Joint Review Board

DeKalb Municipal Building Council Chambers, Second Floor 200 South Fourth Street DeKalb, Illinois 60115 AGENDA Meeting of the DeKalb TIF Joint Review Board April 26, 2019 2:00 p.m. A. Call to Order B. Roll Call: City of DeKalb - Bill Nicklas DeKalb Community Unit School District #428 - Jamie Craven DeKalb County - Gary Hanson DeKalb County Forest Preserve - Terry Hannan DeKalb Park District - Amy Doll DeKalb Public Library - Emily Faulkner DeKalb Township - Jennifer Jeep Johnson DeKalb Township Road and Bridge District - Craig Smith Kishwaukee College #523 – Bob Johnson Kishwaukee Water Reclamation District - Mark Eddington Public Member - Tim Hayes C. Approval of Minutes • Minutes of the Joint Review Board Meeting of January 25, 2019; • Minutes of the Joint Review Board Meeting of February 1, 2019; • Minutes of the Joint Review Board Meeting of February 15, 2019. D. Public Participation. E. Presentation of First Quarter FY2019 TIF Financials. F. Discussion of TIF #1 Projects. G. Action Regarding TIF #I Increment in 2022. H. Next Meeting: July 26, 2019. I. Adjournment.  MINUTES JOINT REVIEW BOARD MEETING JANUARY 25, 2019 The Joint Review Board of the City of DeKalb, Illinois convened on January 25, 2019 in the City of DeKalb Council Chambers of the DeKalb Municipal Building, 200 S. Fourth Street, DeKalb, Illinois. A. CALL TO ORDER City of DeKalb City Manager Bill Nicklas called the meeting to order at 2:03 p.m. B. ROLL CALL City of DeKalb Executive Assistant Ruth Scott called the roll and the following members of the Joint Review Board (JRB) were present: Bill Nicklas – City of DeKalb Jamie Craven – DeKalb Community Unit School District #428 Gary Hanson – DeKalb County Amy Doll – DeKalb Park District Jennifer Jeep Johnson – DeKalb Township Craig Smith – DeKalb Township Road and Bridge District Bob Johnson – Kishwaukee Community College #523 Mark Eddington – Kishwaukee Water Reclamation District Public Member – Seated at this meeting (see below) Representatives from the DeKalb Public Library and the DeKalb County Forest Preserve were not present. C. RE-ELECTION OF PUBLIC MEMBER TIM HAYS (BARB CITY BAGELS) MOTION Mr. Smith moved to approve the re-election of Public Member Tim Hays, owner of Barb City Bagels; seconded by Mrs. Jeep Johnson. VOTE Motion carried by a majority voice vote of those present. D. ELECTION OF A CHAIRPERSON MOTION Mrs. Jeep Johnson moved to elect DeKalb Community Unit School District #429 Superintendent Jamie Craven as Chairperson of the Joint Review Board; seconded by Mr. Hanson. VOTE Joint Review Board Meeting Minutes January 25, 2019 Page 2 of 3 Motion carried by a majority voice vote of those present. E. PUBLIC PARTICIPATION Mark Charvat questioned the composition of the JRB. Mr. Nicklas noted that the official members of the JRB are the City of DeKalb, DeKalb Township, DeKalb Community Unit School District #428, DeKalb County, the DeKalb Park District, Kishwaukee College and a Pubic Member. However, in the interest of including entities affected by actions of the JRB, all taxing bodies are being given the opportunity of being represented at each meeting. Discussion ensued regarding the residency of the former Public Member. Mr. Charvat expressed that he is thrilled that the JRB is meeting on a more frequent basis. He also noted that members of the JRB should ensure they have all the information available regarding TIF District 3 prior to moving it through. Bessie Chronopoulos noted that the TIF Act is vague. She also noted that the JRB should be meeting on a more frequent basis. There was brief discussion regarding citizen participation. F. STATUS OF THE FORENSIC AUDIT State’s Attorney Amato stated that a Request for Proposals (RFP) is being put together and should go out at the end of January, with responses due in February. He indicated that the audit was expected to start some time in March. G. STATUS OF THE TIF #2 SURPLUS DISTRIBUTION Mr. Nicklas spoke to this item and reviewed documents with the JRB as follows: • November 9, 2018: Assumes Approval of 2018 IGA (Intergovernmental Agreement) and Creation of TIF 3. • January 25, 2019: current Estimates for TIF 1 and TIF 2. • Current Surplus Distribution by Taxing Districts and 2018 IGA Surplus Distribution by Taxing District. Discussion ensued regarding the information provided on the documents, as well as the proposed rehab and redevelopment projects. H. PRINCIPLES AND STRUCTURE TO ASSURE PUBLIC ACCOUNTABILITY, FISCAL ACCOUNTABILITY, AND PUBLIC TRANSPARENCY  Joint Review Board Meeting Minutes January 25, 2019 Page 3 of 3 Mr. Nicklas referenced and spoke to a document titled City Manager’s Directive: January 16, 2019, Tracking Internal TIF Expenditures for FY2019 (included with the agenda packet), which was provided to staff as a directive for accounting for TIF expenditures. Mr. Nicklas also referenced and spoke to the proposed Chapter 37 “Tax Increment Financing Regulations (included with the agenda packet). Discussion ensued. There was brief discussion regarding the role of the JRB as an advisory committee to the City Council. There was consensus from the JRB that, while they want to know about projects being supported by TIF funding, they do not want to be in the position of recommending or not recommending projects. Further discussion ensued and it was the consensus of the JRB to continue discussion regarding this item at the next meeting, which will be held on February 1, 2019. MOTION Mr. Smith moved to postpone this item until the next meeting of the JRB (February 1, 2019); seconded by Mrs. Jeep Johnson. VOTE Motion carried by a majority voice vote of those present. There was brief discussion regarding the composition of the JRB. I. NEXT MEETING As noted above, the next meeting of the JRB is scheduled for February 1, 2019 at 2:00 p.m. J. ADJOURNMENT MOTION Ms. Doll moved to adjourn the meeting; seconded by Ms. Jeep Johnson. VOTE Motion carried by a majority voice vote of those present and the meeting was adjourned at 3:04 p.m. ___________________________________ RUTH A. SCOTT, Executive Assistant  MINUTES JOINT REVIEW BOARD MEETING FEBRUARY 1, 2019 The Joint Review Board of the City of DeKalb, Illinois convened on February 1, 2019 in the City of DeKalb Council Chambers, located in the DeKalb Municipal Building, 200 S. Fourth Street, DeKalb, Illinois. A. CALL TO ORDER Chair Craven called the meeting to order at 2:00 p.m. B. ROLL CALL City of DeKalb Executive Assistant Ruth Scott called the roll and the following members of the Joint Review Board (JRB) were present: Bill Nicklas – City of DeKalb Jamie Craven – DeKalb Community Unit School District #428 Gary Hanson – DeKalb County Amy Doll – DeKalb Park District Jennifer Jeep Johnson – DeKalb Township Craig Smith – DeKalb Township Road and Bridge District Bob Johnson – Kishwaukee Community College #523 Mark Eddington – Kishwaukee Water Reclamation District Tim Hays – Public Member Representatives from the DeKalb Public Library and the DeKalb County Forest Preserve were not present. C. APPROVAL OF MINUTES MOTION Mr. Hanson moved to approve the following minutes of the JRB; seconded by Mr. Hays: 1. Minutes of the JRB Meeting of August 7, 2019. 2. Minutes of the JRB Meeting of September 4, 2019. 3. Minutes of the JRB Meeting of November 9, 2019. VOTE Motion carried by a majority voice vote of those present. D. PUBLIC PARTICIPATION Mayor Smith noted this would be the last meeting of Economic Development Planner Jason Michnick. He acknowledged Mr. Michnick’s participation with TIF over the past years and wished him well. Steve Kapitan shared his history regarding TIF issues within DeKalb. Joint Review Board Meeting Minutes February 1, 2019 Page 2 of 2 E. PRINCIPLES AND STRUCTURE OF THE JRB TO ASSURE PUBLIC ACCOUNTABILITY, FISCAL ACCOUNTABILITY, AND PUBLIC TRANSPARENCY. Mr. Nicklas provided an overview of the proposed Chapter 37 “Tax Increment Financing Regulations”. Discussion regarding this item included the frequency of JRB meetings, the timeline for providing JRB members with financial reports, broadcasting JRB meetings, project performance, administrative expenses, infrastructure expenses, and return on investment. F. INTERGOVERNMENTAL AGREEMENT BETWEEN TAXING DISTRICTS RELATED TO PROPOSED CENTRAL BUSINESS DISTRICT TIF (TIF #3) Mr. Nicklas spoke to this item, referencing background information provided in the agenda packet that included options for TIF 3 that he wanted the JRB to weigh in on. Those options included Option 1 – TIF Surplus Alternative; Option 2 – TIF Surplus of 30% in Years 4-7 and 50% in Year 8 and the remaining years; and Option 3 – City Shares 50% of Annual Increment According to Each Taxing Body’s Share of the Tax Bill after $1 million in annual increment is attained. Discussion ensued. Concluding the discussion, it was decided that more time would be needed to further review the options and this item would be brought back for further discussion at a later date. G. NEXT MEETING It was the consensus of the JRB to hold the next meeting on February 15, 2019 at 2:00 p.m. H. ADJOURNMENT MOTION Mr. Johnson moved to adjourn the meeting; seconded by Mr. Smith. VOTE Motion carried by a majority voice vote of those present and the meeting was adjourned at 3:20 p.m. ___________________________________ RUTH A. SCOTT, Executive Assistant  MINUTES JOINT REVIEW BOARD MEETING FEBRUARY 15, 2019 The Joint Review Board of the City of DeKalb, Illinois convened on February 15, 2019 in the City of DeKalb Council Chambers, located in the DeKalb Municipal Building, 200 S. Fourth Street, DeKalb, Illinois. A. CALL TO ORDER Chair Craven called the meeting to order at 2:00 p.m. B. ROLL CALL City of DeKalb Executive Assistant Ruth Scott called the roll and the following members of the Joint Review Board (JRB) were present: Bill Nicklas – City of DeKalb Jamie Craven – DeKalb Community Unit School District #428 Gary Hanson – DeKalb County Amy Doll – DeKalb Park District Emily Faulkner – DeKalb Public Library Terry Hannan – DeKalb County Forest Preserve Jennifer Jeep Johnson – DeKalb Township Craig Smith – DeKalb Township Road and Bridge District Bob Johnson – Kishwaukee Community College #523 Mark Eddington – Kishwaukee Water Reclamation District Tim Hays – Public Member C. PUBLIC PARTICIPATION There was none. D. CONTINUED DISCUSSION OF JOINT REVIEW BOARD COMPOSITION There was discussion regarding members of the JRB that have voting authority and those that don’t. Ms. Faulkner stated that the DeKalb Public Library Board (DPLB) has suggested it wouldn’t be appropriate for her to come to all JRB meetings since the DPLB isn’t a voting member. Mr. Nicklas indicated that the DPLB definitely has a voice. Mr. Craven asked for discussion regarding the options provided for this item, which included Option 1 – Having the JRB meet annually as required by the state; or Option 2 – Convene only the official JRB quarterly. Discussion ensued. Mr. Johnson noted Kishwaukee College’s preference for Option 1. Brief discussion ensued, with majority consensus to move forward with Option 1. Joint Review Board Meeting Minutes February 15, 2019 Page 2 of 3 MOTION Ms. Doll moved for the approval of Option 1; seconded by Mr. Hanson. VOTE Motion carried by a majority voice vote of those present. E. CONTINUED DISCUSSION OF TIF-SURPLUS OPTIONS INVOLVING TIF 1 AND TIF 3. Discussion ensued regarding TIF Surplus Options for TIF 1 and TIF 3, which is continued from the February 1, 2019 JRB meeting. Mr. Craven stated the school board gave consensus to move forward with the recommendation for the City to end TIF 1 early (FY2021) and wouldn’t pursue a surplus agreement in TIF 3. District representatives present also indicated the preference of their boards, with a majority indicating the same as the school board. A roll call vote of the districts present indicated consensus to move forward with the preferred option as noted above. Each representative will consult with their respective board and confirm direction at the next meeting. F. NEXT MEETING Following brief discussion, it was decided the JRB would meet on the fourth Friday during the months of January, April, July and October at 1:00 p.m. MOTION Mr. Johnson moved to accept the proposed JRB meeting schedule; seconded by Ms. Doll. VOTE Motioned carried by a majority voice vote of those present. Mr. Nicklas provided a brief status of the forensic audit, indicating the Request for Proposals has been released. Mr. Nicklas also thanked everyone for their work, time, good will and dedication to find common ground. G. ADJOURNMENT MOTION Joint Review Board Meeting Minutes February 15, 2019 Page 3 of 3 Mrs. Jeep Johnson moved to adjourn the meeting; seconded by Ms. Doll. VOTE Motioned carried by a majority voice vote of those present and the meeting adjourned at 2:21 p.m. ___________________________________ RUTH A. SCOTT, Executive Assistant