City of Lake Forest City Council Met April 5.
Here is the agenda provided by the council:
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
| 1. COMMENTS BY MAYOR |
Former Market House Restaurant. (Approval by Motion)
PRESENTED BY:
Catherine Czerniak, Director of Community Development (847-810-3504)
PURPOSE AND ACTION REQUESTED: There is a pending sale of the 655 Forest Avenue property and the sale is contingent upon action by the City Council approving a partial release of rights set forth in the deed that was recorded in 1980. The City Council is asked to consider waiving the City’s right of first refusal and is asked to affirm that the City, through the Historic Preservation Commission, has approved limited exterior changes to the building and patio.
BACKGROUND/DISCUSSION: Historically, the building at 655 Forest Avenue housed the City’s Police and Fire Departments. After those departments moved to modernized facilities, the City sold the property to a private party but reserved certain rights. The Warranty Deed for the property, dated July 31, 1980, reserved a right of first refusal for the City prior to any subsequent sale of the property and authorized the City to approve any proposed changes to the exterior of the building or patio. These rights were reserved in recognition of the historic significance of the property, its adjacency to City Hall, the importance of the site given its location at the southwest corner of Market Square, and due to the fact that in 1980, the City’s Historic Preservation Commission was not yet established.
A sale of the property from MSQ Partners, LLC to Lake Forest Colonial Partners LLC is pending and the current owner has requested the City’s release of the right of first refusal to facilitate the sale. As the Council is aware, Le Colonial Restaurant is the intended tenant of the building once the new ownership, which is locally based, is in place. The City’s right of first refusal will carry forward for subsequent sales, the current waiver is only applicable to the sale that is pending at this time.
As noted above, the Deed also provides for City approval of exterior changes to the building and patio. On January 27, 2021, the Historic Preservation Commission granted a Certificate of Appropriateness approving limited exterior modifications to the historic building at 655 Forest Avenue and enhancements to the patio located on the northeast portion of the site. The approvals included the appointment of a subcommittee of the Commission to work with Le Colonial on the final details of the planned improvements. An on site meeting was held with the project architect and landscape architect and the Commission subcommittee issued a final approval of the exterior changes on February 12, 2021. Some images of the proposed modifications are included in the Council packet beginning on page 24.
The Resolution presented for Council consideration approving a partial release of rights is included in the Council packet beginning on page 18.
BUDGET/FISCAL IMPACT: The sale of the property is anticipated to generate both increased property taxes based on the significant investments planned in the building and on the site, and increased sales tax revenues. In addition, Le Colonial will draw people to the City’s Central Businesses to eat, drink and shop. Contacts from new businesses has already increased likely in response to the news about Le Colonial’s interest in our community.
COUNCIL ACTION: If desired by the City Council, approve a Resolution granting a partial release of rights for property located at 655 Forest Avenue and authorize the Mayor to sign the Partial Release of Rights, Exhibit A to the Resolution, in substantially the form presented.
B. Consideration of a Request from the Owners of Le Colonial Restaurant for Approval of a Short Term Financial Incentive Agreement Rebating a Portion of Sales Taxes Received by the City (Approval by Motion)
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
STAFF CONTACTS: Elizabeth Holleb and
Catherine Czerniak, Director of Community Development (847-810-3504)
PURPOSE AND ACTION REQUESTED: The City Council is asked to consider a request from the owners of Le Colonial Restaurant to rebate a portion of sales taxes generated and received by the City above a minimum annual taxable sales volume for a period of up to four (4) years or a maximum of $200,000, whichever occurs first. Sales taxes eligible for rebate would be limited to those generated above the $80,000 in annual sales taxes received by the City.
BACKGROUND/DISCUSSION: Rick Wahlstedt and Joe King, the owners of Le Colonial, a famed restaurant offering French Vietnamese cuisine with locations in Chicago, San Francisco, Atlanta, Houston and New York City, are planning a new location in Lake Forest, in the historic building most recently occupied by Market House Restaurant at 655 Forest Avenue. This venture is well along in the planning stages, much work has been completed to date in anticipation of Le Colonial becoming a landmark in the City’s Central Business District long into the future.
The City’s Historic Preservation Commission recently completed its review of the proposed alterations to the exterior of the building including the creation of a defining entrance from Forest Avenue, new signage and significant enhancements to the patio. Le Colonial representatives have also engaged with City staff in on site meetings to discuss significant interior demolition, high quality interior renovations and much needed equipment and life safety upgrades that are all planned for the building. An application for interior demolition is already on file with the City and work is anticipated to begin within weeks. The upfront investment in the property is projected to be in excess of $4 million dollars.
In recognition of the significant investment planned for the site and the anticipated sales taxes to be generated in excess of revenues generated by other restaurants in the community due to the scale, unique character and popularity of Le Colonial, the restaurant owners are requesting approval of a short term incentive agreement. The agreement as proposed establishes specific parameters to be met before any sales taxes would be eligible for rebate and limits the duration and maximum rebate to be received:
Minimum Taxable Sales Threshold – Establishing a minimum $4 million in annual taxable sales, the City would receive the first $80,000 in sales taxes generated annually through the Municipal Sales Tax (MST 1%) and Home Rule Sales Tax (HRST 1%)
Short Term Agreement – The maximum duration of the financial incentive agreement would be four (4) years.
Cap on Incentive – The maximum cumulative rebate of sales taxes is limited to $200,000.
The proposed agreement (Page 27) anticipates that the four-year duration would begin upon the later of the following: 1) issuance of a full Certificate of Occupancy or 2) the opening of the restaurant to the public.
BUDGET/FISCAL IMPACT: The City would receive the first $80,000 in sales taxes generated annually ($4 million taxable sales) through the MST and HRST. The City would rebate 100% of the sales taxes generated and received by the City annually in excess of $80,000. Sales tax rebates would cease upon the threshold of: 1) four (4) calendar years or 2) cumulative rebate payments of $200,000.
COUNCIL ACTION: If desired by the City Council, approve a Short Term Financial Incentive Agreement for Le Colonial Restaurant Rebating a Portion of Sales Taxes Received by the City for a Limited Period of Time and Authorize the Mayor to Sign the Agreement in Substantially the Form Presented Consideration of a Request from the Owners of Le Colonial Restaurants for Approval of a Short Term Financial Incentive Agreement Rebating a Portion of Sales Taxes Received by the City
| 2. COMMENTS BY CITY MANAGER |
| 3. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL |
| 4. COMMITTEE REPORTS |
| 5. ITEMS FOR OMNIBUS VOTE CONSIDERATION |
STAFF CONTACT, Jason Wicha, City Manager
PURPOSE AND ACTION REQUESTED: It is requested that the City Council extend the Declaration to the next City Council meeting.
BACKGROUND/DISCUSSION: Over the past months, the U.S. Government and the State of Illinois have issued multiple orders declaring a state of emergency over the country and the State of Illinois in order to address the impact of the global pandemic from COVID-19. In order to address the impact this pandemic has had on the City of Lake Forest, Mayor Pandaleon exercised his authority to issue a Declaration of a Local State of Emergency on Saturday, April 4, 2020. At its April 6, 2020, City Council meeting, the City Council extended the Declaration to the next City Council meeting which was March 15, 2021.
In order to ensure that the emergency powers authorized by the local declaration remain in effect where necessary, the Mayor is asking the City Council to further extend the Declaration of a Local State of Emergency until the next City Council meeting that takes place after April 1, 2021.
REVIEW/RECOMMENDATIONS: Following the Mayor exercising his authority to issue a Declaration of a Local State of Emergency on April 2, 2020. The City Council Approved the Mayor's Declaration on the following dates; 4/6/2020, 4/20/2020, 5/4/2020, 5/18/2020, 6/1/2020, 6/15/2020, 7/20/2020, 8/3/2020, 9/8/2020, 10/5/2020, 10/19/2020, 11/2/2020, 11/16/2020,12/7/2020, 1/19/2021, 2/1/2021, 2/16/2021, 3/1/2021 and 3/15/2021.
BUDGET/FISCAL IMPACT: N/A
COUNCIL ACTION: Approve the extension of the Mayor’s Declaration of a Local State of Emergency until the next City Council Meeting
2. Approval of the March 15, 2021, City Council Meeting Minutes
A copy of the minutes can be found beginning on page 44
COUNCIL ACTION: Approval of the March 15, 2021 City Council Meeting Minutes. 3. Approval of the Check Register for the Period of February 20 to March 19, 2021 STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
BACKGROUND/DISCUSSION: City Code Section 38.02 sets forth payment procedures of the City. The Director of Finance is to prepare a monthly summary of all warrants to be drawn on the City treasury for the payment of all sums due from the City (including all warrants relating to payroll and invoice payments) by fund and shall prepare a detailed list of invoice payments which denotes the person to whom the warrant is payable. The warrant list detail of invoice payments shall be presented for review to the Chairperson of the City Council Finance Committee for review and recommendation. All items on the warrant list detail recommended for payment by the Finance Committee Chairperson shall be presented in summary form to the City Council for approval or ratification. Any member of the City Council shall, upon request to the City Manager or Director of Finance, receive a copy of the warrant list detail as recommended by the Finance Committee Chairperson. The City Council may approve the warrant list as so recommended by the Finance Committee Chairperson by a concurrence of the majority of the City Council as recorded through a roll call vote.
The Council action requested is to ratify the payments as summarized below. The associated payroll and invoice payments have been released during the check register period noted.
Following is the summary of warrants as recommended by the Finance Committee Chairperson:
The amount designated as “All other Funds” includes $206,059 for expenses associated with the City’s medical/dental program.
COUNCIL ACTION: Approval of the Check Register for the Period of February 20 to March 19, 2021
4. Approval of a Resolution Reallocating 2021 Volume Cap to the Village of Buffalo Grove, Illinois
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests approval of a resolution reallocating the City’s 2021 private activity bond volume cap to the Village of Buffalo Grove, Illinois for the private activity bond clearinghouse (PABC) pool.
BACKGROUND/DISCUSSION: The Federal Tax Reform Act of 1986 imposes a limit on the aggregate amount of “tax exempt private activity” bonds (also known as volume cap) that can be issued by a State. Pursuant to these federal regulations, the State of Illinois has developed a formula by which the State ceiling is allocated among governmental units in the State having authority to issue such bonds.
The Illinois Private Activity Bond Allocation Act provides that a home rule unit of government is allocated an amount equal to $110 multiplied by its estimated population, which for Lake Forest in calendar year 2021 is $2,149,840 (19,544 x $110). By May 1, 2021, the City must take action to grant, reserve or transfer its allocation, or the amount is reserved by the Governor’s Office for a pool. The City may transfer its allocation to any other home rule unit of government, the State of Illinois or any agency of the State.
This year, the City has received one request (page 50) to transfer its volume cap, as follows:
| Organization | Proposed Use | Amount of Transfer Fee |
| Village of Buffalo Grove (Lake County Partners) | Private Activity Bond
Clearinghouse | 0.5% or $10,749.20* |
Home rule units are not prohibited from charging a fee for transferring their cap. In prior years when economic conditions were more favorable, home rule units were able to induce developers to pay a higher transfer fee than that offered by Lake County Partners. In recent years, however, fewer developers have sought the volume cap due to low interest rates and declines in development activity.
Because the volume cap amount for most municipalities is too small to assist with eligible projects, Lake County Partners created the Clearinghouse in 2000 as a way for Lake County communities to pool their cap and make best use of the allocation locally. Lake County Partners reports that in the past several years, they have seen little activity in the private activity bond market. Since its inception, the clearinghouse has funded nearly $200 million in local projects, including the construction of 360,000 square feet of new manufacturing space, creation of 648 new manufacturing jobs, renovation of 1,600 multi-family dwelling units, purchase of an estimated 251 homes by “first-time homebuyers”, expansion of a Montessori School, and construction of a new solid waste disposal “cell”.
This is the 16th year under home rule status that the City has been allocated volume cap. The City has transferred its volume cap to Buffalo Grove for the past fourteen (14) years. To date, fee income of $8,574.78 has been received.
BUDGET/FISCAL IMPACT: Upon issuance of bonds utilizing the City’s volume cap, a transfer fee payment of .5% would be due to the City. Should the entire 2021 allocation be utilized by the pool, the City would receive $10,749.20.
COUNCIL ACTION: Approval of a Resolution (page 51) Reallocating 2021 Volume Cap to the Village of Buffalo Grove, Illinois
5. Approval of Wright Benefit Strategies Benefit Consulting Services for Fiscal Year 2022 in the Amount of $30,900
STAFF CONTACT: DeSha Kalmar, Director of Human Resources (847-810-3530)
PURPOSE AND ACTION REQUESTED: The Personnel Compensation Administration (PCA) Committee is seeking City Council approval of benefit consulting services by Wright Benefit Strategies.
BACKGROUND/DISCUSSION: Since 2004, the City has contracted with Wright Benefit Strategies to provide consulting and support services for the City’s medical, dental, and life insurance, including providing guidance to our Employee Benefit and Wellness Committees. Wright Benefit Strategies also consults with the City on special projects in the areas of liability insurance, pension actuarial items and Federal and State legislation issues involving employee benefits. With the impending retirement of the Director of Human Resources, approval of this contract for one year will allow for stability while the Director’s successor becomes familiar with the City’s insurance programs.
This item reflects the Wright Benefit Strategies contract for FY22, including special projects. There is no increase from his FY21 contract.
Beginning on page 53 of your packet is a detailed scope of service.
PROJECT REVIEW/RECOMMENDATIONS:
| Reviewed | Date | Comments |
| PCA Committee individual review | 3/4/2021 | Reviewed and recommended for City Council approval. |
Has City staff obtained competitive pricing for proposed goods/services? NO
If no, indicate the specific exception or waiver requested:
Administrative Directive 3-5, Section 6.1I – Existing Relationship
The total cost for the recommended services is $30,900, which is included in the FY22 budget:
| FY2022 Funding Source | Amount
Budgeted | Amount
Requested | Budgeted? Y/N |
| 61086024353510
Self-ins Fund Contractual Svc. | $30,900 | $30,900 | Y |
6. Award of Bid for the Dickinson Hall Kitchen Renovation Project in Partnership with the Lake Forest-Lake Bluff Senior Citizen’s Foundation to Boller Construction in the amount of $102,500 and include Authorization for an additional $10,000 contingency and award $3,800 to Kolbrook Design for the Architectural Design for a total of $116,300
STAFF CONTACT: Tricia Schwall, Senior Resources Manager (847-810-4676)
PURPOSE AND ACTION REQUESTED: The Senior Resources Commission and City staff requests an award of bid for the Dickinson Hall Kitchen Renovation Project in partnership with the Lake Forest-Lake Bluff Senior Citizen’s Foundation to Boller Construction in the amount of $102,500 and include authorization for an additional $10,000 contingency and award $3,800 to Kolbrook Design for the architectural design for a total of $116,300
BACKGROUND/DISCUSSION: Dickinson Hall, the Lake Forest/Lake Bluff Senior Center has been located on the Grove Cultural Campus since 2001. Over the past 20 years, only minor improvements have been made to the kitchen including painting, installing an additional sink, adding a dish sanitizer, and replacing the refrigerator. The kitchen features cabinets that are regularly in need of repair and has flooring that is worn and discolored and a 20 year old oven. Renovating and updating this space will provide a safe and welcoming environment for our members. See the attached Scope of Work on page 56.
The Lake Forest/Lake Bluff Senior Citizen’s Foundation has approved a contribution to fund the renovation of Dickinson Hall’s kitchen in equal amounts with the City of Lake Forest Senior Resources Fund reserves based on City Council approval to fund the renovations with Boller Construction utilizing Senior Resources Fund reserves and the contribution from the Senior Citizens Foundation.
PROJECT REVIEW/RECOMMENDATIONS:
| Reviewed | Date | Comments |
| Lake Forest-Lake Bluff Senior Citizen’s Foundation | 3/22/21 | Approved Kitchen Renovation Project |
| Senior Resources Commission | 3/19/21 | Reviewed & Recommended Lake Forest Lake Bluff Senior Citizen’s Foundation Approval for Kitchen Renovation Project |
Has City staff obtained competitive pricing for proposed goods/services? Yes
| Company Name | Dollar Amount Bid |
| Boller Construction | $102,500 |
| FH Paschen, SN Nielsen & Associates, LLC | $118,165 |
| MAG Construction | $141,000 |
Below is an estimated summary of Project budget:
| FY2021 Funding Source | Amount
Budgeted | Amount
Requested | Budgeted? Y/N |
| Senior Resources Fund | $0 | $116,300 | N* |
COUNCIL ACTION: Award of Bid for the Dickinson Hall Kitchen Renovation Project in partnership with the Lake Forest-Lake Bluff Senior Citizen’s Foundation to Boller Construction in the amount of $102,500 and include authorization for an additional $10,000 contingency and award $3,800 to Kolbrook Design for the architectural design for a total of $116,300
7. Approval to Use Funds from the Dissolved East Shore Radio Network, and the Approval of an Intergovernmental Agreement Between The City of Lake Forest, The City of Highland Park, and The Village of Lake Bluff Establishing The Lake Shore Radio Network.
STAFF CONTACT: Pete Siebert, Fire Chief (810-3864)
PURPOSE AND ACTION REQUESTED: By entering into this Intergovernmental Agreement (IGA), The City of Lake Forest will be partnering with Highland Park and Lake Bluff, to maintain the infrastructure of the existing radio network that is used to dispatch emergency calls for each Municipality’s Fire Department. A copy of the IGA can be found beginning on page 57.
BACKGROUND/DISCUSSION: The Lake Shore Radio Network (LSRN) will be replacing the East Shore Radio Network (ESRN). The ESRN has been operated by the area police departments for years. The ESRN was used for dispatching Police and Fire calls. The LSRN will only be used
for Fire dispatching, as all of the area police agencies have switched to a different radio system (Starcom). The Starcom system does not utilize any of the traditional equipment contained in the ESRN. With the Fire Departments taking over this network, we will inherit all of the ESRN Police equipment no longer needed for Police dispatching. The surplus Police equipment can easily be reprogrammed and used to replace any failing Fire radio equipment. The LSRN must be maintained so that we can provide a radio network for our dispatch service to transmit emergency calls. This IGA sets forth a mutually beneficial partnership with our neighboring Fire Departments that utilize the same dispatch center.
BUDGET/FISCAL IMPACT: The ability to repurpose surplus equipment that is shared property in this radio network, will reduce operating expenses and save money on repairs to the system. When the Police Departments disband the ESRN, funds that were held to support that network will now be available to fund the LSRN.
| FY2022 Funding Source | Amount
Budgeted | Amount
Requested | Budgeted? Y/N |
| Emergency Telephone Fund | $0* | $40,000* | N |
COUNCIL ACTION: Approval to Use Funds from the dissolved East Shore Radio Network, and the Approval of an Intergovernmental Agreement Between The City of Lake Forest, The City of Highland Park, and The Village of Lake Bluff Establishing The Lake Shore Radio Network
8. Award of Proposal to Slaten Construction for the Police Target Range Safety Upgrade Project in the Amount of $166,782 with a 10% or $16,678 Contingency for a total amount of $183,460
STAFF CONTACT: Rob Copeland, Deputy Chief of Police (847-309-8775)
PURPOSE AND ACTION REQUESTED: Staff request City Council approval to award a proposal to Slaten Construction to install indoor ballistic materials to the walls and ceiling in the existing police target range.
BACKGROUND/DISCUSSION: In the Fall of 2019, the Police Department staff began the process of reviewing potential safety upgrades to the department’s firearms range located in the basement of the Public Safety Building. The range was last replaced/renovated in June of 2001. Since 2001, the range has provided a training area for officers in the use of all department issued firearms. While the range has been functional, current and best practice firearms and use of force training needs in law enforcement have prompted staff to consider the overall functionality of the range. Law enforcement training has evolved in the past 20 years since the range was last renovated and the need for more dynamic training to adequately prepare our officers requires safety upgrades to the range. Additionally, recent changes in Illinois law will require the department’s training capabilities to be adaptable to meet the changing demands of the profession.
While the range has served its purpose over the past 20 years, the equipment has deteriorated and all equipment, including software and targeting system, have exceeded the estimated useful life (ESL). The company that developed and installed the computer and target handling system is no longer in business.
A flexible, adaptable range with a target systems that are easily moveable will help us accomplish this goal. This will, however, require renovations to our current range. This will involve the removal of the current range equipment, installing ballistic wall coverings and ceiling protection that is critical to ensuring the safest environment possible for our officers to train
BUDGET/FISCAL IMPACT: The project followed the public proposal process and was advertised in the paper on February 26, 2021. Invitations were also sent to contractors that have done favorable work for City and other municipalities. A mandatory pre-proposal meeting was held on March 3, 2021. Twelve contractors attended the pre-proposal meeting and five contractors submitted proposals.
Has City staff obtained competitive pricing for proposed goods/services? Yes
On March 19, 2021, staff received the following proposals:
| Company Name | Dollar Amount Bid |
| Slaten Construction | $166,782 |
| Kandu Construction | $167,000 |
| Empire Construction | $168,913 |
| Efraim Carlson & Son | $175,500 |
| ATP Enterprise Group | $249,950 |
Below is an estimated summary of project budget:
| FY2021 Capital Funding Source | Amount
Budgeted | Amount
Requested | Budgeted?
Y/N |
| 311-1503-467-67-10 | $120,000.00 | $183,460.00 | Y |
COUNCIL ACTION: Award of Proposal to Slaten Construction for the Police Target Range Safety Upgrade Project in the Amount of $166,782 with a 10% or $16,678 Contingency for a total amount of $183,460.
9. Consideration of Ordinances Approving Recommendations from the Building Review Board. (First Reading, and if Desired by the City Council, Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
PURPOSE AND ACTION REQUESTED: The following recommendations from the Building Review Board are presented to the City Council for consideration as part of the Omnibus Agenda.
BACKGROUND/DISCUSSION: The Building Review Board recommended approval of new homes, landscaping and the overall site plans for the vacant lots in the 3-lot Estate Lane Subdivision. Two neighbors presented testimony offering comments on some of the design aspects of the homes and expressing concern about drainage in the larger Estate Lane area. The Board directed some refinements to the final designs of the homes in response to the comments. As part of the Estate Lane Subdivision, the developer was required to install a storm sewer on the development site to capture runoff from the three vacant properties. That work has been completed. Staff is reviewing stormwater issues in the larger Estate Lane area, particularly in the areas to the south and west of the Estate Lane Subdivision, to determine if public improvements are needed and if so, the priority of work in this area in the context of storm sewer improvements in the overall community.
1380 Oak Knoll Drive (Board vote: 4 - 0, approved)
1400 Oak Knoll Drive (Board vote: 5 - 0, approved)
1365 Estate Lane East (Board vote: 5 - 0, approved)
860 S. Green Bay Road – The Building Review Board recommended approval of demolition of the existing residence and approval of a replacement residence. One resident presented testimony regarding proposed tree removal and the amount of impervious surface. The Board confirmed that the tree proposed for removal is in declining condition and directed that pervious pavers be incorporated into the final plan in some of the hardscape areas. (Board vote: 4-0, approved)
2 June Terrace – The Building Review Board recommended approval of a partial demolition of the residence, an increase in the height of the roof a rear addition. A replacement detached garage was also recommended for approval. Public testimony was presented by several neighbors in support of the petition. This petition was also considered by the Zoning Board of Appeals as detailed in the following agenda item. (Board vote: 5-0)
The Ordinances approving the petitions as recommended by the Building Review Board, with key exhibits attached, are included in the Council packet beginning on page 63. The Ordinances, complete with all exhibits, are available for review in the Community Development Department.
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinances approving the petitions in accordance with the Building Review Board’s recommendation.
COUNCIL ACTION: Approval of the nine (9) omnibus items as presented.
| 6. OLD BUSINESS |
PRESENTED BY: Catherine Czerniak,
Director of Community Development (810-3504)
PURPOSE AND ACTION REQUESTED: Consideration of recommendations from the Plan Commission to deny 1) a request for a zone change from R-1 Single Family Residential to GR-3, General Residence, for a 38 foot wide strip of land along the west edge of 373 E. Westminster and 2) a Special Use Permit to authorize a Planned Multi-Family Development and a plat of consolidation, both related to the proposed third phase of the McKinley Road Multi-Family Planned Development, a residential condominium development.
BACKGROUND/DISCUSSION:
Redevelopment of the area east of McKinley Road, between Deerpath and Westminster, adjacent to the Central Business District, has been a topic of discussion for many years. The transition of this area from single family homes and office uses to multi-family residential use began in the late 1990’s with the construction of the 333 E. Westminster condominium building. Today, the transition of this area is nearing completion with the first two phases of the McKinley Road Multi-Family Planned Development nearly completed and discussions of the third and final phase ongoing.
A review of the recent history of discussions and actions related to the McKinley Road Development is provided in the report prepared for the recent Plan Commission meeting which is included in the Council packet beginning on page 121.
To date, the Plan Commission has considered and heard public testimony on the third and final phase of the McKinley Road Planned Development over the course of six meetings. Most recently, at the March 10, 2021 meeting, the Commission reconsidered this petition in its entirety as directed by the Council through a remand of this matter. At the conclusion of the March 10th meeting, the Plan Commission voted 4 to 2 to recommend denial of the petition based on various concerns including, but not limited to: the height and width of the building in relation to the adjacent single family homes, inconsistency of the requested zone change with the established pattern of single family residential zoning in the surrounding area, and the potential for a negative impact on the overall historic district as a result of the rezoning.
Several Commissioners, including some who voted to recommend denial of the petition, noted overall support for the third phase of the McKinley Road Development and a condominium building on the site. In December 2019, the Commission endorsed a three story building concept for the phase three site. The three story building concept was later denied by the Historic Preservation based in large part on a finding that the three story building did not provide an appropriate transition from the larger buildings to the west to the single family homes to the east.
The zone change request is a recent addition to this petition. As noted by some Plan Commissioners and members of the public, this development plan has continued to evolve over the course of the public discussions directly in response to comments, requests and direction offered to the developer throughout the process. Since the earlier Plan Commission discussions on the proposed third phase, the petitioners acquired the 373 E. Westminster property, immediately east of the development site. The petitioners are requesting the rezoning of the 38 foot strip of land to allow the third building to be configured as a two, rather than a three story structure. This revised configuration maintains the same number of units as presented in the earlier three story plan, improves the functionality of the underground garage and provides expanded space for a landscape buffer along the eastern edge of the development site.
COUNCIL ACTION: Options for Council action are offered below.
1. Accept the Plan Commission’s recommendation and by motion vote to deny the requested zone change and direct staff and the City Attorney to prepare findings in support of the denial based on the Council’s deliberations for affirmation by the Council at the next meeting.
AND
2. Accept the Plan Commission’s recommendation and by motion vote to deny the requested Special Use Permit and associated approvals and direct staff and the City Attorney to prepare findings in support of the denial based on the Council’s deliberations for affirmation by the Council at the next meeting. (If the zone change is denied, approval of the development plan as presented is not possible.)
OR
3. Overturn the Plan Commission’s recommendation and grant first reading and if desired by the Council, final approval of an Ordinance (included in the Council packet beginning on page 134) rezoning the 38’ wide parcel along the west edge of the 373 Westminster property from R-1, Single Family Residential to GR-3, General Residence.
AND
4. Overturn the Plan Commission’s recommendation and grant first reading, and if desired by the Council final approval of an Ordinance (included in the Council packet beginning on page 141) granting a Special Use Permit approving a Planned Multi
Family Development and Plat of Consolidation subject to the conditions detailed in the Ordinance and with direction to the Historic Preservation Commission to review the design aspects of the proposed building and landscaping based on the 17 standards in the Code.
| 7. NEW BUSINESS |
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: The City Council is asked to consider a request from The Ragdale Foundation – in concept only – to provide a loan of $1.5 million over a five year period to be paid from multi-year pledge commitments. The specific terms and loan documents would return to the City Council for approval at a later date.
BACKGROUND/DISCUSSION: Attached (page 168) please find a March 19 letter to Mayor Pandaleon from Barbra Schumann, President of the Board of Trustees for The Ragdale Foundation. The letter requests City Council consideration of a loan request for $1.5 million, to be repaid with interest over a five-year period. The Foundation has initiated a capital campaign seeking $6 million or more in connection with several initiatives. The loan request is intended to provide bridge financing for pledge commitments that will be paid over time. The City provided a $2 million loan to The Ragdale Foundation in 2011 which was paid in full.
The Foundation is seeking approval in concept of the loan at this time so the City and Foundation can move forward with preparation of associated documents. The Foundation has requested that the loan be made without requiring collateral based on their performance in repaying the 2011 loan. The City’s previous loan required that 100% of the loan principal be collateralized from two endowment funds. It is recommended that the City allow for a reduced collateral requirement, seeking collateral only to the extent of an endowment fund through William Blair, the current balance of which is approximately $1.1 million. In addition, the City would require the Foundation to provide a quarterly status report of pledge commitments and payments, as these are the designated source of payment of the loan.
BUDGET/FISCAL IMPACT: The request is for the City to provide a $1.5 million loan for a period of five (5) years at 2.0% interest.
COUNCIL ACTION: The City Council is asked to consider approval in concept of a $1.5 million loan to The Ragdale Foundation. Loan documents would be drafted for the City Council’s approval at a later date.
| 8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS |
| 9. ADJOURNMENT |
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