Joint Review Board

AGENDA JOINT REVIEW BOARD MEETING APRIL 28, 2023 1:00 P.M. NEW LOCATION DeKalb City Hall 164 E. Lincoln Highway 1st Floor Conference Room DeKalb, Illinois A. Call to Order B. Roll Call City of DeKalb – Bill Nicklas* DeKalb Community Unit School District #428 – Cindy Carpenter* DeKalb County – Brian Gregory* (Chair) DeKalb County Forest Preserve – Terry Hannan DeKalb Park District – John Shea* DeKalb Public Library – Emily Faulkner DeKalb Township – Mary Hess* DeKalb Township Road and Bridge District – Craig Smith Kishwaukee College #523 – Laurie Borowicz* Kishwaukee Water Reclamation District – Mark Eddington Public Member – Larry Berke* C. Approval of the Agenda D. Approval of the Minutes 1. Minutes of the Joint Review Board Meeting of January 27, 2023. E. Public Participation F. Presentation of the First Quarter FY2023 TIF Financials G. Update on Current TIF #3 Projects H. Next Meeting: July 28, 2023 I. Adjournment *Voting Members of the Joint Review Board  MINUTES CITY OF DEKALB JOINT REVIEW BOARD MEETING JANUARY 27, 2023 The Joint Review Board (JRB) of the City of DeKalb, Illinois, convened on January 27, 2023, at 1:00 p.m. in the first-floor conference room of the City of DeKalb City Hall Building, located at 164 E. Lincoln Highway, DeKalb, Illinois. A. CALL TO ORDER Chair Brian Gregory called the meeting to order at 1:00 p.m. B. ROLL CALL Executive Assistant Ruth Scott called the roll, and the following members of the JRB were present:  City of DeKalb – Bill Nicklas*  DeKalb Community Unit School District #428 – Amir Doka (on behalf of Cynthia Carpenter)*  DeKalb County – Brian Gregory*  DeKalb Park District – Pat Fagan (on behalf of John Shea)*  Kishwaukee College – Jill Hansen*  Public Member – Larry Berke* The following members of the JRB were absent:  DeKalb Township – Mary Hess*  Kishwaukee Water Reclamation District – Mark Eddington  DeKalb Public Library – Emily Faulkner  DeKalb Township Road and Bridge District – Craig Smith  DeKalb County Forest Preserve – Terry Hannan Others present included Finance Director Carrie Dittman. C. APPROVAL OF THE AGENDA MOTION: Mr. Fagan moved to approve the agenda; seconded by Mr. Berke. VOTE: Motion carried by a voice vote of the majority of members present. D. APPROVAL OF THE MINUTES 1. Minutes of the Joint Review Board meeting of October 28, 2022. MOTION: Mr. Doka moved to approve the minutes; seconded by Mr. Fagan. VOTE: Motion carried by a voice vote of the majority of members present. E. PUBLIC PARTICIPATION There was none. Joint Review Board Meeting Minutes January 27, 2023 Page 2 of 2 F. PRESENTATION OF THE FOURTH QUARTER FY2022 TIF FINANCIALS Ms. Dittman provided an overview of this item based on the information provided in the agenda packet, which included the TIF Project Tracker, the TIF #3 Income Statement Summary, and the Revenue and Expenditure Report for TIF #3, all as of December 31, 2022. G. UPDATE ON CURRENT TIF #3 PROJECTS There was a brief review of one Architectural Improvement Program (AIP) project, which was approved at the December 12, 2022, City Council meeting:  OQ Names & Spa, 237 E. Lincoln Highway in the amount of $10,775 for roof repair and terra cotta repair/tuckpointing. It was noted that reimbursement to the owner is pending receipt of payment documents. There was also a brief review of major projects, which included Agora Tower, the Illinois Route 38 Reconfiguration, and City Hall Suites at 223 S. Fourth Street. City Manager Nicklas noted that the sidewalk inlets for the Illinois Route 38 Reconfiguration project cost extra due to supply issues. Ms. Dittman noted that all taxing bodies should be receiving their allotment of the surplus very soon, if not already. Brief discussion ensued. H. NEXT MEETING The next meeting of the JRB will be scheduled for April 27, 2023. I. ADJOURNMENT MOTION: Mr. Berke moved to adjourn the meeting; seconded by Mr. Nicklas. VOTE: Motion passed by a voice vote of the majority of members present and the meeting was adjourned at 1:19 p.m. Respectfully submitted, _____________________________ Ruth A. Scott, Executive Assistant Minutes approved by the Joint Review Board on (pending). Click here to view the agenda packet for the January 27, 2023, JRB meeting. DATE: April 7, 2023 TO: City of DeKalb – Bill Nicklas* DeKalb Community Unit School District #428 - Cindy Carpenter* DeKalb County - Brian Gregory* (Chair) DeKalb County Forest Preserve - Terry Hannan DeKalb Park District - John Shea* DeKalb Public Library - Emily Faulkner DeKalb Township - Mary Hess* DeKalb Township Road and Bridge District - Craig Smith Kishwaukee College #523 – Laurie Borowicz* Kishwaukee Water Reclamation District - Mark Eddington Public Member - Larry Berke* FROM: Carrie Dittman, Finance Director RE: Background Notes for the April 28, 2023, Agenda. The following notes provide background to the items on the published JRB agenda. Approval of Minutes The minutes from the January 27, 2023, JRB meeting are attached for the Board’s review and approval. Presentation of First Quarter FY 2023 TIF Financials The following reports are attached for the Board’s review: • TIF #3 Income Statement Summary as of 3/31/2023. • TIF #3 Revenue & Expenditure Report (budget vs. actual) YTD through 3/31/2023. • TIF #1 Income Statement Summary as of 3/31/2023. • TIF #1 Revenue & Expenditure Report (budget vs. actual) YTD through 3/31/2023. • TIF Project Tracker as of 3/31/2023. Update on Current TIF #3 Projects Architectural Improvement Program (AIP) Summary Property owners whose properties fall within the TIF #3 district boundaries may apply for limited incentives up to a maximum of $25,000 based on a three-tiered list of reimbursable expenses. The tiers are shown in the following table: * Indicates voting membership Major Capital Improvements – 50% Reimbursement: ADA Compliance Façade Renovations Life Safety Equipment Electrical, Mechanical, and Architectural Design Fees Restoration of Historic Plumbing Upgrades Architectural Features Fire Alarm and Suppression Tuckpointing Systems Minor Capital Improvements – 25% Reimbursement: Exterior Lighting Exterior Painting Window & Door Replacement Screening of Unsightly Utilities Deferred Maintenance – 10% Reimbursement: Roof Repair or Replacement Gutter Replacement Stair and Handrail Replacement Floor Surface Repair Water Damage Repair According to the terms of the AIP program, the City “forgives” 20% of the value of the matching funds each year for five years. In FY2023, the AIP budget is $100,000 for qualified projects on a first-come, first-served basis. Between January – March 2023, the City Council approved one AIP grant: 1. Quatro Amigos Venue, 240 E. Lincoln Highway = $25,000 (façade replacement), approved at the March 27, 2023, City Council meeting. Major Project Summary • 223 S. Fourth Street: City Hall Suites. This redevelopment project is expected to be an “earner” for TIF #3. The one-block area has been off the tax rolls since the late 1960s so once the property is occupied all the assessed valuation will count toward the calculation of the increment. The former city hall was razed in late 2021 and the main building “pads” were prepped in early 2022. The general contractor, Pappas Development, also replaced old water and sewer mains as well as electrical and natural gas services in 2022. To date, $502,846 of the $750,000 TIF #3 grant has been allocated. No additional reimbursement requests were received in the last quarter. Adjournment Page |2  TIF 3 ‐ Central Business District TIF Income Statement Summary TIF # 3 (esta. 2/11/2019) Note 1 Tax Year for Base EAV for TIF Increment 2019 2020 2021 2022 TIF Year 0 1 2 3 Tax Levy Year 2019 2020 2021 2022 Tax Collection Year 2020 2021 2022 2023 Year Surplus Distributed (by 3/31) 2023 2024 (Unaudited) Actual Actual Actual Actual Actual Fiscal Year 2019 2020 2021 2022 2023 Beginning Balance ‐ January 1 ‐ (500,000) 1,271,337 3,626,801 1,377,740 Revenue Revenue ‐ Property Tax Increment ‐ 300,640 458,809 507,254 ‐ Revenue ‐ Transfer from Other TIFs ‐ 4,275,000 2,650,000 ‐ ‐ Revenue ‐ Interest Income ‐ 202 1,097 30,554 14,753 Revenue ‐ Bond Proceeds ‐ ‐ ‐ ‐ ‐ Revenue ‐ Refunds/Reimbursements ‐ ‐ ‐ 8,712 ‐ Total Revenue ‐ 4,575,842 3,109,906 546,520 14,753 Total Available (Rev. + Beg. Balance) ‐ 4,075,842 4,381,243 4,173,321 1,392,493 Expenses Incurred (Paid) Expenses ‐ Non‐Project (Admin) ‐ ‐ ‐ ‐ ‐ Expenses ‐ Other Capital‐Public Infrastructure ‐ ‐ 127,053 1,868,350 ‐ Expenses ‐ Not‐for‐Profit ‐ ‐ ‐ ‐ ‐ Expenses ‐ Private For‐Profit 500,000 2,803,802 624,588 759,729 ‐ Expenses ‐ Debt Service ‐ ‐ ‐ ‐ ‐ Expenses ‐ Contractual Services (parking lot lease) ‐ ‐ ‐ 6,111 ‐ Expenses ‐ Engineering Services ‐ ‐ ‐ ‐ ‐ Expenses ‐ Financial Services (TIF audit) 703 556 8,660 Expenses ‐ Legal & Notices ‐ ‐ 2,245 555 ‐ Expenses ‐ Surplus Other ‐ ‐ ‐ ‐ ‐ Total Expenses (excl IGA Surplus Pmt) 500,000 2,804,505 754,442 2,643,405 ‐ Expenses ‐ Surplus IGA (Note 1) ‐ ‐ ‐ 152,176 ‐ Ending Balance/(Deficit) ‐ December 31 (500,000) 1,271,337 3,626,801 1,377,740 1,392,493 IGA % of Surplus 0% 0% 30% 30% (2019 levy) (2020 levy) (2021 levy) (2022 levy) Note 1 ‐ surplus to be paid in following year according to IGA; begins with 2021 levy year (collected 2022) 04/07/2023 10:07 AM REVENUE AND EXPENDITURE REPORT FOR CITY OF DEKALB Page: 1/1 User: CARRIE.DITTMA Balances for quarter ending 03/31/2023 DB: Dekalb Fund 262 - TIF FUND #3 2023 YEAR-TO-DATE Available % Account Description Amended Budget THRU 03/31/23 Balance Used Revenues Department 00-00: GENERAL 30300 PROPERTY TAX - TIF 519,935.00 0.00 519,935.00 0.00 37100 INVESTMENT INTEREST 01/31/2023 GJ JANUARY 2023 INTEREST 4,566.28 JE# 4267 01/31/2023 GJ JANUARY 2023 INTEREST 144.60 JE# 4267 02/28/2023 GJ FEBRUARY 2023 INTEREST 4,397.11 JE# 4406 02/28/2023 GJ FEBRUARY 2023 INTEREST 215.10 JE# 4406 03/31/2023 GJ MARCH 2023 INTEREST 5,119.10 JE# 4555 03/31/2023 GJ MARCH 2023 INTEREST 311.11 JE# 4555 37100 INVESTMENT INTEREST 6,000.00 14,753.30 (8,753.30) 245.89 39260 TRANSFER FROM TIF #1 FUND 19,471.00 0.00 19,471.00 0.00 Total - Dept 00-00 545,406.00 14,753.30 530,652.70 2.71 Total Revenues 545,406.00 14,753.30 530,652.70 2.71 Expenditures Department 00-00: GENERAL 62100 FINANCIAL SERVICES 8,830.00 0.00 8,830.00 0.00 63800 CONTRACTED SERVICES 6,294.00 0.00 6,294.00 0.00 65300 LEGAL EXPENSES & NOTICES 5,304.00 0.00 5,304.00 0.00 68600 TIF SURPLUS DISTRIBUTION 155,981.00 0.00 155,981.00 0.00 69199 PRIV PROP REHAB / REDEVELOP 347,154.00 0.00 347,154.00 0.00 83900 OTHER CAPITAL IMPROVEMENTS 500,000.00 0.00 500,000.00 0.00 Total - Dept 00-00 1,023,563.00 0.00 1,023,563.00 0.00 Total Expenditures 1,023,563.00 0.00 1,023,563.00 0.00 NET OF REVENUES AND EXPENDITURES (478,157.00) 14,753.30 (492,910.30)  TIF 1 ‐ Central Business District TIF Income Statement Summary TIF # 1 (esta. 12/22/1986) Tax Year for Base EAV for TIF Increment 2019 2020 2021 2022 2023 Tax Year 2019 2020 2021 2022 2023 Year Tax Due 2020 2021 2022 n/a n/a Year Surplus Distributed (by 3/31) 2021 2022 2023 n/a n/a Beginning Balance (Jan 1) 4,373,313 3,178,752 781,277 19,470 19,470 Revenue Actual Actual Actual Actual YTD Revenue ‐ Property Tax Increment 7,031,778 6,611,022 6,727,258 ‐ ‐ Revenue ‐ Transfer from Other TIFs ‐ ‐ ‐ ‐ ‐ Revenue ‐ Interest Income 163,231 28,951 1,224 ‐ ‐ Revenue ‐ Gain/Loss on Investments 143,465 ‐ 13,104 ‐ ‐ Revenue ‐ Refunds/Reimbursements 43,387 ‐ ‐ ‐ Revenue ‐ Bond Proceeds ‐ ‐ ‐ ‐ ‐ Revenue ‐ Other ‐ ‐ ‐ ‐ ‐ Total Revenue 7,381,861 6,639,973 6,741,586 ‐ ‐ Total Available (Rev. + Beg. Balance) 11,755,174 9,818,725 7,522,863 19,470 19,470 Expenses Incurred (Paid) Expenses ‐ Non‐Project (Admin) ‐ ‐ ‐ ‐ ‐ Expenses ‐ Public Infrastructure ‐ 70,119 270,247 ‐ ‐ Expenses ‐ Not‐for‐Profit ‐ ‐ ‐ ‐ ‐ Expemses ‐ Private For‐Profit 3,380,053 20,055 ‐ ‐ ‐ Expenses ‐ Debt Service 1,192,400 1,195,000 1,190,800 ‐ ‐ Expenses ‐ Other 85,043 ‐ ‐ ‐ 575 Note 1 Expenses ‐ Engineering Services 19,735 ‐ ‐ ‐ ‐ Expenses ‐ Contracted Services 5,592 ‐ 11,693 ‐ ‐ Expenses ‐ Financial Services ‐ 85,247 14,381 ‐ ‐ Expenses ‐ Legal & Dues 3,263 20,000 1,912 ‐ ‐ Expenses ‐ Other Capital Improvements 5,000 98,871 730 ‐ ‐ Expenses ‐ Transfer to General Fund 46,666 5,000 ‐ ‐ ‐ Expenses ‐ Transfer to Airport Fund ‐ 37,646 ‐ ‐ ‐ Expenses ‐ Transfer to TIF #3 Fund ‐ 4,275,000 2,650,000 ‐ ‐ Total Expenses (excl IGA Surplus Pmt) 4,737,752 5,806,937 4,139,763 ‐ 575 Expenses ‐ Surplus IGA 3,515,888 3,305,511 3,363,629 ‐ ‐ Year End Adjustments 322,782 75,000 ‐ ‐ ‐ Ending Balance (Dec 31)* 3,178,752 781,277 19,470 19,470 18,895 *remaining balance to be transferred to TIF #3 after final year end adjustments are made less a small reserve for possible tax refunds Note 1 Property tax refunds due to protests 04/07/2023 10:15 AM REVENUE AND EXPENDITURE REPORT FOR CITY OF DEKALB Page: 1/1 User: CARRIE.DITTMA Balances for quarter ending 03/31/2023 DB: Dekalb Fund 260 - TIF FUND #1 (CENTRAL AREA) 2023 YEAR-TO-DATE Available % Account Description Amended Budget THRU 03/31/23 Balance Used Expenditures Department 00-00: GENERAL 69999 CONTINGENCIES 01/01/2023 AP DEKALB COUNTY TREASURER 574.96 Inv #: '001-2022' Vendor '000278' 69999 CONTINGENCIES 0.00 574.96 (574.96) 100.00 91262 TRANSFER TO TIF #3 FUND 19,471.00 0.00 19,471.00 0.00 Total - Dept 00-00 19,471.00 574.96 18,896.04 2.95 Total Expenditures 19,471.00 574.96 18,896.04 2.95 NET OF REVENUES AND EXPENDITURES (19,471.00) (574.96) (18,896.04)  TIF 1 & TIF 3 ‐ Central Business District Estimated Cumulative Pay Out Schedule ("Project Tracking") Period Ending 3/31/23 Applicable Income Statement Year of Total RDA/TIF Approved Paid to Date Remaining Redevelopment Project Party (Developer) PINS Expense Category RDA Commitment Eligible to 3/31/23 Obligation Administrative (Non‐Project) Not allowable under IGA Debt Service TIF 1 City of DeKalb Debt Service 2021 $ 2,385,800 N/A $ 2,385,800 $ ‐ Agora Tower TIF 3 PNG Development Private ‐ For Profit 2019‐22 $ 3,000,000 Y $ 3,000,000 $ ‐ 206 E. Lincoln Ave. apartments TIF 3 John & Rosa Balli Private ‐ For Profit 2020‐21 $ 216,800 Y $ 216,800 $ ‐ 200 S. Fourth Street TIF 3 City Hall Suites LLC Private ‐ For Profit 2020‐ $ 750,000 Y $ 502,846 $ 247,154 AIP ‐ 121 N. Second Street ‐ Hillside TIF 3 Private ‐ For Profit 2020 $ 18,076 Y $ 5,503 $ ‐ AIP ‐ 135 N. Second St ‐ Egyptian Theater TIF 3 Private ‐ For Profit 2021 $ 4,314 Y $ 4,314 $ ‐ AIP ‐ 115 N 1st St ‐ R.A.M.P TIF 3 Private ‐ For Profit 2021 $ 1,675 Y $ 1,675 $ ‐ AIP ‐ 218 W. Lincoln Hwy ‐Hickeys (project not completed) Private ‐ For Profit 2021 $ 1,185 Y $ ‐ $ ‐ AIP ‐ 151 N 4th St (property sold, project not completed) Private ‐ For Profit 2021 $ 25,000 Y $ ‐ $ ‐ AIP ‐ 509 Oak St ‐ Acculab TIF 3 Private ‐ For Profit 2021 $ 25,000 Y $ 25,000 $ ‐ AIP ‐ 201‐203 E. Locust St TIF 3 Private ‐ For Profit 2021 $ 1,850 Y $ 1,850 $ ‐ AIP ‐ 518 E. Lincoln Hwy ‐ KJ's Tap TIF 3 Private ‐ For Profit 2022 $ 2,415 Y $ 2,415 $ ‐ AIP ‐ 126 S. 5th St‐ Stagecoach Players TIF 3 Private ‐ For Profit 2022 $ 9,500 Y $ 9,500 $ ‐ AIP ‐ 137 E Lincoln Highway ‐ Aurora Music TIF 3 Private ‐ For Profit 2022 $ 25,000 Y $ 25,000 $ ‐ AIP ‐ 641 E Lincoln Highway ‐ Fargo Skateboard TIF 3 Private ‐ For Profit 2022 $ 8,616 Y $ 8,616 $ ‐ AIP ‐ 263 E Lincoln Highway ‐ La Calle TIF 3 Private ‐ For Profit 2022 $ 12,925 Y $ 11,821 $ ‐ AIP ‐ 248 E Lincoln Highway ‐ Chilton's TIF 3 Private ‐ For Profit 2022 $ 1,388 Y $ 1,388 $ ‐ AIP ‐ 237 E Lincoln Highway ‐ OQ Nails TIF 3 Private ‐ For Profit 2022 $ 10,775 Y $ ‐ $ 10,775 AIP ‐ 240 E Lincoln Highway ‐ Quatro Amigos Venue TIF 3 Private ‐ For Profit 2023 $ 25,000 Y $ ‐ $ 25,000 IL Route 38 Downtown TIF 3 City of DeKalb Infrastructure 2021‐22 $ 1,800,000 Y $ 1,980,408 $ ‐ Electric Car Charging Station ‐ Palmer Ct. TIF 3 City of DeKalb Infrastructure 2021 $ 15,000 Y $ 14,994 $ ‐ Fire Station #1 TIF 1 City of DeKalb Infrastructure 2021 $ 181,554 Y $ 180,284 $ ‐ DeKalb‐Taylor Municipal Airport* TIF 1 City of DeKalb Infrastructure 2021 $ 200,000 Y $ 159,395 $ ‐ Total Project Expenses $ 8,721,873 $ 8,537,609 $ 282,929 *Total RDA Commitment estimated based on the Municipal Share of Grant Activity to Rehabilitate Airport Facilities blue font = preapproved as part of TIF IGA 12/14/2020