JRB Main/Osage

MINUTES Joint Review Board Town of Normal Main/Osage TIF Redevelopment Plan and Project September 19, 2018 The Joint Review Board (JRB) for the Town of Normal Main/Osage Tax Increment Financing District met September 19, 2018 in Normal City Hall to review the Main/Osage Tax Increment Redevelopment Plan and Project for the year ended March 31, 2018. Doug Minter called the meeting to order at 3:15 PM and asked for nominations for Chairman. Jeanne Moonan nominated Mr. Minter. Bill Wasson seconded, and the motion passed with all ayes. JRB members present were Doug Minter, Heartland Community College; M. Curt Richardson, Unit District #5; Sarah Grammer, Normal Township; Pam Reece, Town of Normal; Bill Wasson, McLean County and Jeanne Moonan, Citizen Representative. Also in attendance were John Alft; Keith Cornille, President of Heartland Community College; and Town of Normal staff members Andrew Huhn, Finance Director; Karen Killingsworth, Financial Analyst; Deanna Willey, Accountant; Bryan Day, Corporation Counsel; and Sally Heffernan, Economic Development Director. Derek Beigh of The Pantagraph was also present. Ms. Moonan moved approval of the minutes of September 13, 2017; Ms. Grammer seconded, and the motion passed on a unanimous voice vote. Ms. Heffernan noted 2018 projects in the TIF area which did not receive TIF funding include the Wittenberg Church addition, the 25-unit Summit Apartments, Sakai Grille buildout at 701 S. Main, and the Young America office build-out. The new headquarters fire station which will be partially funded with TIF revenue. She said completed projects receiving TIF reimbursement are student housing projects, Flats I and Flats III, and a parking lot constructed to provide an engineered barrier for a brownfield site. Asked about the amount of eligible reimbursement for the fire department headquarters building, Ms. Heffernan said she would work with the finance department to determine this amount and distribute it to the JRB. (information is attached) Ms. Moonan moved to adjourn the meeting of the One Normal Plaza JRB. Ms. Grammar seconded, and the motion passed on a unanimous voice vote. Sent to JRB as requested during the September 19, 2018 JRB meeting Main/Osage TIF NFD Headquarters: land assembly, asbestos abatement, demolition Main Street: A Call for Investment is a Main Street Corridor study undertaken by Normal, Bloomington, ISU, IWU and Advocate BroMenn to address disinvestment in the Corridor. The study, completed in 2007, divided the corridor into sub-areas including one that encompasses ISU’s campus and nearby properties. Within this portion of the corridor, the study calls for revised zoning regulations including reduction of Main Street setbacks for new construction with parking lots located behind buildings “to create a pedestrian friendly and aesthetically pleasing Corridor.” The plan also recommends reducing “excess” surface parking lots, inserting landscape buffers between existing parking lots and sidewalks or streets, and building bike and pedestrian amenities. In 2008, the Town created the Main/Osage TIF to address investment strategies and recommended corridor improvements outlined in the 2007 corridor plan. The Main/Osage Redevelopment Plan with TIF as a funding source, outlines how TIF will be used to encourage investment in the Main Street corridor. The original Main/Osage TIF budget included $7.6 million for acquisition, $6 million for streets, sidewalks, curbs, gutters and utilities, $500,000 for planning and professional fees and $8 million for demolition and site preparation. The first amendment to the TIF plan, adopted in 2013, increased the total budget from $29,850,000 to $31,650,000 due to a $300,000 increase in planning and professional fees and a $1.5 million increase in interest reimbursement. The Town’s ability to issue bonds to finance eligible expenses is included in the plan. “The town may also issue general obligation or revenue bonds pursuant to its Home Rule Powers under the Illinois Constitution, the principal and interest of which may be repaid utilizing tax increment proceeds as well other revenues available to the Town.” To date, TIF funds have been pledged to three projects. Flats I is a mixed-use building with restaurants on the ground floor and student housing on the upper floors. Flats III has limited retail on the ground floor and student housing units on the upper floors. TIF funds were reimbursed to the developer of Buffalo Wild Wings to construct a parking lot serving as a mandated engineered barrier covering contaminated soil on a former gas station site. The TIF Redevelopment Plan identified blighting factors by block. Block D, east of Main between Dale and Osage, consisted of eight parcels and two structures. Seven of these parcels were identified as having blighting factors, and one structure was noted as not meeting minimum building code requirements. The blighted parcels were covered by a deteriorated asphalt parking lot devoid of landscaping and in need of repair and resurfacing. Through a multi-year process of strategic planning, the Town determined existing fire department facilities were not well located for optimal emergency response services. An increase in student housing west of campus, and growth on the Town’s western edge, shifted the population center served by NFD’s Station 2. Located on the north side of ISU’s campus, Station 2 needed extensive renovation and was not large enough to serve its growing constituency. A study of calls for service and traffic patterns determined a new station would be best located close to ISU. The chosen site was owned by the University and within the block identified in the TIF plan as Block D. In preparation for the construction of the new Headquarters Station, the Town approved an intergovernmental agreement with ISU in 2015 for the exchange of property. The Town bought land for $907,557 and subsequently traded it for the University-owned property on which the station was built. In addition to the purchase of land, TIF-eligible expense includes $14,989 for asbestos testing and removal and $58,000 for demolition of an existing building. The Town used General Obligation Bonds to support the project and is utilizing TIF increment to reimburse the portion of the bond payment attributable to land acquisition, asbestos removal, demolition of an existing structure and related interest. The Town supported a multi-jurisdictional effort to obtain federal funding for broader implementation of the Main Street corridor plan and is still hopeful the plan may receive state or federal funding. In the event local match is needed for TIF-eligible projects contained in the plan, the Town will give priority to those projects, whether private or public. In the meantime, the Town will continue to seek investment in the TIF to address blighted properties and improve infrastructure within the corridor. Priority will be given to private projects that increase EAV in the TIF. Equalized Assessed Valuation in the Main/Osage TIF has increased to $12,594,794 from a base of $3,038,684 when the TIF was formed.