City of Highland Park Committee of the Whole met Dec. 9.
Here is the minutes provided by the committee:
CALL TO ORDER
At 4:31 PM, Mayor Rotering called the meeting to order and asked for a roll call.
ROLL CALL
Members Present: Mayor Rotering, Councilmen Stolberg, Stone, Kaufman, Blumberg, Knobel, Holleman
Members Absent: None
Mayor Rotering declared a quorum was present.
Staff Present: Ghida Neukirch, Ashley Palbitska
Also Present: Corporation Counsel Steve Elrod, Deputy Corporation Counsel Hart Passman
APPROVAL OF MINUTES
A. Regular Meeting of the Committee of the Whole – November 25, 2019
Councilwoman Stone moved to approve the minutes from the regular meeting of the Committee of the Whole held on November 25, 2019, as amended. Councilman Kaufman seconded the motion.
On a voice vote:
Voting Yea: Mayor Rotering, Councilmen Stolberg, Stone, Kaufman, Blumberg, Holleman
Voting Nay: None
Present: Councilman Knobel
Mayor Rotering declared the motion passed.
CLOSED SESSION
Councilman Blumberg moved the Committee close its meeting to the public, pursuant to the following cited sections of the Illinois Open Meetings Act (5 ILCS 120/2(c)), for the purposes of i) approval of closed session minutes (5 ILCS 120/2(c)(21)); ii) setting price to sell or lease property (5 ILCS 120/2(c)(6)); and iii) pending and probable litigation (5 ILCS 120/2(c)(11)). Councilman Stolberg seconded the motion.
On a roll call vote:
Voting Yea: Mayor Rotering, Councilmen Stolberg, Stone, Kaufman, Blumberg, Knobel, Holleman
Voting Nay: None
Mayor Rotering declared the motion passed unanimously.
At 4:32 PM, the Committee recessed the public portion of the meeting to meet in Closed Session.
At 4:43 PM, Mayor Rotering reconvened the open session of the Committee of the Whole Meeting.
Members Present: Mayor Rotering, Councilmen Stolberg, Stone, Kaufman, Blumberg, Knobel, Holleman
Members Absent: None
City Staff Present: Ghida Neukirch, Ashley Palbitska
Also Present: Corporation Counsel Elrod, Deputy Corporation Counsel Hart Passman
CLOSED SESSION
Councilman Blumberg moved the Committee close its meeting to the public, pursuant to the following cited sections of the Illinois Open Meetings Act (5 ILCS 120/2(c)), for the purposes of personnel (5 ILCS 120/2(c)(1)). Councilwoman Stone seconded the motion.
On a roll call vote:
Voting Yea: Mayor Rotering, Councilmen Stolberg, Stone, Kaufman, Blumberg, Knobel, Holleman
Voting Nay: None
Mayor Rotering declared the motion passed unanimously.
At 4:44 PM, the Committee recessed the public portion of the meeting to meet in Closed Session.
At 5:22 PM, Mayor Rotering reconvened the open session of the Committee of the Whole Meeting.
Members Present: Mayor Rotering, Councilmen Stolberg, Stone, Kaufman, Blumberg, Knobel, Holleman
Members Absent: None
City Staff Present: Ghida Neukirch, Ashley Palbitska
Also Present: Corporation Counsel Elrod, Deputy Corporation Counsel Hart Passman, Larry Amidei, Joel Fontane, Lou Jogmen, Ramesh Kanapareddy, Julie Logan, Manny Gomez, Charmain Later
SCHEDULED BUSINESS
Highland Park Community Foundation (“HPCF”)
Highland Park Community Foundation Chair Nancy Mills and Highland Park Community Foundation Vice Chairman David Reich presented their Annual Report to the City including information about their grant review and selection process.
Councilman Knobel commented on the HPCF’s process as the City’s liaison to the organization.
Mayor Rotering thanked HPCF for their time and dedication to providing resources to those organizations that requested funding.
Councilman Kaufman congratulated HPCF for their success. He asked if HPCF could elaborate on the encouragement of the recipients receiving money taking the time to get to know and understand the mission of the HPCF.
Ms. Mills provided information on the process for recipients to ascertain more about HPCF.
Clavey Road Improvements Project Update
Public Works Director Kanapareddy and City Engineer Gomez presented an update on the Clavey Road Improvement Project including the neighborhood meetings held to date, anticipated project timing, two- way traffic plan, landscaping and anticipated grant funds to offset 80% of project costs.
Mayor Rotering and Public Works Director Kanapareddy discussed the timing of the light that will be used in order to keep the two way traffic flowing during construction and if there will be any disruption during the ComEd pole relocations.
Mayor Rotering and City Engineer Gomez discussed a transponder being present on the signal that will be managing traffic to alert when emergency service vehicles are approaching.
Councilman Knobel thanked City Engineering for touching on the topic of the transponder due to there being a lot of children in the area where construction will be taking place.
Mayor Rotering and Public Works Director Kanapareddy discussed the landscape plan and specifics as it relates to how the planting of trees will be handled.
Mayor Rotering asked if requested variances will delay the project.
City Engineer Gomez stated that variance requests do not delay the project.
Public Works Director Kanapareddy noted that the variances that are being requested are to minimize impact on the area.
Mayor Rotering and Public Works Director Kanapareddy discussed the involvement of the State Representatives in regards to contacting them about the project.
Mayor Rotering, Public Works Director Kanapareddy and City Engineer Gomez discussed pedestrian access along Clavey Road during the construction.
Councilman Stolberg and Public Works Director Kanapareddy discussed the cost the City will have to contribute to the project.
Councilman Stone and Public Works Director Kanapareddy discussed pedestrian access currently on Clavey Road and not closing the pedestrian crosswalks that are currently in place.
Councilman Knobel asked if the City has been in contact with the country club regarding the construction.
Public Works Director Kanapareddy stated that the City has been in contact with the country club regarding the construction and crosswalks from their property across Clavey Road.
Mayor Rotering asked if there was going to be disruption in water services as the water mains were being replaced.
Public Works Director Kanapareddy explained that there will be a slight disruption for each house as they switch from the old water main to the new water main but not all water mains will be done at the same time. He stated that the affected homeowners will be notified of the disruption.
Councilman Knobel and Public Works Director Kanapareddy discussed the shared bike/walk plan.
Councilman Holleman, City Manager Neukirch and Public Works Director Kanapareddy discussed the timeline for the project.
City Manager Neukirch noted that the plan information is available on the City’s website and updates will be posted as they becomes available.
Mr. Bederman, Highland Park resident, asked if there will be stop signs when pedestrians are present within the crosswalks.
Public Works Director Kanapareddy confirmed that the signs will be posted and there will be advanced warning signs as well before entering the crosswalk area.
Mr. Bederman asked if there will be some kind of a device that will sense traffic that will automatically know when there is heavy or light traffic.
Public Works Director Kanapareddy confirmed there will be a device that will sense the flow of traffic. Mayor Rotering voiced her concern about the bridge during the Ravinia Festival season.
Councilwoman Stone voiced her concern of the structural soundness of the bridge if it is under construction and there are cars waiting.
Public Works Director Kanapareddy confirmed that the bridge will be able to hold the weight of the vehicles sitting on the bridge if there are traffic delays.
City Engineer Gomez stated that the traffic signal will not allow for traffic to back up on the bridge.
Michael Glazer, Highland Park resident, commented on the planning process of the entire project. He commented on the connectivity of the bike path and future aspirations.
Mayor Rotering noted that this is a State funded project and the State will be the deciding factor as to the rules and regulations during the planning process.
City Manager Neukirch stated that if the City does not already have contact information for those interested in updates regarding this project, they should provide that information to Public Works Director Kanapareddy.
Housing Program & Housing Stock Report
Based on the staff report that was provided to the Committee of the Whole, Community Development Director Fontane provided information on the recommendations and next steps as it relates to direction being provided to the Housing Commission and a working relationship with Community Partners for Affordable Housing (“CPAH”). He provided an overview of the housing program, the Housing Trust Fund’s initial funding, Housing Trust Fund (“HTF”) expenditures and Association project mortgages and loans, the Real Estate Assessment Center’s inspection results and the use of Peers Unit #111 as an office.
Mayor Rotering, Councilmen Stone, Kaufman and Corporation Counsel Elrod discussed the basis for recusal during this discussion.
As it relates to the Peers Housing Association (“PHA”), Councilman Holleman noted that Sunset Woods took out several mortgages to settle debt and the debt is assumed by the mortgages that Sunset Woods owns.
Senior Planner Later noted that there are 12 units that Sunset Woods owns, they bought several units using PHA funds but there are mortgages on some units.
Councilman Holleman stated that the HTF was funded with $1 million from PHA. She explained that the money that is in the Peers fund comes from rent payments from some of the lowest income renters in the community. She voiced concern that the lowest income renters in the community are basically funding the HTF and that process does not make sense. She voiced the need to review the policy as to how certain monies are being spent.
Councilwoman Stone asked who paid for the building of Peers.
Councilman Holleman stated that the building is being mortgaged and refinanced because it is valuable property.
Mayor Rotering noted that Councilman Holleman’s concern is that there is this continuous desire to add more units and the question is if the City is using the money in a way that is putting the burden on individuals that should not have such a heavy burden; are the individuals living in a place that may benefit from having money put into it but instead, other units are being purchased.
Councilwoman Stone stated that she understands Councilman Holleman’s concern but noted that money was transferred into the HTF in 2007 and noted that there are no plans to make that kind of transfer again in the future.
Councilman Holleman noted that none of the mortgages were paid off of on Peers and those mortgages are continuously refinanced.
Councilman Knobel stated that with the refinancing, there has been little reinvestment in the property.
Councilwoman Stone noted that the windows have been replaced and there is a long term plan in place for reinvestment in the property.
Community Development Director Fontane stated that it’s not that there’s no reinvestment in the property but that the money that has been generated could be placed in a reserve fund for future projects.
Councilman Blumberg stated that he agrees with Councilman Holleman’s statements. He commented on the fee in-lieu being used to build new units. He stated that when units are built by a private developer that are then managed by CPAH or a private organization, there should be a requirement that they are maintained by the City or CPAH instead of a private developer that is not located within the City. He agreed that the money that is generated by one of the City’s developments should be used for that particular development. He distinguished this from the use of payments in lieu and how they are proposed to be used.
Mayor Rotering reiterated a previous comment that everyone is in support of affordable housing and making sure there are units available in the community.
Councilman Blumberg stated that he was not disagreeing with that statement but was agreeing with Councilman Holleman that if a development was producing funds from rent or equity, than those funds should be used for that development first before it is transferred to another development of fund.
Community Development Director Fontane discussed the recommended appointment of a Council member to the CPAH board.
Councilman Kaufman requested that it be documented that there is a person who is serving both the City Council and as a member of the board for CPAH to be sure there is transparency and the community understands that the appointment is by design.
Corporation Counsel Elrod explained that there is a section of the City’s current Ethics Code that does cover this instance but that there could be a section that includes the information regarding Council appointments or Mayor appointments.
Councilwoman Stone noted the confusion from when she was appointed to the CPAH board because CPAH appointed her directly, not the Mayor.
Corporation Counsel Elrod reiterated that this has already been included in the Code of Ethics but he can have language that would affirmatively confirm the legality of the recommended appointment.
Councilman Knobel discussed the role of an ex-officio participating on a non-City board.
The Committee, Corporation Counsel Elrod and Community Development Director Fontane discussed how this position would be a voting member.
The Committee understood that the appointed Council member would be a voting member of the board for CPAH.
Councilwoman Stoned recused herself from the discussion regarding Peers Unit #111 because of her position on the Board of Directors with CPAH.
Councilman Kaufman recused himself from the discussion regarding Peers Unit #111 because his wife serves as an employee of CPAH.
Councilmen Stone and Kaufman exited the meeting at 6:49 PM.
Community Development Director Fontane provided information on the Peers Unit #111.
Councilman Holleman noted that there is still value of having CPAH in the area and it was recommended to see if there is another location to allow CPAH to have work space in order to put this unit back on line as a rental unit. She stated that there was no timeline for this but to look at other options that could be available for not only CPAH but small, volunteer organizations that needed work space.
Councilman Stolberg noted the potential need to have a working space on site for those individuals who need to speak with someone in person.
Mayor Rotering and Councilman Holleman stated that the office would be located in the Central Business District to serve just that purpose. They discussed the need to review availability of work space for those types of services the community needs, like the Legal Aid Clinic, CPAH, the health center, etc.
Councilman Knobel commented on the complexity of providing space to these types of organizations. She stated that she was in favor of getting the Peers unit back on line as a rental unit and assisting with finding a centrally located working space for CPAH but the first priority would be to prepare the unit as a rental dwelling. She suggested that this type of project be added to the City’s Major Project list.
The Committee was in consensus to have the unit be returned to a rental unit.
Community Development Director Fontane noted the possible need for a part time social worker within Peers Housing.
Councilman Holleman noted that the Housing Commission will need to review where the City’s services end and where outside services are available. She stated that the City does not provide assisted living services and if there are individuals that can no longer live on their own, affordable housing units provided by the City is not the best option for them but there are care facilities in the area that could better suit their needs.
Councilmen Stone and Kaufman entered the meeting at 6:58 PM.
Community Development Director Fontane provided information on the inspection reports for the City’s affordable housing. He reviewed staff’s recommendations and available next steps.
Councilman Kaufman asked about the practical reality of going back and reviewing the stock of affordable housing units due to the amount of time and cost that would be incurred doing such work.
Community Development Director Fontane stated that he had that particular discussion with Rob Anthony, CPAH President, and the issues that may arise from going backwards. He recommended that the disposition of future units would be a more cost effective process.
Councilman Holleman explained that if there was the unlikely chance CPAH dissolved, something will have to be done with the properties they are maintaining and the current question is what that process would like if there is no information available. Because CPAH owns the land and the homeowner owns the home, there would be no disruption to the homeowner.
Community Development Director Fontane noted the need to allow the City to have some say as to what will happen with the properties.
Councilwoman Stone noted that it was presented earlier that the City is not interested in taking a loan against one fund to assist another fund.
Community Development Director Fontane stated that it is recommended that a policy be put in place in case there is a time where that is needed or desired.
Mayor Rotering asked the Committee if they were interested in reviewing different financial scenarios based on different tracks.
Councilman Holleman asked for clarification as to what was being asked.
Community Development Director Fontane explained that it would be a policy statement about when Peers Housing Association would lend money.
Councilman Holleman suggested a policy statement for the Housing Commission properties, not just Peers. She explained that the Housing Commission has the ability to take a loan out from any of the properties they maintain.
Mayor Rotering suggested future financial planning related to housing assets owned by the City. She explained that the big question is how are the assets being used and how should they be used. She noted that this would not be a Housing Commission project but a project that would need assistance from Finance Director Logan.
Councilman Holleman stated that the Housing Commission does have a CPA on hand and that individual should start the analysis.
Councilwoman Stone recommended that information be provided about other organizations that are similar to the City’s in order to conduct a full review.
Councilman Kaufman was in favor of a financial policy being created but it should be reviewed periodically because needs may change and shift from time to time.
Discussion of Policy Statement Amendment Regarding Inclusionary Housing
The Committee was in consensus with the proposed suggested changes to the Policy Statement regarding Inclusionary Housing that were contemplated by Councilmen Blumberg and Knobel.
Councilman Knobel explained that the reason the review was conducted was to remove subjective language.
Mayor Rotering requested that the Plan and Design Commission be informed that the City Council is not requesting the Commission tinker with the language because it has already been reviewed.
Discussion of Fee for Payment In-Lieu of Inclusionary Units
Community Development Director Fontane discussed the current payment in-lieu process for affordable housing units and requested feedback from the Committee if the process should be modified.
Finance Director Logan asked if it is a developer provided unit, if the developer is the one to maintain the unit.
Community Development Director Fontane confirmed that if it is a rental, yes, the developer maintains the unit but if it is a single family home, the developer does not.
Finance Director Logan stated that it appears the analysis only considers acquisition price, not the value at which the City has to maintain the unit.
Councilman Holleman noted that the scattered site housing is generally not rental units and allows the City to not have a lot of rental units to maintain.
Councilman Kaufman explained that in the analysis there is a gap between the market sales data and what it takes to actually develop and maintain a unit.
Councilman Holleman explained that when affordable housing was envisioned, the idea was that the entire community would pay the cost for the affordable units and the reason why CPAH exists is because there needed to be an organization that could conduct fundraising, coordinate the grants and generate other revenue sources that are not available to the City.
Councilwoman Stone noted that the other cost to take into consideration is the prevailing wage that is applied to the units that are subsidized in part by the grants that are provided to CPAH, which has significantly raised the costs to rehab some of the units.
Councilman Stolberg explained that if renters are given a place to live and pay rent, nothing else, what happens with the uptick in appreciation. He asked if the homeowner was not privileged to some of the appreciation of the unit.
Community Development Director Fontane stated that they are but it is restricted.
Councilman Kaufman stated that the City’s fees are reviewed annually and the Code outlines the requirements to review those fees. He recommended that the Housing Commission review the fee and take into account the sales data and program experience as well as all of the factors that have been presented to the Committee. He requested that the Housing Commission present a recommendation to the Committee in order to move forward.
Councilman Blumberg agreed with Councilman Kaufman. He recommended that what should be included in their evaluation and recommendation is what the value should be, consider the possibility of recommending different amounts in different situations and review whether the historic methodology is still appropriate or if there may be a better methodology now that there is fair amount of history in handling the affordable housing program that was not there previously.
Mayor Rotering suggested that there needs to be structure and stability so the developers understand what the requirements will be.
Councilman Stolberg stated that clarity and stability has been requested by the development community during round table discussions.
Councilman Blumberg stated that he agrees with that but what he would like the developer to understand is that whatever the requirement is, the developer has to show, based on the Code, what the payment in-lieu represents.
Councilman Knobel agrees that the recommendation should come from the Housing Commission. She explained that developers have stated that they want to do work in Highland Park but there seems to be an underlying tone that the developer has to bear the costs for providing affordable units, which is not the case. She requested that the Housing Commission understand that the funds for the affordable housing is to be funded by multiple sources.
Councilman Holleman stated that the Housing Commission does need to understand all of the points that have been discussed by the Committee and that they need to understand that long term maintenance is very critical.
Councilman Blumberg explained that there has been much success when developers were identified that could develop units within the affordable housing program.
Councilman Holleman discussed the change in zoning that has taken place and how that has affected affordable housing. She stated that this change needs to be reviewed by the Housing Commissions and priorities need to be set.
Councilman Kaufman stated that there is consensus that the Housing Commission should review the fee. He noted how Highland Park has been the leader in affordable housing for years; the program is not broken but it needs to be reviewed.
Councilman Stolberg added that a few months back, the inventory list was provided and even if the developer will build and provide maintenance, there is not a lot of three bedroom units available; the idea of something for everyone is a concept that the Housing Commission should review as well to ensure units suit the needs of all types of family situations in the community.
Mayor Rotering recommended that the Housing Commission review a number of scenarios and provide the Committee with multiple options based on a deep dive analysis before a decision is made.
City Manager Neukirch noted that Senior Planner Later updated the affordable housing map that will be shared with the Housing Commission.
Mayor Rotering noted that Councilman Knobel recommended a year but Mayor Rotering requested a near future deadline to continue the policy question as it related to the payment in-lieu.
City Manager Neukirch stated that staff will provide a status report by mid-year with substantial information.
OTHERS MATTERS
There was none.
ADJOURNMENT
Councilman Blumberg moved to adjourn. Councilwoman Kaufman seconded the motion. On a voice vote, the Mayor declared the motion passed unanimously.
The Committee of the Whole adjourned its meeting at 7:39 PM.
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