Metro East Sun

City of Belleville Economic Development / Annexation Committee met Nov. 1.

Here are the minutes provided by the committee:

MEMBERS:

Alderperson Bryan Whitaker, Ward 1 Present

Alderperson Jamie Eros, Ward 2 Present

Alderperson Johnnie Anthony, Ward 4 Present

Alderperson Shelly Schaefer, Ward 5 Present

Alderperson Chris Rothweiler, Ward 6 Present

Alderperson Dennis Weygandt, Ward 7 Present

Alderperson Kara Osthoff, Ward 8 Excused

Alderperson Kent Randle, Ward 3, Chairman Present

STAFF PRESENT:

Mayor Patty Gregory Present

Cliff Cross, Director of Economic Development, Planning and Zoning Present

Eric Schauster, Assistant Director of Economic Development, Planning and Zoning Excused

Penny Moore, Coordinator, Economic Development, Planning and Zoning Present

Kerrie Freeman, Secretary, Economic Development, Planning and Zoning Present

GUEST ALDERPERSON PRESENT: None

GUESTS PRESENT: Michael Hagberg, Joy Schreiber, Katie Feder (BCDC), Kathy Mordini

The Economic Development

Alderperson Randle. Emergen Annexation Committee meeting was called to order in person at 5:00 PM by Chairman

Alderperson Randle. Emergency procedures were explained by Alderperson Randle. Attendance of the Committee Members, guests and staff was taken, and a quorum was declared by Chairman Alderperson Randle. (5:01 PM)

PUBLIC PARTICIPATION: Joy Schreiber (5:01 PM), Michael Hagberg (5:04 PM), Katie Feder (5:06 PM)

APPROVAL OF THE MINUTES:

1. Approval of the October 4, 2023 Meeting Minutes: A motion for approval of the October 4, 2023 meeting minutes

was made by Alderperson Rothweiler and seconded by Alderperson Schaefer. Motion carried (7-0), with all present members voting in the affirmative with no corrections noted. (5:06 PM)

NEW BUSINESS:

1. Discussion and possible motion to approve a development agreement with Belleville Community Development Corporation for the acquisition and remodeling of 318 S. 20th St. (5:07 PM)

Mr. Cliff Cross mentioned that the City has partnered with the Belleville Community Development Corporation (BCDC) before to help subsidize funding on other projects. The corporation has obtained various funding from the County and private funding for the two hundred, three thousand ($203,000) dollar renovation and is twenty-five thousand ($25,000) dollars short of completing the work. Mr. Schauster thought bringing this to the board is that we help to complete this type of significant investment into that property to get it back on the tax rolls or ultimately, we could spend fifteen thousand (15,000) to twenty thousand (20,000) to demolish it. The applicant is asking for twenty-five thousand ($25, 000) dollars to subsidize the gap in funding. (5:07 PM)

Alderperson Weygandt mentioned he would not spend money on this property. (5:09 PM)

Mr. Cross mentioned that the precedent has been set. If the County is consistent with how it is administered, then there is a claw back prevision, where the owner must occupy for ten (10) years and is attached as a deed restriction to the home. (5:10 PM)

Alderperson Weygandt mentioned that there is no land, little parking, and would be a bad investment overall. (5:11 PM)

Alderperson Whitaker mentioned that this is similar to the infill housing program. Where the value of a house in a neighborhood no longer meets the criteria of that neighborhood. Who would want to come in and make that investment at that particular spot. What type of TIF increment are we going to see for this type of investment for this area. Mr. Whitaker mentioned that he likes the work that the company does, but they either need to find a new home or try to scale this project to something more reasonable as he would not support this project as is. (5:12 PM)

Alderperson Schaefer agreed that it would be a bad investment. (5:13 PM)

A motion was made to DENY by Alderman Whitaker with a second by Alderwoman Weygandt. (5:13 PM)

Alderperson Rothweiler asked if ten thousand (10,000) had been approved before. Mr. Cross mentioned that he cannot verify the amount, but that Mr. Schauster said this would not be the first time we have invested into some of these programs. (5:14 PM)

Discussion of the property appraisal occurred. Mr. Cross mentioned that grant programs are designed to know they are going to put more money into the house then what they will get as a profit. A fair question to ask the applicant is how much they plan on listing the property for. (5:15 PM)

Roll call for the motion occurred. The motion carried by a vote of (7-0), with all present members voting in the affirmative. (5:17 PM)

2. Discussion and possible motion to approve a development agreement with Blounts & Moore Holdings, LLC for the remodeling and retrofit of 7300 Twin Pyramid Parkway. (5:18 PM)

Mr. Cross mentioned the he added this item to the agenda to open discussion. The applicants had listed that they would be starting construction in early March of 2024, but they are now wanting to start construction early. They have already submitted applications for permits. With this dispensary the board has opportunities to mandate an extra three percent (3%) sales tax and the ordinance has that locked in. It is almost like an individual business district tax at this location. Instead of using significant amount of the TIF incremental increase to fund this, is there a way to use the three percent (3%) to subsidize cost. The applicants are looking to use this to get them going and further grow. Nothing is on paper yet, just wanted the boards input or thoughts. Mr. Cross mentioned he would bring the official request to the board next year. (5:18 PM)

Alderperson Schaefer mentioned that she understands the three percent (3%) but there should be a time frame. Mr. Cross mentioned that their application estimated twelve (12) million in annual projected revenue. Alderperson Schaefer asked what their requested TIF amount is and if they could cut the percentage incentive off once that amount is reached. Mr. Cross mentioned that it is usually a (10) to fifteen (15) percent reimbursement to them, like Chelar and Eckerts, and then would come back in tax abatement or rebate, traditionally in a five (5) year time period. With this, if they generate twelve (12) million dollars and take three (3) percent of that, you are getting into the hundreds of thousands (100,000) of dollars and could recoup fifty (50) to sixty (60) percent of the initial one-point eight investment over the next four (4) to five (5) years, that could go into new improvements as they move forward. They are looking around fifty (50) percent total. Economic Development & Annexation Committee, November 1, 2023

Alderperson Schaefer mentioned fifty (50) percent is high and what other businesses have they offered that? Mr. Cross mentioned that there have not been very many businesses that were offered that high, but they also did not have the additional three (3) percent tax on some of them. This is new, uncharted territory. Alderperson Schaefer mentioned that this will be great revenue for the city, and we should not pass that up, but we also want that revenue to pour back into the city, not just give it away. (5:20 PM)

Chairman Randle mentioned that with the Hofbräuhaus, it was backend loaded with one (1) percent additional tax on the eight-point one (8.1) percent that would go back to the developer. Not sure about giving up money from the three (3) percent, but it could be considered, or add another one (1) percent on top of the three (3) percent and then the one (1) percent goes back to the developer. We would need better timeframe to actually work out the number. But if we did the three (3) percent on top of eight-point one (8.1) percent, plus the (1) percent that was going to additional one (1) percent and after a four (4) or five (5) year timeframe, the developer goes away. (5:23 PM)

Discussion of thinking about other dispensary prices occurred. (5:24 PM)

Chairman Randle mentioned the back end loading incentive like that takes the city out of arms way as far as front end investment. Does the city want to use public money to invest in a dispensary is a good question. (5:25 PM)

Alderperson Rothweiler mentioned that they

This is an investment in giving some money the ced to look at the money the dispensary is projected to bring us.

do not have already, and back-end loading to where they do

not get a dime until they open and start selling to bring money back in. That way the city is not losing out on any money. This is a business just like others and we should work with them to get that done. (5:25 PM)

Mayor mentioned that we also have the craft grow license with them and this will bring in more revenue and possibly more jobs as well. (5:26 PM)

Chairman Randle mentioned that some type of assistance could be provided, but not until there are numbers to work with. (5:26 PM)

Mr. Cross mentioned that he appreciated the feedback and will get numbers to bring back to you for official proposal. (5:28 PM)

No motion occurred.

Old Business:

1. Discussion pertaining to TIF Establishment at Bellevue Plaza and within the City. (5:28 PM)

Mr. Cross mentioned that he spoke with the presenters at the Illinois Municipal League Conference about the TIF presentation. A powerpoint of how TIFS work will be placed on the departments website for educational purposes. It also acknowledges how to use for residential TIFs too. (5:28 PM)

Chairman Randle asked if there will be a place for the public or committee members to post questions and receive answers. Mr. Cross replied that there would be, and this would alert us to respond to the public quickly. It can also identify which ward this question is coming from and will let the alderpeople of that ward know too. (5:32 PM)

Discussion bled into Departmental update.

Alderperson Weygandt mentioned that shops in Bellevue Plaza continue to go vacant and the building across the street has been under construction for years. Can that area to be brought back. (5:33 PM)

Alderperson Eros excused from the meeting. (5:35 PM)

Indistinguishable conversations occurred. (5:35 PM)

Mr. Cross mentioned that the whole purpose of the Economic Development needs to be adopted in January and then the five-year work plan will come right after that to be set up for fiscal year 2025. The work plan will identify that area as a priority target area and what we need to do there. (5:36 PM)

Alderperson Schaefer mentioned her concern of being careful not to boost one area and hope the other one makes it. (5:36 PM)

Mr. Cross mentioned that the strategy plan will identify four (4) to five (5) areas as the character areas. The strategy plan identifies them and then stay consistent with the workplan. Going to have to take from TIF three for Belleville crossing (3) immediately to generate a new TIF and establish the anchors to stabilize. Fortunate/Cake from TIF three there are two (2) solid anchor stores. The advertising is better and there is interest coming to that area. (5:37 PM)

Alderperson Weygandt mentioned that across from Belleville Crossing there is quite a bit of land and if a Bass Pro Shop or Costco were there then it would draw in three (3) to four (4) million people to that area and will keep the Crossing alive too. (5:39 PM)

Mayor Gregory mentioned that the West End of Belleville has had more economic development happening now, then it has had in years. (5:40 PM)

Mr. Cross mentioned that the Economic Development Strategy will reinforce the economic development in the character areas. (5:41 PM)

Executive Session: None.

MOTION TO ADJOURN:

Alderperson Rothweiler made a motion to ADJOURN, seconded by Alderperson Schaefer. With all present members voting in the affirmative, motion carried (6-0). The meeting closed at 5:42 PM.

https://www.belleville.net/AgendaCenter/ViewFile/Minutes/_11012023-3117