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Home My WebLink About02-11-2014 Clerical Committee Minutes CLERICAL COMMITTEE MEETING CITY OF CANTON Tuesday February 11, 2014 6:30 p.m. Donald E. Edwards Way 50 North 4th Avenue Canton IL 61520 Aldermen in attendance: Tad Putrich, Dave Pickei, Justin Nelson, Gerald Ellis, John Lovell, Craig West Aldermen Absent: Jim Nelson,Jeremy Pasley Staff in attendance: Mayor Jeff Fritz, City Clerk Diana Pavley-Rock, Attorney Nancy Rabel, Fire Chief Tom Shubert, Police Chief Kent McDowell, Community Service Director Jason Strandberg, Spoon River Partnership Missy Towery, Public Works Director Bil) Terry, Comptroller Caty Campbell Joe Ginger Video Services. Others in the Audience: Jerry Jarnigan, Susan Miller, Steve Kline, Leonard Barnard, Scott Strode News Media- Daily Ledger FINANCE ALDERMAN JUSTIN NELSON, CHAIRMAN BILL LIST This month's bill list reflects the IEPA water and sewer loan in the amount of$104,000.00 that is due at the end of this month. This loan is currently paid two times per year. Motion and second were made by Aldermen Justin Nelson/West to send the bill list and treasurer's report to Council. TREASURER'S REPORT Motion and second were made by Aldermen Justin Nelson/West to send the bill list and treasurer's report to Council for consideration. The motion carried by voice vote and was unanimous. AMENDED DECEMBER 2013 TREASURER'S REPORT Most of the changes in the amended Treasurer's report is just in the presentation of the report; however page three breaks out the water administration operating budget, principal payments on the notes and the water/sewer bonds. This format will be used in the Treasurer's report going forward. JARNIGAN TIF PROJECT Jerry Jarnigan explained that a new business (Label Shopper) will be taking a large portion (12,000 feet) of the building on the East Chestnut Street property that he owns. Jerry is currently looking at a few other businesses to come in so the entire building can be rented. Label Shopper will be employing 12 employees for their store. Jerry is also talking with a shoe store and the mattress doctor out of Peoria about renting the remainder of the space in the building. Jerry is seeking TIF funding for the project. Missy Towery said the partnership has worked with Jerry Jarnigan to help secure Label Shopper. Some funding has been provided to him for the new business. A great turn out took place this past Saturday during an interview process in their search for a manager and staff for the new store. They have currently hired 9 employees for the store. Steve Kline( TIF Administrator from Jacob, Kline and Associates) distributed the potential terms for the TIF redevelopment agreement on the project for review and discussion. Steve explained that he has been talking to Jerry Jarnigan about the property for a considerable amount of time. In order to consider the request we must make sure that any risk to the City of Canton is minimized. The City knows the building will see an additional increase in assessed valuation. The method the Fulton County Assessor uses to assess the value is based upon the occupancy and its use. The projected value for phase I and II is $116,281.00. The projected taxable value is $93,230.00. The real estate tax increment would be $2,260.00. The sales tax would be a source of revenue or if a second lease is obtained. The phase III which would include a second lease would have a projected taxable value of $87,722.00 with a real estate tax increment of $8600.00. The sales tax assumptions for phase I and II—estimated annual retain sales is projected at $650,000.00. The estimated municipal sales tax is $9750.00. Jerry Jarnigan has requested $60,000.00 in assistance from the City of Canton for the project. The developer's total estimated TIF eligible project costs is $315,000.00. If the City has the funds available the $60,000.00 could be provided up front, then the sales tax over a five year period would pay back the $60,000.00. By 2019 (based upon the assumptions) the City would get their money back. Steve said the real question is "how can the City make this request, but minimize the risk to the City. If the City were to provide the $60,000.00 as a TIF loan the City would take a subordinated lien on the property--- no payments would be due for five years (balloon loan) maturing in 2019. On or before maturity, the City forgives the loan if: 1. The property has generated sufficient municipal sales tax and real estate tax increment for the City to have recaptured the$60,000 loan or 2. The developer secures additional leases(s) to sufficiently increase the assessed value of the property and generate greater amounts of municipal sales tax and real estate tax increment. If the property has not generated sufficient municipal sales tax and real estate tax increment to reimburse the loan by loan maturity date, the then principal and interest balance of the loan (approx $65,000.00) is amortized over the remaining life of the TIF district ( e.g., $400.00/mo through 2036) Municipal sales tax and real estate tax increment generated annually on the property could be credited toward the loan and the developer pays any annual shortfall. After the loan has been satisfied, the City could then begin reimbursing the developer on a pay- as-you-go basis at a rate of(tbd) %of annual net real estate tax increment for the remaining life of the TIF district (i.e., through tax year 2035 payable 2036) or until $(tbd)of the developers additional TIF eligible project costs have been reimbursed, whichever occurs first. This provision could also be amended following additional development and long term leases being secured on the property. Jerry larnigan said he could hold off on receiving the funds until new funds are received. The funds may not be available until July. Alderman Craig West explained that the purpose of the TIF funds is to help fund the development and improvements to existing buildings such as this. Steve Kline indicated that the legal staff could prepare a redevelopment agreement for review with the first option presented. Motion and second were made by Aldermen Justin Nelson/West to send to Council without recommendation. The motion carried by voice vote and was unanimous. APPLICATION FOR PAYMENT NO 1 FOR WWTP STORM BAR SCREEN MODIFICATIONS FROM KEMPER CONSTRUCTION INC IN THE AMOUNT OF $3600.00 Motion and second were made by Aldermen Justin Nelson/Putrich to approve the application for payment from Kemper Construction in the amount of$3600.00 from the bond funds. The motion carried by voice vote and was unanimous. PURCHASE OF AN ASPHALT HOT BOX Public Works Director Bill Terry called Falcon to get a quote for an asphalt hot box. The quote that he received was $7,000.00 less if it is purchased by the end of this month. The contract runs out February 28, 2014 and would need to be purchased by that date. The state purchase price is $32,000.00. The City has money available in the capital fund for the 2013-2014 budgets that has not yet been used. This piece of equipment can recycle millings removed from the MFT projects and chunks of blacktop removed from the streets. These pieces are placed into the machine and then recycled to turn it into hot mix. The hot mix is a better option than the cold patch. The cold patch is very expensive ($100.00/ton) and is a short term fix. The City usually budgets 120 ton per year- and that often is not enough. The City could reduce the cost for the cold patch, and have a better product by using the hot patch that will last longer. This will be placed on next Tuesday's Council agenda. The finance committee adjourned at 7:15pm. LEGAL&ORDINANCE ALDERMAN CRAIG WEST, CHA/RMAN AN ORDINANCE DECLARING SURPLUS REVENUE IN THE CANTON 2 RT 9/CHESTNUT STREET TIF DISTRICT SPECIAL TAX ALLOCATION FUND AND AUTHORIZING PAYMENT OF THAT SURPLUS REVENUE TO THE FULTON COUNTY TREASURER FOR DISTRIBUTION TO AFFECTED TAXING DISTRICTS ON A PRO RATA BASIS. The City has a surplus of $36,307.43 based on 100% of the property tax increment for the parcels in the TIF district north of Spruce Street. 20% of the increment in the remainder of the TIF is generated in TIF II. The Check for the surplus revenue would go to the County, and they would redistribute to the appropriate taxing bodies. Motion and second were made by Aldermen West/Justin Nelson to send the ordinance to Council for consideration. The motion carried by voice vote and was unanimous. The Legal and Ordinance Committee adjourned at 7:18pm COMMUNITY& INDUSTRIAL DEVELOPMENT ALDERMAN TAD PUTRICH, CHAIRMAN UPDATE FROM MISSY TOWERY SRPED EXECUTIVE DIRECTOR GENERAL ECONOMIC DEVELOPMENT POINTS RETAIL/COMMERCIAL/INDUSTRIAL DEVELOPMENT • Continued work with East Chestnut Property owner • Worked with Label Shopper to provide space for them to conduct job interviews and shared on e-mail list serves and the Canton, IL Community Facebook page • Reviewed information on Retail Lease Trac Database and then submitted 12 Retail Recruitment Packets and followed up with each of them via e-mail • Economic Restructuring Committee meeting preparation and attendance with Market Space to discuss e-commerce • Prepared for a meeting with Illinois Secretary of Transportation Ann Schneider • Prepared for and attended Transportation Committee meeting • Contacted other Economic Development/City Representatives to discuss how they communicate their transportation priorities. • Reconnected to Location One • Phone conversation with a gentlemen in the exploratory phases of wanting to open a fish processing facility. BUSINESS DEVELOPMENT, ATTRACTION AND SUPPORT • Attended Recruitment of Business training through Illinois Main Street in Dwight, IL • Contacted restaurant/business owner who has shown interest in a North Main property • Provided vendor information for local business • Phone conversation with John Kunski regarding codes • Met with downtown property owner regarding the building and whether they want to sell or lease • Followed up with my Recruitment of Business committee assignments from our Strategic Plan TOURISM REPORT • See Dana Smith's attached report OTHER • Worked on Canton Main Street Glacial Golf fundraiser—Profit of over $3,300 • Produced article for Chamber Courier from "13 Ways to Kill Your Community" • Canton Main Street board preparation, attendance and committee follow up work General Marketing&Tourism • Updated marketing materials for the Spoon River Partnership for Economic Development and printed hardcopy versions for mailings to potential prospects. • Contacted Midwestern Living magazine regarding photography for potential article for their May-June issue. Kendra Williams responded that they are planning on including Canton in a "Weekend Getaway"piece, and copied their photo editor on the email to put us in touch as they get closer to the date of the issue. • Attended a meeting of the Fulton County Economic Development and Tourism Committee on January 7, at the Fulton County Health Department to report on progress developing the Fulton County website. • Coordinated second and third meetings of the Destination Canton! Committee on January 7 and 21 at Canton Harvester Inn. Met with potential tour businesses to determine their level of participation, set pricing, revised proposal, and sent final pricing and proposal to Muriel Freeman at MidAmerica National Bank for distribution to bus tour companies. The goal is to bring at least 32 visitors to Canton on the first bus tour, scheduled during the Art on Main Fine Arts Festival on June 7-8. • Attended two meetings of the website subcommittee of Fulton County Economic Development and Tourism Committee on January 10 and on January 31, at Dickson Mounds Museum to work on additions to the Fulton County website. Canton Mai.n Street. • Assisted with Glacial Golf preparations, including distributing t-shirts, creating signage, transporting registration materials, and posting information on the event on the Canton Community Facebook page. • Developed Glacial Golf news release for distribution to media and posted Glacial Golf flyer to Canton Community Facebook page. • Prepared Canton Main Street minutes and financials for December and December YTD. • Attended the Canton Main Street Board meeting on January 28, at the First Christian Church. • Assisted with manning the concession at Alice Ingersoll Gym on Friday, January 31, to help the Canton High School Booster Club and gain exposure for Canton Main Street. Webeite • Assisted with updating forms for the City of Canton on the City Clerk's page. • Added further updates to the Spoon River Partnership for Economic Development's portion of the website. • In January, www.cantonillinois.or�had 26,086 pages views, with 12,224 unique IP addresses. In January, the www.visitcantonil.ore�had 3,564 page views, with 1,428 unique IP addresses 61 EAST SIDE SQUARE SPECIAL EVENT REQUEST FOR THE ANNUAL CRUISE IN TO BE HELD JUNE 13. 2014 Leonard Barnard explained that they are asking for 15L avenue (Chestnut to Elm) to be closed in addition to the street closure that has previously taken place for the annual cruise in. The event will be held on June 13, 2014. Motion and second were made by Aldermen Tad Putrich/Craig West to approve the annual cruise in and the street closure and send to Council for consideration. The motion carried by voice vote and was unanimous. The Community and Industrial Development Committee adjourned at 7:23pm. NEGOTIATIONS, GRIEVANCE & PERSONNEL ALDERMAN JEREMY PASLEV, CHAIRMAN The Negotiations, Grievance and Personnel committee adjourned at 7:23pm. ADJOURNMENT Motion was made by Alderman Pasley/Justin Nelson to adjourn at 7:24pm without the need for executive session. The motion carried. � ;, �*,: � �-�-t- �� / Giana Pav ey-Rock City Clerk