City Council Planning Sessions

MEMORANDUM TO: Record FROM: Susan Bishel, Public Relations Coordinator SUBJECT: Oct. 9, 2017 City Council Planning Session Minutes DATE: Oct. 10, 2017 CC: Mayor and City Council, City Manager, City Clerk, Department Heads The Planning Session took place in the Council Chambers, Wheaton City Hall, 303 W. Wesley St., Wheaton, Illinois. Those attending the Planning Session included: Mayor Gresk, Councilman Barbier, Councilwoman Fitch, Councilman Prendiville, Councilman Rutledge, Councilman Scalzo and Councilman Suess. Also in attendance were City Manager Dzugan, Assistant City Manager Duguay, Director of Planning & Economic Development Kozik, Director of Finance Lehnhardt, Director of Engineering Redman, Public Information Officer Thrower and Public Relations Coordinator Bishel. The session began at 7:00 p.m. and concluded at 8:46 p.m. The following items were discussed: I. Call to Order The Wheaton City Council Planning Session was called to order at 7:00 p.m. by Mayor Gresk. II. Public Comment Joseph Mahady, 1133 Wheaton Oaks Court, expressed concern about costs associated with upgrades to Martin Plaza and the Downtown Streetscape Project. III. Downtown Streetscape Status Update Assistant City Manager Duguay stated the City has reached Checkpoint 3 in Phase 1 of the Downtown Streetscape Project construction. He reviewed the portions of the project that fall within the boundaries of the TIF 2 district and showed where 9 street segments would be receiving new water main and 5 street segments would receive new sanitary sewer pipes. The entire project's cost is estimated at $34.7 million. Assistant City Manager Duguay reviewed the underground utility work currently taking place and stated this work is expected to be finished by Nov. 17. The next steps will include completing construction drawings for the next phase of work and going out to bid for this portion of the project. The City expects to award the streetscape concept bid by March 2018. However, he stated that if the Council decides on a Martin Plaza design on the north side of Front Street, this may delay the completion of work. In regard to the design for Martin Memorial Plaza, Assistant City Manager Duguay stated Union Pacific Railroad and the Illinois Commerce Commission have limitations on the south side area where the current plaza resides. Specifically, structures are not allowed, and hardscape items may not be higher than 3 feet tall. The City is awaiting approval for the previously presented south side design, but City staff does not believe Union Pacific will approve the designs. Assistant City Manager Duguay stated the City can't keep the current plaza because of the grading issues and slope work that needs to be completed to make the area accessible. While there does exist a small possibility that the south side design could be approved, Assistant City Manager Duguay stated that it would be prudent for the Council to decide between three options: 1) a modified design on the south side of Front Street that would work within the railroad's limitations, 2) postpone the work and wait for later approval from Union Pacific, or 3) revisit the designs proposed for the north side of Front Street. Jon Brooke of Design Workshop stated many of the elements designed for the south side design could be brought to the north side of the street. He showed a design in which part of Martin Memorial Plaza would remain on the south side, allowing for a tent during events. The design included some parking on the south side. Mr. Brooke showed a second design option with bar top/café seating and social seating areas on the north side of Front Street. In regard to Council questions about the drawings shown for the north side, Mr. Brooke stated the design would ensure that trees are not limiting the visibility of storefronts. Also, he stated columns from the previous design would likely not be permitted on the south side by the railroad due to their height. Mr. Brooke showed examples of options available for a water feature and an outdoor fireplace. He stated if the Council decides on a north side concept, there would be more limited space for these features. In regard to Council questions about parking, City Manager Dzugan stated the City believes that Union Pacific would allow parking on the south side of Front Street, as it is currently permitted on Front Street east of Main Street. Council members discussed the fact that it was a close vote (at the June 28 Planning Session) among the Council between the north side/south side decision for a plaza on Front Street, and additional Council members expressed support for moving forward with a design on the north side of the street in light of Union Pacific and Illinois Commerce Commission's restrictions. 10-9-17 Planning Session Minutes Council members discussed whether the City could create a bare-bones design and then add features later in the project. Mr. Brooke stated this would require extra costs and may require some utilities to be redone once the design is implemented. He estimated it would cost approximately $100,000 more to do some work now and add features later. Some Council members expressed concern that the designs for a larger park/gathering space on Liberty Drive have not yet been developed and that it would be easier to choose features for a plaza on Front Street if they knew what would be in the other gathering space. Some Council members expressed the desire to have a water feature in the Martin Memorial Plaza but not a fireplace, café seating, and bike parking, along with recycling receptacles throughout the downtown. If a water feature is included in the park on Liberty Drive, though, some Council members stated the Martin Memorial Plaza did not necessarily need a water feature, too. Other Council members wanted to keep the water feature and fireplace in the Martin Memorial Plaza design to allow for a year-round gathering place. In response to Council questions, City Manager Dzugan stated the construction of the park south of the tracks on Liberty Drive is scheduled to take place in Phase 4. He stated the Downtown Wheaton Association is interested in having events take place in the park south of the tracks. He stated now that the City has direction for the footprint of the design on the north side, the designers will come back in about a month with specifics for the Council's review. City Manager Dzugan reviewed the funding strategy for the project with the Council. He stated staff has worked to create a flexible funding strategy that is responsive to possible changes in TIF-assessed values and is able to leverage TIF funding opportunities. Of the project's $34.7 million in estimated expenditures, $23.6 million is in TIF-eligible expenses, and the remaining $11.1 million is not eligible to be funded by TIF 2 and TIF 3. City Manager Dzugan reviewed the boundaries of these TIF areas and stated TIF 3 revenue can be used for a contiguous TIF area. He stated this funding strategy would require amendments to some of the City’s ordinances. City Manager Dzugan summarized the multi-faceted funding strategy City staff is recommending for this project, including: 1) $23.1 million from TIF 2, which must be used by 2022, 2) $600,000 from TIF 3, 3) $3.1 million of Capital Projects Fund reserves, and 4) $7.9 million borrowed from General Fund reserves. The City would repay the funds borrowed from the General Fund over a 10-year term and are recommending putting into place a $0.25 local sales tax increase, which would generate an estimated $875,000 annually in revenue. 10-9-17 Planning Session Minutes In response to a Council request, City Manager Dzugan stated staff could provide figures for the General Fund projected balance over the affected years. City Manager Dzugan reviewed two scenarios for revenue-cash flow analysis, representing the most likely versus worst-case conditions. In the worst-case scenario, TIF 3 would need to fund an additional $5.3 million. In response to Council questions, City Manager Dzugan stated any TIF 3 funds the City wants to use for this project must be done before TIF 2 expires. City Manager Dzugan reviewed with the Council the proposed local sales tax increase and Wheaton's tax rates compared with neighboring communities. Some Council members expressed support for a local sales tax increase of $0.25, while others opposed the increase, and others stated they would like to postpone a decision on implementing a sales tax increase for a year or two, and only increase if it is necessary. IV. City Council/Staff Comments Councilman Rutledge thanked the City staff for their work on the Downtown Streetscape Project and thanked members of the City Council for their personal support of his family. V. Adjournment The meeting was adjourned at 8:46 p.m. 10-9-17 Planning Session Minutes