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City Council

Regular Meeting

DeKalb, IL · February 8, 2016

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Minutes

MINUTES CITY OF DEKALB CITY COUNCIL COMMITTEE OF THE WHOLE MEETING FEBRUARY 8, 2016 The City Council of DeKalb, Illinois held a Committee of the Whole Meeting on Monday, February 8, 2016 in the City Council Chambers of the DeKalb Municipal Building, 200 South Fourth Street, DeKalb, Illinois. Mayor Rey called the meeting to order at 5:01 p.m. A. ROLL CALL Deputy City Clerk Ruth Scott called the roll and the following members of the City Council were present: Alderman Bill Finucane, Alderman Michael Marquardt, Alderman Bob Snow, Alderman Kate Noreiko, Alderman Anthony Faivre, and Mayor John Rey. Alderman Dave Baker arrived at 5:12 p.m. Alderman David Jacobson arrived at 5:42 p.m. Also present were: City Manager Anne Marie Gaura, Assistant City Manager Patty Hoppenstedt, City Attorney Dean Frieders, Finance Director Cathy Haley, Police Chief Gene Lowery, Fire Chief Eric Hicks, Community Development Director Ellen Divita, Public Works Director Tim Holdeman, Principal Planner Derek Hiland, Management Analyst Jared Heyn, and Deputy City Clerk Ruth Scott. B. ITEMS ALSO ON THE REGULAR AGENDA None. C. CONSIDERATIONS 1. Shodeen Concept Plan - University Commons. Community Development Director Divita provided an overview and stated that Mr. Dave Patzelt of Shodeen Construction would also be speaking regarding this item. Community Development Director Divita also mentioned she had been monitoring public comment in the Daily Chronicle regarding this subject and stated that while there are assumptions that decisions have been made, she wanted to make it clear that is not the case. There is currently no talk of incentives; only land use, parking, and density. Community Development Director Divita further stated there had been recent reference in the Daily Chronicle regarding a 2014 City Center Plan. However, as indicated in the feasibility study, there wasn’t enough commitment and staff felt the risk was too high at that time. Mr. Patzelt introduced himself and provided a PowerPoint presentation and photos of the proposed concept – a Marriott/Springhill Suites Hotel and residential apartments – stating it would be Committee of the Whole Meeting Minutes February 8, 2016 Page 2 of 4 located on the southerly edge of Route 38, just east of Pearl Street. There are currently several structures on the site; however, only two will remain, and the others will be demolished. Mr. Patzelt provided photos of amenities the proposed residential building would have, including a fitness center, study areas, and an outdoor courtyard. The hotel would include a lounge/gathering area, and indoor pool, and fitness area. The rooms would contain either a king or two queen-sized beds. The interior decoration for both the residential building and hotel would be considered “urban”. The proposed concept would also include a double layer parking structure, with access off of Pearl Street. Both levels would have the same number of parking spaces. Each bedroom would be allotted one parking space. Mr. Patzelt stated that although City staff is recommending commercial space on the first floor, Shodeen isn’t because there’s little need for it. He stated that narrative taken from the 2014 City Center Plan indicates “few rental housing options for those interested in higher end living”, and Shodeen would like to fill that market. The narrative further states, “development of higher-end living would support future downtown businesses and vitality”. Mr. Patzelt stated that parking is also an area where opinions differ. He further stated that he feels the City’s parking code is outdated. Mr. Patzelt referenced a Wall Street Journal article that states over the last 10 years there has been steady decline in those holding a driver’s license and the number of younger aged drivers continues to fall because they’re finding other means of transportation. Mr. Patzelt also referenced a study done by the Urban Land Institute that notes less need for parking. Alderman Noreiko asked for clarification regarding the residential unit target audience. Mr. Patzelt responded it would be anyone looking for luxury living, a product not currently available in the DeKalb or Sycamore area. Perhaps upper classmen or grad students would be part of the target group. Alderman Baker commented this project wasn’t the first Shodeen had brought to Council, stating a few years ago Council approved a similar project but it never came to fruition. He further stated that he disagrees with the statement that there is no luxury living available in DeKalb. Alderman Baker further stated that wavering on the parking variance was something that’s never going to happen because DeKalb needs parking. There was discussion between Alderman Baker and Mr. Patzelt regarding the demand for parking, the demand for “higher end” living, and project concepts that had been brought before Council in the past. Alderman Baker stated that if Shodeen wants to move forward with the current project, they should not ask the City for a subsidy because it’s not fair to the community. Alderman Snow commented on the issue of parking and discrepancies. He also commented that if the demand for commercial development isn’t there, it shouldn’t be considered. Alderman Snow stated he would like to see something done to the property to enhance the area. Alderman Jacobson stated his concern is parking, as he owns property occupied by Northern Illinois University students. Students have visitors and parking is always an issue. Committee of the Whole Meeting Minutes February 8, 2016 Page 3 of 4 Mayor Rey stated that due to time constraints, the discussion regarding this topic would be continued at a later date. He further indicated that written comments could be provided to the City Clerk. D. PUBLIC PARTICIPATION Mayor Rey asked that public participation be limited to three minutes due to time constraints. Written comments could also be submitted to the City Clerk. Paul Sauser stated that parking is essential, especially in a City with a college campus. He also finds it hard to believe that young people are driving less. Mr. Sauser doesn’t believe the City should budge on its current parking codes. Diane DeMers stated she likes the concept Mr. Patzelt has presented. She also had questions that included: what has Shodeen learned in other situations that can be brought to the table in DeKalb; and what is the targeted rent amount for the proposed apartments. Ms. DeMers stated she’s concerned about the trains that go through the proposed location and the noise of the whistle – what would be done about that. She also asked how the City’s streets would handle the amount of traffic that would be brought into the proposed area. Further, for those without transportation, grocery shopping would be an issue as there are no grocery stores within walking distance. She also had concern with overnight and weekend parking. Dewayne Brown provided information from previous Shodeen projects, stating the perception is great but all he’s seen is abandoned houses over the last 10 years. He also feels that the number of people allowed per bedroom is unrealistic. Jim Mason stated that the City and Shodeen should work together regarding the proposed concept since someone is showing interest in the area. Jon Sauser stated the proposed project is overreaching. While parking is the topic of discussion, it’s density that should be the real issue. Mr. Souser spoke of the history of occupied businesses and homes that were driven away from the proposed concept area. The properties are now empty and a blight on the City. He also asked why the City has development rules if they aren’t going to be followed. Further, Mr. Souser feels that Shodeen is being greedy and the proposed project will tax the City’s current sewer and water system. He doesn’t think this project belongs in DeKalb. Kay Shelton stated she agrees with Alderman Baker. The current parking situation in DeKalb is outdated and there just isn’t enough. Further, DeKalb isn’t an “urban area”. The train is 17 miles away and there are no grocery stores close to the proposed project site. She believes behavior and not statistics should be considered. Mayor Rey stated this issue would be brought back for discussion at a later date. City Manager Gaura stated staff will work with Mr. Patzelt to schedule a date for continued discussions regarding this item, allowing for more time for direction and public input. Committee of the Whole Meeting Minutes February 8, 2016 Page 4 of 4 Mayor Rey encouraged citizens to submit comments regarding this topic in writing to the City Clerk. E. RECESS FOR EXECUTIVE SESSION OF THE CITY COUNCIL None. F. ADJOURNMENT MOTION Alderman Finucane motioned to adjourn the meeting, seconded by Alderman Noreiko. VOTE Motion carried on an 8-0 voice vote. Mayor Rey adjourned the Committee of the Whole meeting at 6:15 p.m. __________________________________________ RUTH A. SCOTT, Deputy City Clerk Approved by City Council Date: February 22, 2016

Agenda

AGENDA Committee of the Whole Meeting February 8, 2016 5:00 p.m. A. Roll Call B. Items Also on the Regular Agenda C. Considerations 1. Shodeen Concept Plan - University Commons. D. Public Participation E. Recess for Executive Session of the City Council F. Adjournment Assistive services available upon request, given reasonable notice. DATE: February 3, 2016 TO: Honorable Mayor John Rey City Council FROM: Anne Marie Gaura, City Manager Ellen Divita, Community Development Director Derek Hiland, Principal Planner SUBJECT: Shodeen Concept Plan – University Commons. I. Summary DeKalb Development Company LLC is seeking feedback from Council on a concept plan to redevelop a 4.48 acre parcel located on the south side of Lincoln Highway bound by Pearl Street, Lincoln Highway, the Union Pacific Railroad, and Walgreen’s Pharmacy. Since their purchase of the property ten (10) years ago, the developer has brought several potential development options to the City including a mixed-use development with condominiums on the upper levels, a commercial strip center with outlots for restaurants and/or storefronts, a Hotel / Conference / Hospitality Learning Center and as a mixed-use commercial development with apartments on the upper levels. In 2015, the developer asked for feedback of a development project which would include a five-story, 187-unit apartment building (459 bedrooms) arranged around pedestrian courtyards, and a 128-room four story Springhill Suites with 464 parking spaces provided for both uses. As the project does not match long range planning documents related to land use, the Council is being asked to provide feedback on a variety of issues:  Land Use  Density  Parking Requirements A similar discussion was held by the Planning and Zoning Commission (PZC) in December with the intent to meet with City Council next. At the December meeting, the PZC discussed land use, density and parking requirements. The Commission suggested any development should provide sufficient parking, density with appropriate parking would be acceptable, and they indicated desire for first floor commercial. They held the view that the demand would be for at least one car per bedroom. Council input, discussion and direction is requested. Once received, the developer will further refine their plans in preparation for formal submittal in early 2016. Page |1 II. Background Discussions began in early 2008 regarding the seven (7) acre site – which included the neighboring property owned by National Bank and Trust Company and the City of DeKalb right- of-way -- for a multi-story mixed use development. The development proposed would have constructed roughly 290 residential units (‘high-end’ condominium product) along with 90,000 square feet of first floor commercial including a new bank and drive-thru facility based upon presentations to the City’s Plan Commission and City Council with workshops at that time focusing on the mixed-use development concept. During the review of the Mixed-Use Development and the preparation of a related Development Agreement, a downturn in economy began to generate questions about the viability of the condominium plan. Initially, the City Council appeared to support privately-owned condominium units and an associated parking structure, with mixed-use commercial on first floor. However, with decline in the marketplace for a ‘high-end’ condominium product, the developer began conceptual discussion of a Mixed-Use Development with ‘high-end’ rental apartments in lieu of condominiums. The City Council did not appear to support the proposal for additional rental units and so the project was withdrawn, and did not appear before Council. In 2012, the National Bank and Trust Company developed their portion of the seven (7) acres, designing a new bank with a drive-thru tucked in behind it, which adhered to the design concepts articulated in the City’s Design Guidelines and 2007 Downtown Revitalization Plan. The property remains an important bridge between downtown and the campus. The subject property has now been cleared for development through demolition of the structures which were in place when purchased: three (3) multifamily structures, seven (7) single family structures. Remaining are one (1) commercial structure (ice cream shop), one (1) multi-bay garage and the new bank building. The City Council is asked to discuss their policy views on land use, parking, and density for the property. The subject property is zoned General Commercial (GC). Current adopted Land Use plans call for a continuous line of first floor commercial. Of all the business zoning classifications with the City, General Commercial (GC) zoning holds the potential for sales tax creation. General Commercial (GC) allows for upper level residential (via a special use permit) when built in conjunction with a first floor commercial use; it does not allow for first floor residential. The city’s adopted design guidelines envision downtown new construction with zero lot line development and parking in the rear to create an “urban streetscape.” This design was adopted by the Council in both the 2007 Downtown Revitalization Plan and the 2013 DeKalb: City Center Plan. Both plans sought an extension of the downtown commercial district west to the River via a mixed use development which would create a day and nighttime population. With mixed use, it is unlikely the base GC zoning would remain. The property would develop as mixed use development with a Special Use Permit or be rezoned to allow for the densities, designs, and bulk of the buildings along Lincoln Highway. A mixed use development would be consistent with the urban feel of downtown and ultimately would become an extension of the downtown along with providing for the connectivity to the University Page |2 The developer is bringing forward a plan that would construct a four story hotel and a five story apartment building marketed towards students. The Planning and Zoning Commission considered the technical merits of the property regarding: A. Compliance with Comprehensive Plan and subarea plans B. Lack of commercial units on the first floor of the apartments C. Residential Issues and Density D. Parking Standards for Apartments and Non-Residential Uses E. Height The Planning and Zoning Commission asked the developer to modify the plans to create a product that meets parking requirements of the Unified Development Ordinance. This could be achieved by reducing the density (either reducing the bedroom or apartment unit counts, or increasing the parking field either on site or adjacent). The PZC seemed supportive of some kind of parking waiver similar to the approach taken with University Plaza or University Village whereby it is not required immediately, however, if the need arises then parking shall be required. The Commission also requested that commercial units be placed on the first floor of the apartment development. Lastly, the PZC reiterated their support for the current City codes, planning documents and continuing the established vision for West Lincoln Highway Corridor. III. Community Groups/Interested Parties Contacted This matter went to the City’s Planning and Zoning Commission for conceptual consideration, and is being presented to the City Council for the same. If the project goes forward, it will be subject to public hearings and further opportunities for public comment. IV. Legal Impact The City has not received any applications for zoning action, planned unit development or financial assistance. This conceptual discussion is not a legally required component of any development approval and is offered as an early opportunity to provide feedback before the owner would spend professional fees to develop a project. V. Financial Impact Without an actual application before the City, no analysis is available at this time. VI. Options Council may affirm, modify or deny the concept plan, or refer the matter back to the Planning and Zoning Commission for further discussion. Page |3 VII. Recommendation The Planning and Zoning Commission supported redeveloping the area but only if done in accordance with compliance of City codes, planning documents, and continuing the established vision for West Lincoln Highway Corridor. In summary, the City’s Comprehensive Development Plan and subsequent downtown subarea plans call for first floor commercial as a means to create an urban commercial streetscape. Allowing residential without first floor commercial alters the land use vision of extending a continuous commercial streetscape from First Street to the Lagoon. Variation from this is not supported by staff and would be a policy decision for the Council. The residential density proposed is appropriate in a central business area and consistent with current planning documents, including the density articulated in the City’s current CBD zoning class. The number of bedrooms proposed necessitate more parking demand and the project is deficient on parking spaces. While some variance from parking regulations may be acceptable if there is shared parking opportunity, the proposed 464 parking spaces provides one space for each of the 128 hotel rooms, with 336 spaces available for hotel personnel and an apartment building with 459 bedrooms. Adding additional parking spaces on site or on an adjacent site or by decreasing the number of bedrooms can the parking demands be reduced. Staff can support either approach however this is a policy decision for the Council. The City’s downtown plans envision an extension of the City’s CBD urban fabric though this project and would likely become zoned Planned Development Commercial (PD-C) due to parking, density and storm water waivers. Council input, discussion, and direction to the applicant and staff regarding the concept plan, including Land Use, Density, Parking Requirements and Land Use Policy for first floor commercial is requested. Page |4 LINCOLN HWY LEASING OFFICE 7 ENTRY/ TOTAL PARKING SPACES: EXIT 161 23 23 23 23 21 B1 D0 D0 B2 A0 A0 A0 A0 B2 D1 CLUBHOUSE D1 SPA 3 FLOOR HOTEL D1 COURTYARD 2 (SWIMING POOL) D1 BBQ SPA D1 D1 A0 B1 B2 B2 PE PEAR ARLL ST ST.. B2 C1 D1 B1 B2 A0 C1 BANK PROPERTY C1 D1 D1 PARKING P2 COURTYARD 1 A0 A0 C1 D1 ENTRY/ CAVE -OUTDOOR EXIT COVERED AREA D2 D2 LEASING OFFICE TOTAL PARKING SPACES: 25 25 133 23 23 23 23 25 TYPICAL FLOOR PLAN 10 PARKING P1 N SCALE: 1/32" = 1'-0" (24"x36" SHEET) SCHEME 03 0' 32' 64' 128' ARCHITECTURAL SITE PLAN 2015 by HUMPHREYS & PARTNERS ARCHITECTS, LP DEKALB MIXED-USED MASTER PLAN The arrangements depicted herein are the sole property of Humphreys Architectural conceptual site plans are for feasibility purpose only. Revisions may occur due to further investigation from SHODEEN CONTRUCTION CO. HUMPHREYS & PARTNERS ARCHITECTS L.P. & Partners Architects, LP and may regulatory authorities and building code analysis. Dimensions 5339 Alpha Road, Suite 300 Dallas, TX 75240 (972) 701-9636 (972) 701-9639 not be reproduced in any form without its written permission shown are of a strategic intent only. Refer to surveys and civil drawings for technical information and measurements. September 21, 2015 #15546 DEKALB, IL www.humphreys.com marketing@humphreys.com DALLAS CHARLOTTE NEWPORT BEACH LAS VEGAS NEW ORLEANS NORFOLK ORLANDO PHOENIX SPRINGHILL SUITES ® GEN 4.5 Proto-Model AT UNIVERSITY PARK Design COMMONS, DEKALB IL A R CH I T EC T U R E A N D CO N S T R U C T I O N Front Elevation SITE Summary Building Length 298 feet Building Depth 65 feet Land Parking Site Plan Ground Floor Typical Floor TypIcal unIT mIx King 67% Queen/Queen 33% King with Shower Queen/Queen with Shower Queen/Queen with 4’6”Tub SpringHill Suites Criteria Facilities Program Program GuEST rOOmS unITS unIT arEa TOTal (SF) BacK OF HOuSE TOTal (SF) King Shower 63% 81 369 29,889 Registration Desk 229 King Accessible 3% 4 496 1,984 Work Area 297 Queen / Queen Shower 14% 18 436 7,848 General Manager Office 171 Queen/Queen with 4'-6" Tub 11% 14 436 6,104 Sales Manager Office 236 Queen/Queen with 5'-0" Tub 6% 8 496 3,968 Luggage Storage Room 61 Queen / Queen Accessible 2% 3 496 1,488 Associate Break Room 190 Total Units 100% 128 Associate Restroom 47 Housekeeping Laundry 557 GuEST rOOm SuppOrT/cIrculaTIOn pEr FlOOr unIT arEa TOTal (SF) Food & Beverage Preparation Room 260 Corridor / Elevator Lobby 7,551 7,551 Engineering / Maintenance Room 214 Stairs 2 232 1,856 Mechanical / Electrical Room 822 Elevators 2 131 524 Janitor’s Closet 28 Elevator Machine Room 84 84 Telephone Equipment / Video Room 213 Linen 1 326 326 Pool Equipment / Storage 109 Vending & Ice (Upper Floors) 1 306 306 The Market Storage 71 Guest Laundry 87 87 Corridor & Roof Access 522 Total Guest Room Support/Circulation 10,734 Total Back of House 4,027 puBlIc SpacE TOTal (SF) Summary Lobby / Lounge 2,066 Total Guest Rooms 51,281 The Market 111 Total Guest Room Support / Circulation 10,734 Vending Area 0 Total Public Space 5,344 Business Library 112 Total Back of House 4,027 Meeting Room 356 Total Gross Building Area 71,386 Fitness Room 419 Total Square Foot Per Room 558 Vestibule (Front & Rear) 132 Data based on a 128-room prototype Cart Storage 40 Circulation 673 Public Toilets 254 Indoor Pool 1,181 Total Public Space 5,344 SpringHill Suites by Marriott The Suite Seeker Target Guest: Stylish Suite-Seeker The SpringHill Suites guest is a frequent business traveler looking for fresh, interesting and stylish hotels to provide the space he or she needs to relax and make travel more enjoyable. They want: n Spacious suites n Exceptional service and reliability n Distinctive design & style at an affordable price n Value: complimentary hot breakfast, high-speed Internet access n Business travel to be about more than business: instill calm, enrich life and embrace the locale n Hotel to provide an antidote to the stress of business travel Brand positioning: STylE, SpacE, ValuE SpringHill Suites by Marriott® is an upper-moderate all-suites hotel brand that delivers the space, and the stylish, inspiring spaces that enrich our guests’ travel at a great value. Gen 4.5 prototype and Inspire Décor The design of the lobby and guest suite has been enhanced, continuing to deliver a highly differentiated experience and solidifying the SpringHill Suites leadership in the upper-moderate tier. The Gen 4.5 prototype and Inspire décor presents an option to ease new-build costs, increase operational efficiency and offer a design with a broad appeal across multiple markets. Key highlights of the prototype: n Maximize lobby space efficiency and functionality by increasing breakfast seating and buffet length n Eliminate soft walls and introduce architectural focal walls that serve as both functional and design elements n Enhance lobby décor to reflect the brand personality while increasing operational sustainability n Provide dedicated business center n Offer optional bar plan n Feature one compartment bathroom n Allow for optional two compartment bathroom Marriott ® International partnered with the U.S. Green Building Council’s (USGBC) and joined its LEED Volume Program to develop a pre-approved prototype design for each of our Select Service and Extended Stay brands. Simplifying the LEED certification process enables owners to take advantage of a cost-effective and streamlined approach to building their hotels. Marriott aspires to be the global hospitality leader that demonstrates how responsible hospitality management can be a positive force for the environment and create economic opportunities around the world. Marriott International, Inc. n 10400 Fernwood Road, Bethesda, MD 20817 n MarriottDevelopment.com n March 2012 © 2012 Marriott International, Inc. GDPS 120143 RETURN TO AGENDA