ECONOMIC DEVELOPMENT COMMITTEE MEETING

Wednesday, August 28, 2013.

Council Chambers – Countryside City Hall

Ald. Sean McDermott, Chairman, called the meeting to order at 6:30 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. Musillami, Ald. Von Drasek, City Atty. Peck, Fin. Dir. Drazner, EDC Swanson.

Approval of Minutes – July 10, 2013 meeting minutes. Ald. Pondelicek moved to approve the minutes as presented, seconded by Treas. Jasinski and carried unanimously.

Request from Camus Development to waive permit fees related to theConstruction of Building #4 in Colocktower Pointe

Ald. McDermott introduced Shamus Conneely. He stated that they went through a rough economic period and are requesting construction permit relief for Building #4 in Clocktower Pointe. Mr. Conneely stated that they began construction in 2006-07 of a 108-unit condominium complex and completed Building #3 in 2008. In 2012, after substantial losses, they transferred ownership of the property to Foxford Development who reconfigured the property and modified the building to high-end rental units. Mr. Conneely has been working with the developer and they hope to finish the project as originally designed. The waiver of building permit costs that would total almost $120,000 is the most crucial factor in making Building #4 viable. City staff has been most helpful in working with them in various creative attempts to restructure. One of the methods mentioned was construction permit cost relief. Now that the property is under new ownership, permit cost relief is the key factor in the project being completed as the high quality development that was originally intended.

Treas. Jasinski asked about bank financing. Mr. Conneely stated that they are adequately funded. They will be built as condos; the owner may sell or rent. They will test the market on the sale side or else they will hold to rent and then sell. Ald. Von Drasek stated that the value is in getting the other buildings going. The plan is to retain the original building design. Adm. Paul clarified that the original request was for building permit fees; there could be plan review fees also. EDC Swanson stated that cost is estimated at $8-10,000. Ald. McDermott sought consensus; the Committee agreed to waive the building permit fees. Treas. Jasinski stated that the goal is to keep them as high-end apartments at this time – Mr. Conneely stated that the building will be finished per specs. They thanked the City for its assistance.

Review of Draft Economic Incentive Agreement between the City ofCountryside and Dimitri Mikroulis/Outriggers.

Adm. Paul stated that Mr. Mikroulis is not present tonight. She reviewed the draft with Mr. Mikroulis and told him if it is approved tonight, it will go before the City Council for final approval.

Consideration of Request from Oak Lane Development to Market5631 LaGrange Road

Adm. Paul stated that Mike Kaspar of Oak Lane Development has approached the City for additional time to market the above property. Mr. Kaspar thanked the City for the original 90 day-agreement and requests the opportunity to market the property under the same terms and guidelines as the as the initial MOU for a six-month period. He needs the additional time to contact IDOT re: the option of relocating the 58^th St. traffic light to 57^th St. He would like to make a formal request and get a definite yes or no. He has dealt with IDOT in the past and is willing to do so again. The traffic light adds a layer of expense; the light will not be moved for free. He also has an in-city tenant that may be willing to relocate to this site.

He has hired Dan Chopp, a leasing agent who has contacts in the local market but is able to reach out to national tenants as well. He envisions a restaurant in the front and retail in the back portion. Treas. Jasinski stated that getting semi-trailers in and out of that street is the problem. Committee members agreed to extend the exclusive six-month period to Oak Lane Development to market 5631 LaGrange Road.

Returning to the Mikroulis matter – Committee members discussed the Economic Incentive Agreement between the City and Mikroulis for up to $50,000 combined, including fees; currently the fees are $15,000 – so $35,000 is left for the incentive package. Chairman McDermott read portions of the agreement — Mr. Mikroulis agrees to keep open the 50-foot buffer between the business and residential properties on the north. Prevailing wages must be paid for all parking lot repairs and reconstruction. The business must remain open for 6 years or reimburse the City for all incentive payments. Atty. Peck added language to the document re; proof of prevailing wage payments.

Ald. Von Drasek asked whether any issues arose with the roof contractor. Adm. Paul stated that when Steve Tisiani talked to the employees up on the roof, no one was able to say who they worked for; the job was stopped. An Economy Roofing rep. came in and talked with TPI. He returned the same day with notarized certification they all employees were working under his license. Ald. Michalczyk asked if that was before or after the fire; Adm. Paul stated that was before. Chairman McDermott stated that those types of activities will not be tolerated. Treas. Jasinski stated that although the Agreement is valid, if he fails to open, how will he pay the City back? Put a lien on the property – the City ends up suing to be made whole. Atty. Peck stated that the City can put a lien on the property for $50,000; that is probably the best way to proceed. After further discussion, Committee agreed to move forward with the Agreement as presented.

Other Business

EDC Swanson distributed a document to the Committee entitled Active Commercial Development Projects. He stated that He has created a website as part of the Community Development Department promoting all projects underway in the City. These photos and text were posted to the City’s website — a page for each project; it will be updated as needed. He encourages residents to visit the websites. Committee members applauded his efforts.

Ald. Pondelicek asked about the job fair response at the Vitamin Shoppe. Adm. Paul stated that no feedback has been received yet. Texas Roadhouse also has open hiring.

Chairman McDemott sought a motion to move to Executive Session under Section 21c of the Open Meetings Act for the purpose of reviewing Executive Session minutes of 5-17-12, 6-13-12 and 7-10-13. Ald. Pondelicek moved to adjourn to Executive Session, seconded by Treas. Jasinski and carried by unanimous voice vote.

Chairman McDemott declared the meeting recessed at 6:58 p.m.

* * * * *

The Regular Meeting of the Economic Development Committee returned to Open Session with the same members present at 7:08 p.m.

Ald. Pondelicek moved to approve Executive Session minutes of 5-17-12, 6-13-12 and 7-10-13, seconded by Treas. Jasinski and carried by unanimous voice vote.

Chairman McDermott declared the meeting adjourned at 7:09 p.m.

ALD. SEAN MC DERMOTT, CHAIRMAN