McHenry Times

City of Harvard Community & Economic Development Committee met Oct. 17.

Here are the minutes provided by the committee:

Chairman Dan Carncross called the meeting to order. Committee members present: Chairman Dan Carncross, Alderman Jay Schulz, Alderwoman Lori Lancaster and Alderwoman Rosa Luna. Also present were Mayor Michael Kelly, Alderman Charles Gorman, City Administrator Lou Leone, Finance Director Deb Bejot, Community Development Director Donovan Day and Code Enforcement Officer Anne Nutley.

City Administrator Leone related that he removed agenda items for the Feasibility Study and Impact Fees as his original plan was not to be in attendance at tonight’s meeting as he was supposed to head to Springfield. Due to other circumstances, he was able to attend.

Public Comment

Chairman Carncross opened the floor to public comment for any item not on the agenda. There were none.

Permit Fees Update

Community Development Director Donovan Day provided an overview of his memo and proposed streamlined permit fee schedule. The majority of fees are increased slightly by less than 1%. The residential construction fees are calculated by square footage and are still some of the lowest fees in the county and competitive with area communities. Upon approval, verbiage or asterisks should be added to clarify line items that apply to the entire dwelling and that the roofing fee is per address; this has come up in the past with multi-family dwellings with more than one address.

A motion was made by Alderman Schulz, seconded by Alderwoman Luna recommend to the City Council approval of the proposed fee schedule, Amending Section 20.06, Building/Permit Fees, to the City Council with clarifications as discussed. All ayes. Motion carried.

Proposed Agreement for Plan Review Services and Permitting/Code Enforcement Software with SAFEbuilt Community Development Director Donovan Day provided an overview of his memo and the proposed Professional Services Agreement with SAFEbuilt Illinois, LLC for plan review services and permitting, code enforcement, contractor and business licensing software (Community Core). SAFEbuilt has offered the City their Community Core Solutions software at no cost if we contract with them for plan review services. They will invoice the City monthly; fees will be passed on to the applicant and collected upon permit issuance. The software will allow applicants to apply for permits and contractor’s licenses online, track permit approval process online, schedule inspections and payment processing that ties into the City’s current system. The Mayor confirmed that the City will not incur any additional costs, will gain software and create a scale of efficiency that the department doesn’t currently have.

The Community Development Dept. is currently working with three firms:

• B & F for plan review and inspection services. The department is working with them to add an addendum to the existing contract for plumbing inspections.

• The department is working with HLR for training purposes. Their building official, Dan Streit, will provide field training for Anne on inspections. Finance Director Bejot indicated there are budget funds left in the training line item for this department this fiscal year.

• Proposed agreement with SAFEbuilt for plan review services and software (does not include data drop).

Donovan reported that Attorney Clifton reviewed the agreement that was included in the packet and requested additional language pertaining to FOIA. A revised agreement was received today and was distributed to the Committee. A motion was made by Alderman Schulz, seconded by Alderwoman Lancaster to recommend to the City Council approval of the revised agreement. All ayes. Motion carried.

Discussion Regarding the Creation of a TIF District for 205 W. Front St.

Community Development Director Donovan Day provided an overview of his memo regarding the creation of a Tax Increment Financing District (TIF) to induce redevelopment for property commonly known as 205 W. Front St., Harvard (former City Hall and Police Station). Staff has had several meetings with the owner and his architect to discuss revitalization of the property into a multi-family building with 22 apartments consisting of one and two bedroom units. The project cost is expected to be $3 million. The owner is confident that without the City inducing the project by way of a TIF District, the project will not be feasible. Staff recommends moving forward with the creation of a TIF for the property to induce revitalization.

Property owner, Luis Casteneda related that the original plan for a brewery project was not feasible. Architect Larry Farrenkopf, Architects 127, provided an overview of the project for a proposed 2-story multi-tenant mixed use building renovation which is an adaptive reuse of an older building. A TIF is instrumental in making a project like this work. The proposed use is compatible with the existing neighborhood.

Additional discussion

• Alderman Gorman inquired if the proposed second story elevation would require raising the roof which is a bow truss roof. The architect replied perhaps slightly, but they would like to stay within the current confines of what’s there and be respective of the building. There was discussion of the dangers of a bow truss roof and how to address the lower level which is prone to flooding. The architect said the building would be fully fire sprinkled and felt those type of issues can be solved.

• Target rent will be $1,500 for a two-bedroom and $900-$1,000 for a one-bedroom/studios. 

• There should be sufficient parking spaces available for the proposed number of units. 

• At Alderman Schulz inquiry, the architect related that ADA requirements would not require an elevator and related that introducing two stairs at opposite ends should take care of those particulars.

• Mayor Kelly inquired if there was a possibility to consider expanding the Enterprise Zone for this project verses creating a TIF District to satisfy the need to make the project go forward. Donovan related it could help close the gap, but when discussed previously with Charlie Eldredge for another property, he said it was difficult to get property added into the Enterprise Zone. The time frame for EZ approval is anywhere from 8-16 months. Peter Baroud, General Contractor with Da'Brou Construction, indicated that the EZ would not be as financially helpful as the TIF as they need cash more than rebates.

• Mayor Kelly related there are two different ways to do a TIF, but the City’s preference would be a pay as you go TIF which is safer to the City because it reduces liabilities. This makes it more difficult for the project itself because until taxes are collected and put into the escrow, they are not available to pay back the infrastructure costs. Time frame for a TIF District is 6-9 months. The City Council would likely want a Feasibility Study that provides assurance that it makes feasible sense to move forward.

Donovan related the next step is to sit down with Luis and his team to go over the proforma. Various factors need to be worked out before bringing it back to the City Council to get a total picture of how long the TIF would be, total cost, estimated real estate taxes, etc. All the City’s costs (plans, studies, attorney fees, etc.) are reimbursable. At Alderman Schulz’ inquiry, it was noted that actual construction would take a year or little longer. Donovan thought internally, it would take a couple of weeks to come up with an analysis so that it can be put before the City Council by the end of the year as a total package with potentially an inducement resolution so they can begin tracking costs.

A motion was made by Alderwoman Lancaster, seconded by Alderman Schulz to move the discussion forward to be brought before the City Council for consideration. All ayes. Motion carried.

New Business

City Administrator Leone updated the Committee on the requirement to have a TIF Joint Review Board Annual Meeting which hasn’t been held in about 10 years mainly because nobody was showing up to the meeting from the other taxing bodies. Lou had a conversation with the Illinois Comptroller over the situation and advised her that the City will be compliant going forward. A TIF Joint Review Board Meeting is scheduled for October 30th.

The next Committee Meeting will be scheduled at the City Council Meeting. Agenda items include the impact fees, feasibility study for fiberoptic, building code update and a possible amendment to the driveway ordinance to reduce the number of variations that come before City Council. City Administrator Leone indicated there is potentially a state grant opportunity to cover the cost of a feasibility study for municipal internet.

A motion was made by Alderman Schulz, seconded by Alderman Lancaster to adjourn the meeting. All ayes. Motion carried.

Meeting adjourned at 8:48 pm. 

https://www.cityofharvard.org/sites/default/files/fileattachments/community_development_committee/meeting/14827/minutescommunityeconomicdevelopment2023-10-17.pdf