City of Belleville Economic Development & Annexation Committee met May 4.
Here are the minutes provided by the committee:
MEMBERS:
Alderman Bryan Whitaker, Ward 1 Present
Alderwoman Jamie Eros, Ward 2 Present
Alderman Johnnie Anthony, Ward 4 Present
Alderwoman Shelly Schaefer, Ward 5 Present
Alderman Chris Rothweiler, Ward 6 Present
Alderman Dennis Weygandt, Ward 7 Present
Alderwoman Kara Osthoff, Ward 8 Excused
Alderman Kent Randle, Ward 3, Chairman Present
STAFF PRESENT:
Cliff Cross, Director of Economic Development, Planning and Zoning
Eric Schauster, Assistant Director of Economic Development
Penny Moore, Secretary, Economic Development, Planning and Zoning
GUESTS PRESENT:
Jack LeChien Michael Hagberg
Maggie Eubanks Kim Powers
Kinzie Mordini Ron Herberts
Kathy Mordini Reece Herberts
Thomas Welch (joined meeting via cell phone speaker)
The Economic Development and Annexation Committee meeting was called to order in person at 5:00 PM by Chairman Alderman Randle. Attendance of the Committee Members was taken, and a quorum was declared at by Chairman Alderman Randle. Chairman Alderman Randle explained emergency procedures. (5:02 PM)
PUBLIC PARTICIPATION:
None (5:02 PM)
MEETING MINUTES: Chairman Alderman Randle asked if there were any corrections to be made to the April 6, 2022 meeting minutes. No corrections were noted. A motion for approval was made by Alderman Rothweiler and seconded by Alderman Weygandt. Motion carried 7-0, with all present members voting in the affirmative. (5:03 PM)
Due to a technical issue with the presenter from the Scheel Street Project introduction, Old Business agenda items were read and discussed first, with New Business to follow. (5:04)
OLD BUSINESS:
1. The College of Governor French: Remodeling of 219 West Main Street
Cliff Cross explained that the Applicant has returned to the Committee with the requested information from the prior meeting. Eric Schauster added that the requested information was emailed to all Committee Members. The total cost of the project is twenty-five thousand dollars ($25,000.00). Ron Herberts from The College of Governor French explained the request more specifically, as the improvements will improve security and the marketability of the school. Mr. Herberts continued that the improvements will include adding a security system, that will be integrated with the installation of new doors, to allow visitors to be buzzed in. (5:05 PM)
Mr. Schauster further explained the amount requested from the applicant is four thousand five hundred dollars ($4,500.00). Mr. Schauster also explained that there were questions in the previous Committee meeting regarding property taxes. Property taxes were paid through 2018, until the school received their non-for-profit status and now the properties are exempt. Copies of tax bills were provided. (5:06 PM)
Discussion occurred regarding the scope of the project being more specific with the installation of the security system and electronic doors. Alderman Whittaker asked if the cost of the project remained the same. Mr. Ron Herberts explained the cost of the doors is $25,000.00 (twenty-five thousand dollars) and the security system would be additional. Alderman Whittaker requested confirmation that the request for the TIF funds solely relates to the breach of the wall and the addition of the doors. Mr. Ron Herberts said yes. (5:07 PM)
Alderman Whittaker shared his appreciation that the school is making improvements, but the request for TIF funds in the application is coming from a non-for-profit, tax-exempt organization. Alderman Whittaker explained he would have a difficult time voting for approval. Alderman Rothweiler, Alderwoman Schaefer, Alderman Anthony, and Alderwoman Eros all spoke in agreement with Alderman Whittaker’s statement of not being able to approve. (5:11 PM)
A motion was made by Alderman Whittaker to DENY the request for TIF funds for The College of Governor French at 219 West Main Street. The motion was seconded by Alderwoman Eros. The motion passed with a vote of (7-0) with all present members voting in the affirmative. (5:12 PM)
2. Infill Housing Development Agreement For 1008 Cart Lane & 24 Queensway Drive Cliff Cross updated the Committee regarding the Infill Housing Development Agreement. Mr. Cross reminded the Committee, the Request for Qualifications (RFQ) for the contractors had been completed and the contractors have been qualified. Mr. Cross added that another posting on qualifications, so that the contractors may begin work to complete the homes and get them sold with the deed restrictions. Mr. Cross also reminded the Committee of last month’s question from the Committee regarding home construction standards from number twelve (12) of the agreement. The concern was to keep the facades, as close to neighborhood prevailing home designs, as possible. Mr. Cross explained the adjustments he made to the agreement to address these concerns. Mr. Cross hopes to bring more lots to the Committee in the future, as more contractors are approved for the Infill Project. (5:16 PM)
Alderman Whittaker shared his concern of building a new construction home, of this caliber in older, existing neighborhoods and asked, what would happen if the house does not sell. Alderman Whittaker explained he would not like to the infill homes sitting vacant. Mr. Cross explained, that is the reason that we qualified the contractors from the beginning because they are established developers that have constructed both in new construction neighborhood as well as infills and understand real, world risk. Alderwoman Eros mentioned that the land cost is much less expensive with an infill project than in new construction; whereby reflecting that savings in the overall price of the home. Mr. Cross added another savings is the sewer laterals are still in place, since these properties were prior demolitions. Alderwoman Eros asked at what price would the homes be sold. Mr. Cross answered that it would depend on the neighborhood, but price points would be approximately $170,000.00 (one hundred seventy thousand dollars). Alderman Anthony mentioned that he believes there is a market for the infill homes in established neighborhoods. Chairman Randle requested that the Kathy and Kinzie Mordini, Avenue Realty, share their insight on the real estate market regarding the infill properties. Kinzie Mordini spoke to address the request. Chairman Randle added that the country is in a national housing shortage and the market will dictate the price that these properties sell for. Ms. Kathy Mordini added that this is the right time for this project. Chairman Randle added the sooner the better for the Committee to move on this issue, as The Fed just bumped interest rates again. (5:24 PM)
A motion was made by Alderwoman Schaeffer to APPROVE the Infill Housing Development Agreement For 1008 Cart Lane and 24 Queensway Drive. The motion was seconded by Alderwoman Eros. The motion passed with a vote of (7-0) with all present members voting in the affirmative. (5:25 PM)
3. RFP Discussion For 127 Mascoutah Avenue & 407 East Lincoln Street
Mr. Cross explained, staff had discussed the process of putting out a Request for Proposal (RFP) for the properties at 127 Mascoutah Avenue and the City of Belleville prior offices at 407 East Lincoln Street, with the goal of obtaining private responses from individuals who could potentially enter into a Redevelopment Agreement with the City of Belleville to own and rehabilitate the property over time. One (1) RFP response was received for the Mascoutah Avenue project and two (2) for the East Lincoln property. Mr. Cross explained that with the move of Economic Development, Planning, and Zoning Department to the Lindenwood campus, there has been a challenge with receiving delayed mail. Mr. Cross stated that he can not guarantee that all responses to the RFP have been received.
Mr. Cross explained, the intent of this agenda item was to introduce the submitted proposal material, have the Committee begin the review process, and allow staff to build the agreements needed to move forward with the selection of an applicant. (5:28 PM)
Chairman Randle requested that the Committee look at each address individually, beginning with 127 Mascoutah Avenue. Chairman Randle asked the applicant if they wished to address the Committee. Kathy Mordini said no, that everything was in the proposal before the Committee. Ms. Mordini added that she has been working on this proposal for one (1) year.
Alderwoman Eros shared her support of the proposal provided by Avenue Realty, mentioning that the concept was inventive and unique. Whereby, drawing people off of East Main Street and could become a catalyst to invigorate the area. (5:30 PM)
Alderman Rothweiler shared that he has received calls of concern. Alderman Rothweiler asked if the RFP had been advertised any other places than the city website. Mr. Cross said no, just the city website. Alderman Rothweiler mentioned that he had a couple of people contact him that were people who wanted to view the building but they were not able to do so because of timing. Mr. Cross answered, that when he wrote the RFP, he included scheduling a walk-through inspection of the property; with two or three that walked through on Thursday, May 21, 2022. Alderman Rothweiler explained the callers tried to get through and could not, as it was a last-minute consideration. Alderman Rothweiler shared his concern of marketing the RFP to other outlets, other than the city website. Adding, his caller knew about the RFP three (3) days before the deadline, which would not allow time to prepare a proposal properly. Alderman Rothweiler requested the RFP deadline to be extended further, to include publicity, to get more than one (1) proposal for the property. (5:32 PM)
Alderman Rothweiler also shared concern of the parking lot at 123 Mascoutah Avenue and asked if the parking lot would be sold with 127 Mascoutah Avenue, as the lot provided parking for Charlie’s across the street. Mr. Cross answered that the properties would be sold together. Mr. Cross added, the Redevelopment Agreement will need to be crafted to address issues, such as this parking lot. (5:33 PM)
Alderman Rothweiler asked if the parking lot at East Washington Street and Mascoutah Avenue was going to be kept partially by the city for public parking and part for the business parking. Mr. Cross said yes and those concerns would be worked out in that Redevelopment Agreement.
Alderwoman Eros mentioned that the applicant who is present knew about this project for a year, why is there a need to wait for more proposals to be submitted. Adding, if another party were interested, they would have submitted and given more for the Committee to review. Chairman Randle and Alderman Weygandt agreed with Alderwoman Eros. Alderman Rothweiler reminded the Committee that the property was not for sale, as the citizens own the property. Mr. Cross addressed the concern, mentioning the property was donated by a private entity to the city who donated it for a specific purpose; but that purpose will not ever come to fruition. Mr. Cross added, for the city to have the most responsible stance on the property, it was decided to RFP it. Alderwoman Schaefer mentioned that advertising on the website only is how advertisement has previously been handled, for example insurance. (5:36 PM)
Alderwoman Eros requested Jack LeChein of the Belleville Historical Society’s opinion. Mr. LeChein stated that the City of Belleville owns both the Koerner House and the property at 127 Mascoutah Avenue. Mr. LeChein added that he has seen the Avenue Realty proposal and would like to remind all respondents that the property lies within the Historical District and all exterior façade changes would need to be reviewed by the Belleville Historical Society’s Board. (5:38 PM)
Alderman Whittaker spoke, mentioning that he understands both sides. Adding, it was stated by the applicant present that they have been working on this proposal for one (1) year, yet the RFP was advertised on the website for two (2) weeks and there were problems with mail delivery. Adding, it is unknown if the other two (2) parties that have been in contact have sent proposals in. Alderman Whittaker shared that he is uncomfortable voting on the agenda item if further proposals may be received by no error of their own. (5:39 PM)
Chairman Randle allowed Maggie Eubanks to speak from the public in support of the proposal from Avenue Realty. (5:40 PM)
Chairman Randle commented that he thinks the proposal is a very unique concept with a unique repurpose of the vacant lot next to the property at 127 Mascoutah Avenue. Adding, with respect to the RFP, proposals could have been sent by mail or electronically and could have requested a delay. Chairman Randle recommended, due to inflation, moving on 127 Mascoutah Avenue and tabling 407 East Lincoln Street. Cliff Cross mentioned that he has received calls of interest after the RFP deadline. Chairman Randle shared his final thoughts regarding the proposal. Chairman Randle closed discussion, as there were other items on the agenda, and requested a motion. (5:43 PM)
A motion was made by Alderwoman Eros to APPROVE the Infill Housing Development Agreement For 1008 Cart Lane & 24 Queensway Drive. The motion was seconded by Alderwoman Schaefer. The motion passed with a vote of (5-2) with a vote as follows: Weygandt-AYE, Eros- AYE, Schaefer-AYE, Whitaker-NO, Rothweiler-NO, Anthony-AYE, and Chairman Randle-AYE. (5:44 PM)
Cliff Cross shared with the Committee for full disclosure that this recommendation vote will go to City Council as a full, but will need to be addressed by the Ordinance and Legal Committee for contract and agreement structuring. (5:44 PM)
Alderman Randle asked the Committee if tabling 407 East Lincoln Street was acceptable. Cliff Cross recommended bringing the proposal back next month’s meeting to allow the applicant to address any questions the Committee may have. (5:45 PM)
Chairman Randle requested a vote of all members IN FAVOR of tabling 407 East Lincoln Street until the next meeting. Motion carried with all members present voted (7-0) in the affirmative. (5:45 PM)
4. Economic Development Strategic Plan Update
Chairman Randle asked Cliff Cross if this item could be addressed at next month’s meeting to allow time for discussion of the Scheel Street Project. Mr. Cross agreed. (5:46 PM)
Alderman Rothweiler left the meeting due to a prior engagement. (5:46 PM)
A brief break was needed to get the applicant for the Scheel Street Project. (5:48 PM)
NEW BUSINESS:
5. Scheel Street Project Introduction
Cliff Cross explained the applicant, Darrell Bussey will in the future bring his proposed project to the Committee as part of a Redevelopment Agreement proposal with the city, for review. Mr. Cross advised that this proposed project will take coordination with the Metro, with land acquisition. Mr. Bussey is present to explain the project and to advise on the project plan. (5:49 PM)
A brief break was needed for the applicant to contact his partner, Thomas Welch, who joined the meeting by phone. Please note, this request to contact the partner was not mentioned to staff, prior to the meeting. (5:52:45 PM)
Mr. Bussey explained that the full presentation would not be addressed, as the presentation packet was given to Committee members. Mr. Bussey began, stating this project’s consideration began four (4) to five (5) years ago, with Mayor Mark Eckert asking Mr. Bussey if he would be interested in developing the Scheel Street area. Mr. Bussey added, Eric Schauster, Mr. Bussey, and Thomas Welch, who is developer out of Boston, Massachusetts, and Mark Hendricks collaborated and came up with a concept of a transit-orient center with a sense of the streets of St. Charles. Mr. Bussey added, the train station would allow transportation to and from the airport, sporting events, etc. without having a car. Mr. Bussey mentioned, in building a transit-oriented center, it would be the best one south of Chicago. Mr. Bussey shared that this concept is often welcomed by new millennials. Mr. Bussey mentioned that Thomas Welch and his team have been doing this concept for the last thirty (30) plus years in the Boston area. Mr. Bussey added, the project would be built in phases in working with the transit authority, state, and county and they have already said that they are ready to work with Mr. Bussey’s team, once the city has moved forward. Mr. Bussey stated that a formal presentation was given to the city about six (6) months ago. As not to get away from the concept, but to be able to provide the Committee with a more formal presentation, because of the budget numbers, Mr. Bussey requested to be able to meet again in the next few weeks with the Committee to discuss to project. (5:57 PM)
Alderman Whitaker advised that the Metro station recently advised that they are making large, modification improvements to the station at Scheel Street. Alderman Whitaker continued, this includes the purchasing of five (5) vacant properties in the footprint area and break ground this month on a quarter of a million-dollar ($250,000.00) transformation at that center. Alderman Whitaker added, prior to the city committing to this project; transit, who is a front-running partner needs to be on board with Mr. Bussey’s plan. Mr. Bussey agreed with Alderman Whitaker and stated that nothing has been done on one side, but the Transit Authority must have decided move forward with other plans. Alderman Whitaker state, that is his concern. (5:59 PM)
Cliff Cross addressed this concern, stating that is the primary reason why this project is being introduced. Mr. Cross added that transit would like to make sure the city is in agreement with this project before they shift. Mr. Cross explained, he recommends that we find out where transit is on this project. Alderman Whitaker concurred. (6:00 PM).
Mr. Bussey added that the plans of the Authority may still be utilized with this project, but is dependent on what this city will commit to and willing to offer. Alderman Whitaker mentioned, it would be welcomed to have Director Sharkey, with the Transit District or Chairman Roach with Metro to be part of this discussion and have a joint presentation. The current situation is, the applicant and the transit district have two (2) different options. Which one is the city to accept. Mr. Cross expressed, that the Zoning Board of Appeals meeting, was the first time he had heard of the Transit Authority moving forward with their plans. Alderman Whitaker shared that the Transit District broke ground last week on their planned improvements. (6:02 PM)
Chairman Randle asked Mr. Bussey if he has been in communication with the Metro Transit District. Mr. Bussey said yes and they will come to the table, once the city commits. Adding, the Metro Transit District did not want to change or be involved. Mr. Bussey explained, his team is looking for the city to commit to bring them to the table or bring them to the table simultaneously. Chairman Randle added, the point that Alderman Whitaker is making, is that you (Mr. Bussey) need to get all of the stake-holders to the same table. (6:02 PM)
Chairman Randle asked Cliff Cross if this was something staff could coordinate, in having all parties prepare a presentation to be brought before the Committee as one. Cliff Cross said yes. Chairman Randle added, it would be helpful to see all parties’ conceptual plans and how they work together, as one solid plan, including financials and properties acquired. (6:06 PM)
Alderman Johnnie Anthony shared his thoughts that this agreement could be something very big for Belleville. (6:09 PM)
An agreement was made between Chairman Randle and the applicant to return the project to the Committee at a future date. Mr. Cross agreed. (6:10 PM)
MOTION TO ADJOURN:
Alderwoman Schaefer made a motion to ADJOURN, seconded by Alderman Weygandt. With all present members voting in the affirmative, motion carried. The meeting closed at 6:11 PM.
https://www.belleville.net/AgendaCenter/ViewFile/Minutes/_05042022-2751
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