City Council Meeting Agenda - June 13, 2016

I. CALL TO ORDER:
• Pledge to the Flag
• Prayer

II. ROLL CALL:

III. PROCLAMATIONS, COMMENDATIONS, ETC:

• IV. REPORTS AND COMMUNICATIONS:
  • Mayor
•    Appointment of Dave Eckhardt and Don Burke to the Finance Committee
  • Council Members

V. PUBLIC COMMENTARY:

VI. BUSINESS ITEMS:

1) CONSENT AGENDA ITEMS BY OMNIBUS VOTE with Recommendations:
a) Approve Minutes of City Council Meeting – pdf May 23, 2016 (124 KB)
b) Accept and Place on File Minutes of Utility Advisory Board – pdf March 30, 2016 (90 KB)
c) Accept and Place on File Minutes of Planning and Zoning Commission – pdf May 3, 2016 (213 KB)
d) Approve Bills – pdf 051316-051916 (111 KB) , pdf 052016-052616 (99 KB) , pdf 052716-060216 (76 KB)
e) Approve Payroll – pdf 050916-052216 (60 KB)
f) pdf Accept and Place on File Police Pension Board Annual Treasurer’s Report (31 KB)
g) Authorize VFW 4th of July Parade – pdf July 4, 2016 (21 KB)

VII. DISCUSSION ITEMS:
VIII. EXECUTIVE SESSION
IX. ADJOURNMENT

Agenda Item #2 - Preliminary and Final Plat of Subdivision – Seventh Avenue East of 2nd Street and West of Caron Road 

References:

pdf Memo from Building Inspector Kip Countryman (22 KB)
  pdf Ordinance Approving Preliminary and Final Plat of Subdivision for Seldal Properties (164 KB)
pdf Preliminary Plat (905 KB)
pdf Final Plat (612 KB)

Recommended Action:

Consider an Ordinance Approving Preliminary and Final Plat of Subdivision for Seldal Properties, LLC

History and Fact: Seldal Properties LLC has petitioned the City to re-subdivide three lots on Seventh Avenue east of North Second Street and west of Caron Road into one lot with an outlot to the west. The petitioner would like to construct two multifamily buildings on lot one and provide storm water detention on the outlot.

Discussion: The property is currently zoned Multi-Family High Density Residential. It is surrounded by an industrial use on the south and multi-family residential on the west and the north.

On June 6th the Planning and Zoning Commission held a public hearing to review the case and subsequently voted to recommend approval of the Preliminary and Final Plat for Seldal Properties, LLC subject to the following conditions:

1.) Final Site Engineering, Building and Landscaping Plans submitted;

2.) City staff comments are addressed in regard to the engineering, utilities, building and site plan review.

Recommendation:
Authorize an Ordinance Approving the Preliminary and Final Plat for Seldal Properties, LLC

Agenda Item #3 -  Preliminary and Final Plat of Subdivision – 1140 North Seventh Street

References:

pdf Memo from Building Inspector Kip Countryman (22 KB)
pdf Ordinance Approving Preliminary and Final Plat of Subdivision for Elixir Real Estate (70 KB)
pdf Preliminary Plat (505 KB)
pdf Final Plat (513 KB)

Recommended Action:

Consider an Ordinance Approving Preliminary and Final Plat of Subdivision for Elixir Real Estate, LLC

History and Fact:

Elixir Real Estate, LLC has petitioned the City to subdivide three lots on North Seventh Street, north of Route 38. The petitioner plans to demolish the existing structure, Sunset Package Liquors & Cocktail Lounge, and construct an 8,500 square foot retail building. Elixir has submitted a preliminary and final plat showing the new retail building on lot one. In addition, the petitioner plans to purchase the property to the north and has requested a variance to the setback on that side from the required 20 feet to 5 feet.

Discussion:

The property is currently zoned B-2 Commercial Highway. It is surrounded by commercial property on the north and south and residential property on the west.

On June 6th the Planning and Zoning Commission held a public hearing to review the case and subsequently voted to recommend approval of the Preliminary and Final Plat for Elixir Real Estate, LLC Subdivision subject to the following conditions:

1.) Final Site Engineering, Landscaping and Building plans submitted.

2.) City staff comments are addressed in regards to the engineering, utilities, building and site plan review.

Recommendation:

Authorize an Ordinance Approving the Preliminary and Final Plat for Elixir Real Estate, LLC

Agenda Item #4 - Development Agreement – 1140 North 7th Street

References:

pdf Development Agreement (74 KB)
pdf Preliminary Plat (501 KB)
pdf Final Plat (507 KB)
pdf Ordinance Approving the Development Agreement between Elixir Real Estate, LLC and the City of Rochelle (129 KB)

Recommended Action:

Consider Development Agreement for 1140 N. 7th Street

History and Fact: Elixir Real Estate, LLC has recently purchased the property at 1140 N. 7th Street with plans to demolish the existing structure, Sunset Liquors, for the purpose of construction of a new retail location for the existing Liquor N’ Wine store.

Discussion: Elixir Real Estate, LLC intends to construct a new 8,500 square foot retail building, pursuant to the approval of this Development Agreement. The Agreement includes the following terms: a) The City of Rochelle will provide a 50% abatement of the City’s real estate taxes attributable to the improvements to the property over six years; b) the City will waive any building permit fees for new construction or renovations of existing structures on the property for a period of one year; c) the City will reduce the number of Package Sales & Tavern licenses by one upon the closing of the current Sunset Liquors Facility and allow the new property owner to transfer its current liquor licenses to the Property without payment of new liquor license fees.

Also included in the development agreement is an italicized term regarding a moratorium on the issuance of new package liquor licenses as defined in Section 6-3((2) of the Rochelle Municipal Code for a period of three (3) years following the issuance of an occupancy permit to the Operator for the Property. The City Manager recommends against inclusion of this term, but the Developer has requested the opportunity to address the council on the matter. Any motion to approve this ordinance will need to specify whether or not the term is to be included in the Development Agreement.

Recommendation: Approve a Development Agreement between the City of Rochelle and Elixir Real Estate for the development of the property at 1140 N. 7th Street with or without the term calling for a moratorium on the issuance of new package liquor licenses for a period of three years.

Agenda Item #5 -  Ordinance Approving Preliminary and Final Plat of Subdivision for Hayden Addition Unit 1 Re-Subdivision and Re-Zoning Lot #1

References:

Recommended Action:

Consider an ordinance approving preliminary and final plat of subdivision for Hayden Addition Unit 1 Re-Subdivision and Re-Zoning Lot #1

History and Fact:

In 2005 the City entered into an annexation agreement providing for the development of Squires Landing West, a residential subdivision to be located west of 20th Street and north of 8th Avenue on 151.09 acres of land. The residential subdivision has never been developed.

In 2014, at the request of Tim and Geri Hayden, the City Council approved an Ordinance Amending the Boundaries of the B-2 and PUD-R Zoning Districts in order to re-subdivide a 1.15 acre lot. This action was taken to facilitate the construction of two 40 by 240 foot enclosed storage buildings at 1800 20th Street. In addition, a variance was granted from the front yard setback of 50 feet to allow for a 35 foot setback.

The current owner of the property, Haywell LLC, has submitted a petition to re-subdivide 2.87 acres of the original 151 acres in the Squires Landing West Subdivision to facilitate the construction of two 40 by 240 foot enclosed storage buildings.

Discussion:

The current use of the property is agricultural. It is surrounded by 20th Street on the east, residential PUD on the north and west and industrial on the south.

On June 6th the Planning & Zoning Commission held a public hearing to review the case and subsequently voted 4-0 to recommend approval of the Preliminary and Final Plat of Subdivision and Re-Zoning of Lot #1 subject to the following conditions:

1.) Final Site Engineering, Landscaping and Building plans submitted.

2.) City staff comments are addressed in regards to the engineering, utilities, building and site plan review.

3.) Water and Sewer installation to the property or Surety posted in lieu of installing the services.

Recommendation: 
Authorize an Ordinance approving preliminary and final plat of subdivision for Hayden Addition Unit 1 Re-Subdivision and Re-Zoning Lot #1

Agenda Item #6 -  Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant Beer & Wine Liquor License

References:

pdf Ordinance Amending Section 6-46 of the Municipal Code of the City of Rochelle to Create One Restaurant Beer & Wine Liquor License (28 KB)

Recommended Action: Consider Ordinance Amending Section 6-46 of the Municipal Code to Create One Restaurant Beer & Wine Liquor License

History and Fact: The City has received a request from Shri Siddh Ganesh Inc. for a restaurant beer & wine liquor license for the Holiday Inn Express located at 1240 Dement Road. This business plans to sell liquor to their patrons and make it available for meetings as desired. It is our understanding that the Holiday Inn Express does not intend to operate a bar.

Discussion: The Liquor Commissioner, Mayor Olson, has reviewed the request and has no objection to the creation of an additional restaurant beer & wine liquor license to accommodate the Holiday Inn Express’ request. The addition of this license will result in a total of two restaurant beer & wine licenses in the City of Rochelle.

Recommendation: Approve Ordinance Amending Section 6-46 of the Municipal Code of the City of Rochelle to Create One Restaurant Beer & Wine Liquor License

Agenda Item #7 -  Expansion of Northern Interchange Yard – City Industrial Railroad

References:

pdf Memo from Economic Development Director Jason Anderson (44 KB)
pdf Award Recommendation from Fehr Graham and Associates (343 KB)

Recommended Action: Consider bids for Expansion of Northern Interchange Yard

History and Fact: The City of Rochelle Railroad (CIR) has been an economic driver in our region for the past several years. It offers local industries a competitive advantage by providing access to both the Union Pacific and Burlington Northern Santa Fe railroads for their shipping needs.

The increasing demand for efficient rail service across the country is creating economic development opportunities for Rochelle. The CIR is currently operating at or above its designed capacity. Therefore, an extension of the rail system is necessary for further development of rail related industries.

On March 14th the Mayor and Council approved an engineering agreement with Fehr Graham for the design of one parallel storage track, track #5, approximately 2000 linear feet in length and lengthening track #4 approximately 500 linear feet. The design also includes relocating one and constructing two additional turnouts.

Discussion: Subsequent to the required public notice, the City Clerk opened eight bids for an Expansion of the Northern Interchange Yard on June 7th. Economic Development Director Jason Anderson and our consultant from Fehr Graham reviewed the bids and recommend to accept the bid from Swanson Contracting Co, Inc. for $649,510.45.

The Expansion of the Northern Interchange Yard will be financed through current railroad revenues.

Recommendation: Accept the Bid for the Expansion of Northern Interchange Yard from Swanson Contracting Co., Inc. for $649,510.45 and reject all other bids.

Agenda Item #8 -  Resolution Opposing the Construction and Operation of the Great Lakes Basin Transportation Rail Line

References:  pdf Resolution Opposing the Construction and Operation of the Great Lakes Basin Transportation Rail Line (105 KB)

Recommended Action: Consider a Resolution Opposing the Construction and Operation of the Great Lakes Basin Transportation Rail Line

History and Fact: Great Lakes Basin Transportation, Inc. plans to file a request with the Surface Transportation Board to construct and operate a new railroad line around the metropolitan Chicago area. The purpose provided by the GLB Railroad project is to “expedite freight movements across the nation and to provide additional capacity for growing railroad traffic.”

Discussion: A group of local citizens has organized the Ogle County Community against GLB to give our county information opposing the Great Lake Basin Railroad Project. Members of the group have attended multiple Rochelle City Council meetings to provide information and urge the council to pass a resolution opposing the construction and operation of the Great Lakes Basin Transportation Rail Line. Several taxing entities in the region have already taken this action.

The proposed route of the Great Lakes Basin rail line runs north to south between I39 and the eastern edge of Ogle County and would be built on a 200 foot wide right-of-way. The route falls within one and one half miles of the City’s corporate limits and could impact future growth and development in this area.

Recommendation:

Consider a Resolution Opposing the Construction and Operation of the Great Lakes Basin Transportation Rail Line

Agenda Items #9-10:

pdf Ordinance Authorizing the Transfer of Property Pursuant to the Illinois Local Government Property Transfer Act (Old Lincoln School) (238 KB)
pdf Resolution Authorizing the Sale of the Hub Theater and Lincoln School Properties; Purchase Agreement & Development Agreement between the City of Rochelle & Richard C. Kennay (219 KB)

History and Fact:
In June of 2015 the City entered into an Economic Incentive and Tax Increment Allocation Financing Development Agreement with McCarty Technologies, Inc. (MTI) related to the development of the Hub Theater, located at 416 Lincoln Highway, and the Graber Building, located at 413 Fourth Avenue. Per the Development Agreement, the City made an initial contribution of $250,000 which was divided between two Escrow Agreements and used to purchase the two buildings.

MTI began development of the properties but did not complete it. As a result, the City and MTI mutually agreed to rescind the agreement and the Mayor and Council approved a Rescission Agreement and Mutual Release at its meeting on May 23rd. As a part of the rescission agreement, the City assumed approximately $94,0000.00 in unpaid bills.

Recommendation:
Approve an ordinance for the Transfer of Property Pursuant to the Illinois Local Government Property Transfer Act (Old Lincoln School). Approve a resolution Authorizing the Sale of the Hub Theater and Lincoln School Properties.

Agenda Item #11-12:

Ordinance Authorizing the Transfer of Property Pursuant to the Illinois Local Government Property Transfer Act (Golf Course Restaurant Property)

Resolution Authorizing the Sale of the Golf Course Restaurant Property

References:

Recommended Action:
Consider an ordinance authorizing the transfer of property pursuant to the Illinois Local Government Property Transfer Act (Golf Course Restaurant Property)

History and Fact:
In March of 2013 the Mayor and Council approved an Intergovernmental Agreement with the Flagg-Rochelle Community Park District relating to the acquisition and leasing of 74.285 acres improved with a golf course and restaurant. The City and Park District subsequently entered into lease agreements for the operation of the golf course and restaurant, all of which have expired. On April 25th the Mayor and Council approved an amendment to the Intergovernmental Agreement between the City of Rochelle and Flagg Rochelle Community Park District to facilitate the joint operation of the golf course for the 2016 golf season, excluding the restaurant.

In May the City Council approved a subdivision of 1.433 acres of the original golf course subdivision and rezoned the property to B-2 Commercial. This action was taken to allow a potential buyer to acquire the restaurant while the City and Park District preserve the golf course.

Discussion:

City staff has negotiated a redevelopment agreement with John Scanlan which involves the sale and renovation of the restaurant. Mr. Scanlan currently owns and operates restaurants in Rockford, New Milford and Davis Junction. I understand that Mr. Scanlan will be present at the meeting to brief Council on his renovation and business plans.

The redevelopment agreement provides for the sale of the property to C.C.S. Golf LLC, a legal entity established by Mr. Scanlan for this project. The agreement calls for a substantial renovation of the facility, including the remodeling of restrooms and kitchen, new floors and ceilings, new HVAC and new lighting. Renovation costs will exceed $700,000.

By statute, the City must sell properties for no less than 80% of the appraised values. The current appraised value of the restaurant is $250,000. Under the proposed agreement, C.C.S. will purchase the property for the appraised value and the City will contribute the proceeds of the sale to C.C.S. by means of an economic development grant. The City and Park District may be reimbursed by the TIF fund for the grant contribution if sufficient TIF revenues are available in the future.

The agreement also provides for property tax increment rebates from the TIF fund. For the first $250,000 of property tax increment generated from the project, the city will return half of the increment ($125,000) to the developer. The City will then rebate 100% of the increment generated from the project, up to a total rebate of $250,000. As such, the City will be able to recover its expenses associated with establishing the TIF district early in the life of the district while the developer will gain rebates to lower his operating expenses.

The proposed agreement provides that the City will resurface/restripe the restaurant's portion of the parking lot within three years. The City’s costs associated with the maintenance on the restaurant’s portion of the lot may be recovered from TIF revenues.

In order to facilitate the sale of the golf course restaurant property, the Rochelle Park District will convey their interest in the property to the City of Rochelle under this ordinance.  

Agenda Item #13 -  Intergovernmental Agreement between the City of Rochelle and Ogle County Metropolitan Exposition Auditorium and Office Building Authority a/k/a Ogle County Civic Center Authority

References:

pdf Intergovernmental Agreement between the City of Rochelle and Ogle County Metropolitan Exposition Auditorium and Office Building Authority a/k/a Ogle County Civic Center Authority (OCCCA) (64 KB)
pdf Ordinance Approving Intergovernmental Agreement (9 KB)

Recommended Action: Consider an Intergovernmental Agreement between the City of Rochelle and Ogle County Metropolitan Exposition Auditorium and Office Building Authority

History and Fact: The Hickory Grove Civic Center, located at 1127 North 7th Street, is owned and administered by the non-profit Ogle County Metropolitan Exposition Auditorium and Office Building Authority commonly known as the Ogle County Civic Center Authority (OCCCA). For the past several years OCCCA has leased the restaurant and dining space to the Hickory Grove Banquet & Conference Center/Abraham’s Grille & Lounge.

Discussion: Per the Illinois State Statute, “the corporate authorities may appropriate and expend funds for economic development purposes, including, without limitation, the making of grants to any other governmental entity or commercial enterprise that are deemed necessary or desirable for the promotion of economic development within the municipality.” The proposed agreement would allow the City to grant OCCCA $30,000 which would subsequently be delivered to Abraham’s Grille and Lounge to be applied against the delinquency owed to Rochelle Municipal Utilities.

Funds for this economic development grant would be made available through the City’s portion of the hotel-motel tax.

Recommendation: Authorize an Ordinance Approving an Intergovernmental Agreement between the City of Rochelle and the Ogle County Metropolitan Exposition Auditorium and Office Building Authority