City of Collinsville City Council met January 22.
Here is the minutes as provided by the council:
A. Call Meeting to Order
Mayor Miller called the meeting to order at 7:00 pm.
B. Roll Call
Also present: City Manager Mitch Bair, Corporate Counsel Steve Giacoletto and City Clerk Kim Wasser.
Present: 5 - Councilman David Jerome, Councilman Cheryl Brombolich,
Councilman Donna Green, Councilman Jeff Stehman, and Mayor John Miller
Absent: 0
C. Invocation
Delivered by Pastor Jeff Young of the First United Presbyterian Church of Collinsville.
D. Pledge of Allegiance
Recited.
E. Proclamations/Recognition/Presentations
1. New City Employee Introductions:
Mike Crawford - Water Dept., Operator
Blake Novack - Police Dept., Officer
Brian Hunt - Community Development Dept., Property Inspector
Mayor Miller introduced new City employees.
2. Proclamation Declaring January 21 - 27, 2018 City of Collinsville School Choice Week
Attachments: Proclamation
Mayor Miller read the Proclamation declaring the week of January 21 City of Collinsville School
Choice Week.
F. Business Prior to Public Input
G. Council Discussion
1. Ardent Spirits Redevelopment Agreement
Attachments: Staff Memo
Old Herald Brewery & Distillery Business Plan
City Manager Bair spoke of the former Collinsville Herald building located at 115 E Clay and advised
it was previously rezoned in November 2017. This discussion item is regarding redevelopment
incentives for a proposed business at this location. He advised the applicants, Derik and Laur Reiser
of Ardent Spirits, have requested $803,536 in incentives from TIF 1 for a micro-distillery and
brewery including a restaurant. He described the business as a regional destination. Overall project
cost is estimated at $2.5 million. As a regional destination, projected revenues for the first year are
estimated at $2.4 million. The business will employee 20 individuals (7 full-time and 3 part-time) with
an estimated payroll of $600,000. He described the building as currently being a shell which means all
improvements will be up to code. Project is approximately 15,000 square feet with capacity of 326
patrons. Business will include taproom, restaurant, bar, lounge, patio and private event space.
He highlighted Mr. Reiser's business plan by describing it as a craft brewery and distillery experience
with high quality food. He spoke of the applicant's branding of the business and mentioned his
willingness to partner with the community as well as other local businesses. He mentioned the
competitive advantages of this unique business and described it as a tourist attraction with long term
opportunities. He explained and displayed pictures of equipment that would be used in the
brewery/distillery process as it would be visible to the patrons. They will offer tours and host special
events. They project over 60% of revenue to come from food sales, will employee 20 people,
anticipate over 90,000 annual patrons, and offer an event space that would be free for community
groups. He spoke of additional revenue opportunities that may include craft soft drinks, contract
brewing, barrel sales, beverage club memberships and merchandising. He spoke of the historical
connection between the branding of the establishment with that of the City, Ardent Spirits as part of
the Collins deed restrictions and named Old Herald Brewing Company. July 2018 is the anticipated
opening date. He displayed the general layout of the business and indicated the distillery equipment
would be viewable by the public as part of the experience.
He spoke of the financial impacts:
* $2.4 million in revenues within year 1 - $52,920 in sales tax. He further indicated that if the Food
and Beverage Tax district would encompass the entire City this would yield an additional $24,000.
* Property tax could double after reassessment. Current taxes are $4,666.16 but expected to
increase to approximately $9,332.32, City receives 4.4% = $207.03 currently. TIF 1 expires
December 2021 at which time the property will be returned to tax rolls.
City Manager Bair gave an overview of the requested incentive. The applicant is seeking $803,536
which represents 31.4% of the total project cost and 47.9% of the total TIF eligible project costs. He
indicated the typical guidance is 30-40% total TIF eligible costs and 10-20% of the total project
costs. He spoke of the incentive analysis and advised 40% of the facade, code and structural items
and 90% for Fire Code compliance items should be used as the general starting points in considering
the appropriate level of incentive award. He spoke of TIF eligible items that would not be considered
as part of the incentive (signage, construction safety items, and construction supervision labor costs).
In this case 40% of code compliant items total $573,446 and 90% of related Fire Code compliance
items at $77,244 for a total project incentive award of $650,690. Due to the cost of the project, the
applicant asked that the incentive award to be reimbursed in phases (Phase 1, 2 and 3 which is
outlined in the agenda packet).
Derik Reiser spoke of his excitement for the opportunity to bring this kind of business to the City of
Collinsville. Councilman Green thanked him for wanting to invest in the City. Mayor Miller spoke of
the reimbursement in phases as this is not typically done. Mr. Reiser indicated he is trying to avoid
external investors. The reimbursement in phases would allow them to complete the project as a self
financed endeavor. City Manager Bair explained, should the applicant fail to complete the project,
the lien process would allow for foreclosure as a way to protect the City's investment.
Councilman Stehman indicated TIF projects are usually reimbursed upon substantial completion. This
project would be reimbursed based on the completion of each phase.
Councilman Brombolich inquired as to when the business would be open. Mr. Reiser indicated they
would be open for business at the end of Phase 3.
Councilman Jerome mentioned the project as being well designed and carefully thought out. He spoke
of his concerns. He inquired of projected deadline dates for each phase to which Mr. Reiser
indicated deadlines would be established. Councilman Jerome spoke of food sales having a smaller
reduced sales tax. He indicated his concern when going over 20% of the total project.
2. Reorganizing and Amending the Collinsville Municipal Code Chapter 4 Fee Schedule
Attachments: Staff Memo
Draft Fee Schedule
Existing Fee Schedule
Overview by Assistant City Manager Derek Jackson who advised that each department was asked to
review their respective fees and assess a value to ensure each fee is set at a level that recovers our
costs for services provided.
He explained the current fee schedule:
* 53 categories in alphabetical order - making the layout difficult to follow.
* Missing Fees - False Alarm assessed fees for Fire and Police Department and associated
Ambulance fees for assessment only and refusal of transport. These fees were adopted but not
codified.
* Misplaced Fee - certificate providing for economic hardship was listed under Adult Entertainment
but actually falls under Historic Preservation Commission.
* Duplication of fees within different chapters.
After meeting with the various departments, the following fees are recommended to be deleted from
the schedule:
* Pro-rated Business License $12.50 - These licenses are renewed annually and based on when they
were initially established.
* Local Record Check - Police Dept. receives very minimal requests for this service and only takes
about 5 minutes to process.
* Tow Release - should have previously been removed from Chapter 4 when it was replaced by the
Vehicle Impound Fee.
* Fireplug Service Charge - applies to only 40 hydrants and has never been collected.
* Yard Waste Dumpster Program - This service is provided free of charge to the citizens on certain
calendar dates.
Fees that were identified that need to be amended includes:
* Building Permits
* Grading Permits
* Zoning Variance
* Subdivisions
* Site Plan Review
* False Alarm - assessing a $50 fee after the 4th false alarm for Police services and $100 fee after
4th false alarm for Fire services.
* Animal Impoundment - Microchip fee as described by State Statute.
* Water Service and Charges - associated with 3rd party testing and after-hours service connections.
Fee will slightly increase to cover costs.
New fees that are being recommended:
* Assessing a late fee for Video Gaming License applications as some are not submitting their
applications in a timely manner. This would be similar to the late fee for Liquor License applications
($20 per day after November 15).
* Building Permit Reinspection Fee - $25 for multiple trips
* Mobile Home Park Inspection Fee
* Parking Tickets for handicap spaces - $100 unless marked otherwise
* Microchip Fee - per State Animal Control Act
Asst. City Manager Jackson indicated the most notable changes to the fee schedule would be the
layout as the fees would be grouped into general categories:
A. Administrative Services
B. Licensing
C. Land Development
D. Parks and Recreation
E. Police Department Services
F. Fire Department Services
G. Utilities
He mentioned the waiving of fees and indicated ordinance permits Animal Control to waive animal
impound fees for subsequent events. He asked Council of other fees that could be waived based
upon certain circumstances. City Manager Bair mentioned water fees with regards to leak issues and
non-transport ambulance fees. He asked Council for guidance to handle requests for fee relief.
Asst. City Manager Jackson asked Council for feedback and he would draft an ordinance for
adoption at the next Council meeting.
Councilman Brombolich spoke of the document fees for FOIA. She indicated the prorated Business
License fees was part of the creation of the program which started mid-year. She inquired when the
codes were last codified. City Clerk Wasser advised that codes are codified on a quarterly basis and
last done December 31, 2017. Councilman Brombolich inquired of the number of inspections that is
allowed for building permits. Community Development Director David Bookless gave an example as
to when the subsequent inspection would trigger a fee. He indicated someone may call and schedule
an inspection when they are clearly not ready for an inspection or they continue to fail the inspection.
Asst. City Manager Jackson spoke of the Business License fee being $25 but would like to amend
this fee amount based on what other municipalities are charging and type of business use. This
amendment would be brought back to Council for consideration at a later date.
Councilman Stehman indicated he was not in favor of charging a fee for something that does not have
a service tied to it. He spoke of the need to cover a portion of our costs.
Councilman Brombolich agreed with Councilman Stehman. She suggested an alphabetical index
attached to the fee schedule.
Mayor Miller indicated it is a good idea to review and update our fees.
H. Speakers from the Floor
None.
I. Comments & Announcements - Mayor
Mayor Miller read a Proclamation regarding radon awareness.
J Comments & Announcements - Council Members
None.
K. Comments & Announcements - City Staff
None.
L. Consent Agenda
City Clerk Wasser read the Consent Agenda.
1. Motion to Approve Payment of Bills for the Period Ending January 12, 2018
in the Amount of $335,260.82
Attachments: Agenda Item Report
Board List 01-05-18
Board List 01-12-18
2. Motion to Approve Payroll for the Period Ending January 12, 2018 in the
Amount of $1,160,633.78
Attachments: Agenda Item 01-22-18.docx
Board List 12-29-17.pdf
Board List 01-12-18.pdf
3. Motion to Approve Minutes of the January 8, 2018 Regular Meeting
Attachments: Agenda Item Report
01082018RegMtg.pdf
4. Resolution Reappointing Members to the Collinsville Economic Development
Commission (Wyatt and Jones)
Attachments: Agenda Item Report
Resolution
Mayor Miller asked if the Council wished to pull any items prior to a Motion.
No items were pulled. A motion was made by Councilman Jerome, seconded
by Councilman Green, to approve the Consent Agenda. The motion carried by
the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
M. New Business
1. Ordinance Approving the Consolidation of the Collinsville Metropolitan
Exposition, Auditorium and Office Building Authority into the City of
Collinsville, Madison and St. Clair Counties, Illinois, and Accepting the
Functions of said Authority on the Effective Date of the Consolidation
Attachments: Agenda Item Report
Ordinance
Intergovernmental Agreement
Exhibit A - Warranty Deed
Exhibit B - Vehicles
Exhibit C - Non Titled Property
EDC Support Letter
Gateway Center Consolidation Presentation
City Manager Bair advised this ordinance is the result of a previous discussion as well as an unanimous
vote of the Gateway Board on January 18 to approve the consolidation agreement. He again
summarized the consolidation efforts and described this as the best opportunity for Gateway Center
and the City. He indicated the City is already responsible for Gateway Center by backing bonds and
appointing members to the board. The consolidation will increase efficiencies and reduce costs. The
City will net a $22 million asset. We can reduce bond costs and focus economic development on
tourism.
Councilman Brombolich thanked City Manager Bair for providing them detailed information and his
efforts. She spoke of the consolidation being beneficial for the community. She mentioned her
father-in-law being the catalyst for the Gateway Center and believes he would have wanted this
partnership to begin with.
Mayor Miller agreed with Councilman Brombolich and spoke of the information provided as evidence
for consolidation efforts to enhance the Gateway Center.
A motion was made by Councilman Brombolich, seconded by Councilman
Jerome to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
2. Ordinance Providing for a Hotel Accommodations Tax
Attachments: Agenda Item Report
Ordinance
Overview by City Manager Bair advised this ordinance would increase the Hotel Accommodations
Tax from 7% to 9% which would provide for an additional $342,860 annually. The current tax
provides for $1.2 million annually. He gave a comparison with other cities. He indicated the funds
would be focused on tourism efforts, Parks and Recreation and Gateway Center.
Councilman Stehman spoke of O'Fallon's tax increase which was to enhance their Parks and
Recreation facilities. City Manager Bair confirmed that money will be earmarked for Parks and
Recreation activities and Gateway Center improvements.
Mayor Miller reiterated that general funds would not be used for operations of the Gateway Center.
A motion was made by Councilman Stehman, seconded by Councilman Green
to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
3. Ordinance Providing for the Continuance of the Food and Beverage Tax
Attachments: Agenda Item Report
Ordinance - Redline Version
Ordinance
City Manager Bair explained the current Food and Beverage Tax is limited to a district but this
ordinance would provide for the tax to be city wide. If approved, this would provide for an additional
$200,000 annually which funds will be earmarked for capital projects directly related to tourism. He
described this action as being similar to other cities.
Councilman Brombolich compared taking this tax city wide to that of the school district as a way of
enhancing our community. She reiterated that funds generated from this tax would be for capital
projects, especially those to improve our parks.
Councilman Green spoke of Collinsville's future, investing in our City, community support efforts,
hospitality growth and increased tourism opportunities.
Councilman Jerome spoke of the timing for establishing a Parks and Recreation Department and
Gateway Center opportunities as his reasoning for seeing the need to extend the Food and Beverage
Tax district. He mentioned the improvements needed to better the community.
City Manager Bair spoke of the recent opportunities for the City. He mentioned future budgeting of
these funds for capital improvement projects as well as Parks and Recreation Department.
Mayor Miller spoke of citizens complaining of inadequate parks. He indicated the tax increase is to
improve services for our community.
Councilman Stehman spoke of the importance of being able to see and track what is being done with
the additional money collected. Mayor Miller indicated this can be addressed in the newsletter.
A motion was made by Councilman Stehman, seconded by Councilman
Brombolich to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
4. Resolution of Support for the City of Collinsville Affiliation with the Alton
Regional Convention and Visitors Bureau
Attachments: Agenda Item Report
Resolution
EDC Support Letter
Tourism Economic Impact
City Manager Bair indicated this resolution announces our affiliation with the Alton Convention and
Visitors Bureau (CVB) which is being renamed to the Great Rivers and Routes CVB. This resolution
is required by the State for CVB funding. He spoke of the Great Rivers and Routes CVB as being
the best fit for the City, Gateway Center and the Chamber with a major focus on tourism for the area.
This CVB is fully accredited and is not membership based.
A motion was made by Councilman Jerome, seconded by Councilman
Brombolich to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
5. Resolution in Support of and Authorizing Mayor to Apply for Park
Enhancement Grant Funds from Madison County
Attachments: Agenda Item Report
Resolution
Parks and Recreation Director Kimberly Caughran explained this is an annual grant available from
Madison County Community Development. Due to the unique relationship with C.A.R.D., the City's
eligible Park Enhancement (PEP) Grant amount is $41,300. She spoke of using the grant funds for
accessible picnic tables and safe bleachers. She is recommending purchasing 8 sets of bleachers and
12 ADA accessible picnic tables.
A motion was made by Councilman Brombolich, seconded by Councilman
Green to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
6. Ordinance Providing for the Licensing, Inspection and Regulation of Mobile
Home Parks
Attachments: Agenda Item Report
Ordinance
Planning Commission Staff Report
Planning Commission Minutes 12/14/17 (Draft)
Overview by Director Bookless gave a brief overview of the program. He indicated the State
discontinued inspecting mobile home parks in 2011 for all Home Rule municipalities. The Planning
Commission reviewed the program at their December 2017 meeting and made an unanimous
recommendation for the program; however, they did not weigh in on the fee structure. Council
provided feedback with regards to the fee structure - $100 per Mobile Home Park and $6 per mobile
home within the park. He further indicated these fees are similar to that of surrounding communities.
Councilman Brombolich inquired of the start date for the program. Director Bookless advised that
upon approval by Council, his department will contact each mobile home park owner as a way to
inform them of the program. This will give his department ample time to finalize program.
Councilman Stehman inquired of an effective date. Director Bookless referred to Corporate Counsel.
Attorney Steve Giacoletto indicated an effective date was not necessary since it is the City's program
and it does not obligate the owner to act. Director Bookless advised he plans on implementing the
program as soon as possible.
A motion was made by Councilman Stehman, seconded by Councilman
Jerome to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
7. Ordinance Increasing the 2017 Budget in the General Fund, Collins House
Fund, Police Vehicle Fund, Collinsville Crossings Fund, and Water and Waste
Water Fund
Attachments: Agenda Item Report
Ordinance
Tamara Ammann, Finance Director, indicated this is the second year of a bi-annual budget which
sometimes requires adjustments due to the time frame from when the budget was prepared. She
described the budget adjustments being minor with a total amount of $595,000:
* $270,000 in General Fund (1.32% net change of original budgeted expenditures). She mentioned
the various reasons for the increase to include legal fees, costs associated with the City's newsletter
and staff changes.
* Collins House Fund - utility expenses.
* Police Vehicle Fund - replacement car cost more than projected.
* Collinsville Crossing Fund - principal payment on LIST bonds.
* Water and Waste Water Fund - due to EPA loan.
A motion was made by Councilman Brombolich, seconded by Councilman
Green to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
N. Old Business
O. Closed Session
Mayor Miller asked for a motion to proceed into closed session to discuss in accordance with 5 ILCS
120/2(c):
11. Pending or Threatened or Imminent Litigation
A motion was made by Councilman Jerome, seconded by Councilman
Stehman to approve. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
P. Announcements
Q. Adjournment
A motion was made by Councilman Brombolich, seconded by Councilman
Green to adjourn at 8:35 pm. The motion carried by the following vote:
Aye: 5 - Jerome, Brombolich, Green, Stehman, and Miller
Nay: 0
Absent: 0
Abstain: 0
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