===== PDF PAGE 76 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO DEVELOPMENT COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: 5.6. Request for Oliver Square TIF Funds West Chicago Jules LLC FILE NUMBER: Mosaic Crossing Shopping Center Asphalt Repair COMMITTEE AGENDA DATE: Sept. 14, 2020 COUNCIL AGENDA DATE: STAFF REVIEW: Tom Dabareiner, AICP SIGNATURE << APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE ITEM SUMMARY: The owners of the majority of the Mosaic Crossing Shopping Center have entered into a ten-year lease with Planet Fitness to occupy a portion of the former Hobby Lobby space. As part of the lease negotiations, the ten- ant obtained a promise for certain improvements to the parking area and aisles located generally in front of the store. Development Committee members will no doubt concur that the parking lot was in terrible shape prior to the improvements, as remains true for much of the remainder of the lot. The improvements to the parking lot include 130,000 square feet of new 4” thick asphalt, general repairs, seal coating and striping of 39,500 square feet. The cost of the work totaled $209,308.00. The City’s approved budget for the Oliver Square Tax Increment Financing District is $100,000.00, but the budget did not earmark specific improvements. However, TIF funds are generally used to update property and buildings, or otherwise make a site development-ready. While the Mosaic parking lot improvements are eligible expenses, TIF funds are not recommended as a reward to developers who chose not to perform routine maintenance. The lot was allowed to deteriorate over time through basic lack of investment and was an eyesore for many years, perhaps contributing to the lack of ten- ants. Nevertheless, Staff understands that the improvements came about from a request of a potential tenant. Ra- ther than award the full request, Staff considers 20% of the cost to be reasonable. This leaves additional funds available for potential use in upgrading Mosaic Crossing for other possible tenants. Staff recommends adding two conditions: that release of the reimbursement occur (1) upon proof of a lease with Planet Fitness and (2) approval of the first associated building permit. ACTION PROPOSED: Recommend award of $58,061.60 to West Chicago Jules, LLC, Northbrook, Illinois, with the two conditions. COMMITTEE RECOMMENDATION: Pc: Request Letter ===== PDF PAGE 77 ===== [Extraction: OCR (rendered-page OCR)] MOSAIC CROSSING CENTER c/o West Chicago Jules, LLC 555 Skokie Blvd. Suite 204 Northbrook, IL 60062 June 9, 2020 Mr. Michael Gutman City Manager 435 Main Street West Chicago, IL 60185 Re: Mosaic Crossing Shopping Center Request for disbursement of TIF funds Dear Mr. Gutman, We are pleased to inform you and the City that we have entered into a ten-year lease with Planet Fitness Gym for a 23,500 square feet space, within the 55,000 square foot area last occupied by Hobby Lobby - who vacated in December of 2015. This lease represents what we sincerely hope will be a catalyst for the further enhancement and occupancy of the Center, after many years of financial hardship. Briefly, this tenant will be open seven days a week, employ 15 to 20 people (typically most are local residents), provide a facility for the health and well-being of the Community, and bring considerable, and repeat, traffic to the Center. The operator, Luke Urban, possesses the franchisee rights to all of DuPage, and this will be his seventh location in the County. To make this deal required us to agree to a significant amount of improvements within, and exterior to, the Premises (collectively “Landlord Work”). For a complete list of all Landlord Work, please refer Attachment #1, included below. In addition to the Landlord Work, we are obligated to provide the tenant with an allowance for his further improvements, in the amount of $352,250.00. Excluding soft costs, we currently estimate our investment into the Center, over the next six months, will be over $1,2000,000.00. Additionally, the tenant estimates his investment, over and-above our tenant improvement contribution payment to him, will be well over $1,000,000.00. We truly trust and believe that these very significant investments will benefit the Center, and the City for many years to come. One of the largest single costs included in this figure is for repairing the parking lot. We expedited completion of this work during the week of November 4", in order to assure delivery ===== PDF PAGE 78 ===== [Extraction: OCR (rendered-page OCR)] to our tenant next spring. This asphalt work, which is detailed on Attachment 2 enclosed below, included 130,000 square feet of new 4” asphalt, repairs to other areas, and seal-coating / striping of 39,500 square feet. The cost of this work is $290,308.00. This long-term infrastructure work enhances the safety of the Center, and we believe improves the image of the intersection and Center. The Center is situated in a site-specific TIF area. We understand that the current balance on account is $170,382.00. We kindly request that the City distribute to us, or to our contractor directly, $100,000.00 for this asphalt work. This distribution represents 34% of the cost of the asphalt work, a small fraction of the total investment being made. Thank you for your support throughout what has been a trying period for us, and your consideration of this much needed request. Should you require anything in addition, please contact me. Very truly yours, West Chicago Jules, LLC David Dresduer David Dresdner Manager ===== PDF PAGE 79 ===== [Extraction: OCR (rendered-page OCR)] ATTACHMENT #1 LANDLORD WORK Prior to the Commencement Date of the lease, Landlord, at Landlord’s expense, shall provide a completed, fully demised, Vanilla Box space (herein referred to as “Premises”) for Tenant, per Tenant’s architectural plans, with the following requirements unless otherwise agreed to in writing by Landlord and Tenant: 1. DELIVERY CONDITIONS OF PREMISES A. Landlord shall be responsible for any asbestos and toxic substance abatement, including the survey, rest and abate as necessary, in order to furnish Tenant with documentation certifying Premises is free from any asbestos or other toxic substances. Premises to be fully separated and demised from all other adjacent uses. All separation/demising walls are to be fire rated as required by the applicable municipal codes. Re-use of existing walls shall be permitted if construction complies with code requirements. All separation/demising walls are to be insulated full height with blow-in insulation or equivalent, and skim coated if required to achieve a level 4 finish, paint ready. Premises shall be fully open and cleared of any previous tenant improvements, including but not limited to the removal of all drop or hung ceilings, all partition walls, all built-ins, fixtures and furnishings, all exiting floor and wall finishes. Existing exposed floor slab is to be prepared throughout to a medium sandpaper grit texture. All protrusions are to be ground smooth and flush with the adjacent floor, all recesses are to filled flush with adjacent floor. The floor surface shall be suitable for resilient floor finishes with only minor latex floor preparation compound (rubber flooring ready), Any floor patchwork or newly poured flooring shall be level and capable of accepting Tenants flooring material and able to support equipment required for Tenants use without movement or cracking. All exterior and perimeter walls, and all perimeter columns are to be furred with 3- 5/8” metal studs @ 16” O.C. with 3 1/2” batt insulation and (1) layer 5/8” GWB to the underside of the deck above. Walls and perimeter columns shall be taped, spackled and sanded smooth to achieve a “Level 4” finish. All existing non-perimeter columns are to have any existing column wraps, exposed conduit, wires, etc. removed. Columns shall be prepared as required for a paint finish. Landlord shall remove any existing abandoned roof equipment and patch existing deck and roof as required at any openings. Landlord is to repair or replace existing damaged roof decking as required throughout Premises. The exposed roof structure is to be of non-combustible materials from Premises including, but not limited to PVC, Romex wiring and exposed wood framing. Landlord shall ensure that roof deck is well insulated and meets or met (grandfathered-in) local building and energy code standards. Landlord shall provide entrance/exit doors that are ADA compliant. ===== PDF PAGE 80 ===== [Extraction: OCR (rendered-page OCR)] J. Landlord shall provide access to full space from street level that is ADA compliant. K. Landlord shall provide ADA parking spaces on the property and a clear and discernable ADA accessible route to the front entrance of Premises. Provide as required, parking lot line striping and ADA parking signage, sidewalks, ramps and handrails and compliant ingress / egress ramps as required. Tenant shall require a minimum of 4 ADA accessible parking spaces. Parking lot to have proper drainage, and no standing puddles. L. Landlord shall provide professional store front and vestibule with continuous tempered glass at full Height above finished floor to height of existing transom of front doors. The storefront to be consistent with other recently constructed Planet Fitness facilities, which includes floor to ceiling windows. Tenant to review and agree to design of storefront. M. Landlord shall provide to Tenant’s architect with an electronic AutoCAD file depicting the current condition of Premises including all Landlord required work for Tenant including but not limited to all existing perimeter walls, window and door locations, column locations, heights of existing underside of roof deck and underside of roof framing system. Documentation of all mechanical, plumbing, electrical and fire protection improvements shall also be provided. The electronic file shall be AutoCAD drawing files (.dwg format) version 2014 or prior. 2. HVAC & UTILITIES CONDITIONS: A. Landlord shall furnish and install new RTUs, for a total capacity of 96 tons, to be verified by Tenant architect, and provide a fully functional HVAC system per Tenant’s plans. Or, Landlord shall agree to repair and replace, at its expense, the existing units (or unit) if such is in good working order and is deemed to have, at least, a five-year life expectancy. In either case, the HVAC system shall include packaged roof top equipment, controls. In either case the HVAC system to be warranted for a period of ten (10) years, with balance test. In either case, HVAC system shall meet the following specifications: Tonnage calculation based on final drawings not to exceed 4.0 tons per 1,000 square feet. Distribution shall be completed by Tenant as part of its work The above standards and existing conditions shall be verified with a mechanical engineer or licensed mechanical subcontractor. The number of units and rooftop placement/cuts to be reviewed and agreed to by tenant. Landlord, or Landlord’s contractor, shall be permitted to take advantage of Franchise’s system-wide pre-negotiated HVAC pricing with York Equipment, if Landlord chooses. B. Electric: | Landlord shall provide a minimum of 1200 amps at 120/208 or 800 amps if power is 3-phase at 480/277 of electrical service, to electric room within Premises. C. Lighting: Any exterior lighting, such as, but not limited to, soffit lighting over storefront, shall be in good working order. ===== PDF PAGE 81 ===== [Extraction: OCR (rendered-page OCR)] D. Water: Landlord shall provide a dedicated separately metered 2-inch fresh-water line from Landlord’s main, at minimum, with branches stubbed to 2 areas (men’s and women’s rooms) per Tenant’s plans, sufficient for subsequent distribution to restroom fixtures by Tenant. E. Sewer: Landlord shall provide a 4-inch sewer line, minimum. This under slab line will be run by Landlord, and run to approximate restroom fixtures locations per tenant’s architectural plans, to allow tenant to tie fixtures into said line. F. Gas: Landlord shall provide gas service, meter and line sufficient for Tenant’s demand load with a minimum 3” line to roof top and gas line run to service RTU’s and water heaters as per Tenant’s plans. G. Fire Sprinklers: Landlord shall provide Primary service line, back flow preventer, inspectors test drain and overflow, past indicator valve, gauges and valves system, to include riser and primary distribution to meet code requirements. Landlord to provide code compliant sprinkler heads pointing up to accommodate Tenant’s space and have the main distribution line tight to the bottom of the bar joist. Tenant acknowledges that the riser servicing the Premises may be located outside the Premises and the riser may be servicing other tenants. Fire Alarm System to be provided as required by municipal codes and to be monitored by Landlord’s central panel, Landlord to include conduit, wiring and monitoring equipment as necessary. Landlord will also install remainder of fire sprinkler system from backside of shut-off valve. ATTACHMENT #2 - | ASPHALT WORK ===== PDF PAGE 82 ===== [Extraction: OCR (rendered-page OCR)] Pavestar, Inc 2324 Hamilton Road Arlington Heights, IL 60005 847-439-7827 20-8075940 atic Properties Sherwood Blitstein 555 Skokie Blvd Ste 204 Northbrook, IL 60062 Description AS PER ACCEPTED PROPOSAL. #1099 PAVEMENT RENOVATIONS INCLUDING MILLING, GRADE INSTALL BINDER MIX, INSTALL PRIMER, IN $280,630.00 CRACKFILLING, SEALCOATING AND RESTRIPING $7.600,00 PERMIT FE $2,078.00. TOTAL PROJECT COST STONE BASE, ADJUST SEWERS, LL. SURFACE MIX. AND LAYOUT AND STRIPE Invoice # 1/10/2020. 701 Invoice Mosaic Crossing 1851 Neltnor Blvd West Chicago, I. Total 290,308.00 $290,308.00 —_—_—_—_J