The City of Moline Committee of the Whole met Tuesday, July 26.
"Council members meet as the Committee-of-the-Whole on select Tuesdays of each month at 6:30 p.m. in Council Chambers, unless otherwise posted. Please check the meeting calendar for meeting dates. The formal City Council meeting is held immediately following the Committee-of-the-Whole meeting."
Here are the meeting minutes as provided by the City of Moline Committee of the Whole:
City of Moline 619 16th Street Moline, Illinois 61265 Committee-of-the-Whole Minutes
Tuesday, July 26, 2016
PRESENT: Mayor Scott Raes (Chair)
Alderman Quentin Rodriguez (Ward 1) Alderman David Parker, Jr. (Ward 2) Alderman Mike Wendt (Ward 3) Alderman John Zelnio (Ward 4) Alderman Kevin Schoonmaker (Ward 6) Alderman Mike Waldron (Ward 7) Alderman Stephanie Acri (Alderman At-Large) ABSENT: Alderman Lori Turner (Ward 5)
STAFF: Lew Steinbrecher, City Administrator
Maureen Riggs, City Attorney Tracy Koranda, City Clerk Ray Forsythe, Planning & Development Director Alison Fleming, Human Resources Manager Lori Wilson, Parks Recreation Director Todd Green, GIS Coordinator Bryon Lear, Library Director John Hitchcock, Police Captain Jeff Snyder, Battalion Chief Scott Hinton, City Engineer Kathy Carr, Finance Director Jeff Anderson, City Planner J.D. Schulte, Public Works Director Tony Loete, Water Distribution OTHERS: Larry Smith, Resident 3316 40th Street
Anthony Watt, The Dispatch Mayor Raes called the meeting to order at 6:30 p.m. in Council Chambers.
Mayor’s Board Appointments Mayor’s appointment of Michael P. Waldron to the Park Board to fill the expired term of Chip Nelson to expire May 31, 2021. A motion was made by Alderman Parker to approve. Seconded by Alderman Wendt. Motion passed with Alderman Waldron abstaining. Mayor’s reappointment of David Parker, Jr. and Melvin Grimes to the Moline Housing Authority Board for a full five year terms to expire July 31, 2021. A motion was made by Alderman Waldron to approve. Seconded by Alderman Wendt. Motion passed with Alderman Parker abstaining.
Other Ray Forsythe, Planning and Development Director, stated that a t the July 12 th Committee of the Whole Meeting,
Committee-of-the-Whole Minutes July 26, 2016 Page 2 staff presented the terms of a performance based Development Agreement with Three Corners. The terms included a mending the 2013 Phase I DA to allow incentives for the current proposed Phase 1A and 2 which include a 90 Unit Market Rate Apartment Building, purchasing the next 5 acres of City owned land at $1.7 million; and constructing a 30-35,000 square foot grocery store. The total cost of the development is estimated at $32,712,802 with rebates totaling $3,576,259. The City would agree to issue a b ond in the amount of $6,625,000 in order to construct and operate a public parking deck with 320 parking spaces. It was estimated that there would be sufficient TIF increment and p arking r evenue to cover the repayment of the bonds and ongoing maintenance of the structure. The deck would have monthly, daily, and hourly parking spaces available.
The City Council recommended that s taff go back to the Developer and offer to increase the amount of the incentives in order for the developer to take on the responsibility of the parking deck.
For the last several weeks, staff has investigated a solution to this directive and has the following to offer: A public parking deck qualifies under Illinois TIF Act as a public facility; therefore TIF Funds can be used to construct the deck and qualifies under Illinois law to be paid for with General Obligation Bonds which can be repaid with TIF Increment and parking revenue.
A private parking deck does not meet the criteria as a public facility and therefore TIF Funds and General Obligation Bonds are not permitted to be used to reimburse a private developer for its construction. The TIF Act does not permit new construction of a private parking deck or building to be reimbursed as a TIF Eligible Redevelopment Project Cost. The following are eligible expenses:
1. Cost of studies, administration, professional and legal services 2. Property assembly costs 3. Cost of rehabilitation 4. Cost of construction of public works or improvements 5. Cost of job training implemented by businesses within the TIF 6. Financing costs related to the issuance of obligations (GO Bonds/TIF Notes) 7. Relocation Costs 8. Interest costs incurred by a redeveloper – subject to a limit of 30% of the interest costs
It is staff’s opinion that the ability to reimburse the developer for TIF Eligible Expenses sufficient to cover the increased cost of the private parking deck is not feasible given the information we have on the proposed project. The 15% rebates on the apartments and grocery store would be covered, however, not the cost of the private parking structure.
A motion was made by Alderman Zelnio to direct staff to negotiate a development agreement with the developer Three Corners which may include the public ownership of a parking garage as long as the developer agrees to provide for the maintenance of the garage and there are guarantees in place to ensure that there is sufficient increment to pay for the garage and that the developer wil l actually complete the project. Seconded by Alderman Waldron. Motion passed unanimously.
Informational Scott Hinton, City Engineer, presented information on the Capital Improvement Program.
The meeting adjourned at 7:18 p.m.
Respectfully submitted,
Tracy A. Koranda City Clerk
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