City of Highland Park Committee of the Whole Met April 26.
Here is the minutes provided by the committee:
CALL TO ORDER
At 6:56 PM, Mayor Rotering called the meeting to order and asked for a roll call:
PRESENT: Mayor Rotering, Councilman Stolberg, Councilwoman Stone, Councilmen Kaufman, Blumberg, Knobel, Holleman
ABSENT: None
STAFF PRESENT: City Manager Neukirch, Fire Chief Amidei, Community Development Director Fontane, Police Chief Jogmen, Public Works Director Kanapareddy, Finance Director Logan, Assistant City Manager Sabo, Senior Planner Later, Deputy City Clerk Palbitska
ALSO PRESENT: Corporation Counsel Elrod, Deputy Corporation Counsel Passman
APPROVAL OF MINUTES
1. Approval of the Minutes of the Regular Meeting of the Committee of the Whole Held on April 12, 2021
Councilwoman Stone moved to approve the Minutes of the Regular Meeting of the Committee of the Whole Held on April 12, 2021. Councilman Kaufman seconded the motion. Upon a roll call vote, the Mayor declared the motion passed unanimously.
| RESULT: ADOPTED [UNANIMOUS]
MOVER: Kim Stone, Councilwoman SECONDER: Daniel Kaufman, Councilman AYES: Mayor Rotering, Councilman Stolberg, Councilwoman Stone, Councilmen Kaufman, Blumberg, Knobel, Holleman |
1. Renewal of the Highwood/Highland Park Intergovernmental Planning Agreement of 1996 (2H Agreement)
City Manager Neukirch noted that staff's recommendation is to renew the
Highwood/Highland Park Intergovernmental Planning Agreement. She explained that it sets forth the Joint Plan Commission. Staff also recommends a joint visioning process as both municipalities review the undeveloped land in Fort Sheridan.
Councilman Kaufman noted that there was a comment in the agenda packet that stated research has shown that Highland Park has paid fees to Highwood but there is no indication that Highwood has paid fees to Highland Park. He asked if research hasn't produced that information regarding fees paid to Highland Park or if it was approved that Highwood wouldn't pay fees and asked where that stood today and how that would proceed in the future.
Community Development Director Fontane stated that as part of staff's work, that item will be looked into.
Mayor Rotering noted that at one point, Openlands was looking at the bluff land piece in Highland Park that still remains and asked if there was a status on that effort.
Community Development Director Fontane explained that staff will be reaching out to the different stakeholders, including Openlands, during the community outreach that is planned.
Mayor Rotering noted that the City had a previous conversation with the Department of Defense regarding that opportunity and stated she would be happy to assist in locating the files that related to that discussion.
Community Development Director Fontane recalled the interest but didn't know the exact details. He stated that staff would conduct research and inquire further as well.
Councilman Knobel shared that the discussion with the Department of Defense took place in 2013.
Mayor Rotering stated that there were a few questions to be answered surrounding the agreement.
2. Recommendation of the Housing Commission to Pursue Low Income Tax Credit Financing Partnership for Peers and Ravinia Housing
Mayor Rotering voiced her surprise at how far along this process had gone before the Council had been consulted. She recognized that a lot of work has gone into the presentation and discussion. She voiced concerns regarding the parties that were involved and the possible appearance of impropriety. She noted that she does not understand how the recommendation got to this point and requested input from Councilman Holleman as she serves as the liaison to the Housing Commission.
Councilman Holleman explained that the Housing Commission had been considering a variety of options for refinancing the properties and the conclusion they came to was the most advantageous at this moment. She noted that the presentation may be a little misleading because it goes into much more detail and is not the broad overview that would have been a little more helpful. She stated that what is being asked is for staff to go a step further and provide the Council the information that is needed in order to make a decision as to whether or not this type of arrangement makes sense for the Housing Commission. She stated that she would be comfortable giving staff that direction having seen the presentations on the other options. She suggested having a joint meeting with the Housing Commission so everyone can discuss this option fully.
Mayor Rotering voiced her appreciation of looking for opportunities for refinancing and ways to both diminish the City's financial exposure and ways to identify new resources that can go back into properties for the people we are housing. She voiced her surprise for how many steps staff went to include a second arm of Evergreen Management to participate in the conversation when the Council had not had a chance to discuss.
Councilwoman Stone shared in the concerns that have been raised by Mayor Rotering and the additional arm with Evergreen demonstrates that they would profit from this arrangement. She noted that some of the properties may need to be upgraded but it looks like the City is attempting to raise the funds before a decision has been made as to what the funds will be used for. She requested information on what the funds are needed for as well as a long term plan, similar to other City owned property.
Councilman Holleman stated that the capital plan is part of the discussion. She explained that what is different about this arrangement is that it would allow the City to go beyond the capital plan and do more than what needs to be done like once in a generation upgrades to items like kitchens. She agreed that Evergreen should not have been a part of the conversation, it was a short hand approach but overall the opportunity that is available provides a lot of advantages to the City. She noted that she would like to give staff direction to come back before the Council and share more information and then fully discuss this opportunity with the Housing Commission. She explained that the Housing Commission does have a lot more autonomy than other Commissions; they run the day to day operations of the buildings and have capital plans. She noted that they would not naturally come before the Council at the beginning of the process but they would like to and no decisions have been made at this point. She explained that this is not as far down the line as the impression may be but this is a starting point for the Housing Commission, it is not an ending point.
Community Development Director Fontane echoed the comments that were made by Councilman Holleman. He explained that this process is at the very beginning stages and this was just an exploration as to what the options may be; there are no commitments that have been made. He discussed the different options that were reviewed and confirmed no deals or decisions have been made. He noted that in regards to Evergreen Services, their financial group is involved in the finances of the buildings and staff worked with them in reviewing the modest capital plan that had been created.
Mayor Rotering stated that Evergreen would stand to recoup fees if they move forward with this project and asked why a Request for Proposal was not issued before having the conversation with them.
City Manager Neukirch explained that because the City has a contractual agreement with Evergreen, staff sought their input and feedback because of their expertise. No guarantees were made that they would be chosen to do the job but the feedback allowed staff to have some preliminary understanding of the option that is available. She noted that a Request for Proposal ("RFP") or Request for Qualifications can be conducted if the Council decides to move forward.
Councilman Holleman explained that the staff and the Housing Commission are not even close to being ready to issue an RFP but the intent was to use the information as a resource. She noted that what is prompting this topic is that the Housing Commission has loans on some properties that need to be brought down. She explained that three opportunities were presented to the Housing Commission and they believe this is the best option and would like guidance from the Council. She noted that this is truly the beginning of the discussion and it is in the very preliminary stages.
Mayor Rotering noted that the City is always looking for opportunities to address debt and diminish the cost to tax payers. Her belief was that so much of this packet was prebate and felt way spooled out beyond asking if the Council would like to look at this question. She stated that she does want to review the question but would like it to be in a way that is objective and clearly spelled out in terms of the pros and cons and the costs and gains for the City. She discussed HUD and noted that the data needs to be presented to the Council in a very clear and objective way.
Councilman Holleman discussed HUD and noted that the obligation with HUD is one of the reasons why this question is being asked; to get out from under the current HUD obligation.
Councilman Kaufman noted that it is helpful to look for creative ways to refinance but he shared in the concerns that were voiced by Mayor Rotering. He noted that this does seem like a very complex area and there are a lot of different variables as well as pros and cons. He recommended taking a step back and evaluate if what is being requested is proportional to the needs. He understands that Evergreen has a lot of experience with something like this but voiced his concerns regarding the conversation that was had with them. He noted that if the Council moves forward with this, there is an understanding that it is being explored fully and information is being provided on the pros and cons, opportunities and costs.
Councilwoman Stone added that risk is an issue, as well as the idea of giving up ownership. She requested that both topics be reviewed carefully.
Councilman Holleman noted that giving up ownership is a little bit of a misnomer and requested staff explain that a little further.
Community Development Director Fontane noted that it does require a change in ownership but there has not been a complete analysis on that yet because this is in the very preliminary stages. He noted that staff does require guidance from the Council to pursue the answers to those questions. He noted that the Council has requested that staff issue an RFP to solicit some proposals in regards to the project and information on the risk in regards to the different avenues. He explained that at the top level, staff wanted to understand whether there was a desire to even pursue analysis of such things because they are complicated.
Councilman Holleman agreed that this project is complex and complicated, however, there are huge advantages of going through this process and that is why it was appealing to the Housing Commission. She explained that if the properties are not kept up to a reasonable level and investments are not made, then they lose their desirability, even as low-income properties. She urged the Council to allow staff to go through the process in order to make a fully informed decision down the line.
Mayor Rotering stated that everyone wants the properties to remain desirable and that is the goal and mission of the City. She explained that there is no such thing as free money, there are costs of resources, cost of staff time, cost of fees, cost to the advisors, and cost for a legal analysis but what is being said is there are three options and she requested a presentation on those three options along with the cost benefit analysis with a very clear sense as to if the City can bear the risk. She noted that the Council does want to seek out the opportunities for financing and resources to improve the properties but in a way that is fair, reasonable and responsible with the public's dollars. She noted that it is a once in a generation opportunity to really do something for the City's buildings and it is a good opportunity as far as the market is concerned.
Councilman Kaufman asked if the three options can be presented to the Council to provide a deeper dive into the pros and cons of each option before anyone goes off in a certain direction.
Community Development Director Fontane noted that staff can come back before the Council to make a presentation providing more information as it relates to the pros and cons of each option.
Mayor Rotering requested a summary presentation that explained the three options with a cost benefit analysis.
The Committee was in consensus that it would be helpful.
Councilman Holleman recommended the Housing Commission be part of the discussion.
ADJOURNMENT
Councilwoman Stone moved to adjourn. Councilman Kaufman seconded the motion. Upon a roll call vote, the Mayor declared the motion passed unanimously.
The Committee of the Whole adjourned its meeting at 7:26 PM.
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