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HomeMy WebLinkAbout01-10-08 Comm. & Industrial Development ReconvCOMMUNITY & INDUSTRIAL DEVELOPMENT COMMITTEE JANUARY 10TH, 2008- 6:30 P.M. CONTINUED FROM JANUARY 8TH, 2008 PRESENTATION TO A JOINT MEETING OF THE CANTON BROWNFIELD REDEVELOPMENT ADVISORY COMMITTEE AND CANTON CITY COUNCIL INTERNATIONAL HARVESTER SITE, CANTON, ILLINOIS Agenda: 1. Welcome and Introduction to the Brownfields Redevelopment Advisory Committee -Mayor Heinze and Joy Stieglitz. 2. Review of Environmental Issues at the IH Site -Jill Witts 3. Overview of Settlement Agreement, Partnerships with Illinois and US EPA, and Related Topics -Joy Stieglitz 4. Review of Past Site Planning and Vision for Redevelopment of IH Site -Joy Stieglitz 5. Next Steps with Site Marketing and Developer Recruitment -Joy Stieglitz and Mark Rothert 6. Other Items - Continued Discussion of Public Infrastructure on the IH Site -Keith Plavec 7 . Adjourn Redevelopment Members present - Mayor Rodney W. Heinze, City Attorney Chrissie Peterson, SRPED Mark Rothert, Police Chief Jeff Fritz, MidAmerica National Bank President Rick Klinedinst, YMCA -Don Heller, MidAmerica National Bank -Jeff Strode, Alderman Kevin Meade, Fire Chief Bonnie Cremer, Fulton County Health Department -Rex Still, IL Department of Commerce -Anthony Rolando, St. Peter's Episcopal Church Rev. Michael Brooks, G-M Mechanical -Steve Joachiam. 1 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) Canton City Council members attending not already mentioned -Alderman Eric Schenck, Alderman Larry Sarff, Alderman David Nidiffer. Others attending -Joy Stieglitz of Vandewalle & Associates, Colleen Johnson of Vandewalle & Associates, Jill Witts of Environmental Operations, Inc. Others attending not on the committees -City Clerk Nancy Whites, City Treasurer Kathy Luker, Attorney for IH Truck & Engine David Rieser, Maurer-Stutz Inc Keith Plavec, Craig Zilly for Chamber of Commerce, Kevin Williams and Kim Newburn from Big Racks, Joe Ginger video services, news media of Mark Bixler from WBYS, Denise Bankes from The Fulton Democrat, and John Froehling from Daily Ledger. Mayor Hienze welcomed everyone and thanked all the guest for coming and introduced Joy Stieglitz from Vandewalle & Associates, Colleen Johnson of Vandewalle & Associates, Jill Witts from Environmental Operations, Inc. on behalf of the City, and David Rieser on behalf of IH Truck and Engine. Joy thanked the City. And remarked this first started by the US EPA grants that were used for clean up of the IH site. Purpose -revisited what happened the past couple years and to bring up to speed as well as the public hearing, this is an update and I will give you update on environmental at the site. Will talk in the direction it has gone working with IH Truck & Engine. Important part of the meeting Vandewalle & Associates was asked to meet and explain in a presentation where we are, in moving forward with development of marketing the site? Really now is the first time you can legally bring some developer to this site. Jill Witts from Environmental Operations, Inc. gave the following report - timeline of the environmental activities for 1999 -2002, legal issues at sites Illinois EPA took the lead on. Drums and containers of precious material was damaged in the fire. IH removed under ground and above ground storage tanks. Buildings were demolished at the site in 2003 and 2004. Also in 2003 there were some remedial measures found on NE block and we 2 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) received a draft environmental letter at that site. Recent environmental activities at the site. In 2006 there was a supplemental site investigation and was a joint effort between the City and IH. At the southern block site also supplement test US investigation held in 2007 of IH remove one tank additional from the northern, addition of the site. Also in 2007 we started some intermedial measures in December. We completed all of our site investigations. Found metals in soil of arsenic and lead. Organic compounds in Soil of benzene, and other VOCs, PARS. Residual Petroleum Product in soil Metal and Organic Compounds in Groundwater. LNAPL in Groundwater Monitoring Wells - (Lift Non-Aqueous Phase Liquid- floats on water). In December we started some intermedial measurers, included we intend to close a deep well on the site of an old well about 1700 feet deep. Testing of contents of two cisterns on the site and disposing of those contents. Looking at some lead contaminate soil areas to evaluate and seek need to do some hot spots removal of those soils. This month we're starting on an field pilot study to help us to evaluate the discoverability of an anappl product. Current status settlement agreement reached at city and IH in May of last year. Both site investigations is completed and the IEPA had approved our reports and have also approved an extension of a N. Eastern block draft. The next step, we will include developing intermedial strategies for each block. Planning to use engineered barriers that include the actual development of constructing parking lots, buildings, and even landscape areas. Once we develop the strategy we will implement the clean-up and development activities. And then receive our letters and close. Joy Stiegliyz reported - we are at the point of closure. Working with IH now and we're in position to bring development to that corner block. Focus our attention on the NE corner and third Avenue project, want in control part of site of that block is considered development block. And need to be considered closure block strategy that EOI will be working on. We have reviewed Redevelopment Site Project Status. 1. Partnerships with Illinois and USEPA -Approvals and Grants. 2. Settlement Agreement with International. 3 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) 3. Other Related Topics -Escrow Agreement Environmental Insurance Policy, NE corner Development Project Joy mentioned the first escrow agreement to essential finalize, just needs signatures. The administration of it needs to be ironed out by the City and staff level. The agreement is in place. IH has agreed to the environmental cost of associated with capitalizing the site. Will assist the development project by paying for a parking lot or some sort of structure. It's a win for IH and a win for the site project. Attorney for IH Truck & Engine David Rieser agreed that was a very accurate statement. The other part of provisions in the settlement agreement was to procure a environmental insurance policy. Great for the City and great for IH. This is to protect unforeseen environmental scenarios that comes up in the development, and it is up to $10 million for event. Just extra layer of certainty. You have a developer ready. This is a great opportunity! Fulton County is rich with environmental for outdoor activities. Maybe able to attract larger retail as other development starts in this area. Could be agriculture manager fact site. Completed in 2000 Master Plan, never formally adopted. 2005 Adopted Master Plan. Some buildings in the area of NE corner could have outdoor sports. Area B on the map where the towers use to be could be a museum, and being in public ownership. Ask to put a Redevelopment Plan for Central Canton together in 2005. Also ask to put together a taxing finance district. Area takes in to account the downtown, down to 5th Avenue, that commercial corridor, so the notice was to build upon the activities happening in the downtown and have the IH site an extension of that retail district. 4 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008 Picture Third Avenue, and the plan was adopted, The retail activities run along Third Avenue to have zero lot line development, higher density development, mix use development, commercial development, primarily perhaps residential on second stories if demand for it. And environmental constraints might not be allowed on this site. Try to create linkage through street escaping, and signage along Third Avenue, and along the downtown. The area is not competitive of your downtown. Peterson new business although not in the site, was put in the TIF District. Alderman Larry Sarff ask, what is Vandewalle & Associates role going to be in the recruiting of finding business to come here? Some of the things we don't want is hodgepodge. Now talking about storm drainage and another area of concern. Do you go at a project one piece at a time? Or look at bigger project? Or investing more money in a bigger regional system? Alderman Eric Schenck said, he was talking to a developer who shared his concerns of retail based plan. And his point being, when it comes to retail businesses like Chicago. We don't have demographics and traffic to support retail businesses. The one thing that is a challenge, not enough traffic in our downtown to support the business already there. Question- to what degree this plan is going to depend upon that kind of retail as a alternative use to help us in the future of development? Joy said there is an opportunity to begin at looking what you have locally, and start to develop them. Other thing supportive of that is residential and puts that foot traffic there. My goal would be both activities. Joy suggested, think of as a residential site in the southern portion as has very little contamination. The retail area is achievable. Start looking locally for businesses to fill up those spaces. Alderman Nidiffer said he appreciated the comments. Question -large part in your vision, more landscape, recreational? Joy answered, it's the very part of the overall plan. Open space would be paved area and can be used for multi things. A lot of ways to think about what could be in the area. 5 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) The community does need to be thinking about a marketing plan for the next two to three years of which key component to developing that plan. Now is the time ! Mark Rothert spoke about marketing plan and what 30,000 people for major retailing coming to Canton. Have an aging population, and lower income population. Than these are some of the challenges we face as a community. Over the pass couple years look at firms or what businesses would come to Canton. Make contacts and building relationships that just began last year. Went to conferences of Brownfield developers. Had two developers that did not work out. That site does not look for a large developer coming in. We're in a rural community. Should look at marketing in community that we look at everyday. Joy said, now is time to formalizing some sort of strategy and preparing a plan of action. If you have a map and blueprint, and goals, you market this organization and decide how to move forward. Start thinking about what is local, what is indigenous, starting to tap into local market. There maybe some pieces missing on how your doing it and approaching it. Mark has done remarkable job, very difficult to recruit developers unless you have things you can bring to that process. Having picture graphics can present in three dimensional of what will look like. We have prepared marketing brochures. You need something you can put in hand as selling tool. Also Marketing Tools Development, Vision Graphics/Birdseye sketches and plans, Marketing Brochures/CDs, Website Update, Kiosk/Billboard, Conference/ Booths, In-site Open Houses, Experientially -based uses. Talk about a recruitment tool, it works. Very feasible. If role for Vandewalle & Associates in that, I don't know! We could work with Mark on some ideas. Alderman Schenck said helpful certain of the best size pieces of those sites, with some sort of general description of what will look like. And serious strategy. Support idea taking vague description of what we want to do. Very important to have success, and we need to look like we have success. Anthony Rolando wanted to know if chance IH would built, since we have relationship with them a facility of some sort in Canton? Joy answered, the truth of the matter is IH is now IH Truck & Engine Corporation. And they 6 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) are several steps removed at this point in terms of what they are producing and in terms of that original relationship with the original IH. We could look at that original theme. Might have to go to different entities. The Brownfield Committee and if the Canton City Council is wanting to make commitment, should meet every two weeks. Different people are assign to draw up to put blue prints together, etc. Need to really thing about putting the process in place. Kevin Williams said a lot of people have tremendous concern and desire we don't fail. The vision is to get Third Avenue corridor to be opened. City Attorney Chrissie Peterson ask, what are your thoughts on some partnership with schools, part district? Joy answered, if that opportunity is there in place, and can be programmed in, would be very beneficial. Jeff Strode said, railroads figure into this? Mayor Heinze answered, the Kekouk Junction Railroad wanted to open the line around Pschirrer's on North Main Street, down to sky rocket junction. Ameren-Gips filed protest against it. They feel would be held hostage as they would have to get their coal from only one company. Service Transportation Board met December 7, they denied Kekouk petition to open that railway up. Don't know where they are now. Chance the railway could go away. Hitchcock wants to do some of his business by rail. Alderman Schenck said, we need to keep track open. Spur goes north over by Burlington Northern railway and does not connect with Kekouk. Even when short line group was trying to lease this whole intersection of rail lines of BN. Never anticipate of have much activity. Meeting Eric was at, told would probable be storing cars. If aren't successful go back to resolution council acted on. Burlington Northern abandon that line. Can still use on all other lines going East, West and South. Joy said she agreed, don't believe prevent developer not coming in. Keith Plavec of Maurer-Stutzs Inc. 7 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) Big item is storm sewer water retention on the site be similar Peterson made and has restored on site underground. You have two options. Regional system -looking at storm sewer along Third Avenue from Elm Street down to about Maple Street. Then taking storm sewer on Third Avenue, up to Maple Street and holding water in an area, and then releasing its control into Maple Street. The second option - is simplify looking at RUDs, which consist of North East corner and North West corner. About 14 acres looked at. With that storm sewer there is existing one on Elm Street and Second Avenue. It would mean running a storm sewer to the east and to Third Avenue. And even running a storm sewer south of Third Avenue on to the site. Just to allow for a storm sewer already there. The difference between the two options, number 1 option, we have estimate cost at $1.3 million dollars. Option Two the cost is $200,000. The main difference in option 1, the developer each of these lots would simply tie into this system. There only on site cost is storm water collection on their site. With option 2 the storm water retention is transferred from the City to individual property owners. They would actually retain the water on their site and tie into the storm sewer, the City would supply, and that would take it off site. Now something that Jeff Strode mentioned, for Mark trying to sell this site, How do you take someone and say, "here is what we want to sell you!" And your seeing a chain link fence, around the site, your seeing grass on it, some concrete on it, you've seen this elevation change. Agree Joy $200,000 solution better solution. But what I say, is some of that money you would save at this time better suited to remove that cap on the North West corner. Is it putting some kind of grass fixture back in there? Is it putting a fence along Second Avenue, which hides behind there, so you can have some what open site. That when someone comes up, yes I can actually vision and cannot see a fence. Other cost -street escape of lighting along Elm Street same as on Third Avenue. The cost fully prepared as the site does not know what it wants to be yet. What to profile, curbs, roads. What do we want it to be? ITT has committed for North East corridor to go with a barrier which consist of 8 inch of aggregate and 3 inch bituminous. We hoped would be considered for other areas. And for Third Avenue, that essentially is your road design. A lot of cost will be taken care of within that layer, with essentially curb/gutter, sidewalks, and some storm sewer improvements. s Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) Getting ready to put together some option for roadways on Third Avenue. Trying to get some feel how you want to go. Do we want to piece meal the road? If only doing 400 feet, 300 feet has to be constructed such, it has to be ready for the next 300 feet. Can't have it where you put in as is, then next year have to rip out because does not drain properly, or to raise it for the next section. When the roadway comes into play, it is a site perspective that you have to look at. You don't get a second chance. The storm water, both get development on South end where there is residential and storm sewer there already at Maple Street. You can put a smaller retention basis on that area, have it discharged to Maple Street. And as you move up you still have opportunity to create regional storm water basins that may contain the other 14 acres. And you reduce cost can raise service to this top 14 acres with your $200,000 investment. And you can still focus on regional data base. Alderman Schenck asked, is the storm sewer going to be in this regional concept. Is that still an under ground option? Keith answered, yes! Keith Plavec said, with this site, do we want to have holes throughout the site where we have surface retention base, or do we fully utilize the full site? We have pushed that, and we would not have open pits, we would open under ground retention. Some come at cost, although it is a site that has environmental conditions anyway, so does the cost work itself out? Alderman Meade ask, if we go with option 2, what kind of system the developer would have to have on the property? We have 1700 foot hole in the ground, anyway could we utilize use for this system? Keith said I will answer the first question. The parking lot would be sloped accordingly to come inland. The option comes in as series of pipes, they enter connected for storage. Kevin Meade asked, how long? Keith, what city requires was to calculate how much run off comes in if it was a grass site? Then what it does, it says, how much run off goes off the site now that it is developed? You subtract 2 holes and that's what you have to retain. Your trying to relieve your down stream system, and trying to not flood the other areas out. The underground 9 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) system is going to hold this water. Your second question was a 1700 foot hole in the ground. Attorney David Rieser answered, the answer is no! Keith said, option one we actually looked at the entire site. What happened to fit for that site was storm trap system in the basement of buildings 100 and 10 L We looked at that area of a depth of 5 to 6 feet. Being required for this storm trap system we looked at that option, for the simple reason of it's a really open hole. Versus excavating that huge area, and dealing with that soil. The storm trap system cost $650,000. Alderman Schenck asked, what are you looking for Keith? Keith said, been in process long time, when is the right time? We need guidance. Were at a point we need a decision. Have a developer that is ready. Decision is storm water. Lets start looking for bid and get construction started. Our recommendation is, $1.3 million you won't regret it. Canton is a small town, its community wants a revision of option 2 for short term. Marketing of ~/z site does not limit us. Joy said, it's a lot of money $1.3 million. Will be other needs for this site you' 11 have along the way. Kevin Williams stated he has to have the agreement in place. Alderman Meade, what is the cost? Keith Plavec answered, $100,000 cost to Kevin Williams. Alderman Sarff said to Keith Plavec, if the city were to participate with $40,000 for sidewalks, an hook ups, am I right we pay out of general fund for now, an put against TIF District, and pay back to general fund? Keith answered, I say you are correct. Joy Stieglitz said all your cost are TIF eligible. to Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) Alderman Sarff said, if we had something that was going to fill this site in a very reasonable short period of time, feel majority of us would not mind a Bond Issue for the $1.3 million. Joy Stieglitz, having it ready to go - if had someone knocking at your door, you put it in place. Motion and second by Aldermen Sarff/Meade, the committee recommends send to council, and to select Option 2, and notify the developer what City has gone with. The motion carried by voice vote, and was unanimous. Mayor Heinze asked, who is going to pay for this? I don't mind accessing him $100,000 for ~/z of this, because of don't want to lay the whole $195,000 on him. Some of it affects the other property. Alderman Schenck said, there are variety of things that needs to be worked out on the actual development, "who is paying for what!" Those things need to be negotiated as a mix of things and put together in an agreement. So we know what he expects from us, and we know what to expect from them. We might expect bonds to make sure project goes through. Alderman Schenck said either we ask or delegate Partnership to start working on putting those details together, and we would have representation of the City to participate in that discussion and negotiation process, so it comes back to us, some type of a proposal. Mayor Heinze asked Kevin Williams, "when do you need development agreement?" Kevin Williams answered, within 90 days. Alderman Nidiffer thanked everyone who came tonight. Motion and second by Aldermen Sarff/Meade, to adjourn. The motion carried by voice vote, and was unanimous. The Community & Industrial Development Committee adjournment at 8:50 p.m. 11 Community & Industrial Development Committee January 10, 2008 (held over from January 8, 2008) Nancy Whites, City Clerk 12