacing to major construction or
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 21
McHenry, Illinois — January 25, 2002
reconstruction, will be necessary to adequately serve the Project Area and potential
new development.
b) Parks and Open Space
Improvements to existing or future parks, river walkways, open spaces, boat
launches, docks, marinas, and public plazas may be provided, including, but not
limited to, the construction of pedestrian walkways and bridges, boating facilities,
stairways, lighting, landscaping, signage and general beautification improvements
for use by the general public.
c) Landscaping
Landscape/buffer improvements, streetscape improvements and general
beautification improvements may be provided.
5. Interest Subsidies
Funds may be provided to developers or redevelopers for a portion of interest costs
incurred by a developer or redeveloper related to the construction, renovation or
rehabilitation of a redevelopment project provided that:
(a) such costs are to be paid directly from the special tax allocation fund established
pursuant to the Act; and
(b) such payments in any one year may not exceed 30 percent of the annual interest costs
incurred by the developer or redeveloper with respect to the redevelopment project
during that year;
(c) if there are not sufficient funds available in the special tax allocation fund to make the
payment, then the amounts so due shall accrue and be payable when sufficient funds
are available in the special tax allocation fund;
(d) the total of such interest payments paid pursuant to the Act may not exceed 30 percent
of the total (1) costs paid or incurred by a developer or redeveloper for a
redevelopment project plus (ii) redevelopment project costs excluding any property
assembly costs and any relocation costs incurred by the City pursuant to the Act; and
(e) Up to 75 percent of interest costs incurred by a redeveloper for the financing of
rehabilitated or new housing units for low-income households and very low-income
households, as defined in Section 3 of the Illinois Affordable Housing Act.
6. Taxing Districts Capital Costs
The City may reimburse all or a portion of the costs incurred by certain taxing districts in
the furtherance of the objectives of this Redevelopment Plan.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 22
McHenry, Illinois — January 25, 2002
7. Job Training and Related Educational Programs
Separate or combined programs that would take advantage of the employment opportuni-
ties within the Project Area may be implemented.
8. Relocation
Relocation assistance may be provided to facilitate redevelopment of portions of the Pro-
ject Area and to meet other City objectives. Business or households legally occupying
properties to be acquired by the City subsequent to this Plan may be provided with reloca-
tion advisory and financial assistance as determined by the City. In the event that the im-
plementation of the Redevelopment Plan results in the removal of residential housing
units in the Project Area occupied by low-income households or very low-income; house-
holds, or the displacement of low-income households or very low-income households
from such residential housing units, such households shall be provided affordable housing
and relocation assistance not less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and
the regulations thereunder, including the eligibility criteria. Affordable housing may be
either existing or newly constructed housing. The City shall make a good faith effort to
ensure that this affordable housing is located in or near the Project Area.
As used in the above paragraph "low-income households", "very low-income households"
and "affordable housing" shall have the meanings set forth in Section 3 of the Illinois
Affordable Housing Act, 310 ILCS 65/3. As of the date of this Redevelopment Plan,
these statutory terms are defined as follows: (i) "low-income household" means a single
person, family or unrelated persons living together whose adjusted income is more than
50 percent but less than 80 percent of the median income of the area of residence,
adjusted for family size, as such adjusted income and median income are determined from
time to time by the United States Department of Housing and Urban Development
("HUD") for purposes of Section 8 of the United States Housing Act of 1937; (ii) "very
low-income household" means a single person, family or unrelated persons living together
whose adjusted income is not more than 50 percent of the median income of the area of
residence, adjusted for family size, as so determined by HUD; and (iii) "affordable
housing" means residential housing that, so long as the same is occupied by low-income
households or very low-income households, requires payment of monthly housin;; costs,
including utilities other than telephone, of no more than 30 percent of the maximum
allowable income for such households, as applicable.
9. Affordable Housing
Funds may be provided to developers for up to 50 percent of the cost of construction,
renovation and -or rehabilitation of all low- and very low-income housing units (for own-
ership or rental) as defined in Section 3 of the Illinois Affordable Housing Act. If the
units are part of a residential redevelopment project that includes units not affordable to
Downtown McHenry Tax Increment Financing Redevelopment Project and Plait Page 23
McHenry, Illinois — January 25, 2002
low -and very low-income households, only the low- and very low-income units shall be
eligible for benefits under the Act.
E. Redevelopment Project Costs
The various redevelopment expenditures which are eligible for payment or reimbursement under
the Act are reviewed below. Following this review is a list of estimated redevelopment project costs
which are deemed to be necessary to implement this Redevelopment Plan (the "Redevelopment
Project Costs").
1. Eligible Redevelopment Project Costs
Redevelopment project costs include the sum total of all reasonable or necessary costs
incurred, estimated to be incurred, or incidental to this Redevelopment Plan pursuant to
the Act. Such costs may include, without limitation, the following:
(1) Costs of studies, surveys, development of plans and specifications, implementation
and administration of the redevelopment plan including but not limited to, staff
and professional service costs for architectural, engineering, legal, financial,
planning or other services, provided that no charges for professional services are
based on a percentage of the tax increment collected;
(2) The costs of marketing sites within the Project Area to prospective businesses,
developers, and investors;
(3) Property assembly costs, including but not limited to, acquisition of land and other
property, real or personal, or rights or interests therein, demolition of buildings,
site preparation, site improvements that serve as an engineered barrier addressing
ground level or below ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt barriers, and the cleanng and
grading of land;
(4) Costs of rehabilitation, reconstruction or repair or remodeling of existing public or
private buildings, fixtures, and leasehold improvements; and the cost of replacing
an existing public building if pursuant to the implementation of a redevelopment
project the existing public building is to be demolished to use the site for private
investment or devoted to a different use requiring private investment;
(5) Costs of the construction of public works or improvements; except that on and
after November 1, 1999, redevelopment project costs shall not include the cost of
constructing a new municipal public building principally used to provide offices,
storage space, or conference facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel and that is not intended to
replace an existing public building as provided under paragraph (3) of subsection
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 24
McHenry, Illinois — January 25, 2002
(g) of Section 11-74.4-3 unless either (i) the construction of the new municipal
building implements a redevelopment project that was included in a
redevelopment plan that was adopted by the municipality prior to November 1,
1999 or (ii) the municipality makes a reasonable determination in the
redevelopment plan supported by information that provides the basis for that
determination, that the new municipal building is required to meet an increase in
the need for public safety purposes anticipated to result from the implementation
of the redevelopment plan;
(6) Costs of job training and retraining projects, including the cost of "welfare to
work" programs implemented by businesses located within the redevelopment
project area;
(7) Financing costs including, but not limited to, all necessary and incidental expenses
related to the issuance of obligations and which may include payment of interest
on any obligations issued hereunder including interest accruing during the
estimated period of construction of any redevelopment project for which such
obligations are issued and for a period not exceeding 36 months following
completion and including reasonable reserves related thereto;
(8) To the extent the municipality by written agreement accepts and approves the
same, all or a portion of a taxing district's capital costs resulting from a
redevelopment project necessarily incurred or to be incurred in furtherance of the
objectives of the redevelopment plan and project;
(9) Relocation costs to the extent that a municipality determines that relocation costs
shall be paid or is required to make payment of relocation costs by federal or state
law;
(10) Payment in lieu of taxes as defined in the Act;
(11) Costs of job training, advanced vocational education or career education, including
but not limited to, courses in occupational, semi -technical or technical fields
leading directly to employment, incurred by one or more taxing districts, provided
that such costs (i) are related to the establishment and maintenance of additional
job training, advanced vocational education or career education programs for
persons employed or to be employed by employers located in a redevelopment
project area; and (ii) when incurred by a taxing district or taxing districts other
than the municipality, are set forth in a written agreement by or among the
municipality and the taxing district or taxing districts, which agreement describes
the program to be undertaken including but not limited to, the number of
employees to be trained, a description of the training and services to be provided,
the number and type of positions available or to be available, itemized costs of the
program and sources of funds to pay for the same, and the term of the agreement.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 25
McHenry, Illinois — January 25, 2002
Such costs include, specifically, the payment by community college districts of
costs pursuant to Sections 3-37, 3-38, 3-40, and 3-40.1 of the Public Community
College Act (as cited in the Act) and by school districts of costs pursuant to
Sections 10-22.20a and 10-23.3a of the School Code (as cited in the Act);
(12) Interest costs incurred by a redeveloper related to the construction, renovation or
rehabilitation of a redevelopment project provided that:
(A) such costs are to be paid directly from the special tax allocation fund
established pursuant to this Act;
(B) such payments in any one year may not exceed 30 percent of the annual
interest costs incurred by the redeveloper with regard to the redevelopment
project during that year;
(C) if there are not sufficient funds available in the special tax allocation fund
to make the payment pursuant to this provision, then the amount so due
shall accrue and be payable when sufficient funds are available in the
special tax allocation fund;
(D) the total of such interest payments incurred pursuant to the Act may not
exceed 30 percent of the total: (i) costs paid or incurred by the redeveloper
for such redevelopment project plus (ii) redevelopment project costs
excluding any property assembly costs and any relocation costs incurred
by a municipality pursuant to the Act; and
(E) up to 75 percent of the interest cost incurred by a redeveloper for the
financing of rehabilitated or new housing units for low-income households
and very low-income households, as defined in Section 3 of the Illinois
Affordable Housing Act.
(13) Unless explicitly provided in the Act, the cost of construction of new privately
owned buildings shall not be an eligible redevelopment project cost;
(14) An elementary, secondary, or unit school district's increased costs attributable to
assisted housing units will be reimbursed as provided in the Act;
(15) Up to 50 percent of the cost of construction, renovation and/or rehabilitation of all
low- and very low-income housing units (for ownership or rental) as defined in
Section 3 of the Illinois Affordable Housing Act. If the units are part of a
residential redevelopment project that includes units not affordable to lour- and
very low-income households, only the low- and very low-income units shall be
eligible for benefits under the Act; and
(16) After November 1, 1999, none of the redevelopment project costs enumerated in
this subsection shall be eligible redevelopment project costs if those costs would
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 26
McHenry, Illinois — January 25, 2002
provide direct financial support to a retail entity initiating operations in the
redevelopment project area while terminating operations at another Illinois
location within 10 miles of the redevelopment project area but outside the
boundaries of the redevelopment project area municipality. For purposes of this
paragraph, termination means a closing of a retail operation that is directly related
to the opening of the same operation or like retail entity owned or operated by
more than 50% of the original ownership in a redevelopment project area but it
does not mean closing an operation for reasons beyond the control of the retail
entity, as documented by the retail entity, subject to a reasonable finding by the
municipality that the current location contained inadequate space, had become
economically obsolete, or was no longer a viable location for the retailer or
serviceman.
If a special service area has been established pursuant to the Special Service Area Tax
Act, [35 ILCS 235/0.01 et. seq.] then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act may be used within the
redevelopment project area for the purposes permitted by the Special Service Area Tax
Act as well as the purposes permitted by the Act.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 27
McHenry, Illinois — January 25, 2002
2. Estimated Redevelopment Project Costs
A range of redevelopment activities and improvements will be required to implement this
Redevelopment Plan. The activities and improvements and their estimated costs (2000
dollars) are shown in Table 1 of this Redevelopment Plan. To the extent that municipal
obligations have been issued to pay for such Project Costs prior to, and in anticipation of,
the adoption of TIF, the City shall be reimbursed from Incremental Property Taxes for
such Project Costs. The Redevelopment Project Costs total is intended to provide an
upper estimate of expenditures. Within this upper estimate, adjustments may be made in
line items without amending this Redevelopment Plan.
Table 1. Estimated Redevelopment Project Costs
McHenry Redevelopment Project Area
McHenry, Illinois
Eligible Expense
Estimated Cost _
Planning, Administration, Legal, Marketing and
Other Fees
$500,000
Property Assembly, Environmental
Remediation, and Site Preparation
$2,000,000
Public Works and Improvementsll)
$15,000,000
Building Rehabilitation & Affordable Housing
$2,250,000
Construction
Relocation
$750,000
Developer/Interest Subsidies
$1,500,000
Job Training
$100,000
Total Redevelopment Project Costs $22,100,000 121131
Itt This category may also include paying for or reimbursing (i) an elementary, secondary or unit school district's
increased costs attributed to assisted housing units, and (it) capital costs of taxing districts impacted by the rede-
velopment of the Project Area. As permitted by the Act, to the extent the City by written agreement accepts and
approves the same, the City may pay, or reimburse all, or a portion of a taxing district's capital costs resulting
from a redevelopment project necessarily incurred or to be incurred within a taxing district in furtherance of the
objectives of the Redevelopment Plan.
121 Total Redevelopment Project Costs exclude any additional financing costs, including any interest expense,
capitalized interest and costs associated with optional redemptions These costs are subject to prevailing market
conditions and are in addition to Total Redevelopment Project Costs.
131 Increases in estimated total Redevelopment Project Costs of more than five percent, after adjustment for infla-
tion from the date of Plan adoption, are subject to Plan amendment procedures as provided under the Act.
Additional funding from other sources such as federal, state, county, or local grant funds may be utilized to sup-
plement the City's ability to finance Redevelopment Project Costs identified above.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 28
McHenry, Illinois — January 25, 2002
F. Sources of Funds to Pay Redevelopment Project Costs
Funds necessary to pay for Project Costs and secure municipal obligations issued for such costs are
to be derived partially from Incremental Property Taxes. Other sources of funds which may be used
to pay for Project Costs or secure municipal obligations are land disposition proceeds, state and
federal grants, investment income, private financing and other legally permissible funds the
municipality may deem appropriate. Also, the City may permit the utilization of guarantees,
deposits and other forms of security made available by private sector developers. Additionally, the
City may utilize revenues, other than State sales tax increment revenues, received under the Act
from one redevelopment project area for eligible costs in another redevelopment project area that is
either contiguous to, or is separated only by a public right-of-way from, the redevelopment project
area from which the revenues are received.
The Project Area may become contiguous to, or be separated only by a public right-of-way, from
other redevelopment project areas created under the Act. The City may utilize net incremental
property taxes received from the Project Area to pay eligible redevelopment project costs, or
obligations issued to pay such costs, in contiguous redevelopment project areas or redevelopment
project areas separated only by a public right-of-way, and vice versa. The amount of revenue from
the Project Area, made available to support such contiguous redevelopment project areas, or those
separated only by a public right-of-way, when added to all amounts used to pay eligible Redevel-
opment Project Costs within the Project Area, shall not at any time exceed the total Redevelopment
Project Costs described in this Redevelopment Plan.
G. Issuance of Obligations
The City may issue obligations secured by Incremental Property Taxes pursuant to Section 11-74.4-
7 of the Act. To enhance the security of a municipal obligation the City may pledge its full faith and
credit through the issuance of general obligation bonds. Additionally, the City may provide other
legally permissible credit enhancements to any obligations issued pursuant to the Act.
All obligations issued by the City pursuant to this Redevelopment Plan and the Act shall be retired
within twenty (20) years of their date of issuance, and no later than December 31 of the year in
which the payment to the municipal treasurer is to be paid with respect to ad valorem taxes levied
in the twenty-third calendar year after the year in which the ordinance approving the Project Area
and the Redevelopment Plan was adopted, such ultimate retirement date occurring on December 31,
2026.
In addition to paying Redevelopment Project Costs, Incremental Property Taxes may be used for
the scheduled retirement of obligations, mandatory or optional redemptions, establishment of debt
service reserves and bond sinking funds and any other lawful purpose. To the extent that
Incremental Property Taxes are not needed for these purposes, any excess Incremental Property
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 29
McHenry, Illinois — January 25, 2002
Taxes shall then become available for distribution annually to taxing districts having jurisdiction
over the Project Area in the manner provided by the Act.
H. Valuation of the Project Area
1. Most Recent EAV of Properties in the Project Area
The most recent EAV of all taxable parcels in the Project Area is estimated to total
$14,653,480. This EAV is based on 2001 equalized assessed valuations and is subject to
verification by the County Clerk. After verification, the final figure shall be certified by
the County Clerk of McHenry County, Illinois. This certified amount shall become the
Certified Initial EAV from which all Incremental Property Taxes in the Project Area will
be calculated by McHenry County. The 2001 EAV of the Project Area is summarized by
tax parcel in Table 2, 2001 EAV by Tax Parcel.
2. Anticipated Equalized Assessed Valuation
By the year 2025 (Collection Year 2026) and following the completion of the Redevel-
opment Project, the EAV of the Project Area is estimated to total approximately $36.0
million. This estimate is based on several key assumptions, including: 1) redevelopment
of the Project Area will occur in a timely manner; 2) the EAV of the Project Area will in-
flate at the rate of 2.0 percent per annum; 3) residential redevelopment including 125 at-
tached housing units constructed and occupied by 2011; 4) development of approximately
45,000 square feet of retail and restaurant space built and fully assessed by 2012; and 5) a
state equalization factor of 1.0000 is used in all years to calculate estimated EAV.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Paige 30
McHenry, Illinois — January 25, 2002
Table 2.2001 EA V by Tax Parcel
PIN EAV
9-26-376-018
$77 27
9-26-376-019
$17,37
9-26-376-020
$90,31 ,
9-26-376-021
$9,39
3-26-377-021
$19,83(
3-26-377-022
$307,88
)-26-378-002
Cc9 n�
,. — ,I o-vuo
$59 7C
9-26-378-005
$12,OC
3-26-378-006
$3,7C
3-26-378-007
$4,12
3-26-378-008
$247,25
1-26-378-009
$76,53
1-26-378-012
$9,60
1-26-378-013
exemF
1-26-3 87 014
$31,48!
-- exemp
exernp
Fli:$4:10:2C
exemp
97 80:
1,471
26-380-004
2,36E•26-380-00541,020
��-,,ov-vua
$39,091
-26-380-009
$42,29:
-26-380-010
$37, 80
-26-380-011
$34,20�
-26-380-012
$98,84(
•26-380-013
exemp,
26 380 014
$89,858
26-380-015
$12, 381
26-380-016
$14, 967
26-408-005
$9,067
26-408-009
$64,213
26-408-010
$36,622
26-408-011
$61,407
26-408-015
$89,543
?6-408-016
$20,287
?6-408-019
$12,636
?6-408-024
$ 883,536
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan
McHenry, Illinois —January 25, 2002 Page 31
)-26-408-025
)-26-4 013 01
)-26-4 013 02
1-26-4 031 03
-26-4 031 04
-26-4 031 05
-26-43 01 06
-26-4 031 07
-26-431-008
-26-4 0013 9
•26-4 13 0 11
26-431 012
26-431-013
---
26-4 23 001
-003
)9-26-451-001
)9-26-451-002
)9-26 0154 03
)9-26-4 015 04
19-26 00154 6
19-26 0154 07
9-26 514 008
9-26 0154 09
9-26- 04 115 0
9-26-451-011
9-26-4 15 012
9-26-451 013
3-26-451-014
3-26-4 15 015
)-26-4 05 11 6
)-26-4 025 01
-004
$1,608,221
$51,441
$38,719
$32,95E
$38,242-
$80,83E
$15,73E
$65,521
$38,832
$139,342
$63,597
$37,177
exem
$89,42
$57,07
$71,83
$65,55
$52,94
$93,03
exemE
$60,562
$52,541
$84,816
$28,94E
$62, 581
$29,369
$67,815
$1,607
$29,
$44,682
$41,10E
$61,021
$81,050
$26,188
$22,477
$49,280
$31,337
$75,421
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan
McHenry, Illinois — January 25, 2002 Pa:1 32
b-452-012
$44,57
6-452-015
$95,84
6-452-016
$7,44
6-452-017
$47,34
3-453-002
$59.64
09-26-453-004 $57,0M
09-26-453-005
$32,57'
09-26-453-006
$35,931
39-26-453-007
$56,186
D9-26-453-008
$85,796
is-le-453-010
$42,17:
G-26-453-011
$35,731
19-26-453-012
$93,171
19-26-453-013
$45 17,
9-26-453-014
$63,75
9-26-453-015
$81 81i
9-26-453-016
$30,46�
9-26-453-017
$48,19:
9-26-453-018
$61,311
3-26-453-019
$40,989
3-26-453-020
$29,161
3-26-454-001
$119,227
-26-454-002
$1,051
-26-454-004
$17,168
i-26-454-005
$76,691
1-26-454-006
$49,860
1-26-454-007
$50,344
-26-454-008
$46,512
-26-454-009
$130, 590
-26-454-010
$76,996
-26-454-012
exempt
-26-454-013
$58 287
-26-454-014
$150,189
•26-454-015
$11,619
•26-454-016
exempt
26-454-017
$665
26-455-003
$107 279
26-455-004
$1
-26-455-007
$44,43-,
-26-455-008
$38,84;
-26-455-009
$82e
-26-455-010
$56,911
-26-455-011
$43,104
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan
McHenry, Illinois — January 25, 2002 Page 33
U9-26-455-013 1 $32,4!
09-26-455-014
exem
09-26-455-015
$104,6(
09-26-455-016
$6,0;
D9-26-455-017
$82,3,4
D9-26-455-019
e
-26-455-021
$61,53(
-26-455-022
exemp
-26-456-001
$61,49,
-26-456-002
$57,23E
-26-456-003
$56,451
-26-456-004
$46,947
-26-456-005
$42,198
09-26-456-007
$48 96,
09-26-456-008
$1 82,
09-26-456-009
$32,93
09-26-456-010
$39,70!
09-26-456-011
_ $33,33;
09-26-457-001
$60,16:
09 26 457 002
$61,54,'
09-26-457-003
_ $31,26 i
09-26-457-004
$40,19C
09-26-457-005
$14 291
09-26-457-007
$30,22E
09-26-457-008
$33,431
09-26-457-009
$33,405
09-26-457-010
$32,378
09-26-457-012
$3,349
09-26-457-013
$31,629
09-26-457-014
$31,421
09-26-457-015
$13,033
09-26-458-001
$50,949
09-26-458-002
$41,349
09-26-458-003
$62,327
09-26-458-004
$2 877
09-26-458-005
$186,400
09-26-458-006
exempt
09-26-458-007
$10 821
09-26-458-008
$61,447
09-26-458-009
$5,453
09-26-458-010
$45,838
09-26-458-011
$67,913
09-26-458-012
$49,669
D9-26-458-013
$63,179
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan P,a e 34
McHenry, Illinois — January 25, 2002 g
-26-458-016
$59,801
-26-458-017
$45,654
-26-458-01
$$37,214
•26-458-019
$34,194
•26-458-020
$54,602
26-458-021
exempt
26-458-022
$83,137
)U-26-459-015
$13,47�
)9-26-459-017
$1, 56(
)9-26-459-019
$708,41 ,-
)9-26-459-020
$25,101
19-26-476-001
$112,57E
19-26- 0674 02
$65,797
9-26-476-003
$86,114
9-26 0647 04
$73,491
9-26-476-005
$34,483,
9-26-476-006
$66,596
9-26-476-007
$18,063
9-26-476-008
$402,811
3-26-477-001
$37,217
3-26-477-002
$3,590
)-26-477-003
$62,208
)-26-477-004
$110,289
)-26-477-005 _
$37,733
)-26-477-006
$79,134
1-26-477-007
$93, 776
1-26-477-008
$3,590
-26-477-010
$275,055
-26-477-011
exempt
-35-201-007
$9,067
-35-201-008
$9,067
-35-201-009
$9,067
-35-201-010
$61,457
-35-201-011
exempt
•35-201-015
$46,743
35 201-018
$18 728
35-201-019
$63,353
35-202-007
$39,348
35-202-008
exempt
35-202-011
$27,398
35-202-012
$6,850
35-2 33-001
exempt
35-203-002
exempt
$54,
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan
McHenry, Illinois — January 25, 2002 Page 35
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 36
McHenry, Illinois — January 25, 2002 �'
VI. LACK OF GROWTH AND DEVELOPMENT THROUGH
INVESTMENT BY PRIVATE ENTERPRISE
As described in Section III of this Redevelopment Plan, the Project Area as a whole is adversely
impacted by the presence of numerous conservation factors, and these factors are reasonably
distributed throughout the area and represent major impediments to sound growth and development.
The lack of private investment is evidenced by the following:
• Between 1996 and 2000, the Equalized Assessed Valuation of the Project Area increased by
an average of 1.29% per year. In comparison, the EAV of the balance of the City of
McHenry increased at an annual average rate of 6.46%.
• During the period from 1996 to 2000, the annual growth rate of the total EAV of the Project
Area has lagged behind that of the balance of the City of McHenry for each year. The total
EAV of the Project Area actually declined in one of these years. Please refer to Table 3
below for details.
• Of the 167 buildings in the Project Area, 142 (85 percent) are 35 years of age or older —
which means that only 25 buildings (15 percent) were built since 1966. Over the period
1991 to 2001, only one new building was constructed in the Project Area.
Table 3. Growth of the Project Area vs. City of McHenry
Year
Total EAV
City of McHenry
% Change
Total EAV
Project Area
% Change
1996
319,602,696
13,378,077
1997
334,709,973
4.73%
13,829,733
3.38%
1998
356,363,598
6.47%
14,104,545
1.99%
1999
379,536,750
6.50%
13,534,267
-4.04%
2000
410,534,775
8.17%
14,083,719
4.06%
2001
n/a
n/a
14,653,480
4.05%
Averap-e Growth: 1996 to 2000
6.46%
1.29%
The Project Area on the whole has not been subject to growth and development through investment
by private enterprise. The Project Area would not reasonably be expected to be developed without
the adoption of this Redevelopment Plan for the Project Area.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan ]Page 37
McHenry, Illinois — January 25, 2002
VII. FINANCIAL IMPACT
Without the adoption of this Redevelopment Plan and TIF, the Project Area is not reasonably
expected to be redeveloped by private enterprise. In the absence of City -sponsored redevelopment
initiatives there is a prospect that conservation conditions will continue to exist and spread, and the
Project Area on the whole and adjacent properties will become less attractive for the maintenance
and improvement of existing buildings and sites. In the absence of City -sponsored redevelopment
initiatives, erosion of the assessed valuation of property in and outside of the Project Area could
lead to a reduction of real estate tax revenue to all taxing districts.
Section V of this Redevelopment Plan describes the comprehensive Redevelopment Project
proposed to be undertaken by the City to create an environment in which private investment can
occur. The Redevelopment Project will be staged over a period of years consistent with local
market conditions and available financial resources required to complete the various redevelopment
improvements and activities as well as the Redevelopment Project set forth in this Redevelopment
Plan. Successful implementation of this Redevelopment Plan is expected to result in new private
investment in rehabilitation of buildings and new construction on a scale sufficient to eliminate
deteriorating problem conditions and to return the area to a long-term sound condition.
The Redevelopment Project is expected to have both short- and lonb term positive financial
impacts on the taxing districts affected by the Redevelopment Plan. In the short-term, the City's
effective use of TIF can be expected to stabilize existing assessed values in the Project Area,
thereby stabilizing the existing tax base for local taxing agencies. in the long-term, after the
completion of all redevelopment improvements and activities, the Redevelopment Project and the
payment of all Redevelopment Project Costs and municipal obligations, the taxing districts will
benefit from any enhanced tax base which results from the increase in EAV caused by the
Redevelopment Project.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 38
McHenry, Illinois —January 25, 2002
VIII. DEMAND ON TAXING DISTRICT SERVICES
The Redevelopment Plan provides for residential, commercial and open space/recreational
development activity within the Project Area. The number and type of new development is not
known at this time. It is anticipated that redevelopment projects implemented as part of the
Redevelopment Project and Plan will not cause increased demand for services or capital
improvements on several of the taxing districts.
The following taxing districts currently levy taxes against properties located within the Project
Area: McHenry County, McHenry Township, McHenry Township Road and Bridge District, City
of McHenry, School District 15, School District 156, Junior College District 528, McHenry Fire
Protection District, McHenry Library District, and McHenry County Conservation District.
Since the thrust of this plan is on residential, commercial redevelopment, and open
space/community facilities, an increased demand for services or capital improvements to be
provided by school districts, the community college district, the public library district, the lire
protection and the City may be expected. The replacement of vacant buildings and sites with active
uses will likely result in additional demands on services and facilities for these taxing districts. For
example, City of McHenry services, such as police protection, park and open space maintenance,
sanitary collection, sanitary and storm sewage treatment, etc., are likely to be impacted. However,
it is expected that any increase in demand for the City and other impacted taxing districts' services
can be adequately handled by the existing services and facilities or substantially financed by
incremental property tax revenues derived from new improvements in the Project Area.
Over the next ten years, the potential residential development program for the Project Area includes
the phased development of approximately 125 new attached housing units (ranging in size from one
to three bedrooms) in the Project Area. Based on the City of McHenry's density and population
projection formula, this development could result in an additional population of 257 persons,
including 221 adults, 8 high school -aged children, 19 elementary and middle school -aged children,
and 9 pre -school -aged children. Given the phased nature of potential development and the proposed
housing type, the total increase in the demand for services of School District 15 and/or School
District 156 is not anticipated to be significant —particularly in relation to the community's overall
size and growth.
It is expected that any increase in demand for McHenry County, McHenry Township, McHenry
Township Road and Bridge, and McHenry County Conservation Districts' services and programs
associated with the Project Area can be adequately handled by existing services and programs
maintained and operated by these taxing districts. Therefore, at this time, no special programs are
proposed for these taxing districts.
Should demand increase beyond existing service and program capabilities for any taxing district,
the City will work with the affected taxing district to determine what, if any, program is necessary
to provide adequate services (which would be separate from consideration of any taxing district's
capital facilities within the Project Area). The City may enter into intergovernmental agreements
with taxing districts where TIF revenues can be used for all or a portion of various improvements to
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 39
McHenry, Illinois — January 25, 2002
the applicable capital facilities, to the extent that such increased capital needs result from redevel-
opment projects incurred in furtherance of the objectives of this Redevelopment Plan
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 40
McHenry, Illinois —January 25, 2002
IX. CONFORMITY OF THE REDEVELOPMENT PLAN AND
PROGRAM TO THE COMPREHENSIVE PLAN FOR THE
DEVELOPMENT OF THE CITY AS A WHOLE
This Redevelopment Plan and the Redevelopment Project described herein conform to the
Comprehensive Plan for the development of the City as a whole.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan :Page 41
McHenry, Illinois — January 25, 2002
X. PHASING AND SCHEDULING
A phased implementation strategy will be utilized to achieve comprehensive and coordinated
redevelopment of the Project Area.
It is anticipated that City expenditures for Redevelopment Project Costs will be carefully staged on
a reasonable and proportional basis to coincide with Redevelopment Project expenditures by private
developers and the receipt of Incremental Property Taxes by the City.
The estimated date for completion of Redevelopment Projects is no later than December 31 of the
year in which the payment to the City treasurer as provided in the Act is to be made with respect to
ad valorem taxes levied in the twenty-third calendar year following the year in which the ordinance
approving the Project Area is adopted (i.e., assuming City Council approval of the Project Area and
Redevelopment Plan in 2002), by December 31, 2026.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 42
McHenry, Illinois — January 25, 2002
XI. PROVISIONS FOR AMENDING THE REDEVELOPMENT
PLAN
This Redevelopment Plan may be amended pursuant to the Act.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan ]Page 43
McHenry, Illinois —January 25, 2002
XII. COMMITMENT TO FAIR EMPLOYMENT PRACTICES
AND AFFIRMATIVE ACTION PLAN
The City is committed to and will affirmatively implement the following principles with respect to
the Redevelopment Plan:
A) The assurance of equal opportunity in all personnel and employment actions with
respect to the Redevelopment Plan, including, but not limited to: hiring, training,
transfer, promotion, discipline, fringe benefits, salary, employment working
conditions, ternunation, etc., without regard to race, color, religion, sex, age,
handicapped status, national origin, creed or ancestry.
B) This commitment to affirmative actions will ensure that all members of the
protected groups are sought out to compete for all job openings and promotional
opportunities.
In order to implement these principles for this Redevelopment Plan, the City shall require and
promote equal employment practices and affirmative action on the part of itself and its contractors
and vendors. In particular, parties engaged by the City shall be required to agree to the principles set
forth in this section.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 44
McHenry, Illinois — January 25, 2002
XIII. IMPACT ON INHABITED RESIDENTIAL UNITS
As set forth in the Act, if the redevelopment plan for a redevelopment project area would result in
the displacement of residents from 10 or more inhabited residential units, or if the redevelopment
project area contains 75 or more inhabited residential units and a municipality is unable to certify
that no displacement will occur, the municipality must prepare a housing impact study and
incorporate the study in the redevelopment project plan.
The Redevelopment Project Area contains 287 inhabited residential units. The Redevelopment
Plan provides for the development or redevelopment of several portions of the Project Area that
may contain occupied residential units. As a result, it is possible that by implementation of this
Plan, the displacement of residents from 10 or more inhabited residential units could occur.
The results of the housing impact study section are described in a separate report which presents
certain factual information required by the Act. The report, prepared by TPAP, is entitled
"Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact
Study," and is attached as Exhibit H to this Redevelopment Plan.
Downtown McHenry Tax Increment Financing Redevelopment Project and Plan Page 45
McHenry, Illinois — January 25, 2002
EXHIBIT I
DOWNTOWN MCBENRY TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AREA ELIGIBILITY STUDY
DOWNTOWN MCHENRY
REDEVELOPMENT PROJECT AREA
TAX INCREMENT FINANCING
ELIGIBILITY STUDY
City of McHenry, Illinois
Prepared by:
Trkla, Pettigrew, Allen & Payne, Inc.
January 25, 2002
TABLE OF CONTENTS
EXECUTIVE SUMMARY.........................................................................................................................4
I. BASIS FOR REDEVELOPMENT....................................................................................................7
II. ELIGIBITY SURVEY AND ANALYSIS FINDINGS.....................................................................9
A. DILAPIDATION................................................................................................................................................ I I
B. OBSOLESCENCE..............................................................................................................................................13
C. DETERIORATION.............................................................................................................................................15
D. PRESENCE OF STRUCTURES BELOW MINIMUM CODE STANDARDS.................................................................17
E. ILLEGAL USE OF INDIVIDUAL STRUCTURES....................................................................................................17
F. EXCESSIVE VACANCIES..................................................................................................................................17
G. LACK OF VENTILATION, LIGHT, OR SANITARY FACILITIES..............................................................................18
H. INADEQUATE UTILITIES...................................................................................................................................18
I. EXCESSIVE LAND COVERAGE AND OVERCROWDING OF STRUCTURES AND COMMUNITY FACILITIES .............19
J. DELETERIOUS LAND USE OR LAYOUT............................................................................................................19
K. LACK OF COMMUNITY PLANNING...................................................................................................................20
L. ENVIRONMENTAL REMEDIATION....................................................................................................................21
M. DECLINING OR LAGGING EQUALIZED ASSESSED VALUATION.........................................................................21
III. DETERMINATION OF PROJECT AREA ELIGIBILITY.........................................................22
FIGURES AND TABLES
FIGURE 1. PROJECT AREA BOUNDARY..........................................................................................................2
FIGURE 2. EXISTING LAND USE.....................................................................................................................3
FIGURE3. EXTERIOR SURVEY FORM...........................................................................................................10
FIGURE 4. DISTRIBUTION OF CONSERVATION AREA FACTORS...................................................................24
TABLE 1. SUMMARY OF BUILDING DETERIORATION..................................................................................16
TABLE 2. GROWTH OF THE PROJECT AREA VS. CITY OF MCHENRY..........................................................21
TABLE 3. DISTRIBUTION OF CONSERVATION AREA FACTORS....................................................................23
EXECUTIVE SUMMARY
The purpose of this report is to determine whether the Downtown McHenry Redevelopment
Project Area (the "Project Area"), qualifies for designation as a "conservation area" within the
requirements set forth in the Tax Increment Allocation Redevelopment Act (the "Act"). The Act
is found in Illinois Compiled Statutes, Chapter 65, Act 5, Section 11-74.4-1 et. seq., as amended.
The findings presented in this study are based on surveys and analyses conducted by Trkla,
Pettigrew, Allen & Payne, Inc. ("TPAP") for the Project Area of approximately 129.2 acres, located
on the west side of the Fox River in the City of McHenry (the "City"). The Project Area
encompasses a portion of the City's downtown and is an irregularly shaped area adjacent to and
west of the Fox River that is generally bounded by portions of Elm, Pearl, and Broad Streets on
the north; the eastern boundary of the Fox River and a portion of a line parallel to and
approximately 800 feet east of Green Street on the east; portions of John Street and Waukegan
Road on the south; and portions of Third Street, Green Street, and Richmond Road on the west.
The boundaries of the Project Area are shown on Figure 1, Project Area Boundary.
The Project Area
The Project Area contains 167 buildings located within 21 tax blocks (tax blocks 379 and 380 are
combined for the purposes of the analysis in this report) bisected by two principal north -south
and east -west streets to include Green Street (Route 31) and Elm Street (Route 120) respectively.
The entire Project Area consists of approximately 129.2 acres, of which 31.5 acres (24.4 percent)
includes the Fox River and Boone Lagoon water areas. Approximately 22.1 acres (17.1 percent)
consist of street rights -of -way and approximately 75.6 acres (58.5 percent) represent the
developed land within the 21 blocks. The Project Area consists of a portion of the McHenry
downtown which remains generally active as a central mixed -use area with a variety of uses,
including retail, commercial service, offices, buildings with mixed commercial and residential
activity and a variety of residential buildings. All blocks contain residential buildings in either
single-family, multi -family or in mixed -use buildings. Public and semi-public uses are also
scattered throughout the Project Area including parks and open space, the McHenry Community
High School East Campus, Landmark Elementary School, and a City water treatment plant.
Existing land uses are illustrated in Figure 2, Existing Land Use.
While some limited development and improvements to buildings has occurred in a few blocks of
the downtown over recent years, the Project Area as a whole has not benefited from new private
investment to revitalize the area on a systematic or significant level. The Project Area as a whole
is characterized by aging and deteriorating properties, obsolescent buildings (including a variety
of residential buildings converted to commercial use), and vacant buildings and spaces within
buildings. The Project Area also contains blocks with parcels of varying size and shape,
including small narrow parcels, rear land -locked parcels and large irregularly -shaped parcels.
Most blocks contain a mix of incompatible commercial and residential activity.
Downtown Redevelopment Project Area Tax Increment Financing Eligibility Study 1
McHenry, Illinois —January 10, 2002
ero
0 ad Sr
Pe
E
0 408 431 ` •
432
Ir 0 376 451
Fim 3t
` 377 452
454 453
r m
378 455 tL R 476
o �. pt k
Sr ar 456 a ?Q
ed� y Vo
c
380 .� a 457
C? nib A Qm m
e y
m`
379 458
477
459
W Boone
c an Ra Lagoon
201
202
203
■_ ��■�■�■■ Nam■
oh
t.
■ Project Area Boundary
zo3 Block Number
Figure 1
Project Area Boundary N
Tax Increment Financing Redevelopment Project Area Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
m ea
a"sc
cr
J p
e
E
•
i
• 2
?> < Roue x
Y s�, �r /?o LL
°dam 0y �o y Y
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an Ra,
•
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Y EM■Men NOW wass•
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NINE ■ SEEN Project Area Boundary Residential
Assisted Care Residential
Mixed Commercial/ Residential
Commercial- Retail/Service
19 Public/Semi-Public/Institutional
Parks & Open Space
40 Parking
Y Vacant Land
• Vacant Building/ Floor Areas
Figure 2 N
Existing Land Use W
Tax Increment Financing Redevelopment Project Area Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
As set forth in the Act, a "redevelopment project area" means an area designated by the
municipality which is not less in the aggregate than 1'/z acres, and in respect to which the
municipality has made a finding that there exist conditions which cause the area to be classified
as an industrial park, conservation area or a blighted area, or a combination of both blighted and
conservation areas. The Project Area exceeds the minimum acreage requirements of the Act.
As set forth in the Act, "conservation area" means any improved area within the boundaries of a
redevelopment project area located within the territorial limits of the municipality in which 50
percent or more of the structures in the area have an age of 35 years or more. Such an area is not
yet a blighted area, but because of a combination of three or more of the following factors, the
area is detrimental to the public safety, health, morals or welfare and, it may become a blighted
area: dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of
structures below minimum code standards; excessive vacancies; lack of ventilation, light or
sanitary facilities; inadequate utilities; excessive land coverage and overcrowding of structures
and community facilities; deleterious land use or layout; lack of community planning,
environmental remediation costs (incurred or required), or a declining or lagging rate of growth
in total equalized assessed valuation.
While it may be concluded that the mere presence of the minimum number of the stated factors
may be sufficient to make a finding as a conservation area, this evaluation was made on the basis
that the conservation area factors must be present to a meaningful extent and must be reasonably
distributed throughout the Project Area so that basically good areas are not arbitrarily included in
the Project Area simply because of proximity to areas that qualify as a conservation area.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 4
McHenry, Illinois —January 25, 2002
On the basis of this approach, the Project Area is eligible as a "conservation area" within the
requirements of the Act. Of the total 167 buildings within the 21 blocks, 142 ( 85 percent) are 35
years of age or older. In addition to age, nine of the thirteen qualifying factors required under the
Act are present in the Project Area. These factors are reasonably distributed throughout the entire
Project Area. The entire Project Area is impacted by and shows the presence of these
conservation factors. Finally, the Project Area includes only real property and improvements
substantially benefited by the proposed redevelopment project improvements. The extent to
which these factors are present in the Project Area is summarized below.
Conservation Area Factors
1. Dilapidation
Dilapidation as a factor is present to a limited extent in two blocks.
2. Obsolescence
Obsolescence as a factor is present to a major extent in fifteen blocks and to a limited
extent in three blocks. Conditions contributing to this factor include the functional and
economic obsolescence of existing buildings of limited size and utility, single -purpose
buildings altered or converted to other uses, and obsolescent streets.
3. Deterioration
Deterioration as a factor is present to a major extent in nine blocks and to a limited extent
in ten blocks. Deterioration includes the deterioration of visible building components as
well as the deterioration of portions of streets and site surfaces, parking and service areas.
4. Structures Below Minimum Code Standards
Structures below minimum code standards as a factor is present to a major extent in four
blocks and to a limited extent in five blocks. Structures in these blocks exhibit advanced
defects in building components, which are below the minimum legal requirements
established by the laws, ordinances and regulations of the City of McHenry.
5. Excessive Vacancies
Excessive vacancies as a factor is present to a major extent in four blocks and to a limited
extent in six blocks. This factor includes buildings that are totally vacant, contain vacant
space in either storefronts or in upper floors, or contain vacant dwelling units.
6. Excessive Land Coverage & Overcrowding of Structures and Community Facilities
Excessive land coverage and overcrowding of structures and community facilities, as a
factor is present to a major extent in four blocks and to a limited extent in five blocks.
Properties impacted include parcels with buildings which occupy all or nearly the entire
parcel or parcels with multiple buildings including rear buildings, resulting in a lack of
off-street parking, inadequate service and loading facilities, and limited ingress and
egress.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 5
McHenry, Illinois — January 25, 2002
7. Deleterious Land Use or Layout
Deleterious land -use or layout as a factor is present to a major extent in eleven blocks and
to a limited extent in nine blocks. This factor includes an incompatible mix of land uses
as well as the improper layout of parcels, buildings, and several streets, which is
inconsistent with current standards or requirements for proper service, access, egress and
loading requirements.
8. Lack of Community Planning
Lack of community planning as a factor is present to a major extent. The Project Area
was developed on a building by building basis without the benefit or guidance of a
community plan with reasonable policies and standards for building placement and lot
coverage and the location and arrangement of off-street parking and service access for
buildings.
9. Declining or Lagging Equalized Assessed Valuation
The annual rate of growth as determined by the total equalized assessed value; of the
proposed redevelopment project area has increased at a rate less than that of the balance of
the City of McHenry in each of the last four calendar years for which information is
available 1996-2000. In one of those years, the proposed redevelopment project area
experienced a decline in the annual rate of growth.
TPAP has prepared this Eligibility Study and the related Redevelopment Plan with the
understanding that the City would rely on (i) the findings and conclusions of this Eligibility
Study and the related Redevelopment Plan in proceeding with the designation of the
Redevelopment Plan, and (ii) the fact that TPAP has obtained the necessary information so that
the Eligibility Study and the related Redevelopment Plan will comply with the Act.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 6
McHenry, Illinois — January 25, 2002
I. BASIS FOR REDEVELOPMENT
The Illinois General Assembly made two key legislative findings in adopting the Act:
1. That there exists in many municipalities within the state blighted and conservation
areas; and
2. That the eradication of blighted areas and the treatment and improvement of
conservation areas by redevelopment projects are essential to the public interest.
These findings were made on the basis that the presence of blight or conditions which lead to
blight are detrimental to the safety, health, welfare and morals of the public.
To ensure that the exercise of these powers is proper and in the public interest, the Act also
specifies certain requirements that must be met before a municipality can proceed with im-
plementing a redevelopment project. One of these requirements is that the municipality must
demonstrate that a prospective redevelopment project qualifies either as a "blighted area" or as a
"conservation area" within the definitions for each set forth in the Act (Section 11-74.4-3). The
requirements for qualification of a conservation area are described below.
Eligibility of a Conservation Area
A conservation area is an improved area in which 50 percent or more of the structures in the area
have an age of 35 years or more and there is a presence of a combination of three or more of the
thirteen factors defined in the Act and listed below. Such an area is not yet a blighted area, but
because of a combination of three or more of these factors, the area may become a blighted area.
1. Dilapidation
2. Obsolescence
3. Deterioration
4. Illegal use of individual structures
5. Presence of structures below minimum code standards
6. Excessive vacancies
7. Lack of ventilation, light, or sanitary facilities
8. Inadequate utilities
9. Excessive land coverage and overcrowding of structures and community facilities
10. Deleterious land -use or layout
11. Lack of community planning
12. Environmental remediation costs have been incurred or are required
13. Declining or lagging rate of growth of total equalized assessed valuation
For conservation areas, the Act does not describe what constitutes the extent of presence necessary
to make a finding that a factor exists. However, TPAP, in preparing this Eligibility Study, has
applied the following principles:
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 7
McHenry, Illinois — January 25, 2002
1. The minimum number of factors must be present to a meaningful extent and the presence of
each must be documented;
2. For a factor to be found present, it should be present to a meaningful extent so that a local
governing body may reasonably find that the factor is clearly present within the intent of the
Act; and
3. The factors should be reasonably distributed throughout the redevelopment project area.
It is also important to note that the test of eligibility is based on the conditions of the area as a
whole; it is not required that eligibility be established for each and every property in the Project
Area. On the basis of this approach, the Project Area qualifies as a "conservation area" as defined
by the Act.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 8
McHenry, Illinois — January 25, 2002
II. ELIGIBITY SURVEY AND ANALYSIS FINDINGS
An analysis was made of each of the blighted factors listed in the Act to determine whether each
or any are present in the Project Area, and if so, to what extent and in what locations. Surveys
and analyses conducted by TPAP included:
1. Exterior survey of the condition and use of all buildings and sites;
2. Field survey of environmental conditions covering streets, sidewalks, curbs and
gutters, lighting, traffic, parking facilities, landscaping, fences, and general property
maintenance;
3. Analysis of the existing uses within the Project Area and their relationships to the
surroundings;
4. Comparison of current land use to current zoning ordinance and the current zoning
map;
5. Analysis of original and current platting and building size and layout;
6. Analysis of vacant portions of the sites and buildings;
7. Analysis of building floor area and site coverage;
S. Review of City of McHenry sewer, water and capital improvements reports;
9. Review of previously prepared plans, studies and data; and
10. Analysis of McHenry Township Assessor records for equalized assessed valuations
for tax parcels in the Project Area for assessment years 1996 to 2001.
A statement of findings is presented for each conservation factor listed in the Act. The conditions
that exist and the relative extent to which each factor is present are described below.
A factor noted as "not present" indicates either that no information was available or that no
evidence could be documented as part of the various surveys and analyses. A factor noted as present
to a limited extent indicates that conditions exist that document that the factor is present, but that
the distribution or impact of the condition is limited. Finally, a factor noted as present to a major
extent indicates that conditions exist which document that the factor is present throughout major
portions of the block and that the presence of such conditions have a major adverse impact or
influence on adjacent and nearby development. Figure 3 is a copy of the form used to record
building conditions.
What follows is the summary evaluation of the conservation factors, presented in order of their
listing in the Act.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 9
McHenry, Illinois —January 25, 2002
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A. Dilapidation
As defined in the Act, "dilapidation" refers to an advanced state of disrepair or neglect of
necessary repairs to the primary structural components of buildings or improvements in such a
combination that a documented building condition analysis determines that major repair is
required or the defects are so serious and so extensive that the buildings must be removed.
This section summarizes the process used for assessing building conditions in the Project Area,
the standards and criteria used for evaluation, and the findings as to the existence of dilapidation
or deterioration of structures. The process, standards and criteria were applied in accordance with
the TPAP Building Conditions Survey Manual, provided under separate cover to the City.
The building condition analysis is based on a thorough exterior inspection of the buildings and
sites conducted during November 2001. Structural deficiencies in building components and
related environmental deficiencies in the Project Area were noted during the inspections.
Building Components Evaluated
During the field survey, each component of the buildings in the Project Area was examined to
determine whether it was in sound condition or had minor, major, or critical defects. Building
components examined were of two types:
Primary Structural
These include the basic elements of any building: foundation walls, load -bearing walls
and columns, floors, roof and roof structure.
Secondary Components
These are components generally added to the primary structural components .and are
necessary parts of the building, including exterior and interior stairs, windows and
window units, doors and door units, interior walls, chimneys, and gutters and
downspouts.
Criteria for Classifying Defects for Building Components
Each primary and secondary component was evaluated separately as a basis for
determining the overall condition of individual buildings. This evaluation considered the
relative importance of specific components within a building and the effect that
deficiencies in components will have on the remainder of the building.
Building Component Classifications
The four categories used in classifying building components and systems and the criteria used in
evaluating structural deficiencies are described below:
Sound
Building components that contain no defects, are adequately maintained, and require no
treatment outside of normal ongoing maintenance.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 11
McHenry, Illinois — January 25, 2002
Deficient - Requiring Minor Repair
Building components containing defects (loose or missing material or holes and cracks
over a limited area) which often may be corrected through the course of normal
maintenance. Minor defects have no real effect on either primary or secondary
components and the correction of such defects may be accomplished by the owner or
occupants, such as pointing masonry joints over a limited area or replacement of less
complicated components. Minor defects are not considered in rating a building as
structurally substandard.
Deficient - Requiring Major Repair
Building components which contain major defects over a widespread area and would be
difficult to correct through normal maintenance. Buildings in the major deficient category
would require replacement or rebuilding of components by people skilled in the building
trades.
Critical
Building components that contain major defects (bowing, sagging, or settling to any or all
exterior components causing the structure to be out -of -plumb, or broken, loose or missing
material and deterioration over a widespread area) so extensive that the cost of repair
would be excessive.
Final Building Rating
After completion of the exterior -interior building condition survey, each structure was placed in
one of four categories based on the combination of defects found in various primary and secon-
dary building components. Each final rating is described below:
Sound
Sound buildings can be kept in a standard condition with normal maintenance. Buildings
so classified have less than one minor defect.
Deficient
Deficient buildings contain defects that collectively are not easily correctable and cannot
be accomplished in the course of normal maintenance. The classification of major or
minor reflects the degree or extent of defects found during the survey of the building.
Minor
Buildings classified as "deficient - requiring minor repairs" - have more than one
minor defect, but less than one major defect.
Major
Buildings classified as "deficient - requiring major repairs" - have at least one major
defect in one of the primary components or in the combined secondary components,
but less than one critical defect.
Substandard
Structurally substandard buildings contain defects that are so serious and so extensive that
the building must be removed. Buildings classified as structurally substandard have two
or more major defects.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 12
McHenry, Illinois — January 25, 2002
"Minor deficient" and "major deficient" buildings are considered to be the same as
"deteriorating" buildings as referenced in the Act; "substandard" buildings are the same as
"dilapidated" buildings. The words "building" and "structure" are presumed to be
interchangeable.
Exterior Survey
The conditions of the buildings within the Project Area were determined based on observable
components. TPAP conducted an exterior survey of each building within the Project Area to
determine its condition. Of the total of 167 buildings:
79 buildings were classified as structurally sound;
69 buildings were classified as minor deficient (deteriorating);
17 buildings were classified as major deficient (deteriorating); and
2 buildings were classified as structurally substandard (dilapidated).
Blocks in which 10 percent or more of the buildings are dilapidated (substandard) are indicated
as characterized by the presence of dilapidation to a major extent. Blocks in which less than 10
percent of the buildings are dilapidated are indicated as characterized by the presence of
dilapidation to a limited extent.
Conclusion: Dilapidation (structurally substandard buildings) as a factor is present to a
limited extent in two blocks and therefore present to a limited extent throughout
the Project Area.
B. Obsolescence
As defined in the Act, "obsolescence" refers to the condition or process of falling into disuse.
Structures have become ill suited for the original use.
In making findings with respect to buildings, it is important to distinguish between functional
obsolescence, which relates to the physical utility of a structure, and economic obsolescence, which
relates to a property's ability to compete in the market place.
Functional Obsolescence
Historically, structures have been built for specific uses or purposes. The design, location,
height, and space arrangement are intended for a specific occupant at a given time. Buildings
become obsolescent when they contain characteristics or deficiencies which limit their use and
marketability after the original use ceases. The characteristics may include loss in value to a
property resulting from an inherent deficiency existing from poor design or layout, the improper
orientation of the building on its site, etc., which detracts from the overall usefulness or
desirability of a property.
Economic Obsolescence
Economic obsolescence is normally a result of adverse conditions which cause some degree
of market rejection and, hence, depreciation in market values.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 13
McHenry, Illinois — January 25, 2002
If functionally obsolescent properties are not periodically improved or rehabilitated, or
economically obsolescent properties are not converted to higher and better uses, the income and
value of the property erodes over time. This value erosion leads to deferred maintenance,
deterioration, and excessive vacancies. These manifestations of obsolescence then begin to have an
overall blighting influence on surrounding properties and detract from the economic vitality of the
overall area.
Site improvements, including sewer and water lines, public utility lines (gas, electric and
telephone), roadways, parking areas, parking structures, sidewalks, curbs and gutters, lighting, etc.,
may also evidence obsolescence in terms of their relationship to contemporary development
standards for such improvements. Factors of obsolescence may include inadequate utility
capacities, outdated building designs, etc.
Obsolescence as a factor should be based upon the documented presence and reasonable dis-
tribution of buildings and site improvements evidencing such obsolescence.
Obsolete Building Types
Obsolescent buildings contain characteristics or deficiencies that limit their long-term sound use
or reuse. Obsolescence in such buildings is typically difficult and expensive to correct. Obsolete
building types have an adverse affect on nearby and surrounding development and detract from
the physical, functional and economic vitality of the area.
Obsolescence is present in a significant number of structures in the Project Area. These structures
are characterized by conditions that limit their efficient or economic use according to
contemporary standards.
Obsolescent buildings include 58 of the 167 buildings located in 18 of the 21 blocks of the
Project Area. These buildings include single -purpose storage buildings as well as small buildings
of limited size and/or narrow tenant space with limited long-term utility or capacity for
conversion or expansion for contemporary business or retail use. Obsolescence is also evidenced
by buildings that have been converted to new uses including residential buildings and buildings
of limited size converted to, or expanded for, commercial or office space and storefront buildings
inappropriately converted to dwelling units.
Obsolescent Streets
Third Street, John Street and Waukegan Road rights -of -way widths range from 50 to 60 feet--10
to 16 feet less than the standard 66 feet for local street systems. Riverside Drive and Waukegan
Road terminate at locations south and north of the Boone Lagoon without cul-de-sacs or
sufficient space for vehicles to efficiently "turn around". Venice Avenue is a short, narrow local
street (25 foot right-of-way width) which "dead -ends" to private property at both its east and west
ends —preventing effective and efficient circulation from this portion of the Project Area.
Blocks in which 20 percent or more of the buildings or sites are obsolescent are indicated as
characterized by the presence of obsolescence to a major extent. Blocks in which less than 20
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 14
McHenry, Illinois — January 25, 2002
percent of the buildings or sites are obsolescent are indicated as characterized by the presence of
obsolescence to a limited extent.
Conclusion: The analysis indicates that obsolescence is present to a major extent in fifteen
blocks and to a limited extent in three blocks and therefore is present to a
meaningful extent throughout the Project Area.
C. Deterioration
As defined in the Act, "deterioration" refers to, with respect to buildings, defects including, but
not limited to, major defects in the secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect to surface improvements, the
condition of roadways, alleys, curbs, gutters, sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not limited to, surface cracking, crumbling,
potholes, depressions, loose paving material, and weeds protruding through paved surfaces.
Based on the definition given by the Act, deterioration refers to any physical deficiencies or
disrepair in buildings or site improvements requiring treatment or repair.
• Deterioration may be evident in basically sound buildings containing minor defects, such
as lack of painting, loose or missing materials, or holes and cracks over limited areas.
This deterioration can be corrected through normal maintenance.
• Deterioration which is not easily correctable and cannot be accomplished in the course of
normal maintenance may also be evident in buildings. Such buildings may be classified as
minor deficient or major deficient buildings, depending upon the degree or extent of
defects. This would include buildings with defects in the secondary building components
(e.g., doors, windows, porches, gutters and downspouts, fascia materials, etc.), and
defects in primary building components (e.g., foundations, frames, roofs, etc.),
respectively.
Deterioration of Street Pavement, Parking and Service Areas
Deteriorated street right-of-way infrastructure is present in a number of locations in the Project
Area. The portion of Third Street between Blocks 376 and 377 contains deteriorated pavement.
Park Street and Venice Avenue lack curbs and sidewalks, contain deteriorated pavement and
contain gravel shoulders. Sections of Court Street contain sections of deteriorated curbs and
gutters. A section of sidewalk at the southeast corner of Green Street and Elm Street contains
settled sections, deterioration and weed growth.
Parking surface and storage areas consisting of gravel surfaces with weed growth exist in Block
458 (behind the vacant theater), in Block 477 (boat storage area), in Block 380 (between
Landmark Elementary and the multi -family building property to the west) and in Block 201 near
the water treatment plant and related marina boat storage areas. Deteriorating paved asphalt
parking areas with protruding weed growth, include the large lot east of the McHenry Villa
Retirement Center. In Block 378, the municipal parking lot requires repaving and sealing and a
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 15
McHenry, Illinois — January 25, 2002
large concrete retaining wall along this lot (at the rear and west of the funeral home property) is
cracked with bowed -out sections. Retaining walls with similar deteriorating conditions are
located in the rear of properties in Block 453. The parking lot behind the former Whale's Tail
Restaurant in Block 451 is deteriorated with weed growth and debris.
Deterioration of Buildings
The analysis of building deterioration is based on the survey methodology and criteria described
in the preceding section on "Dilapidation." Of the total 167 buildings, 88 (53 percent) of the
buildings within the Project Area, are classified as deteriorating. As noted in Table 1, building
deterioration is present throughout most of the blocks within the Project Area.
Table 1. Summary of Building Deterioration
Minor
! Major
Block No.
Total Buildings
Sound
Deficient
i Deficient
i Substandard ' Percent Deficient
201
! - 3
0
1
---------------------------
2
- - 0 }
--- --
100%
202
1
--0- -
- -� - - 1
- 0 ---
0 -
100% --
-
I
o
025
376
2
1
1
0
0 -!-
50%
377
--
0
L- 1
0
0 I
100%
378
r 5
3--
-
1
0
40%
- --
380
9
6
- - -
3
0
0
33%
408
6
6
0
0
0 i
0%
431 --
12
! -
5 ---
'
-- 1 -- 5
2
`__
0 - -- - -I
-- 58%
432
5
1
!- 4
'
0
80�%
451
11
---
6 -
-
- -- -- 5- -
- -- - --
- —1? -
-- - -
- --- --� - = ----
45 %
- - -
- - - - --
452
- - -
16
-I
!
9
6
1
0
44% -
453
-------- - ----- -
- 17
- -
- -
- 6- -
- -- -- 11 -
- 1- - - - -
-- 0 ---------------
65%
--------------
454
8
',
3
5
0 - -
- - - - - --
-;
63% -
455
11
I
2
- - 6
3
0 1
82%
1
0 i
40%
457
ll
2
4
j 4
458
15
1
11
1
0
27%
- - - -
- -- ---
-- -- - --- —
--- ---
-, - - - - -
- t - - - - -
-- - - - --- -;
-- -
0170
459
i 2
�- --
�3
- -1 -- - - --
1 - - - 0 --
- 0 f
-
- ---- --- ------ --
476-
--------------
6 -
- -
--
-
-3---=-
1 ---
-0 -'
- 67%
- -
- 477
( 8
2 -
4 -
1 -- --
-- - ---- ----- --
1 `
j - -- - - -- -- -- -- —
71%
--- - -- - ----
Total
I 167
1
79
j 69
17
2 i
53 %
Blocks in which 20 percent or more of the buildings or site improvements are indicated as
characterized by deterioration and, provided that at least 10 percent of all buildings are
deteriorating to a major deficient level, indicate the presence of deterioration to a major extent.
Blocks in which less than 20 percent of the buildings or sites show the presence of deterioration
and less than 10 percent of all buildings are deteriorating to a major deficient level, indicate that
deterioration is present to a limited extent.
Conclusion: Deterioration is present to a major extent in nine and to a limited extent in ten
blocks and therefore is present to a meaningful extent throughout the Project
Area.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 16
McHenry, Illinois - January 25, 2002
D. Presence of Structures Below Minimum Code Standards
As defined in the Act, the "presence of structures below minimum code standards" refers to all
structures that do not meet the standards of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not including housing and property maintenance
codes.
As referenced in the definition above, the principal purposes of governmental codes applicable to
properties are to require buildings to be constructed in such a way as to sustain safety of loads
expected from the type of occupancy; to be safe for occupancy against fire and similar hazards;
and/or to establish minimum standards essential for safe and sanitary habitation. Structures
below minimum code standards are characterized by defects or deficiencies that threaten health
and safety.
Determination of the presence of structures below minimum code standards was based upon
visible defects and advanced deterioration of building components from the exterior surveys. Of
the total 167 buildings, 19 (11 percent) exhibited advanced deterioration and defects that are
below the standards for existing buildings and related codes of the City of McHenry.
Blocks in which 20 percent or more of the buildings contain advanced defects are indicated as
characterized by the presence of structures below minimum code standards to a major extent.
Blocks in which less than 20 percent of the buildings are below minimum code standards are
considered present to a limited extent.
Conclusion: The factor of structures below minimum code standards is present to a major
extent in four blocks and to a limited extent in five blocks and therefore is present
to a limited extent.
E. Illegal Use of Individual Structures
As defined in the Act, "illegal use of individual structures" refers to the use of structures in
violation of applicable federal, State, or local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
Conclusion: No condition pertaining to illegal uses of individual structures has been
documented as part of the exterior surveys and analyses undertaken within the
Project Area.
F. Excessive Vacancies
As defined in the Act, "excessive vacancies" refers to the presence of buildings that are
unoccupied or under-utilized and that represent an adverse influence on the area because of the
frequency, extent, or duration of the vacancies.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 17
McHenry, Illinois — January 25, 2002
Excessive vacancies as a factor is present throughout most of the blocks within the Project Area.
Based on the surveys, a total of seven buildings were vacant and an additional four buildings
contained vacant space in either ground floor or upper floor areas. In combination, eleven
buildings (6.6 percent) of all buildings are impacted by vacant space.
Blocks in which 20 percent or more of the buildings are partially or totally vacant are indicated as
characterized by the presence of excessive vacancies to a major extent. Blocks with less than 20
percent of the buildings partially or totally vacant are characterized by the presence of excessive
vacancies to a limited extent.
Conclusion: Excessive vacancies as a factor is present to a major extent in four blocks and to
a limited extent in six blocks and therefore is present to a limited extent.
G. Lack of Ventilation, Light, or Sanitary Facilities
As defined in the Act, lack of ventilation, light, or sanitary facilities refers to the absence of
adequate ventilation for light or air circulation in spaces or rooms without windows, or that
require the removal of dust, odor, gas, smoke, or other noxious airborne materials. Inadequate
natural light and ventilation means the absence or inadequacy of skylights or windows for
interior spaces or rooms and improper window sizes and amounts by room area to window area
ratios. Inadequate sanitary facilities refers to the absence or inadequacy of garbage storage and
enclosure, bathroom facilities, hot water and kitchens, and structural inadequacies preventing
ingress and egress to and from all rooms and units within a building.
Conclusion: No condition pertaining to a lack of ventilation, light, or sanitary facilities has
been documented as part of the exterior surveys and analyses undertaken within
the Project Area.
H. Inadequate Utilities
As defined in the Act, "inadequate utilities" refers to underground and overhead utilities such as
storm sewers and storm drainage, sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate. Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii) lacking within the redevelopment project area.
A review of City reports related to long-range capital improvement needs or plans regarding
utilities indicate that significant improvements are needed in the Central Waste Water Treatment
Plant (located in the Project Area) in order to accommodate anticipated growth of the City
overall. Other improvements and related costs listed in the City reports also apply generally to
city-wide projects and improvements. Overall, adequacy of the utilities specifically within the
Project Area could not be documented based on the data available.
Conclusion: Inadequate utilities, as a factor has not been documented as part of the exterior
surveys and analyses undertaken within the Project Area.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 18
McHenry, Illinois —January 25, 2002
I. Excessive Land Coverage & Overcrowding of Structures and Community Facilities
As defined in the Act, "excessive land coverage and overcrowding of structures and community
facilities" refers to the over -intensive use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem conditions warranting the designation of an
area as one exhibiting excessive land coverage are: the presence of buildings either improperly
situated on parcels or located on parcels of inadequate size and shape in relation to present-day
standards of development for health and safety and the presence of multiple buildings on a single
parcel. For there to be a finding of excessive land coverage, these parcels must exhibit one or
more of the following conditions: insufficient provision for light and air within or around
buildings, increased threat of spread of fire due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way,, lack of reasonable required off-street
parking, or inadequate provision for loading and service.
Excessive land coverage and overcrowding of structures and community facilities is present
within several blocks of the Project Area as indicated primarily by buildings that cover most or
all of the parcels upon which they are situated. The properties affected are mostly commercial
properties that do not contain adequate front, rear and side yards, off-street parking space, and
adequate loading and service areas. Properties with multiple buildings are also characterized by
excessive land coverage.
Blocks in which 20 percent or more of the sites or land area are impacted by excessive land
coverage are indicated as characterized by the presence of excessive land coverage to a major
extent. Blocks in which less than 20 percent of the sites or land area indicates excessive land
coverage are indicated as characterized by the presence of excessive land coverage to a limited
extent.
Conclusion: Excessive land coverage and overcrowding of structures and community facilities
is present to a major extent in four blocks and to a limited extent in five blocks
and therefore is present to a limited extent within the Project Area.
J. Deleterious Land Use or Layout
As defined in the Act, "deleterious land -use or layout refers to the existence of incompatible
land -use relationships, buildings occupied by inappropriate mixed -uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding area. Deleterious layout includes evidence
of improper or obsolete platting of the land, inadequate street layout, and parcels of inadequate
size or shape to meet contemporary development standards. It also includes evidence of
improper layout of buildings on parcels and in relation to other buildings.
Incompatible Uses
Most of the blocks are impacted by incompatible and inappropriate uses. Patchwork and
conflicting mixtures of residential and commercial buildings are prevalent throughout the Project
Area. Twelve of the twenty-one blocks in the downtown contain residential buildings and
thirteen blocks contain buildings with mixed commercial and residential uses.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 19
McHenry, Illinois — January 25, 2002
Improper PlattinglLayout
Improper platting/layout is evidenced by blocks and parcels with narrow and irregularly shaped
parcels which are either of limited size or are large and irregular in layout or platting. Most
blocks contain narrow and irregularly shaped parcels, including interior land -locked parcels of
limited depth and width for sound commercial development consistent with contemporary
standards and requirements.
Blocks in which 20 percent or more of all properties indicate deleterious land use or layout are
indicated as characterized by the presence of deleterious land use or layout to a major extent.
Blocks in which less than 20 percent of the properties indicate deleterious land use or layout are
indicated as characterized by the presence of deleterious land use or layout to a limited extent.
Conclusion: The factor of deleterious land -use or layout is present to a major extent in eleven
blocks and to a limited extent in nine blocks and therefore is present to a
meaningful extent.
K. Lack of Community Planning
As defined in the Act, "lack of community planning" means that the proposed redevelopment
project area was developed prior to or without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption by the municipality of a
comprehensive or other community or central area plan or that the plan was not followed at the
time of the area's development. This factor must be documented by evidence of adverse or
incompatible land -use relationships, inadequate street layout, improper subdivision, parcels of
inadequate shape and size to meet contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
The Project Area was developed in the early 1900's on a parcel -by -parcel and building - by -
building basis prior to any evidence of planning and coordination among buildings and activities
and without the benefit of a comprehensive or community plan, or guidelines requiring proper
building setbacks, loading or service requirements.
Four blocks contain a mix of residential and commercial uses. Seven blocks contain, small
residential parcels with limited width or depth for commercial development. The Project Area,
with parcels of inadequate size and shape for existing uses, lack of accessibility for servicing
buildings and businesses, lack of proper building setbacks, building conversions and
incompatible uses, would not meet current standards for commercial development.
Conclusion: Lack of community planning as a factor is present to a meaningful extent in the
Project Area.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 20
McHenry, Illinois — January 25, 2002
L. Environmental Remediation
As defined in the Act, "environmental remediation" means that the area has incurred' Illinois
Environmental Protection Agency or United States Environmental Protection Agency
remediation costs for, or a study conducted by an independent consultant recognized as having
expertise in environmental remediation has detennined a need for, the clean-up of hazardous
waste, hazardous substances, or underground storage tanks required by State or federal law,
provided that the remediation costs constitute a material impediment to the development or
redevelopment of the redevelopment project area.
Conclusion: The factor of environmental remediation was not investigated for the purposes of
this report.
M. Declining or Lagging Equalized Assessed Valuation
As defined in the Act, a "declining or lagging equalized assessed valuation" means that the total
equalized assessed value of the proposed redevelopment project area has declined for 3 of the
last 5 calendar years for which information is available or is increasing at an annual rate that is
less than the balance of the municipality for 3 of the last 5 calendar years for which information
is available or is increasing at an annual rate that is less than the Consumer Price Index for All
Urban Consumers published by the United States Department of Labor or successor agency for
3 of the last 5 calendar years for which information is available.
The annual rate of growth as determined by the total equalized assessed value of the proposed
redevelopment project area has increased at a rate less than that of the balance of the City of
McHenry in 4 of the last 4 calendar years 1996-2000 (information is not yet available for the City of
McHenry as a whole for 2001). In one of those years, the proposed redevelopment project area
experienced a decline in the annual rate of growth. Table 2 presents the annual rate of change in
EAV for the Project Area as well as for the balance of the City of McHenry and the CPI for the
Chicago -Gary -Kenosha region.
Table 2. Annual Rate of Change in EAV
% Change
2000-2001
% Change
1999-2000
% Change
1998-1999
% Change
1997-1998
% Change
1996-1997
Average
Annual
% Change"
Project Area
4.05%
4.06%
-4.04%
1.99%
3.38%
1.29%
Balance of
City of McHenry
n/a
8.17%
6.5%
6.47%
4.73%
6.46%
CPI *
(Chicago -Gary -Kenosha)
n/a
3.99%
2.48%
1.41%
1.94%
2.4%
*CPI = Consumer Price Index for all urban consumers in the Chicago -Gary -Kenosha area
**1996 to 2000
Conclusion: The factor of declining or lagging equalized assessed valuation is present to a
meaningful extent in the Project Area.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 21
McHenry, Illinois — January 25, 2002
III. DETERMINATION OF PROJECT AREA ELIGIBILITY
The Project Area meets the requirements of the Act for designation as a "conservation area."
There is a reasonable presence and distribution of nine of the thirteen factors required under the
Act for eligibility as a conservation area. These include:
1. Dilapidation -- limited presence
2. Obsolescence -- major presence
3. Deterioration -- major presence
4. Structures below minimum code standards -- limited presence
5. Excessive vacancies -- limited presence
6. Excessive land coverage and overcrowding of structures and community facilities; --
limited presence
7. Deleterious land -use or layout -- major presence
8. Lack of community planning -- major presence
9. Declining or lagging rate of growth of total equalized assessed valuation --major
presence
The summary of conservation factors within the Project Area is documented on a block -by -block
basis in Table 3 and illustrated in Figure 4.
The eligibility findings presented in this report indicate that the Project Area is in need of
revitalization and guided growth to ensure that it will contribute to the long-term physical,
economic, and social well-being of the City. The Project Area contains properties and buildings of
various sizes and design that are advancing in obsolescence and decline of physical condition.
Existing vacancies, insufficient off street parking, loading and service areas in addition to other
conservation factors as identified above, indicate that the Project Area as a whole has riot been
subject to growth and development through investment by private enterprise, and would not
reasonably be anticipated to be restored to full active redevelopment without public action.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study 22
McHenry, Illinois —January 25, 2002
Table 3. Distribution of Conservation Area Factors
Block No.
U
Q
O
R
p
C
Vi
O
aV+
A
�
i=.
p
>
V
w
V 6r
r-i O
V
Q
G
�
Ci
•> �"
�° "
.zi L
V �
°�
i� v
E
V C
�'
� R
201
•
•
•
•
•
•
•
•
202
O
O
•
•
•
•
203
•
•
O
•
•
•
376
O
•
O
O
•
•
377
O
•
O
•
•
378
•
•
O
O
•
•
•
•
379/380
•
•
O
•
•
•
408
0
0
•
•
•
431
•
O
•
O
O
O
•
•
432
•
•
O
•
•
•
451
•
•
0
0
O
•
•
452
•
•
•
0
0
•
•
453
•
•
0
0
0
0
•
•
454
•
•
0
0
•
0
•
•
455
•
•
•
•
•
0
•
•
456
•
•
•
0
•
•
•
457
•
O
•
•
•
O
0
•
•
•
458
•
O
•
0
O
0
0
•
•
459
O
•
•
476
•
•
•
0
0
•
•
•
•
477
•
O
•
•
•
•
•
•
•
• Major Presence
O Limited Presence
*This factor is assessed on a Project Area -wide basis
Downtown McHenry Redevelopment Project Area Tax Increment Financing Eligibility Study
McHenry, Illinois —January 25, 2002
23
ego
0 aast
J
Pe
o ariSf
4-3-1
408 431
6 -3 3
• 451 432
r 5- - 376 F'm s, 2 -1
` 377 as2
• %- - 454 453
V 378
455 476 ¢
0
5-4- �s� o 456 -6-2 LL
Pd� � G
380 me
�Q1 eno � 457
C? a qLe Qm a,
379 458
e 477
459
iy 2-2-U Boone
ae�e an qd Lagoon
201 -7
202
203
5-4-1
John f
■ Project Area Boundary �---Total number of factors
203 Block Number 5-4-1—Limited presence
Major presence
Figure 4
Distribution of Conservation Factors N
w
Tax Increment Financing Redevelopment Project Area Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
EXHIBIT II
DOWNTOWN MCHENRY TAX INCREMENT FINANCING
REDEVELOPMENT PROJECT AREA
HOUSING IMPACT STUDY
DOWNTOWN MCHENRY
REDEVELOPMENT PROJECT AREA
TAX INCREMENT FINANCING
HOUSING IMPACT STUDY
City of McHenry, Illinois
Prepared by:
Trkla, Pettigrew, Allen & Payne, Inc.
January 25, 2002
TABLE OF CONTENTS
INTRODUCTION...................................................................................................1
PARTI......................................................................................................................4
A. Number and Type of Residential Units............................................................................... 4
B. Number and Type of Rooms within Units.......................................................................... 4
C. Number of Inhabited Units.................................................................................................. 5
D. Race and Ethnicity of Residents.......................................................................................... 5
PARTII....................................................................................................................7
A. Number and Location of Units to be Removed................................................................... 7
B. Relocation Plan.................................................................................................................... 8
C. Replacement Housing.......................................................................................................... 8
D. Relocation Assistance........................................................................................................ 14
LIST OF TABLES AND FIGURES
Figure 1: Redevelopment Project Area Boundary......................................................................... 3
Table 1:
Redevelopment Project Area Residential Units, by Building Type ................................. 4
Table 2:
Redevelopment Project Area Residential Units, Number of Bedrooms .......................... 5
Table 3:
Redevelopment Project Area Inhabited Residential Units ............................................... 5
Table 4:
Estimate of Redevelopment Project Area Population, by Building Type ........................ 6
Table 5:
Race and Ethnic Composition, Redevelopment Project Area .......................................... 6
Table 6:
Properties with Inhabited Residential Units that May be Subject to Displacement......... 9
Table 7:
Location, Type, Cost and Availability of Replacement Housing Units — Rental ..........
11
Table 8:
Location, Size, and Cost of Replacement Housing Units — For -Sale ............................
12
Table 9:
Estimated Need for Affordable Housing Units in Project Area .....................................
15
INTRODUCTION
The purpose of this report is to conduct a housing impact study for the City of McHenry
Downtown Tax Increment Financing Redevelopment Project Area (the "Redevelopment Project
Area") as set forth in the Tax Increment Allocation Redevelopment Act (the "Act"). The Act is
found in Illinois Compiled Statutes, Chapter 65, Act 5, Section 11-74.4-1 et. seq., as amended.
The Redevelopment Project Area encompasses a portion of the City's downtown and is an
irregularly shaped area adjacent to and west of the Fox River that is generally bounded by portions
of Elm, Pearl, and Broad Streets on the north; the eastern boundary of the Fox River and a portion
of a line parallel to and approximately 800 feet east of Green Street on the east; portions of John
Street and Waukegan Road on the south; and portions of Third Street, Green Street, and Richmond
Road on the west.
As set forth in the Act, if the redevelopment plan for a redevelopment project area would result
in the displacement of residents from 10 or more inhabited residential units, or if the
redevelopment project area contains 75 or more inhabited residential units and the City is unable
to certify that no displacement of residents will occur, the municipality shall prepare a .housing
impact study and incorporate the study in the separate feasibility report required by subsection
(a) of Section 11-74.4-5 (sic) [Section 11.74-4-4.11, which for the purposes hereof shall also be
the "McHenry Downtown Tax Increment Financing Redevelopment Project and Plan."
As of December 1, 2001, the Redevelopment Project Area contains 287 inhabited residential
units located throughout the Project Area. The "McHenry Downtown Tax Increment Financing
Redevelopment Project and Plan," (the "Redevelopment Plan") as described in a separate: report,
which incorporates this document by reference, provides for new development and
redevelopment. One of the goals of the Redevelopment Plan is to maintain sound existing
housing where appropriate. However, new development and redevelopment are likely to result
in the displacement of residents from 10 or more inhabited residential units. Therefore, a
housing impact study is required. As set forth in the Act:
Part I of the housing impact study shall include:
(i) data as to whether the residential units are single-family or multi -family units;
(h) the number and type of rooms within the units, if that information is available;
(iii) whether the units are inhabited or uninhabited, as determined not less than 45
days before the date that the ordinance or resolution required by subsection (a) of
Section 11-74.4-5 of the Act is passed; and
(iv) data as to the racial and ethnic composition of the residents in the inhabited
residential units, which data requirement shall be deemed to be fully satisfied if
based on data from the most recent federal census.
Part H of the housing impact study identifies the inhabited residential units in the proposed
redevelopment project area that are to be or may be removed. If inhabited residential units
are to be removed, then the housing impact study shall identify:
(i) the number and location of those units that will or may be removed;
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 1
(ii) the municipality's plans for relocation assistance for those residents in the
proposed redevelopment project area whose residences are to be removed;
(iii) the availability of replacement housing for those residents whose residences are to
be removed, and identify the type, location, and cost of the replacement housing;
and
(iv) the type and extent of relocation assistance to be provided.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois —January 25, 2002 page 2
ego
o ary3f
J
Pe
E
V 408 431
432
� 377 451
376 E/m St, 452
`
454 453
378 476
455 2 R
1
3i ar 456 a �0
ed0 �• o
380
a°i, e � 457
n�oe q�e Qm e
379 458 ?� 477
459
W BOOne
auks en Ha LagOOn
201
202
203
man OM H owns
�Ohn t.
�.. Project Area Boundary
203 Block Number
Figure 1
N
Project Area Boundary w
Tax Increment Financing Redevelopment Project Area Prepared By: Trkla, Pettigrew, Allen & Payne, Inc.
PART I
As required by the Act, Part I of this Housing Impact Study includes data as to the 1) type of
residential units; 2) type of rooms within residential units; 3) number of inhabited units; and 4)
race and ethnicity composition for all residential units within the Project Area. For purposes of
this study, 1990 and 2000 United States Census data and estimates for the year 2001 were
utilized. The 2001 estimate was provided by Claritas Data Services, one of the nation's leading
providers of demographic information. The 2000 Census is the most recent federal census for
which housing data were available at the time of the study. Household income in 2001 data was
derived from actual 1990 data.
A. Number and Type of Residential Units
The Redevelopment Project Area contains a variety of residential structures including single
family, multi -family, and mixed -use buildings. A total of 308 residential units were identified
that include 50 single-family homes, 133 multi -family units, 16 two-family units, 3 three-family
units, and 106 mixed -use units. The distribution of the aforementioned units by building; type is
shown in Table 1, below.
Table 1: Redevelopment Project Area Residential Units, by Building Type
Building Type
Total Units
Percent of Total
Single-family
50
16%
Two-family
16
5%
Three-family
3
1 %
Multi -family*
133
43%
Mixed-use/apts.
106
34%
Total
308
100%
Source: Trkla, Pettigrew, Allen & Payne, Inc.
* Note: 113 of the 133 housing units in the multi -family category
are within the McHenry Villa Retirement Center.
B. Number and Type of Rooms within Units
Data from the 1990 Housing Census* have been used to estimate the distribution of residential
units, by number of bedrooms, within the Redevelopment Project Area. Specifically, the
combined distribution for 3 census block groups falling within the boundaries of the Project
Area, either partially or entirely, was applied to the 195 residential units found in the Project
Area (not including McHenry Villa Retirement Center). The data from McHenry Villa
Retirement Center was then added to the residential unit distribution. The resulting estimated
distribution by number of bedrooms for the Project Area is shown in Table 2 below.
*The data was obtained using 1990 Census Tracts 8706.01, block groups 1 and 2, and 8706.02, block group 7.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 4
Table 2: Redevelopment Project Area Residential Units, Number of Bedrooms
Number of Bedrooms
Project Area %
Census
Non -McHenry Villa Project
Area Current Units (Est.)
Mc Henry
Villa
Retirement
Ctr.
Total
Studio
8%
15
na
15
1 Bedroom
16%
31
107
138
2 Bedrooms
18%
36
6
42
3 Bedrooms
39%
75
na
75
4 Bedrooms
18%
35
na
35
5+ Bedrooms
1%
3
na
3
Total
100%
195
113
308
na- not applicable
Source: Trkla, Pettigrew, Allen & Payne, Inc., 1990 U.S. Census,
and McHenry Villa Retirement Center
C. Number of Inhabited Units
The Redevelopment Project Area contains 308 residential units, which, as of December 1, 2001,
include 287 inhabited units and 21 vacant units. This represents a vacancy rate of 6.8 percent.
The distribution of inhabited residential units by unit type is shown in Table 3, below. December
1, 2001 is a date not less than 45 days prior to the date that the resolution required by subsection
(a) of Section 11-74.4-5 of the Act was or will be passed (the resolution setting the public
hearing and Joint Review Board meeting dates).
Table 3: Redevelopment Project Area Inhabited Residential Units
Building Type
Total Units
Occupied
Vacant
Single-family
50
48
2
Two-family
16
16
0
Three family
3
3
0
Multi -family
133
116
17
Mixed-use/apts.
106
104
2
Total
308
287
21
Source: Trkla, Pettigrew, Allen & Payne, Inc.
D. Race and Ethnicity of Residents
As required, an estimate has been made of the racial and ethnic composition of the
Redevelopment Project Area population. Actual numbers from the 2000 census were obtained
for 4 census block groups that partially or entirely fall within the Project Area. In 2001, the
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois —January 25, 2002 page 5
combined population of those 4 block groups was approximately 709 and the average household
size was estimated at 2.47 persons.
The average household size (2.47 persons) for the 4 block groups was multiplied by the number
of inhabited residential units (287) in the Redevelopment Project Area, to provide an estimate of
the total Project Area population, 709 persons. This calculation is shown in Table 4, below.
Table 4: Estimate of Redevelopment Project Area Population, by Building Type
Number of
Family Size
Estimated
Inhabited
Adjustment (Persons
Number of
Units
per unit)*
Residents
Single-family
48
2.47
119
Multiple -family
116
2.47
287
Two -flat
16
2.47
40
Three -flat
3
2.47
7
Mixed Use
104
2.47
1 257
Total
287
709
Source: United States Census and Trkla, Pettigrew, Allen & Payne, Inc.
Next, the 2000 distribution of population by race and ethnicity (Hispanic or Non -Hispanic
origin) for the 4 block groups was applied to the Project Area population (709). This yielded the
estimates of Project Area residents by race and ethnicity shown in Table 5.
Table 5: Redevelopment Project Area Race and Ethnic Composition
Race
2000
2000
White
653
92.1 %
Black
5
0.7%
American Indian and Alaska Native
3
0.4%
Pacific Islander
0
0.0%
Asian
4
0.6%
Some other race
44
6.2%
Total
709
100.0%
Ethnicity
2000
2000
Not of Hispanic Origin
645
Hispanic Origin
64
9.0%
* Combined data was used for the following census tract block groups, all of which comprise part of the project
area: census tract 8706.04, block group 1, blocks 1038 and 1039; block group 2, blocks 2040 and 2046; block
group 3, blocks 3032-3037; and census tract 8706.06, block group 1, blocks 1000-1004, 1021-1024.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 6
Part II
A. Number and Location of Units to be Removed
As of December 1, 2001 the Redevelopment Project Area contains 308 residential units
including 50 units in single-family homes, 133 units in multi -family buildings, 16 units in two-
family structures, 3 units in three-family buildings, and 106 units in mixed -use buildings. The
Redevelopment Plan calls for new development and redevelopment of commercial, residential,
open space/community and mixed -use commercial/residential uses throughout the Project Area.
Improvement projects supported by the Plan include the rehabilitation and reuse of existing
sound residential and commercial buildings; new residential infill development; new commercial
development; and creation and enhancement of community facilities and amenities. Within the
Project Area, several key opportunity sites have been identified for residential, commercial,
mixed -use commercial/residential and community facilities development and redevelopment.
Because the Project Area includes a number of inhabited residential units that may be impacted
by implementation of this Redevelopment Plan, information is provided regarding this
Redevelopment Plan's potential impact on housing. Implementation of the TIF Plan may result
in the displacement of 55 inhabited residential units.
As part of the future Land Use Plan, presented in more detail in the Redevelopment Plan, several
key opportunity sites have been identified as potential sites for residential and commercial
development and redevelopment. Since no specific developers or development projects have
been identified within the Project Area, potential displacement of inhabited residential units has
been determined based on two criteria. These criteria include 1) any properties with buildings
that are classified as dilapidated or seriously deteriorated and 2) any properties that may be
subject to removal due to possible key redevelopment projects. Findings for each criteria is
summarized below:
1) Dilapidation as defined in the Act refers to an advanced state of disrepair or neglect of
necessary repairs to the primary structural components of buildings or improvements in
such a combination that a documented building condition analysis determines that major
repair is required or the defects are so serious and so extensive that the buildings must be
removed. Deterioration as defined in the Act refers to, with respect to buildings, defects
including, but not limited to, major defects in the secondary building components ;such as
doors, windows, porches, gutters and downspouts, and fascia. With respect to surface
improvements, the condition of roadways, alleys, curbs, gutters, sidewalks, off-street
parking, and surface storage areas evidence deterioration, including, but not limited to,
surface cracking, crumbling, potholes, depressions, loose paving material, and weeds
protruding through paved surfaces. Based on surveys conducted by Trkla, Pettigrew,
Allen & Payne, Inc. for this Project Area, 9 buildings with residential units in the Project
Area were classified as dilapidated or seriously deteriorated. Of these 9 buildings, a total
of 42 inhabited residential units were found including 6 single-family units, 2 two-family
building units, and 34 mixed -use building units.
2) The Redevelopment Project, presented in Section V of the Redevelopment Plan,
identifies the overall redevelopment concept and future land uses to be in effect upon
adoption of the Redevelopment Plan. If public or private redevelopment occurs as a result
of the Redevelopment Project and Redevelopment Plan, displacement of a limited
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 7
number of inhabited residential properties may result. Properties that may be subject to
change due to redevelopment efforts could result in the displacement of 51 residential
units (50 inhabited) in 5 buildings.
Of these 51 residential units, 36 units are previously counted under the first criterion of
dilapidation and serious deterioration
Based on the two criteria above, it is estimated that a total of 57 units in eleven buildings may be
displaced over the 23-year life of the TIF. The address for each of the properties with inhabited
residential units that may be displaced is listed in Table 6.
B. Relocation Plan
The City's plans for relocation assistance for those qualified residents in the proposed
Redevelopment Project Area whose residences are to be removed shall be consistent with the
requirements set forth in Section 11-74.4-3(n)(7) of the Act. The terms and conditions of such
assistance are described in subpart D below. No specific relocation plan has been prepared by
the City as of the date of this report because no redevelopment project has been approved by the
City. Until such a redevelopment project is approved, there is no certainty that any removal of
residences will actually occur.
C. Replacement Housing
In accordance with Section 11-74.4-3(n)(7) of the Act, the City shall make a good faith effort to
ensure that affordable replacement housing for any qualified displaced residents whose residence
is removed is located in or near the Redevelopment Project Area.
Under the potential redevelopment scenarios involving the redevelopment or rehabilitation of the
existing residential uses within the Project Area, it is possible that rehabilitation could be: staged
to limit or prevent displacement of households and the need to provide for affordable
replacement units within the Redevelopment Project Area.
Based on the nature of redevelopment that could occur in the Project Area it may be possible to
locate replacement units both inside and outside of the Project Area.
Trkla, Pettigrew, Allen and Payne, Inc. (TPAP) conducted a survey of rental units in the
McHenry community area, in order to gauge the amount, type, and pricing of replacement
housing that would potentially be available in, or near, the Project Area. The units included were
all located in the McHenry area. All survey activities were conducted from December 24-29,
2001.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 8
Table 6. Locations of Inhabited Residential Units that May Subject to Displacement
Block
. Address
Street
Units--,--
-Bld 'Ty _e
1
431
1406
Park
1
SFR
2
431
1405
Riverside
1
SFR
3
456
1212
Court
1
SFR
4
457
3319
Elm
1
Mixed-Use/Apts
5
457
1214
Park
1
SFR
6
457
1211
Riverside
1
SFR
7
457
1213
Riverside
1
Mixed-Use/Apts
8
476
3308
Elm
33
Mixed-Use/Apts
9
476
1300
Riverside
14X
Multi -Family
10
477
1204
Riverside
2
2-family
11
477
1210
Riverside
1
SFR
Total units
57
Source: Trkla, Pettigrew, Allen & Payne, Inc
Note: This building contains one vacant unit and 13 inhabited units.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois —January 25, 2002 page 9
The information presented is based on classified advertisements from the Northwest Herald and
the Chicago Tribune, as well as a corresponding telephone survey.
Through the survey, TPAP found a total of 31 available rental units in the area, at rents ranging
from $595 to $1,060. This sample included five studios, which range from $595 to $710 per
month (with 1 including heat). The 12 one -bedroom units in the sample rent for between $640
and $680 (none include heat). The 15 two -bedroom units rent for between $650 and $1060
(none include heat). The three -bedroom units rent for $950 (with none including heat'). The
apartments comprising the sample are shown in Table 7.
As there may also be some displacement of owner -occupied homes, TPAP also conducted a
survey of for -sale housing in the McHenry area, to gauge the amount, size and pricing of
replacement for -sale housing. All the homes listed are located- within either the McHenry or
Lakemoor communities.
The data was obtained from classified advertisements from the Chicago Tribune and the
Northwest Herald. The average sale price was $156,408 while the range of sale prices was
$39,900-$319,900. All had from two to five bedrooms, with the majority (57 percent) being
three -bedrooms. Five condominium units and two town homes are included in the table.
Locations, sizes and prices of the for -sale housing sample are presented in Table 8.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 10
Table 7. Location, Type, Cost and Availability of Replacement Housing Units — Rental
APARTMENT ADDRESS
UNIT TYPE
SQUARE FEET
UTILITIES INCL.
RENT
AVAILABILITY
COMMUNITY
1
3411 W ELM ST
1
NA
ALL
$ 800
JAN IST
MCHENRY
2
4019 OAK AVE
2
NA
NONE
S 650
JAN 1ST
MCHENRY
3
3703 W JAMES ST
1
NA
NONE
$ 650
IMM
MCHENRY
4
TERRA COTTA & 31
2
NA
ELECTRIC
$ 850
JAN 1ST
CRYSTAL LAKE
5
FRONT ST
STUDIO
NA
ALL
$ 595
IMM
MCHENRY
6
4010 OAK ST
2
NA
NONE
$ 800
IMM
MCHENRY
7
LILLIAN ST
1
NA
ALL
$ 675
IMM
MCHENRY
8
2915 N RICHMOND
1
NA
NONE
S 640
JAN 1ST
MCHENRY
9
4006 OAK ST
2
NA
NONE
$ 775
IMM
MCHENRY
10
4017 LILLIAN ST
STUDIO
NA
NONE
$ 600
JAN 1 ST
MCHENRY
11
4108 W.LILLIAN ST
1
675
NONE
S 660
IMM
MCHENRY
12
4108 W LILLIAN ST
1
830
NONE
$ 750
IMM
MCHENRY
13
4108 W LILLIAN ST
2
870
NONE
$ 750
IMM
MCHENRY
14
4108 W. LILLIAN ST
2
940
NONE
$ 770
IMM
MCHENRY
15
4108 W.LILLIAN ST
2
980
NONE
$ 790
IMM
MCHENRY
16
4108 W. LILLIAN ST
STUDIO
550
NONE
S 605
IMM
MCHENRY
17
4108 W LILLIAN ST
1
NA
NONE
$ 645
IMM
MCHENRY
18
4108 W.LILLIAN ST
2
NA
NONE
$ 725
IMM
MCHENRY
19
4108 W LILLIAN ST
STUDIO
530-570
NONE
$605-625
IMM
MCHENRY
20
4108 W LILLIAN ST
1
675-715
NONE
$660-680
IMM
MCHENRY
21
4108 W.LLLIAN ST
2
830-870
NONE
$730-750
IMM
MCHENRY
22
4108 W LILLIAN ST
2
940-980
NONE
$770-980
IMM
MCHENRY
23
1943 N ORLEANS
1
675
NONE
$ 685
IMM
MCHENRY
24
1943 N.ORLEANS
2
940
NONE
S 840
IMM
MCHENRY
25
1943 N.ORLEANS
3
1200
NONE
$ 950
IMM
MCHENRY
26
1943 N ORLEANS
2
830
NONE
$ 740
IMM
MCHENRY
27
1943 N ORLEANS
1
675
NONE
S 670
IMM
MCHENRY
28
4300 SHAMROCK LN
STUDIO
625
NONE
$700-710
NA
MCHENRY
29
4300 SHAMROCK LN
1
725
NONE
$800-830
IMM
MCHENRY
30
4300 SHAMROCK LN
1
875
NONE
$850-880
NA
MCHENRY
31
4300 SHAMROCK LN
2
960
NONE
$900-960
NA
MCHENRY
32
4300 SHAMROCK LN
2
1010
NONE
$930-960
NA
MCHENRY
33
4300 SHAMROCK LN
2
1275
NONE
$1050-1060
NA
MCHENRY
Source: Northwest Herald classified advertisements
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 11
Table 8. Location, Type, Cost and Availability of Replacement Housing Units - For Sale
No.
Address
Bed
Bath
List Price
Bldg, Type
City
1
5121 Leeside
4
1.0
$39,900
SFR
McHenry
2
4909 Fountain Lane
2
1.0
$60,000
SFR
McHenry
3
5301 West
1
1.0
$62,500
SFR
McHenry
4
4314 Shamrock Lane #313
1
1.0
$64,900
Condo
McHenry
5
4310 Shamrock Lane #1A
1
1.0
$84,900
Condo
McHenry
6
2803 Shorewood
2
1.5
$89,900
SFR
McHenry
7
3115 S. Woods Ave.
2
1.0
$89,900
SFR
McHenry
8
919 Wiltshire
2
1.5
$93,900
Condo
McHenry
9
2717 Baldwin
3
1.0
$109,500
SFR
McHenry
10
503 Glenwood
3
1.0
$109,900
SFR
McHenry
11
4308 Shamrock
2
2.0
$109,900
Condo
McHenry
12
3013 Mourine
2
1.0
$113,500
SFR
McHenry
13
28973 W. Highway 120
3
1.5
$114,900
SFR
McHenry
14
4918 Willow Lane
3
1.0
$117,900
SFR
McHenry
15
5413 Thelen
2
1.0
$117,900
SFR
McHenry
16
3013 Emily
2
1.0
$119,000
SFR
McHenry
17
2616 Shorewood
1
1.0
$119,500
SFR
McHenry
18
5119 East Lane
3
1.0
$120,000
SFR
McHenry
19
304 Burr Ave.
3
1.0
$124,900
SFR
McHenry
20
508 Emerald
3
1.0
$124,900
SFR
McHenry
21
710 Oeffling Drive
2
1.0
$125,000
SFR
McHenry
22
28901 Honey Suckle Ct.
2
1.5
$127,900
Townhome
Lakemoor
23
1820 N. North
3
1.5
$129,900
SFR
McHenry
24
1911 Sunset
3
1.0
$129,900
SFR
McHenry
25
1915 Flower Street
3
1.0
$129,900
SFR
McHenry
26
241 Venice
2
2.0
$129,900
SFR
McHenry
27
4409 Front Royal
2
1.0
$130,000
SFR
McHenry
28
5414 Christine
3
1.5
$131,900
SFR
McHenry
29
217 Sunset
3
1.0
$134,400
SFR
McHenry
30
4618 Front Royal
2
1.0
$134,900
SFR
McHenry
31
5809 N. Bunny
5
1.0
$135,000
SFR
McHenry
32
1617 N. Court
2
1.0
$135,000
SFR
McHenry
33
4214 Ponca
2
2.0
$135,900
SFR
McHenry
34
2509 S. Birchwood
3
1.0
$139,000
SFR
McHenry
35
2608 Henzada
3
1.5
$139,000
SFR
McHenry
36
3002 Maryville Dr.
3
2.0
$139,500
SFR
McHenry
37
4507 Prairie
3
1.5
$139,500
SFR
McHenry
38
28976 W. Valleyview
2
1.0
$139,900
SFR
McHenry
39
2511 S. Vaupell
2
1.0
$139,900
SFR
McHenry
40
3609 Stubby Ave.
3
1.5
$139,900
SFR
McHenry
41
5220 Willow Lane
3
1.5
$142,000
SFR
McHenry
42
4606 Willow Lane
3
1.0
$143,900
SFR
McHenry
43
704 Nancy
4
2.0
$149,800
SFR
McHenry
44
4912 Home Ave.
3
2.0
$149,900
SFR
McHenry
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois - January 25, 2002 page 12
45
3904 W. Oak Ave.
5
2.0
$149,900
SFR
McHenry
46
2512 S. Michael Ct.
3
2.0
$155,000
SFR
McHenry
47
4720 Home Ave.
3
2.0
$159,906
SFR
McHenry
48
419 Tiajuana
3
2.5
$167,900
SFR
McHenry
49
3126 Cypress #3126
2
2.5
$167,900
Condo
McHenry
50
302 N. Huntington
3
1.5
$168,000
SFR
McHenry
51
4906 Pistakee
3
2.0
$169,900
SFR
McHenry
52
716 First
3
2.5
$169,900
SFR
McHenry
53
2814 Spring Rd.
3
2.0
$169,900
SFR
McHenry
54
1107 May
3
1.5
$169,900
SFR
McHenry
55
4404 Giant Oak Drive
2
2.0
$169,900
SFR
McHenry
56
5218 Woodrow
3
1.5
$169,900
SFR
McHenry
57
201 Springbrook
3
1.5
$169,900
SFR
McHenry
58
1204 Capri Terrace
3
2.5
$169,999
SFR
McHenry
59
3702 W. Cornell Ct.
3
1.5
$170,000
SFR
McHenry
60
1619 Jennifer Lane
3
2.0
$172,500
SFR
McHenry
61
2917 Keene
4
1.0
$174,900
SFR
McHenry
62
508 Kresswood #D
3
2.0
$174,900
Townhome
McHenry
63
4608 W. Bonner
3
2.0
$174,900
SFR
McHenry
64
1015 Bonita
3
2.0
$174,900
SFR
McHenry
65
3813 Prestwick
4
2.0
$174,900
SFR
McHenry
66
919 Valley
3
2.5
$175,000
SFR
McHenry
67
524 Kresswood #A
3
2.5
$178,900
Townhome
McHenry
68
305 Newport
3
1.5
$179,900
SFR
McHenry
69
3706 W. Ellen Rd.
3
2.0
$187,900
SFR
McHenry
70
4741Oregon
3
3.0
$199,900
SFR
McHenry
71
119 N. Emerald
2
1.5
$209,900
SFR
McHenry
72
5303 Pleasant View
3
2.0
$212,900
SFR
McHenry
73
5304 Bridge
3
1.5
$219,900
SFR
McHenry
74
3900 Boone Creek Circle
3
2.5
$220,010
SFR
McHenry
75
504 N. Green
5
2.0
$229,900
SFR
McHenry
76
2317 Colby Dr.
4
3.0
$239,900
SFR
McHenry
77
2100 Spring Creek
4
2.5
$242,300
SFR
McHenry
78
28614 Wagon Trail Rd.
4
2.5
$244,900
SFR
Lakemoor
79
2017 W. Camden
4
3.0
$247,000
SFR
McHenry
80
1310 Bonnie Brae
3
3.5
$249,900
SFR
McHenry
81
4011 Boone Creek Circle
4
2.5
$252,170
SFR
McHenry
82
32308 Prairie View
4
2.5
$259,000
SFR
Lakemoor
83
1920 Highwood
4
3.0
$259,900
SFR
McHenry
84
813 W. Peter
4
2.0
$269,900
SFR
McHenry
85
2005 Julia Way
3
3.0
$274,900
SFR
McHenry
86
5901 Saddle Ridge
3
2.5
$277,700
SFR
McHenry
87
1721 Tall Tree
5
3.5
$289,900
SFR
McHenry
88
5104 W. Shore
4
1.5
$299,900
SFR
McHenry
89
2412 Delore
3
2.5
$319,9001
SFR
McHenry
Source: Chicago Tribune and Northwest Herald classified advertisements
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois - January 25, 2002 page 13
D. Relocation Assistance
In the event that the implementation of the Redevelopment Plan results in the removal of
residential housing units in the Redevelopment Project Area occupied by low-income households
or very low-income households, or the permanent displacement of low-income households or
very low-income households from such residential housing units, such households shall be
provided affordable housing and relocation assistance not less than that which would be provided
under the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970 and the regulations thereunder, including the eligibility criteria. The City shall make a
good faith effort to ensure that affordable replacement housing for the aforementioned
households is located in or near the Redevelopment Project Area.
As used in the above paragraph, "low-income households," "very low-income households"
"moderate income" and "affordable housing" have the meanings set forth in Section 3 of the
Illinois Affordable Housing Act, 310 ILCS 65/3. As of the date of this Redevelopment Plan,
these statutory terms have the following meanings:
(i) "low-income household" means a single person, family or unrelated persons living
together whose adjusted income is more than 50 percent but less than 80 percent of the
median income of the area of residence, adjusted for family size, as such adjusted
income and median income are determined from time to time by the United States
Department of Housing and Urban Development ("HUD") for purposes of Section 8 of
the United States Housing Act of 1937;
(ii) "very low-income household" means a single person, family or unrelated persons
living together whose adjusted income is not more than 50 percent of the median
income of the area of residence, adjusted for family size, as so determined by HUD;
(ill) "moderate income household" means a single person, family or unrelated persons
living together whose adjusted income is more than 80 percent but less than 120 of the
median income of the area of residence, adjusted for family size, as so determined by
HUD; and
(iv) "affordable housing" means residential housing that, so long as the same is
occupied by low-income households or very low-income households, requires payment
of monthly housing costs, including utilities other than telephone, of no more than 30
percent of the maximum allowable income for such households, as applicable.
One method of estimating moderate, low-, and very -low income households in the
Redevelopment Project Area uses 2001 income limits for four -person households, as set by HUD
for the purposes of Section 8 of the United States Housing Act of 19371. The estimated number
of low-income households in inhabited units of the Redevelopment Project Area is 49 (17
percent), the estimated number of very low-income households in inhabited units of the
Redevelopment Project Area is 46 (16 percent), the estimated number of very, very low-income
households in the Redevelopment Project Area is 48 (17 percent), and the estimated number of
moderate -income households in inhabited units of the Redevelopment Project Area is 78 (27
1 The 2001 income limits for a family of four in the Chicago metropolitan region, (which includes McHenry
County), as determined by HUD, are $21,150 for very, very low-income eligibility, $35,250 for very low-income
eligibility, $52,500 for low-income eligibility, and $94,600 for moderate -income eligibility.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 14
percent). Using the method described herein, the estimate of total moderate-, low-, very low-,
and very, very low-income households in the Redevelopment Project Area is 221 units, or 77
percent of all inhabited units.
As described above, the estimates of total moderate-, low-, very low-, or very, very low -income -
households within the Redevelopment Project Area represent 77 percent of the total inhabited
units. Those households below the moderate -income level collectively represent 50 percent of
the total inhabited units. The City will implement the "Downtown McHenry Tax Increment
Financing Redevelopment Area Project and Plan" (including the requirements applicable to
composition of the joint review board under Section 11-74.4-5(b) of the Act) as if more than 50
percent of the residential units are occupied by moderate, low-, very low-, and very, very low
households.
Table 9: Estimated Need for Affordable Housing Units in Project Area
Income Category
Claritas
2001
Estimated%
Estimated
Project Area
Households
Four -person HH
Annual Income
Range
Corresponding
Claritas Income
Category
Very. Very Low -Income (00/c to 30% AMI)
17%
48
$0- $21,149
$0- $19,999
Very Low -Income (30% to 50% AMI)
16%
46
$21,150- $35,249
$20,000- $34,999
Low -Income (50% to 80% AMI)
17%
49
$35,250- $52,499
$35,000- $49,999
Moderate Income (80% to 120% AMI)
27%
78
$52,500- $84,599
$50,000- $84,599
Above -Moderate Income (120% AMI+)
23%
66
$85,600------------
$85,600-*-------
Total
100 %
287
*Adjusted
AMI = Area Median Income
Sources: HUD and Claritas Data Corporation, Inc.
Downtown McHenry Redevelopment Project Area Tax Increment Financing Housing Impact Study
McHenry, Illinois — January 25, 2002 page 15