===== PDF PAGE 29 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO DEVELOPMENT COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: q.A. De-TIF/Re-TIF Agreement with Kane McKenna and Associates, Inc. for the Downtown TIF District FILE NUMBER: COMMITTEE AGENDA DATE: July 12, 2021 Resolution No. 21-R-0056 COUNCIL AGENDA DATE: July 19, 2021 STAFF REVIEW: Tom Dabareiner, AICP SIGNATURE APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE ITEM SUMMARY: It has long been planned that the Downtown TIF District, which is nearing its completion, would need to be re-defined to take financial advantage of the redevelopment of the downtown with new townhouses and apartment buildings. Kane McKenna and Associates, Inc. (KMA) proposes to assist the City in investigating the desirability and feasibility of terminating the existing Downtown TIF Redevelopment Project Area. In turn, they would update the boundaries, prepare revenue projections, estimate costs for eligible public improvements, complete a new Redevelopment Plan and Project, and assist with the Termination of the existing Downtown TIF and establishment of the new TIF. While the costs could be less, the not-to-exceed amount for this work is $45,500.00. The Resolution authorizes the Mayor to sign the related Agreement. A copy of the Agreement is attached to the Resolution. ACTION PROPOSED: Discuss and recommend approval of Resolution No. 21-R-0056. COMMITTEE RECOMMENDATION: On July 12, 2021, members of the Development Committee voted 6-1 in support of the Agreement with Kane, McKenna and Associates, Inc. to conduct and De-TIF/Re-TIF study, conditioned on making a few minor changes to the first page of the Agreement. Pe: Resolution No. 21-R-0056 ===== PDF PAGE 30 ===== [Extraction: OCR (rendered-page OCR)] Kane, McKenn a 150 North Wacker Drive T:. 312.444.1702 Suite 1600 F: 312.444.9052 Chicago, Illinois 60606 July 13, 2021 Mr. Michael Guttman City Administrator City of West Chicago 475 Main Street West Chicago, Illinois 60185 Re: Letter of Agreement — City or West Chicago Potential De-TIF/Re-TIF of Downtown TIF District TIF Dear Mr. Guttman: Kane, McKenna and Associates, Inc. (“KMA”) is prepared to assist the City of West Chicago (the “City”) regarding professional services associated with the review and analysis of the City’s Downtown TIF Redevelopment Plan and Project located within the City, and depicted in the map attached hereto (the “Project”). TASK 1 — UPDATE TIF QUALIFICATION REPORT AND RELATED FISCAL IMPACT REVIEW (1) Assist the City in investigating the desirability and feasibility of terminating the existing Downtown TIF Redevelopment Project Area and replacing it with a new Downtown TIF Redevelopment Project Area and other appropriate economic development incentives for funding certain redevelopment costs related to redevelopment of the Project. (2) Prepare preliminary estimates of tax increment revenues and supportable public assistance. (3) Review the characteristics of the Project area in order to update the specific boundaries of the TIF district and related economic development programs, and to assess the potential qualification factors (strengths and weaknesses) of any identified area under IIlinois law. ===== PDF PAGE 31 ===== [Extraction: OCR (rendered-page OCR)] Mr. Michael Guttman Page Two April 19, 2021 (4) Prepare a preliminary analysis which assesses the pros and cons of pursuing TIF or other forms of economic incentives. At a minimum, the Report will include the following: Review area for land use and conditions and summarize results. Establish preliminary project boundaries. Determine area qualifications for a potential TIF District. Prepare site survey analysis and identify necessary documentation to back up any findings. ae sp (5) In the event that other local financing programs or economic development tools are complimentary to or alternatives to TIF, KMA would identify programs and a strategy for implementing them and any conditions for their use in connection with the Project. (6) For presentation to the City, prepare the initial tax revenue projections and prepare related financing alternatives. Identify potentially eligible public improvements and other activities as well as potential public financing options. Estimated costs for Task | are $7,500 to $10,500. TASK 2 - COMPLETE NEW REDEVELOPMENT PLAN AND PROJECT Subject to the findings of Task 1 and associated deliberations of the City, under City direction complete the TIF Redevelopment Plan and Project required by the TIF law. Among other elements the Redevelopment Plan prepared for the proposed TIF District will include: (1) — A statement of redevelopment goals and objectives. (2) Examination of TIF qualification factors and presentation of rationale for basis under which the TIF District is to be justified under State law. (3) A statement of eligible redevelopment activities the City may allow under the plan. (4) Presentation of estimated costs for the redevelopment projects contemplated for implementation under the plan. ===== PDF PAGE 32 ===== [Extraction: OCR (rendered-page OCR)] Mr. Michael Guttman Page Three April 19, 2021 (5) A detailed discussion of impediments to the successful redevelopment of the project area and the measures the City could undertake to eliminate such barriers so as to promote economic revitalization of the project area. (6) Assist the City by participating in required public hearings, and Joint Review Board meetings, as well as helping to ensure preparation and execution of proper notification as required for all meetings. (7) Assist the City in participating in meetings with all interested and affected parties, including property owners, and overlapping tax jurisdictions. KMA will help the City to follow the procedures for such gatherings as required by State law. (8) Work with the City's counsel to meet all the requirements of Illinois law so as to insure proper establishment of the TIF District. (9) Assist City's counsel in preparation of the appropriate Ordinances required for adoption of the TIF Redevelopment Plan and Project by the City to legally put in place the TIF District. (10) Assist the City to establish and maintain complete documentation files to assure proper support of eligibility findings in order to support legal standing for establishment of the TIF District. Estimated costs for Task 2 are $25,000 to $30,000. TASK 3 — PREPARE FOR TERMINATION OF EXISTING DOWNTOWN TIF Subject to the findings of Task | and associated deliberations of the City: (1) Assist the City with preparing notices of proposed termination of the TIF to taxing districts (2) Assist City with reconciliation of existing TIF fund balances, revenues and expenditures. (3) Assist City's counsel in preparation of the appropriate Ordinances required for termination of the existing Downtown TIF Redevelopment Plan and Project by the City to legally terminate the existing Downtown TIF District. Estimated costs for Task 3 are $2,500 to $5,000. ===== PDF PAGE 33 ===== [Extraction: OCR (rendered-page OCR)] Mr. Michael Guttman Page Four April 19, 2021 COMPENSATION FOR SERVICES The City shall be billed monthly for services at the following rates per hour: Personnel Hourly Rates Chairman/President $225.00/Hour Executive Vice President $200.00/Hour Officers $175.00/Hour Associates $125.00/Hour Research $ 70.00/Hour Administrative $ 30.00/Hour Either party may cancel this contract upon three (3) days written notice. It is understood that the City intends to pass along costs incurred for the work to the proposed owner/developer. Please note that hourly billings do not include out of pockets for newspaper publications, large mailings, and the preparation of the legal descriptions ===== PDF PAGE 34 ===== [Extraction: OCR (rendered-page OCR)] Mr. Michael Guttman Page Four April 19, 2021 Please indicate City’s acceptance of this Agreement by executing the original and copy, and by returning the original to us. We look forward to working with you on this project. Sincerely, Philip R. McKenna President Nina J. Coppola Vice President AGREED TO: Philip R McKenna, President Date Kane, McKenna and Associates, Inc. City of West Chicago Date ===== PDF PAGE 35 ===== [Extraction: OCR (rendered-page OCR)] ALLELE LELLELE TL Pe LE Ce, YORK_AVE YORK AVE yy UL Sia ei MC CONNETAVE MC CONNELL AVE \ (ARBOR AVE SOPHIA ST GARDEN ST INGALTON AVE WASHINGTON ST SUMMIT AVE CITY OF WEST CHICAGO CENTRAL BUSINESS T.1F. DISTRICT ——+ RAILROAD A 54.5 ACRES TF BOUNDARY ([_] parcets