COUNTRYSIDE ECONOMIC DEVELOPMENT COMMITTEE
TUESDAY, MAY 10, 2011 – 6:30 P. M.
COUNCIL CHAMBERS – CITY HALL

City Treasurer Jasinski called the meeting to order at 6:30 p.m. in place of Ald. Sean McDermott.

PRESENT: City Treas. Jasinski, Chairman, City Admin. Gail Paul,Ald. Karen Michalczyk.

ABSENT: Ald. Sean McDermott, Ald. Michael Smetana.

ALSO PRESENT: Mayor Conrad, Clerk Sweeney, Ald. Pondelicek, Ald. Von Drasek, Ald. Straza, Ald.-Elect Jim Jasinski.

Approval of Minutes

The first order of business was approval of the Minutes of April 21, 2011. Ald. Michalczyk moved to approve the minutes as presented, seconded by Treas. Jasinski and carried by unanimous voice vote.

Review and Discussion of the Redevelopment Agreement for the Harley-Davidson Redevelopment comprising a part of the Countryside Commercial TIF District of the City of Countryside, Illinois

City Administrator Ms. Paul distributed projections compiled by the City’s TIF consultant, Kane McKenna, projecting the incremental property tax revenues of the TIF and the sales tax generated by the Illinois Harley-Davidson Dealership (ILHD).

Attorney Tom Bayer, special counsel for the City re: TIF negotiations with ILHD, discussed highlights of the Redevelopment Agreement. He stated that Countryside owns the Circuit City property on Joliet Road, along with the northerly portion of the Toyota property (28,000 s.f.) and the southwesterly portion of the Dodge City property (14,000 s.f.). Those properties are being conveyed to ILHD for development of the new facility. The ILHD will also include a Rider’s Edge portion, which is a parking lot area usable between April and October for the purpose of teaching individuals how to ride motorcycles.

The above conveyance is being done subject to a mortgage of $2,301,956 on the property which will stay in place for an 8-year period. The mortgage was calculated based on an appraisal of vacant land owned by the City at 5631 S. LaGrange Road (reduced by 30% due to lack of frontage on LaGrange Road), plus the $125,000 payment by the City to Aldi for amendments to the REOA.

The mortgage interest is 4.5%; no principal or interest payments will be made for 8 years following the issuance of a Certificate of Occupancy as long as ILHD operates the property. For each year they remain at that site, 12.5% will be forgiven and any interest accrued will also be forgiven. If ILHD stays for 8 years there will be no mortgage on the property. If ILHD ceases doing business, the City retains foreclosure rights. The purpose of the mortgage is to give the City some security

The TIF cash incentive — there is a Not-To-Exceed amount of $1,730,302 that is broken down into building work (rehabilitation of the Circuit City building) estimated at $1,177,000 and site work of $533,302 – including improvements in parking areas, reconfiguration of lighting, landscape islands, etc. The developer will match site improvements to complement the LaGrange Road Streetscape. If the site work is completed by another developer (Bradford) then the $533,302 would not go to ILHD and reduces the TIF incentive by that amount. If ILHD fails to operate the business continuously for 8 years, there is a refund obligation of the TIF incentive in the agreement.

The next item — cross access and cross parking allows for traffic flow and intermingling of customers across the entire site. The developer has agreed to enter into cross access easement agreements allowing all customers the ability to exit either Joliet Road or LaGrange Road with the property operating as one huge commercial site. Sales tax figures will be released to the City so as to track the sales tax derived. The City is waiving permit fees in connection with the initial construction only; future remodeling will trigger permit fees. There also is a provision that mandates specific minimum EAV be maintained for the property for each of the 23 years of the TIF; the numbers are calculated based on the value of the property; if they fall short the incremental revenue lost must be paid to the City by the operators of the facility.

Finally — the prevailing wage rate must be paid to all workers per all the contracts. Those are the highlights of the agreement. Mayor Conrad stated that this has been a long time in coming; after four years he appreciates everyone’s hard work; he is happy the project is coming to fruition.

Ms. Paul asked ILHD to provide the committee with their total project costs re: ILHD commitment and their investment thus far. Mr. Giglio stated that ILHD bought the assets and good will of another dealership for $1.8 million and closed it down. They were obligated for $1 million in leasehold requirements. The total cost was $2.8 million. In addition they incurred costs for employment contracts, moving expenses, Furniture & Fixtures — for a total of $350,000. Rental expenses for the Berwyn facility are $350,000 for a grand total of $4 million – total non-TIF eligible redevelopment costs.

Treasurer Jasinski asked about their time line. Mr. Giglio stated that they have been actively working with contractors – he stated if all goes as planned, they need seven months from City approval tomorrow night. He seeks an expedited permit process; the building is workable; they are working on the inside layout of the building. The summer months are needed for the exterior fa̤ade.

Ald. Straza asked about corporate’s feedback to the Route 66 location. Mr. Giglio stated that corporate has indicated that this location will definitely be a high priority for them; it is a tremendous opportunity. The current facility services a huge business, both international and local; there is every indication that this site will be approved. Mr. Giglio stated that Countryside will be featured prominently on tee shirt and other items. ILHD is very proud of its 80-year service record; all promotional material will feature Illinois Harley-Davidson, Countryside, IL

Ald. Von Drasek asked about the number of employees – probably 50-55; each of their four dealerships has between 40-50 employees, depending on the time of year. Events attract many enthusiasts – between 2,000 – 3,000. Mayor Conrad advised them about the Route 66 dedication of the Wayside Park monument. Mr. Bill Kelly, of Route 66 Heritage Corridor, is very aware of the European market and will be happy to get involved in some way – bringing guests to the Holiday Inn — being so close – to begin their journey from the new store on Route 66. This whole development has been in the works for the past four years. Ms. Paul has been instrumental in putting this all together in the last two years. Mr Giglio thanked Mayor Conrad and Ms. Paul for their vision and their effort which were tremendous – the commitment from the City worked. They appreciate the fact that there will be a cascading effect on the business community. International customers will be able to stay here in Countryside and utilize Route 66 as a jumping off point. It couldn’t have been done without tremendous City effort.

Many thanks to everyone involved in the project.

Mr. Bayer stated that the property will need to be rezoned from B-2 to B-3 to allow for motorcycle sales. The City will be a co-petitioner with ILHD for the rezoning; it will go forward while closing on the property. Mr. Giglio thanked Attorney Tom Bayer and Attorney Steve Ryd for their cooperation in this matter.

Adjournment

Ald. Michalczyk moved to adjourn the meeting, seconded by Treasurer Jasinski and carried unanimously.

Treasurer Jasinski declared the meeting adjourned at 7:00 p.m.

Sean McDermott, Chairman

By: STEVE JASINSKI, CITY TREASURER