Economic Development Commission

MINUTES SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT COMMITTEE CITY OF DEKALB April 30, 2013 The Economic Development Committee of DeKalb, Illinois, held a regular meeting on Tuesday, April 30, 2013, in the large conference room of the DeKalb Municipal Building Annex, 223 South Fourth Street, DeKalb, Illinois. John Rey, Chair, called the meeting to order at 3:13 p.m. ROLL CALL: Economic Development Coordinator Jennifer Diedrich recorded the roll and the following members of Economic Development Committee were present: John Rey, Chair, Sheela Prahlad, Ata Shakir, and Austin Quick. Mike Walt was absent. Also present was: Roger Hopkins, Hopkins Solutions; Matt Duffy, DeKalb Chamber of Commerce, Paul Borek, DCEDC; and Jennifer Diedrich, Economic Development Coordinator. APPROVAL OF AGENDA: MOTION Mr. Quick moved to approve the agenda; seconded by Ms. Prahlad. Motion carried 4-0-1 by voice vote (Aye: Rey, Prahlad, Shakir, and Quick). Chair Rey declared the motion passed. APPROVAL OF MINUTES: MOTION Mr. Quick moved to approve the minutes of January 15, 2013; seconded by Ms. Prahlad. Motion carried 4-0-1 by voice vote. Chair Rey declared the motion passed. OLD BUSINESS: None NEW BUSINESS 1. CONSIDERATION OF A REQUEST BY BILL & JOY MCMAHON FOR $355,000 IN TIF- FORGIVABLE LOANS/GRANTS FOR THE CONSTRUCTION OF A BANQUET FACILITY LOCATED AT 302 GROVE STREET. Chair Rey introduce Bill McMahon, owner of Lincoln Inn and developer of the Faranda’s Banquet Facility. Mr. McMahon reviewed the project noting that the facility will hold up to 400 people. He continued to describe the project and advised that the total project cost was estimated between $1.8-$1.9 million. ED006-14  Economic Development Committee Meeting Minutes April 30, 2013 Page 2 of 3 Chair Rey advised that he was going to abstain from voting on this request. Mr. Duffy asked questions about the operations of the facility and wondered how it could be divided for multi- event days. Mr. McMahon addressed his questions. Ms. Prahlad asked if a full kitchen would be installed in the facility. Mr. McMahon advised a full kitchen would not be added right away, but steps were being taken to plan for one in the future. Mr. Borek asked about parking capability. Mr. McMahon advised that he had 85 spaces in his lot, and another 250 in surrounding public lots. Mr. Quick felt this was a great addition to DeKalb and very much needed. Discussion continued by all present. MOTION Mr. Quick moved to provide a positive recommendation on the request by Bill & Joy McMahon for $355,000 in TIF-forgivable loans/grants for the construction of a banquet facility located at 302 Grove Street; seconded Ms. Prahlad. Motion carried 3-0-1-1 (Mike Walt was absent; Chair Rey abstained) on voice vote. 2. CONSIDERATION OF A REQUEST BY PAPPAS DEVELOPMENT FOR A $628,000 TIF- FORGIVABLE LOAN TO CONSTRUCT A RESTAURANT AND/OR RETAIL CENTER ON THE FORMER SMALL’S FURNITURE PROPERTY, 2211 SYCAMORE ROAD. Chair Rey introduced John Pappas, Developer of the property located at 2211 Sycamore Road. Mr. Pappas reviewed the specifics of the project, noting he was working with NIU to resolve any access issues. Mr. Quick asked what type of development he was considering at the site. Mr. Pappas advised that this would most likely be mixed use. Discussion continued. Mr. Hopkins provided an update on market conditions. Discussion continued. Mr. Quick advised that he was uneasy voting in favor of the request due to amount of unknowns and number of existing empty commercial lots. Mr. Hopkins responded to Mr. Quick’s concerns and provided a brief description as to how the development agreement was being set up. He also further reviewed the request and estimated sales tax generation. Mr. Duffy advised that the City needed to have these kind of spaces ready and available or the City will lose business to areas that already have them. Mr. Borek pointed out that Mr. Pappas has a good track record with risky developments, i.e. Kmart. Mr. Pappas shared more information about the project in regards to utility connections, the NIU warehouse, etc. Mr. Shakir announced that he was supportive of the project and would like to see the property developed. MOTION Mr. Quick moved to provide a positive recommendation on the request by Pappas Development for a $628,000 TIF-forgivable loan to construct a restaurant and/or retail center on the former Small’s Furniture Property, 2211 Sycamore Road; seconded Mr. Shakir. Motion carried Motion carried 2-0-1-2 (Mike Walt was absent; Sheela Prahlad & Chair Rey abstained) on voice vote. ED006-14  Economic Development Committee Meeting Minutes April 30, 2013 Page 3 of 3 3. PRESENTATION BY ROGER HOPKINS - UPDATES ON RECENT DEVELOPMENT ACTIVITY. Mr. Hopkins provided an update on economic development activity on Sycamore Road, Hillcrest Drive, Downtown, Annie Glidden Road, & Lincoln Highway. CONSIDERATIONS: None. REPORTS: Chair Rey advised that he would be resigning from the EDC as chair as he would be taking his new post as Mayor in May, 2013. He noted that the Chair position and another vacant seat would need to be filled. ADJOURNMENT: MOTION Mr. Shakir moved to adjourn the meeting at 4:53 p.m.; seconded by Ms. Prahlad. Motion carried 4-0-1 by voice vote. Chair Rey declared the motion passed. Respectfully Submitted, Jennifer Diedrich, Economic Development Coordinator Minutes approved at the March 17, 2014 Regular Meeting ED006-14