Simplifying Economic Development in Lombard Presentation to the - - PowerPoint PPT Presentation

Simplifying

Economic Development in Lombard

Presentation to the Lombard Area Chamber of Commerce & Industry September 20, 2017

Simplifying

Simplifying

Incentive Based Agreements

Economic Incentive Policy

• Adopted November, 2015
• Updated September, 2016

345 W. Roosevelt Road

2013-2016

Mariano’s 345 W. Roosevelt Road

• Economic incentive between developer, Lombard and

School Districts 44 & 87 “Closes the Gap” and meets a “But For” standard

• Incentive is performance based on future sales tax

revenues from development

Mariano’s 345 W. Roosevelt Road

Figures:

• $25,500,000 redevelopment project costs
• $3,000,000 NPV incentive, based upon generated state sales and

PFE taxes

• $37,500,000 baseline sales figure
• 20% cannibalism factor, then 50/50 share
• $7,800,000 in share sales & PFE tax generated over agreement life
• $239,000 in additional annual property tax revenue

Mariano’s Approved Site Plan

Mariano’s

Mariano’s Fuel Station

Bluestone Development/ Thornton’s

Bluestone Development/ Thornton’s

Bluestone Development/ Thornton's

Economic incentive to address roadway improvements adjacent to site (no incentive for actual development)

• Reconstruction of Broadview Av.
• Lane enhancements to Route 53 & North Avenue

Street improvements financed by future sales tax dollars generated by site – no cost to taxpayers or impacts upon the Village’s CIP

Bluestone Development/ Thornton's

Figures:

• $7,000,000 construction project in total
• Up to $587,000 paid out in a performance based state sales tax

rebate / up to a 10 year period; tied to actual construction costs

• Village receives first $25,000 annually, plus the additional

property EAV

Sam’s Club 611 E. Butterfield Road

Sam’s Club 611 E. Butterfield Road

Sam’s Club 611 E. Butterfield Road

Economic Incentive, consisting of future performance based sales tax rebate approved by Village Board in March, 2016 Performance based agreement

• $19,142,000 est. project costs
• Up to 10 years, $2,500,000 NPV in State Sales Taxes
• Village receives first $136,000 annually

Sam’s Club 611 E. Butterfield Road

Status:

• 135,000 sq. ft. warehouse club use with gas station approved

by Village Board

• Long-term lease signed
• Buildings demolished
• Site permits ready for issuance
• Awaiting Sam’s to bid/start project

Yorktown Commons

Yorktown Commons Entitlement Approval

• Teamwork Approach with KKR

with significant public engagement

• Set “rules of the game” in a Form-Based Code

reduces market uncertainty

• Allows for “fast-track” approvals

Yorktown Commons Utility Incentive Agreement

Recognizing need for additional capacity, YTC constructs sanitary sewer pump station and sewer line. Lombard waives utility connection charges (building permit and GWA fees still collected) Village gets new $1.6 M lift station constructed before development occurs (without impacting Village CIP) Status: Under construction

Yorktown Commons GrayStar Development

Multiple Phase, $150,000,000 capital investment into community

Yorktown Commons GrayStar Development

• GrayStar received approval for

Parcel 1 and Parcel 2 in the Yorktown Commons Planned Development

• Construction underway

Yorktown Commons GrayStar Development Project Details

• Elan (Parcel 1) – formerly a vacant lot
• 4 story, 290 unit market rate apartment building
• Parking garage, concealed from street view
• Overture (Parcel 2) – former Bamboo Room
• 175 unit apartment building, marketed to active adults
• 221 space parking garage

Yorktown Commons Elan – Parcel 1

Yorktown Commons Elan - Parcel 1

Yorktown Commons Overture - Parcel 2

Yorktown Commons Overture - Parcel 2

Yorktown Commons Future Developments

Parcel 3 – commercial building

• No word on proposed developer or development

timeline Parcel 4 – Yorktown Convenience Center tract

• No pending developer or development timeline
• Residential Use(s) to be determined based upon

Form-Based Code

Simplifying

Non-Traditional Incentive Agreement

LPFC Restructuring Agreement

LPFC Restructuring Agreement

• Water main installed as part of original hotel construction
• Paid from original LPFC bond issue
• Village will reimburse the LPFC for the bond funds

provided to cover the $3,000,000 cost of upgraded water main which was done in 2006

• Additional funds for TIF eligible projects

LPFC Restructuring Agreement

• Water main upgrades would have been

necessary eventually

• Support growth of Yorktown and supply water

to residents and businesses

• Release from future appropriation requests

LPFC Restructuring Agreement Overall Benefits of Hotel to Lombard

• Visitors spend $134/day
• Meeting attendees spend 2x that amount
• 130,000 overnight stays at hotel and conference

center in 2016

• $17.4 million spent in Lombard area (conservative)
• Conference attendees also stay at other Lombard

hotels

Area Developments Since 2007 (>$225,000,000)

LPFC Restructuring Agreement Additional Information

http://villageoflombard.org/hotel

Simplifying

Butterfield Yorktown TIF District

• Northern Seminary
• Yorktown Area (portions)

Proposed Butterfield Yorktown TIF District

• NBTS will be relocating and placed their campus on the

real estate market

• Recognizing a number of neighboring properties may also

have development or redevelopment challenges

• Declining EAV from 2010 to 2015 for many parcels
• Desire to be proactive in addressing potential future

market challenges in the corridor

• One of the most effective tools available

to municipalities to encourage economic development

• One of the few economic development

tools available in Illinois

• Provides municipalities options for

funding needed public improvements

Tax Increment Financing (TIF)

• Help local governments restore

“blighted” areas or jumpstart economically stagnant areas

• Helps governments attract private

development and redevelopment

• If approved, this would be the 4th TIF

District in Lombard

Tax Increment Financing (TIF)

Proposed Butterfield Yorktown TIF District

Redevelopment Plan (TIF Budget)

• Provides a maximum limit of expenditures by

statutory categories covering the life of the TIF (Plan identified up to $125,000,000 in potential eligible costs to support EAV increase through development activity)

• Village is not committed to finance any of the

redevelopment project costs

• It is not a commitment to spend

$

Approval Process

• Approved Reimbursement Resolution – April 6
• Announced TIF Plan Availability – June 15
• Adopted an Ordinance Calling for a Joint

Review Board (JRB) meeting – July 20

• Held JRB Meeting – August 11 (supported by

JRB)

• Hold Public Hearing – September 21
• Adopt Final Ordinances to Create TIF –

October 19

Economic Incentive Policy

Tool for Other Key (Re)development Properties, as identified in the 2011 Economic Strategies Report, including but not limited to:

• Dania site
• Route 53 & North Avenue (NE corner)
• High profile properties
• Larger vacant storefronts
• Other sites which could benefit from sales tax

generating activity

Simplifying

Projects Under Construction

Yorktown’s “health & beauty precinct” tenants include:

• The Barre Code (opened June)
• Cycle Bar (opening this month)
• Coco Nail Bar (interior next to the Post Office – opening November)
• Amazing Lash Studio (opening in November)
• Orange Theory Fitness (timing their opening to be late December)
• European Wax Center (in lease negotiations)

Other openings expected in October/November include:

• Ben’s Pretzels (lower level, south wing)
• I Talk N Repair (lower level, south wing).

Yorktown Center Tenancies

Keystone Properties 781-791 E. Butterfield Road

Keystone Properties 781-791 E. Butterfield Road

Fountain Square of Lombard/ Yard House Restaurant

DuPage Medical Group 2725 Technology Drive

8,500 square foot addition and 27 new parking spaces

Medical Office Building 601 E. Roosevelt Road

Former O’Reilly Auto Parts store

Koocoo’s Peri Peri Flame Grill 820 E. Roosevelt Road

Park District Recreation Center 543 E. Taylor Road

• Includes indoor basketball courts and fitness amenities
• Construction underway – July 1, 2018 proposed opening

CPSA High School Building 331 W. Madison Street

Airhart Construction/ Park Place of Lombard

Charred Restaurant 105 W. St. Charles Road

Simplifying

Other Approved Projects

Babcock’s Grove Expansion Bonfil Black 101 W. St. Charles Road

Other Downtown Projects

• Schiller Real Estate @

Properties – now open

• Ruff Life – now open
• Sky Center Martial Arts –

expansion underway

• BP – site improvements

underway

• Brick’s – grant approved

Oakview Estates 400 E St. Charles Road

• 10 Unit Single Family Townhouse Development
• 3 Buildings: 2 buildings with 4 dwelling units each and one duplex
• Each unit will include a two-car attached garage and roof-top deck

Oakview Estates 400 E St. Charles Road

• 10 Unit Single Family Townhouse Development
• 3 Buildings: 2 buildings with 4 dwelling units each and one duplex
• Each unit will include a two-car attached garage and roof-top deck

Over the Rainbow Apartments 1005-1027 E Division Street

• Former Deicke Home site
• 14 unit apartment development serving individuals with disabilities
• Building on the east side of the site will be demolished

Emerald Homes/Windsor Place 222 E. Windsor Avenue

• Former Allied Drywall Site
• 12-lot single family home subdivision
• Construction to start in Fall, 2017

Emerald Homes/Windsor Place 222 E. Windsor Avenue

High Point Shopping Center Planned Development Amendment

High Point Shopping Center Planned Development Amendment

35,000 sq. ft. fitness center with pool

High Point Shopping Center Planned Development Amendment

High Point Shopping Center Planned Development Amendment

New free-standing sign package

Simplifying

Other Pending Projects

Holiday Inn Express Hotel

• St. Regis & North Lake Dr.
• Immediately behind Greek Islands Restaurant
• Approximately 96 rooms
• Workshop before Plan Commission – September, 2017

Hilton Tru Hotel 550 E. 22nd Street

• Site previously approved as townhome development in 2016
• Approximately 90 + rooms
• Workshop before Plan Commission – September, 2017

101-109 S. Main Street Site

101 101-109 109 S. Main Street 2017 Actions

• Workshop Before Lombard Village Board
• Request for Proposals (RFP) effort undertaken during

Summer, 2017

• Single User Grocer sole desired land use
• Outreach to grocers and development community
• RFP Process closed – September 5, with no interested

parties seeking the site

• Village will be reviewing site in greater detail to determine

next steps, with a focus upon private redevelopment

Simplifying

Data Reflecting Development Activity

Permit Improvement Value

• 2015 - Jan./Aug. = $ 34.8 M
• 2016 - Jan./Aug. = $ 54.3 M
• 2017 - Jan./Aug. = $ 114.0 M

Building Permit Applications by Year

2,000 2,200 2,400 2,600 2,800 3,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Proj

Building Permit Fees Collected

$400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Proj)

Simplifying

Delivering on Expectations

Service Enhancements

• Web-Site Enhancements
• MyPermits Implementation
• On-line contractor

registration

• Instant Permits
• Over the Counter Permits
• Electronic notifications on

permit approvals

• Electronic Plan Review – in

development

• Optiview Plan Retrieval

Website Enhancements

Everything you wanted to know – online for 24/7 access!

• Building Division handouts on decks, fences, etc.
• Permit application
• Report a Concern for Code Violations
• Available commercial properties
• Maps
• Information on current and proposed development projects
• Historic survey of properties

Future Stuff

Everything you wanted to know – online for 24/7 access!

• On-Line Plan Submittal
• On-line Plan Approval, Payment and Issuance
• Enhanced planning information
• GIS enhancements
• Code enforcement
• Blending technology and inspections (Facetime)
• Future technologies

2018 Goal: On-line Electronic Plan Submittal

Future Goals: Plan Review

Future Goals: Virtual and Remote Inspections

Simplifying Economic Development: Resources Many resources available to assist existing and prospective businesses

William J. Heniff, AICP Lombard Director of Community Development 255 E. Wilson Avenue Lombard, IL 60148 (630)620-3599 heniffw@villageoflombard.org