Minutes - August 4, 2003 - Committee-of-the-Whole

Minutes of the Committee-of-the-Whole Meeting

of the City Council of the

CITY OF DARIEN

AUGUST 4, 2003

1. CALL TO ORDER

The regular meeting of the City Council of the City of Darien was called to order at 6:30 P.M. by Mayor Carmen D. Soldato.

2. CONSULTANT INTERVIEW FOR BUSINESS DISTRICT DEVELOPMENT AND REDEVELOPMENT – KANE, McKENNA AND ASSOCIATES, INC.

Mayor Soldato thanked the Business District Development and Redevelopment Commission for their efforts and recommendations. He turned the meeting over to Administrator Vana, who outlined the Commission’s accomplishments. They interviewed four firms and prepared a recommendation for City Council that included two firms. Administrator Vana noted that the second interview would take place on Monday, August 11th at 6:30 P.M. with Teska and Associates; he stated that each interview was limited to thirty minutes and that resident discussion would occur during a regular City Council meeting.

It was noted that in response to a request from Alderman Poteraske and residents, this meeting was being shown live on the Darien Cable Channel.

Administrator Vana introduced Philip R. McKenna, President of Kane, McKenna and Associates, Inc. Mr. McKenna stated that Kane, McKenna was in business for twenty years; they focus on redevelopment activities including tools and techniques that could be utilized with respect to redevelopment. He noted that they were not planners, that the City has a Comprehensive Plan. Kane, McKenna works with approximately 120 accounts annually, seventy percent are municipal and thirty percent are developer accounts. They have worked with many local municipalities, have done over 150 TIF districts, have done approximately 50 business districts, and have done well over 50 sales tax sharing type agreements; they are also a municipal bond licensed financial consulting firm.

Mr. McKenna noted that long-term objectives were as important as short-term objectives; he said that the process was important. He commented that in the redevelopment process, it was “What is it that we are trying to accommodate? What are the challenges to bringing that development in: are they front end, are they back end, are they somewhere in between?” He felt that the goals and objectives in the Comprehensive Plan were well stated but would be hard to achieve; that they could not all be achieved by virtue of a Tax Increment Finance District. Mr. McKenna stated that a TIF District was not the answer for everything and that other sources of revenue with complimentary uses would need to be utilized for full development of the site. That a “melting pot”, which would consist of established businesses mixed with new businesses, would need to be created.

Mr. McKenna stated that everything begins with a two-fold analysis: what techniques are out there and do they fit, including statutory requirements and economic underpinnings of what was to be achieved. He said that they compliment the study by requesting feedback from developers and by utilizing history of sales tax information. He noted that ‘public use’ facilities do not bring in tax dollars; he said that the market must be identified that would compliment the facilities. Kane, McKenna suggested that the redevelopment be done in a phased approach; that an initial eligibility study be performed to focus on program criteria and economics; and that the infrastructure be reviewed to produce a recommendation report.

Mayor Soldato opened the forum for comments and questions from the Council members.

Alderman Hagen stated that a situation occurred in Burr Ridge regarding a TIF district; he inquired how that situation differed from Darien’s. Mr. McKenna responded that various improvements occurred over many years; the Appellate Court determined that the area in Burr Ridge did not meet the qualifications. He stated that there were three quadrants indicated by Darien; not all of the areas of the triangle would qualify as a TIF District; he indicated that the southeast corner was a likely candidate.

Mayor Soldato stated that the information discussed was the opinion of Kane, McKenna and that it could be legally and professionally challenged.

Alderman Biehl inquired if the residential area dominated the triangle. Mr. McKenna affirmed; he stated that consideration would be given to reconfiguration and to the impact of relocation. He indicated that the cost would be very expensive.

Alderman Cotten asked about Kane, McKenna’s success based on qualifications and standards under the law; Mr. McKenna responded that they had been challenged but have not lost. Alderman Cotten stated that in order to make a decision, a breakdown of the project team and their qualifications needed to be submitted. Mr. McKenna said the information would be forwarded to Administrator Vana for distribution.

Alderman Poteraske asked what the timeframe was for Phase I; Mr. McKenna responded that the typical timeframe would be 3-4 weeks. Alderman Poteraske also asked what type of commitment and resources would be required from City and staff to stay within the timeframe; Mr. McKenna stated that specific historical data would be needed from staff and fire protection districts.

Mayor Soldato noted that financing would depend on the developer and what they expect out of the economics. He inquired if the information received from the informal meetings was valuable; Mr. McKenna responded that some of the information received could be beneficial for Phases 2 and 3.

There was discussion about the Housing Impact Study, which Kane, McKenna could perform at an additional cost, which would be approximately $10,000. The study was not included in the proposal due to the fact that a determination had not been made about moving forward with relocating the residential area.

Mayor Soldato opened the floor to the audience and Commission members for questions, there being none, Mayor Soldato then thanked Mr. McKenna for providing the Council with the information.

3. ADJOURNMENT

There being no further business to come before the Committee-of-the-Whole, the meeting adjourned at 7:10 P.M.

Mayor

________________________________

City Clerk

JFC/jr

All supporting documentation and report originals of these minutes are on file in the Office of the City Clerk under File Number 08-04-03 Committee-of-the-Whole.

Minutes of 08-04-03 Committee-of-the-Whole

2003 Minutes

Minutes - August 4, 2003 - Committee-of-the-Whole