January 9, 2012Print

                        ECONOMIC DEVELOPMENT COMMITTEE MEETING
                 Monday, January 9, 2012 – 5:30 p.m.
                      Council Chambers – Countryside  City Hall

Ald. Sean McDermott, Chairman, called the meeting to order at 5:30 p.m.  He called the Roll of those physically present:

PRESENT: Ald. Sean McDermott,  Chairman, City Admin. Gail Paul, Ald. Robert Pondelicek, Ald. James Jasinski.

ABSENT: Treasurer Steven Jasinski.

ALSO PRESENT: Mayor Krzeminski, Clerk Sweeney, Ald. Michalczyk, Ald. Von Drasek, Ald. Musillami, Asst. Admin. Peterson, CDP Swanson, Elec. Insp. Sweeney, Police Bd. Meb. Burdett.

Approval of Minutes

The first order of business was approval of the minutes of October 19, 2011.  Ald. Pondelicek moved to approve the minutes as presented, seconded by Ald. Jasinski and carried unanimously.

Presentation by Shorewood Development and GMX Real Estate re:

Marketing available properties within the City Center Development

Mr. Andrew Goodman, GMX Real Estate Group and Messrs. Louis Schriber and Aaron Roth, Shorewood Development, made a presentation re: City Center Development.  Mr. Goodman distributed handouts entitled, “Gateway Development Plan NEQ LaGrange & Joliet Roads.”  He described the tenants involved in each of the proposed buildings starting with the overall site plan south of the proposed Hooters Restaurant.

GMX has engaged a national retail brokerage firm, Kushman & Wakefield to assist in providing the best tenant mix for the multi-tenant building south of the Hooters pad, which includes Caribou Coffee Drive Thru, Qdoba Mexican Grill, and either Verizon Wireless or Vitamin Shoppe. The next building, with a single tenant is the Chick-Fil-A Drive Thru, and a proposed Texas Roadhouse for the building on Joliet Road.

Mr. Goodman briefly described  the specifics of each entity. They have engaged Lakota, the City’s architect and site planner to assist in adapting to the City’s plans.

Caribou Coffee Drive Thru is an international company with over 500 locations; 2010 average annual store sales equal $800,000 – roughly $450 psf.

Qdoba Mexican Grill, also a national company, chief competitor of Chipotle; 2010 average annual store sales of $1 million – roughly $475 psf.

Verizon Wireless, over 2,000 locations; 2010 average annual store sales $3.5 million – will bring above average returns to the City – roughly $1,000 psf.  This would be a flagship Verizon store that will relocate from Hodgkins to be on LaGrange Road. All sales are taxable to Countryside – bringing in $250-$325,000 in sales tax.

Vitamin Shoppe is a national company, over 500 locations in the U.S.; 2010 annual average store sales are over $1 million – roughly $350 psf.

Chick-fil-A is a privately held company with 1,500 locations throughout the U.S.; 2010 annual average store sales between $2.5-$3.5 million; they have locations in Naperville and Orland Park.

Texas Roadhouse is an international company with 350 restaurants in the U.S. 2010 average store sales - $3.7 million; roughly $525 psf.  Average customer count is 250,000 per year. There are three locations in the Chicagoland area, Naperville, Tinley Park and Joliet. Average restaurant size is 7,000 s.f. They need 160 parking spaces. This is a good representation of restaurants and retailers. The site plan is still conceptual; everyone wants optimal visibility for their project.

Other tenant prospects include Buffalo Wild wings and Granite City Food & Brewery; both entities expressed an interest in locating on LaGrange Road.  Outback Steakhouse would consider the Joliet Road pad but needs more square footage.  Smash Burger and Jersey Mike’s Subs have expressed interest in the development. Granite City will be touring this market on Friday; it would be their second unit in Chicago; they have a location in Orland Park – only ten miles apart geographically but light years apart in other areas. 

Ald. Jasinski discussed the average time consumed in driving the ten miles between Orland Park and Countryside and suggested that the Granite City team drive that corridor to consider the geographic features.  He stated that the sight line from LaGrange Road to the Joliet Road pad is excellent with only the pond in between. Mr. Goodman stated that the possibility of meeting them on site could be attempted.

Chairman McDermott stated that the City would be comfortable with Texas Roadhouse and Chick-Fil-A.  They are not as impressed with the other entities – the City has wireless shops and vitamin shops and Mexican eateries.  Granite City is unique and different. Mr. Goodman stated that the curb cuts are north of the detention pond and north of the multi-tenant building.  The two parking issues are immediate parking and the overall parking; the Harley Davidson’s Rider’s Edge area will be heavily used on the weekends; that is the time sit-down restaurants do the bulk of their business, so it is difficult attracting a single-user tenant in that spot.  Mayor Krzeminski stated that the Shell Gas Station on the corner of Joliet Road and LaGrange Road will be gone; visibility lines will be open directly to the Joliet pad; the extended patio and pond will be open areas that provide an excellent sight line. The main obstacle is getting them over the ten miles factor.  Countryside is looking for a unique establishment like Granite City that will draw patrons; the other restaurants mentioned are common names located in neighboring communities.  Ald. Von Drasek stated that the many restaurants currently on LaGrange Road are completely renovated.

Regarding the timeline, does the City wish to wait out the economy or move forward with what is in hand.  Discussion re: Verizon Wireless ability to become an electronic Best Buy in the near future; they have a tremendous business volume.  Mr. Goodman appreciates the City’s input and hopes to continue working with City Staff.

Consideration of Contract with Hooters to Purchase 1.25 acres Within the City Center Development

City Admin. Ms. Paul stated that the purchase contract was reviewed by Attorney Tom Bayer; minor revisions were made and the City is awaiting attachments from the engineer.  Some highlights of the purchase contract – typically the City approves a term sheet and then goes into the Redevelopment Agreement.  The major provision of the purchase contract  is the sale of 1.25 acres on the north end of the development for $1,175,000.  Closing is to take  place between April 1 and October 1, 2012 and within 60 days of the completion of site improvements by the City.  The City’s goal is to have the site improvements completed by June 1, 2012. The broker’s commission is $50,000 paid at closing.   Hooter’s needs to be open by Thanksgiving.  Hooter’s has requested many documents; they will have 30 days after receipt of that information to perform due diligence.   During that time they should receive approval from their Board of Directors; if that does not happen they will notify the City in writing that they wish to terminate the contract.   Once the contract is approved the City has 30 days within which to send them a draft Reciprocal Easement Agreement and a Redevelopment Agreement for review.  If no agreement is reached in 120 days, either party may terminate the purchase contract.  City improvements to the site must be completed prior to closing, (except such items as parking area lighting).  This is an agenda item for Wednesday’s City Council meeting.  As soon as the attachments are received, copies will be sent to all parties.   Mayor Krzeminski  requested information re: the advertising agreement. Ms. Paul stated that the purchase contract includes terms of the letter of intent incorporating the advertising agreement that was already approved. Chairman McDermott moved to approve the contract with Hooters as presented, seconded by Ald. Jasinski and carried by unanimous voice vote.

OTHER BUSINESS

Mayor Krzeminski advised the committee that a two-flat building just east of the motel property at 5631 S. LaGrange Road is for sale; the owners contacted the Mayor asking if the City is interested in adding that property to the total acreage.  That land can be added to the property but cannot be added to the TIF district. Unfortunately, no vendors are interested in the back portion of the land; everyone wants visibility on LaGrange Road. The other obstacle is there is no traffic signal at the corner.   Mayor Krzeminski stated he would bring this matter to the Committee’s attention.

Mr. Schriber volunteered his company’s time to review the Reciprocal Easement Agreement relative to Hooters because whatever agreement is put in operation will affect the entire development; provisions in that agreement will carry over to the remaining development site. That is a standard document for which they are willing to lend their time.  Chairman McDermott thanked them for their interest and for their presentation.

ADJOURNMENT

There being no further business to discuss, Ald. Jasinski moved to adjourn the meeting, seconded by Chairman McDermott and carried unanimously.

Chairman McDermott declared the meeting adjourned at 6:24 p.m.

ALD. SEAN MC DERMOTT,  CHAIRMAN